20061030_1715.pdf

DECISION MEMORANDUM
TO:CO MMISSI 0 NER KJELLAND ER
COMMISSIONER SMITH
CO MMISSI 0 NER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:DONOV AN E. WALKER
DATE:OCTOBER 27 2006
SUBJECT:AVISTA'APPLICATION FOR APPROVAL OF A CUSTOMER
ALLOCATION AGREEMENT WITH NORTHERN LIGHTS, INc., CASE
NO. A VU-06-
On September 7, 2006, A vista filed an Application to approve a Customer Allocation
Agreement with Northern Lights, Inc. pursuant to the Electric Supplier Stabilization Act (ESSA),
Idaho Code ~~ 61-332 et seq. The Agreement was executed pursuant to the provisions of the
Electric Supplier Stabilization Act (ESSA) and specifically Idaho Code ~ 61-333(1).
On October 2 , 2006, the Commission issued Order No. 30133 requesting that
interested persons file comments regarding the ESSA Agreement no later than October 23 2006.
Only the Commission Staff filed comments and it recommended that the Commission approve
the ESSA Agreement.
THE APPLICATION
According to the Application the parties have entered into an agreement pursuant to
the ESSA in order to allow A vista to supply electric service to a Northern Lights customer
Treeland Partners LLC (the Developer). Northern Lights has agreed to relinquish the right to
serve the development's 34-10t parcel in Sandpoint, Idaho to Avista.
The Application states that Northern Lights currently provides electric service to two
structures adjacent to a portion of the development. These two structures are currently scheduled
for demolition, and a new access road is scheduled to go in at the demolition site. The Developer
has requested Northern Lights to remove its electric facilities from the demolition site to enable
DECISION MEMORANDUM
the construction of the access road. Once the facilities are removed A vista will be the closest
utility to the majority of the 34 lots within the development.
According to the Customer Allocation Agreement (Attachment #1 to the
Application) the Developer has requested A vista to provide the backbone infrastructure and to
provide electric and natural gas services to the entire development, and that it is in the
Developer s best interest to have a single source utility provider to serve the development.
Northern Lights has agreed to allow Avista to provide electric service to the entire development.
Idaho Code ~ 61-333(1) provides that electric suppliers may contract for the purpose
of "allocating territories, consumers, and future consumers.. . and designating which territories
and consumers are to be served by which contracting electric supplier." Under the ESSA, both
Avista and Northern Lights are defined as electric suppliers. Idaho Code ~ 61-332A(4). After
notice and opportunity for hearing, the Commission may approve agreements allocating service
territories and customers between electric suppliers only upon finding that the allocation is in
conformance with the purposes of the ESSA. Idaho Code ~ 61-333A(1). As set out in Idaho
Code ~ 61-332(2), the purpose of the ESSA is to: discourage duplication of facilities; prohibit
pirating" of consumers; stabilize service territories and consumers; and promote harmony
between electric suppliers.
ST AFF COMMENTS
After reviewing the Application and the accompanYIng Agreement Staff
recommends that the Commission approve the Agreement. Staff recommends that the
Agreement is in conformance with the provisions and purposes of the ESSA, specifically those
found in Idaho Code ~ 61-332(2).
CO MMISSI ON D ECISI 0 N
Does the Commission wish to approve the Customer Allocation Agreement between
Avista and Northern Lights, Inc.? Does the Commission find that the Agreement comports with
the purposes of the ESSA?
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M:A VU-O6-06 dw2
DECISION MEMORANDUM