HomeMy WebLinkAbout20110222_3244.pdfDECISION MEMORANDUM 1
DECISION MEMORANDUM
TO: COMMISSIONER KEMPTON
COMMISSIONER SMITH
COMMISSIONER REDFORD
COMMISSION SECRETARY
COMMISSION STAFF
FROM: DON HOWELL
DEPUTY ATTORNEY GENERAL
DATE: FEBRUARY 9, 2011
SUBJECT: EXTENSION OF THE SERVICE TERRITORY AGREEMENT
BETWEEN AVISTA AND KOOTENAI ELECTRIC, CASE NO. AVU-E-01-
02
On March 21, 2001, the Commission issued Order No. 28681 approving a Service
Territory Agreement and its addendum between Avista Corporation (dba Avista Utilities) and
Kootenai Electric Cooperative, Inc. The Service Territory Agreement (“STA”) adopted a
methodology to determine which of the two parties may provide electric service to residential
developments containing six or more parcels pursuant to the Idaho Electric Suppliers
Stabilization Act (ESSA), Idaho Code § 61-333(1).
THE STA
In the STA, the parties agree that electric service to an entire residential development
and subsequent additions to such development shall be determined by which supplier serves at
least one of the lots in the subdivision pursuant to the provisions contained in Idaho Code § 61-
332C.1 The STA also provides that the term of the Agreement shall be for 10 years, but the
Agreement also provides that it shall be automatically extended “for successive periods of ten
(10) years upon the same terms and conditions set forth in this Agreement unless one of the
parties” elects to terminate the Agreement.
As approved by the Commission in Order No. 28681, the STA, unless extended, was
to expire February 15, 2011. Either party could terminate the Agreement by notifying the other
1 This section generally provides that the nearest electrical supplier within a quarter-mile of a new customer has the
“right to serve” the new customer. If there is no electrical supplier within a quarter-mile of the new customer, then
the customer has a right to choose a supplier. Idaho Code § 61-332C(1).
DECISION MEMORANDUM 2
“not less than sixty (60) days before the end of the initial, or renewal term of [its] intent not to
renew the agreement.” Contract, § 3.
On January 31, 2011, Avista filed a letter advising the Commission that neither
“Avista Utilities nor Kootenai Electric notified each other regarding their intent not to renew the
Agreement.” Consequently, the letter stated that the STA has been extended for another 10 year
term, or until February 15, 2021.
STAFF RECOMMENDATION
For purposes of updating the administrative record, the Staff recommends that the
Commission issue a Minute Order acknowledging receipt of the Avista letter and noting that the
Service Territory Agreement between Avista Utilities and Kootenai Electric will remain in force
until February 15, 2021.
COMMISSION DECISION
Does the Commission agree that a Minute Order is appropriate to recognize the 10-
year extension of the Service Territory Agreement approved in Order No. 28681?
bls/M:AVU-E-01-02_dh_2011