825 NE Multnomah, Suite 2000 PACIFIC POWER Portland, Oregon 97232 A DIVISION OF PACIFICORP August 17,2010 VIA ELECTRONIC FILING AND OVERNIGHT DELIVERY Oregon Public Utility Commission 550 Capitol Street NE, Suite 215 Salem, OR 97301-2551 Attn: Filing Center RE: UP _ - Application Requesting Approval of Sale of the Terminal-Camp Williams Property Enclosed for filing by PacifiCorp dba, Pacific Power is an Application Requesting Approval ofthe Sale of the Terminal-Camp Williams Property. An original and one (1) copy will be provided via overnight delivery. PacifiCorp respectfully requests that all data requests regarding this matter be addressed to: By E-mail (preferred): By regular mail: Data Request Response Center PacifiCorp 825 NE Multnomah, Suite 2000 Portland, OR 97232 Please direct informal questions with respect to this filing to J oelle Steward, Regulatory Manager, at (503) 813-5542. Very truly yours, ~ - I 1 ~ ;\ f\ \jUffi l Andrea L. Kelly Vice President, Regulation Enclosure BEFORE THE PUBLIC UTILITY COMMISSION OF OREGON UP In the Matter of the Application of PACIFICORP Requesting Approval of the APPLICA nON OF P ACIFICORP AND Sale of the Terminal-Camp Williams WAIVER OF PAPER SERVICE Property 1 Pursuant to ORS 757.480(1)(a) and OAR 860-027-0025, PacifiCorp, d.b.a. Pacific 2 Power ("Company"), seeks approval from the Public Utility Commission of Oregon 3 ("Commission") for the sale of property located in Herriman, Utah, referred to by the 4 Company and in this Application as "Terminal-Camp Williams." Additionally, pursuant to 5 OAR 860-013-0070(4), the Company respectfully waives paper service in this docket. ORS 6 757.480(1) requires the Commission's prior approval for the sale of any property that is 7 necessary or useful in the performance of the Company's duties to the public. 8 I. Background 9 The Company owns and maintains certain property in Salt Lake County, Utah, for the 10 purpose of supporting the Terminal-Camp Williams transmission corridor. The Utah 11 Department of Transportation ("UDOT") is now in the process of constructing the Mountain 12 View Corridor, which is a project to develop a planned freeway, transit and trail system in 13 Salt Lake County and other western Utah counties. Portions of the Mountain View Corridor 14 will cross PacifiCorp property. UDOT owns property adjacent to the Terminal-Camp 15 Williams transmission corridor. To proceed with the Mountain View Corridor project, 16 UDOT desires to exchange "like-for-like" property with PacifiCorp so that UDOT may 17 proceed with the plans for the Mountain View Corridor. The value of the transaction is 18 $976,390.87. However, no funds will be exchanged. Because no funds will be exchanged, Page 1- UP PacifiCorp Application Terminal-Camp Williams Exchange 1 there will be no gain or refund on this exchange. Therefore, there will be no entries to the 2 Oregon property sales balancing account. 3 PacifiCorp and UDOT are finalizing the terms and conditions, other than value and 4 amount of land to be exchanged, of the transaction. Included with this Application as 5 Attachment A is a copy of the standard Property Exchange Agreement. The Company does 6 not anticipate material changes to this agreement for this transaction. 7 II. Compliance with OAR 860-027-0025(1) Filing Requirements 8 A. Address 9 The Company's exact name and address of its principal business office are: 10 PacifiCorp 11 825 NE Multnomah Street 12 Portland, OR 97232 13 B. State in which incorporated; date of incorporation; other states in which 14 authorized to transact utility business 15 PacifiCorp is a corporation organized and existing under and by the laws of the State 16 of Oregon. PacifiCorp's date of incorporation is August 11, 1987. PacifiCorp is authorized 17 to provide retail electric service in Oregon, California, Washington, Idaho, Wyoming and 18 Utah. 19 c. Communications and notices 20 All notices and communications with respect to this Application should be addressed 21 to: PacifiCorp Oregon Dockets Michelle Mishoe 825 NE Multnomah, Ste 2000 Legal Counsel Portland, OR 97232 PacifiCorp Email: ~~!lJd~~~@~1lli~~Qm 825 NE Multnomah, Ste 1800 Portland, OR 97232 Telephone: 503.813.5977 Facsimile: 503.813.7252 Email: ~~~~~~~~~~~~~~ Page 2- UP PacifiCorp Application Terminal-Camp Williams Property Exchange 1 In addition, PacifiCorp respectfully requests that all data requests regarding this 2 matter be addressed to: 3 Bye-mail (preferred) 4 By regular mail Data Request Response Center 5 PacifiCorp 6 825 NE Multnomah, Suite 2000 7 Portland, OR 97232 8 Informal inquires may also be directed to Joelle Steward, Regulatory Manager at 9 (503) 813-5542. 10 D. Principal officers Name Title Gregory E. Abel Chairman of the Board of Directors & Chief Executive Officer Micheal Dunn President, PacifiCorp Energy A. Richard Wa~je President, Rocky Mountain Power R. Patrick Reiten President, Pacific Power Douglas K. Stuver Senior Vice President & Chief Financial Officer Mark C. Moench Senior Vice President & General Counsel Bruce N. Williams Vice President, Treasurer Natalie L. Hocken Vice President & General Counsel, Pacific Power 11 E. Description of business; designation of territories served 12 The Company engages in the generation, purchase, transmission, distribution and sale 13 of electric energy in Benton, Clatsop, Coos, Crook, Deschutes, Douglas, Gilliam, Hood 14 River, Jackson, Jefferson, Josephine, Klamath, Lake, Lane, Lincoln, Linn, Marion, Morrow, 15 Multnomah, Polk, Sherman, Tillamook, Umatilla, Wallowa, and Wasco Counties in Oregon. 16 PacifiCorp also engages in the generation, purchase, transmission, distribution and sale of 17 electric energy in the states of Washington, California, Idaho, Wyoming and Utah. Page 3 UP __ PacifiCorp Application Terminal-Camp Williams Property Exchange 1 F. Statement showing for each class and series of capital stock: brief 2 description; amount authorized; amount outstanding; amount held as 3 required securities; amount pledged; amount owned by affiliated 4 interests; amount held in any fund 5 Not applicable. See request for waiver in Section IV below. 6 G. Statement showing for each class and series of long-term debt and notes: 7 brief description of amount authorized; amount outstanding; amount 8 held as required securities; amount pledged; amount held by affiliated 9 interests; amount in sinking and other funds 10 Not applicable. See request for waiver in Section IV below. 11 H. Purpose of application; description of consideration and method of 12 arriving at amount thereof 13 The Company seeks approval of the exchange of the Terminal-Camp Williams 14 Property, with a value of $976,390.87. To determine fair market value, the Company used a 15 formal third-party appraisal for UDOT's property to be given the Company, dated February 16 12, 2010. The appraisal values UDOT's property at $145,926 per acre, which, after the 17 Company's review and evaluation, was found to be a reasonable value. The Company also 18 determined the value to be reasonable for the Terminal-Camp Williams Property, as the two 19 properties are adjacent to each other and share similar characteristics. Included with this 20 Application as Attachment B is a copy of the Appraisal. 21 I. Statement of facilities to be disposed of; description of present use and 22 proposed use; inclusion of all operating facilities of parties to the 23 transaction 24 The Company uses the Terminal-Camp Williams Property to support its Terminal- 25 Camp Williams transmission corridor located in Salt Lake County, Utah. UDOT is in the 26 process of constructing its Mountain View Corridor, which is a project to develop a planned 27 freeway, transit and trail system in Salt Lake County and other western Utah counties. As 28 part of this process, UDOT is working with affected land owners to acquire necessary rights- 29 of-way either through easements or fee ownership. Certain Company property is located Page 4 - UP __ PacifiCorp Application Terminal-Camp Williams Property Exchange 1 within the planned Mountain View Corridor route. UDOT desires the Terminal-Camp 2 Williams Property to complete its Mountain View Corridor construction. With this 3 transaction, UDOT and PacifiCorp will exchange adjacent parcels of property, each 4 consisting of 6.691 acres. The Company's transmission facilities located on the Terminal- 5 Camp Williams Property will be relocated at UDOT's expense. 6 J. Statement by primary account of cost of the facilities and applicable 7 depreciation reserve 8 PacifiCorp will transfer the original book value ($54,313) of the traded asset from 9 the original asset to a new asset. FERC account 101, Electric Plant in Service will not be 10 affected because the Company will simply move book value from one asset to another. 11 K. Required filings with other state or federal regulatory bodies 12 In addition to this Application, the Company also filed an advice letter with the 13 California Public Utilities Commission. 14 L. Facts relied upon by applicant to show transaction is within the public 15 interest 16 ORS 757.480 requires Commission approval for sales of property necessary and 17 useful in the performance of public service with a value in excess of $100,000. See ORS 18 757.480(1)(a). OAR 860-027-0025(1)(1) requires that the utility show that such a proposed 19 sale is "consistent with the public interest." The Commission has previously held that this 20 standard requires only a "no harm" showing. 1 1 See, e.g., In the Matter of a Legal Standard for Approval of Mergers, Docket UM 1011, Order No. 01-778 (Sept. 4, 2001) ("The remainder of the statutory scheme, those statutes governing transfer, sale, affiliated interest transactions, and contracts, either expresses no standard (for instance, ORS 757.480, .485) and has been read to require a no harm standard, or contains a 'not contrary to the public interest' standard (ORS 757.490, .495.)") (emphasis added); In the Matter ofthe Application ofPacijiCorp, Docket UP 168, Order No.