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,