20240416Final_Order_No_36137.pdf.pdf

Office of the Secretary
Service Date
April 16,2024
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF UNITED ELECTRIC ) CASE NO. C15-E-23-01
CO-OP INC.'S FORMAL COMPLAINT FOR )
VIOLATION OF CONTRACT ENTERED ) ORDER NO. 36137
INTO PURSUANT TO THE IDAHO )
ELECTRIC STABILIZATION ACT )
On February 22, 2023, United Electric Co-op, Inc. ("United") filed a formal complaint
("Complaint") with the Idaho Public Utilities Commission ("Commission"). United alleged that
the City of Burley, Idaho ("Burley" or "City"), violated a series of service agreements
("Agreements") related to the allocation of the respective electric service territory and customers
by and between the City and United, which were entered into pursuant to the Idaho Electric
Supplier Stabilization Act("ESSA"), and that have been approved by order of the Commission.
On January 11, 2024, United and Burley filed a joint application pursuant to the ESSA to
approve a Customer Allocation Agreement ("Application"). United and Burley request that the
Commission issue an order approving the Customer Allocation Agreement without modification
or condition. United and Burley represent that once an order is issued, final, and non-appealable,
United will submit a notice of withdrawal of its Complaint.
BACKGROUND
The ESSA prohibits an electric supplier(e.g.,a utility,municipality,or co-op)from serving
another electric supplier's existing or former customers.Idaho Code§ 61-332B. Section 61-332(2)
provides that the purposes of the ESSA are to: (1) promote harmony between electric suppliers;
(2) prohibit the "pirating" of consumers; (3) discourage duplication of electric facilities; (4)
actively supervise the conduct of electric suppliers; and (5) stabilize service territories and
consumers. The ESSA enables electric utilities to allocate territories and customers if certain
conditions are satisfied. The ESSA allows electric suppliers to 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."Idaho Code § 61-333(l). Such
contracts must be submitted to the Commission for approval. Id. The Commission will approve
contracts reviewed under the ESSA if, after notice and opportunity for hearing, the Commission
ORDER NO. 36137 1

finds that the agreement conforms with the purposes of the ESSA. See Idaho Code §§ 61-333(1)
and 61-334B(1).
THE APPLICATION
United and Burley represent that the Customer Allocation Agreement fully resolves the
dispute between the parties relative to the provision of electric service to the Suntado milk
processing plant. Application at 2. United and Burley also represent that the Customer Allocation
Agreement furthers the purposes and intent of the ESSA by promoting continued harmony between
electric suppliers,preventing the pirating of customers,and discouraging the duplication of electric
facilities.Id. United and Burley conclude that the Customer Allocation Agreement is in the public
interest.Id.
STAFF COMMENTS
Staff reviewed the Application for the customer allocation associated with this case, and
supported the proposed Customer Allocation Agreement. According to the Customer Allocation
Agreement, United will allow the City to provide electric service to Suntado, which is designated
on a map included as Exhibit A of the Application. Suntado is located within the service territory
of United, but Suntado requested electrical service from the City. Staff noted that the Customer
Allocation Agreement includes several terms and conditions that Staff believed are consistent with
the purpose of the ESSA.
The Customer Allocation Agreement provides: (1) The City will bear full responsibility
for serving Suntado during the term of the Customer Allocation Agreement; (2) The City is
prohibited from extending facilities into United's service territory without permission; (3) The
City will pay United a Service Allocation Fee of three percent of Suntado's gross billings; and(4)
the existing service territory allocation agreements between the City and United are recognized.
Based on its review, Staff believed that the Customer Allocation Agreement furthers the
ESSA's purposes by avoiding duplication of facilities and promoting harmony between suppliers,
and Staff believed the Customer Allocation Agreement is in conformance with the provisions and
intent of the ESSA.
COMMISSION FINDINGS AND DECISION
The ESSA generally prohibits an "electric supplier" from serving another electric
supplier's existing or former customers. Idaho Code § 61-332B. An "electric supplier" is any
public utility, cooperative, or municipality supplying or intending to supply electric service to a
ORDER NO. 36137 2

consumer. Idaho Code § 61 -332A(4). The purposes of the ESSA's are to: (1) promote harmony
between electric suppliers; (2)prohibit the "pirating" of consumers; (3) discourage duplication of
electric facilities; (4) actively supervise the conduct of electric suppliers; and(5) stabilize service
territories and consumers.Idaho Code § 61-332(2).
As an exception to the general rule barring electric suppliers from serving each other's
customers,the ESSA allows electric suppliers to 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." Idaho Code § 61-333(1). However, the contracts
are subject to Commission approval. Id. Specifically, the Commission must approve the contract
if,after notice and opportunity for hearing,the Commission finds that the allocation conforms with
the purposes of the ESSA.Idaho Code §§ 61-333(1) and 61-334B(1).
The Commission finds that United and Burley are "electric suppliers" as defined in the
ESSA. Having reviewed the Customer Allocation Agreement, the record, and all submitted
materials, the Commission finds that the Customer Allocation Agreement conforms with the
purposes of the ESSA because it will avoid the duplication of facilities and will promote harmony
between the parties.
ORDER
IT IS HEREBY ORDERED that the Customer Allocation Agreement is approved.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date upon this Order regarding any
matter decided in this Order. Within seven (7) days after any person has petitioned for
reconsideration, any other person may cross-petition for reconsideration. Idaho Code §§ 61-626.
ORDER NO. 36137 3

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho, this 16fl'day of
April 2024.
ERIC ANDERSON, PRESIDENT
/OHNR. HAMMOND JR., COMMISSIONER
EDWARD LODbE,idOMMISSIONER
ATTEST:
Mon' rr os-S
vu,sene=
Commission Secretary
I:\Legal\ELEC TRIC\C 15-E-23-01\orders\C 15 E23 01_CAA_FO_cb.docx
ORDER NO. 36137 4