20240417Staff Comments.pdf

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Wedriesday,April 17,2024 3:23:26 PM
IDAHOPUB IC
UIIITIES C101VMSg0N
CHRIS BURDIN
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 9810
Street Address for Express Mail:
11331 W CHINDEN BLVD, BLDG 8, SUITE 201-A
BOISE, ID 83714
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF RIVERSIDE ELECTRIC COMPANY, ) CASE NO. C12-E-24-02
LIMITED AND CITY OF RUPERT FOR AN )
ORDER APPROVING A SERVICE )
TERRITORY AGREEMENT BETWEEN THE ) COMMENTS OF THE
APPLICANTS ) COMMISSION STAFF
COMMISSION STAFF ("STAFF") OF the Idaho Public Utilities Commission, by and
through its Attorney of record, Chris Burdin, Deputy Attorney General, submits the following
comments.
BACKGROUND
On February 2, 2024, Riverside Electric Company, Limited("Riverside") and City of
Rupert ("Rupert") (collectively"Parties") filed an application with the Idaho Public Utilities
Commission("Commission") for approval of a Service Territory Agreement("Agreement")
between Riverside and Rupert.
The Idaho Electric Stabilization Act("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;
STAFF COMMENTS 1 APRIL 17, 2024

(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(1). 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 finds that the Agreement
conforms with the purposes of the ESSA. See Idaho Code §§ 61-333(1) and 61-334B(1).
The Parties represent that they have for some time had a territory agreement between
them. Application at 2. The Parties state that such agreement predates the amendment to Idaho
Code § 61-333 that requires Commission approval of territory agreements; therefore, the Parties
seek Commission approval of a written memorialization of the existing territory agreement. Id.
The Parties included a copy of the Agreement attached as Exhibit 1 to the Application. Id.
The Parties represent that the Agreement was negotiated between the Parties in order to
settle a service territory between the Parties, provide for stability of service with consumers, to
eliminate duplicating of services, and to provide safety in the respective territories. Id. The
Parties state that they believe the Agreement is in the best interest of both entities and the
customers of both entities. Id.
STAFF ANALYSIS
Commission Staff("Staff') reviewed the Service Territory Agreement and recommends
the Commission approve the Agreement and order the Parties to submit a compliance filing with
the executed Agreement.
Staff believes the Agreement is in conformance with the provisions and intent of the
ESSA. The Agreement includes several terms and conditions that Staff believes are consistent
with the purpose of ESSA. Some important terms and conditions include: (1) the defined
boundaries between the two service territories that each Parry will use to serve new customers;
(2)the assignment of existing customers in the defined territories; (3) a process for entering into
a written agreement to serve a new customer that can be more efficiently served by the other
Party; and(4) the exceptions of customers in the defined territories.
STAFF COMMENTS 2 APRIL 17, 2024

Paragraph 5 of the Agreement provides that the prevailing party in any action under the
Agreement shall be entitled to reasonable attorney fees. However, Staff notes that under Public
Utilities Law, the Commission does not have authority to award attorney fees other than
intervenor funds pursuant to Idaho Code § 61-617A. See Idaho Power Company v. Idaho PUC,
102 Idaho 744, 639 P.2d 442 (1981).
Further, Staff notes that the Agreement provided with the Application is not an executed
agreement. Staff believes a copy of the executed Agreement should be provided to the
Commission so that the Commission has a record of the executed Agreement. Staff recommends
the Commission order the Parties to submit a compliance filing with a copy of the executed
Agreement.
STAFF RECOMMENDATION
Staff recommends the Commission approve the Agreement and order the Parties to
submit a compliance filing with the executed Agreement.
Respectfully submitted this 17th day of April 2024.
Chris Burdin
Deputy Attorney General
Technical Staff: Michael Eldred
Kevin Keyt
I:\Utility\UMISC\COMMENTS\C I2-E-24-02_Comments.docx
STAFF COMMENTS 3 APRIL 17, 2024

CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 17th DAY OF APRIL 2024, SERVED
THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN CASE NO. C12-
E-24-02, BY MAILING A COPY THEREOF, POSTAGE PREPAID, TO THE
FOLLOWING:
ALAN GOODMAN LANCE D STEVENSON
717 7TH STREET 715 6TH STREET
PO BOX D RUPERT ID 83350
RUPERT ID 83350
PATRICIA JORD , SECRETARY
CERTIFICATE OF SERVICE