HomeMy WebLinkAbout20130114_3943.pdfDECISION MEMORANDUM 1
DECISION MEMORANDUM
TO: COMMISSIONER KJELLANDER
COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM: KARL KLEIN
DEPUTY ATTORNEY GENERAL
DATE: JANUARY 11, 2013
SUBJECT: AVISTA’S APPLICATION FOR APPROVAL OF A TERRITORY
ALLOCATION AGREEMENT WITH KOOTENAI ELECTRIC
COOPERATIVE, CASE NO. AVU-E-13-01
On January 7, 2013, Avista Corporation dba Avista Utilities applied to the
Commission for an Order approving Avista’s Developer Release Agreement with Kootenai
Electric Cooperative and Copper Basin Construction. The Agreement would enable Avista to
install electric distribution facilities and provide electric service to and within Copper Basin’s
commercial/multi-family development in Coeur d’Alene, Idaho under the Electric Supplier
Stabilization Act (ESSA), Idaho Code §§ 61-332 et seq. Avista asks the Commission to process
the Application by Modified Procedure. Staff agrees that Modified Procedure should be used.
THE APPLICATION
The Application says that Copper Basin Construction is developing a
commercial/multi-family property at Seltice Way and Grand Mill Avenue in Coeur d’Alene.
Avista has electric service rights on the development’s north and east sides and at the service
point on the development’s south and southwest side. Application at 1. According to the
Application, Copper Basin wants to enter into an electric extension agreement that allows Avista
to install electric distribution facilities and provide electric service throughout the development.
Id. at 1-2. Kootenai Electric has thus agreed to release its rights to provide electric service to
those structures within Copper Basin’s development that are near Kootenai Electric’s service
points, and Avista has agreed to install the facilities and provide electric service within the
development. Id. at 3.
DECISION MEMORANDUM 2
According to the Application, approving the Developer Release Agreement and
allowing Avista to install the facilities and provide electric service throughout the development
offers several benefits. First, it creates cost efficiencies by avoiding duplicate services and
allowing the developer to coordinate work with one utility. Second, it enhances worker safety by
allowing one utility to coordinate the work. Third, it creates electric service continuity in the
development and enhances customer satisfaction. Fourth, the developer will be eligible for
Avista’s demand-side management program and will install more energy efficient equipment.
Id. at 2.
THE ESSA
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 Kootenai Electric 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.
STAFF RECOMMENDATION
Staff recommends that the Application be processed by Modified Procedure with a
21-day comment period.
COMMISSION DECISION
Does the Commission preliminarily find that the public interest may not require a
hearing to consider the issues and that this case should be processed by Modified Procedure
under Commission Rules of Procedure 201 through 204?
M:AVU-E-13-01_kk