20240430Final_Order_No_36168.pdf

Office of the Secretary
Service Date
April 30,2024
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF AVISTA'S ) CASE NO. AVU-E-24-01
APPLICATION FOR APPROVAL OF AN )
AGREEMENT ALLOCATING TERRITORY )
WITH KOOTENAI ELECTRIC ) ORDER NO. 36168
COOPERATIVE )
On January 8, 2024, Avista Corporation dba Avista Utilities ("Company") applied for
approval of a Service Area Allocation Agreement ("Agreement") between the Company and
Kootenai Electric Cooperative, Inc. ("KEC").
On February 15, 2024, the Commission issued a Notice of Application and Notice of
Modified Procedure, setting public comment and company reply deadlines. Order No. 36091. Staff
filed the only comments.
Having reviewed the record, the Commission issues this Order approving the
Company's application as follows.
THE APPLICATION
The Agreement,which the Company and KEC entered pursuant to the Electric Supplier
Stabilization Act ("ESSA"), addressed the allocation of service territory within the Prairie
Crossing Regional Shopping Center in Post Falls, Idaho ("Development"). The Agreement
allocated four lots within the Development to the Company and ten lots to KEC. Specifically,KEC
will serve Block Two Lots 1-10 and the Company will serve Block Two Lots 11-14 at the Prairie
Crossing Regional Shopping Center.
The Company asserted that approval of the Agreement will avoid unnecessary future
disputes, needless duplication of facilities, and ensure provision of the best possible service to the
parties' respective customers. The Company represented that the Commission approved a similar
agreement between the Company and KEC allocating territory in a commercial development in
Case No. AVU-E-05-02.
STAFF COMMENTS
After reviewing the Company's Application, the Agreement, and the Company's
responses to Production Requests, Staff recommended approval of the Agreement. Staff reviewed
the Application and Agreement with a focus on ensuring conformance with the ESSA and to
ORDER NO. 36168 1

determine the locations of both the Company's and KEC's nearest service lines and territories.
Staff believed this allocation is fair and reasonable, conforms with the ESSA, avoids duplication
of services, stabilizes service territories and customers, and promotes harmony by avoiding
interconnection disputes.
COMMISSION FINDINGS AND DECISION
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. An
"electric supplier" is any public utility, cooperative, or municipality supplying or intending to
supply electric service to a consumer. Idaho Code § 61 -332A(4). 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. Idaho Code § 61-332(2).
As an exception to the general rule prohibiting inter-utility service, 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. Specifically, the Commission must approve the contract if, after
notice and opportunity for hearing, the Commission finds that the proposed allocation conforms
with the purposes of the ESSA. Idaho Code §§ 61-333(1) and 61-334B(1).
The Commission finds that the Company and KEC are "electric suppliers" as defined
in the ESSA. Having reviewed the Agreement, the comments, and all submitted materials, the
Commission further finds that the Agreement conforms with the purposes of the ESSA because it
will avoid the duplication of facilities and promote harmony between the Parties.
ORDER
IT IS HEREBY ORDERED that the Agreement is approved as filed.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order about 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. See Idaho Code § 61-626.
ORDER NO. 36168 2

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 30th day
of April 2024.
ERIC ANDERSON, PRESIDENT
HN R. HAMMOND JR., COMMISSIONER
G
EDWARD LODGE, MMISSIONER
ATTEST:
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M ni a arri c
Commission Secretary
I:\Legal\ELECTRIC\A V U-E-24-01_KEC\orders\A V UE2401_fmal_at.docx
ORDER NO. 36168 3