Download Annual Report - The Idaho Energy Resources Authority

1015 W. H AYS S T , B OISE , I DAHO 83702
P H 208.344.6633
2015 ANNUAL REPORT
OF THE
IDAHO ENERGY RESOURCES AUTHORITY
The Idaho Energy Resources Authority (“IERA” or the “Authority”) is an
“independent public body politic and corporate”1 created in 2005 for the purpose of
facilitating the financing of electric generation, transmission and distribution facilities
and renewable energy resources for the benefit of Idaho utilities and consumers. 2
Board Appointments
In January of 2016, E. Robert (Bob) Mooney completed his 12 years of service as
Chairman of the IERA Board, when Governor Otter appointed Michael (Mike) M.
Mooney to a serve as Bob’s replacement. Mike Mooney is recently retired, working for
42 years in the Idaho banking industry, the last 20 as President/CEO of Bank of the
Cascades, Idaho Region (and its predecessor companies). Randy Hill became the IERA
Chairman in January of 2016.
Project Development, Financings and Operations
The IERA and the Bonneville Power Administration (“Bonneville” or “BPA”)
signed a 2013 Master Memorandum of Intent (“MOI”) indicating BPA’s intent to request
that the IERA participate in two transmission facilities lease-purchase transactions on
behalf of Bonneville. In 2014, BPA and the IERA entered into the first MOI transaction
of approximately $110 million for the construction of improvements to the Morrow
substation and related transmission lines and equipment.
In late 2015, representatives from the IERA and BPA met to discuss the
possibility of Bonneville using the Authority for a long term lease-purchase transaction in
2016 or 2017 involving the issuance of IERA bonds.
The Authority does not manage or operate any facilities. Pursuant to the 2014
Credit Agreement and Lease Agreement, Bonneville manages and operates all facilities
financed by the IERA and constructed by Bonneville.
1
2
Idaho Code § 67-8904
Idaho Code § 67-8902
Legislative Matters
As a result of financing discussions with Bonneville, the IERA drafted and
sponsored 2015 legislation: (i) confirming that the Authority is not a taxing district and
cannot file for bankruptcy, (ii) further clarifying that the Authority may pledge and assign
its interest in a facility to a participating utility for whom it is providing financing, and
(iii) providing additional powers to the IERA so that it may finance conservation
measures for Bonneville. This legislation – Senate Bill 1024 – was signed into law and
became effective on March 18, 2015.
http://www.legislature.idaho.gov/legislation/2015/S1024.htm]
Financial Matters
Attached are 2015 audited financial statements of the Authority providing an
accounting of its receipts and expenditures during the 2015 fiscal year, and its assets and
liabilities as of December 31, 2015.
2