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HomeMy Public PortalAboutLetter - ShimunStan Craven McCall District Manager P.O. Box 904 McCall, Idaho 83638 (208) 634-2116 February 10, 1995 Mr. Gary Shimun McCall City Manager P.O. Box 1065 McCall, Idaho 83638 Dear Mr. Shimun: I am writing in response to your January 18, 1995, letter. Your letter requests certain information from Idaho Power, which the following is intended to address. For the year 1994, Idaho Power received approximately $2,164,399 in revenue from all customers located within the McCall city limits. Regarding your request for projected revenues for the next few years, the Company defers that projection to the City of McCall, based on the City's projections of growth for future years. The Company agrees with your assessment regarding our interest in establishing a fair and equitable franchise agreement with the City. It is also our desire that a franchise agreement be satisfactory to both the Company and the City. The Company initially provided the City with a copy of our standard Idaho franchise agreement, and subsequently offered comments on the draft franchise agreement presented by the City. It is our hope that a franchise agreement can be reached consistent with these Idaho Power proposals. However, we should point out that if the City desires to include franchise fees in an Idaho Power franchise agreement, this issue should be deferred for the time being. You are probably aware that a bill is before the Idaho Legislature addressing utility franchises and, specifically, franchise fees. A coalition of utilities is supporting House Bill 153, which would clarify and further define the issue of utility franchise fees. Should the bill pass and be signed in to law, the provisions contained within the bill will provide significant guidance to the utilities and cities regarding future franchise agreements. It is, therefore, the opinion of the Company that pending the outcome of the legislative effort, it is premature for the Company and the City to address franchise fees in a new franchise agreement. The Company is, however, interested in continuing the discussions with the City on renewing the expired Franchise agreement as we have previously proposed. We would also be willing to consider a shorter term, such as five years, for such a franchise agreement. If this is not possible, once the final status of House Bill 153 is known, the Company will be very interested in resuming negotiations with the City on the franchise agreement. For many years, Idaho Power has had a good working relationship with the City of McCall. It is the Company's intention to continue this relationship, and also cooperate where appropriate on projects that are required to provide electric service to the citizens of McCall. In that regard, the Company will continue to secure permits from the City, as currently required, to complete projects within the municipal boundaries. I will also inform you about other large projects that do not currently require a permit from the City. In this regard, it is important to recognize that Idaho Power is obligated to provide service to its customers under the Certificate of Convenience and Necessity granted by the Idaho Public Utilities Commission. I am hopeful the City's current permit and approval process will not change significantly and result in delays to the Company's ability to fulfill the obligation to serve its customers. In the meantime, if all currently required permits are secured, it is the Company's intention to proceed with these projects as we have in the past. I hope this information is helpful to you. If you have any questions or would like to have further information regarding the Company's comments, please call me. Sincerely,