20240606Final_Order_No_36214.pdf

Office of the Secretary
Service Date
June 6,2024
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION ) CASE NO. C12-E-24-03
OF RIVERSIDE ELECTRIC COMPANY, )
LIMITED AND EAST END MUTUAL ) ORDER NO. 36214
ELECTRIC FOR AN ORDER APPROVING A )
SERVICE TERRITORY AGREEMENT )
BETWEEN THE APPLICANTS )
On February 2, 2024, Riverside Electric Company, Limited ("Riverside") and East End
Mutual Electric ("East End") (collectively "Parties") filed an application with the Idaho Public
Utilities Commission ("Commission") for approval of a Service Territory Agreement
("Agreement") between Riverside and East End.
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§ 61-33213. 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(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 APPLICATION
The Parties represented that for some time they have had a territory agreement between
them. Application at 2. The Parties stated that such agreement predates the amendment to Idaho
Code § 61-333 that requires Commission approval of territory agreements; therefore, the Parties
ORDER NO. 36214 1

sought 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 represented 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
stated that they believed the Agreement was in the best interest of both entities and the customers
of both entities.Id.
STAFF COMMENTS
Commission Staff ("Staff') reviewed the Agreement and recommended that the
Commission approve it and order the Parties to submit a compliance filing with an executed
Agreement.
Staff believed the Agreement was in conformance with the provisions and intent of the
ESSA. Staff explained that the Agreement included several terms and conditions that Staff
believed are consistent with the purpose of ESSA including: (1) the defined boundaries between
the two service territories that each Party 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 Parry; and(4)the exceptions
of customers in the defined territories.
Staff noted that Paragraph 5 of the Agreement provided that the prevailing party in any
action under the Agreement shall be entitled to reasonable attorney fees. However, Staff believed
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 noted that the Agreement provided with the Application was not executed.
Staff believed an executed Agreement should be provided to the Commission for the
Commission's records. Staff recommended that the Commission order the Parties to submit a
compliance filing with a copy of the executed Agreement.
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. 36214 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 the Parties are "electric suppliers" as defined in the ESSA.
Having reviewed the Application, the Agreement, the record, and all submitted materials, the
Commission finds that the 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 Agreement is approved.
IT IS FURTHER ORDERED that the Parties submit an executed Agreement to the
Commission within 30 days of this order.
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
and 62-619.
ORDER NO. 36214 3

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho, this 61h day of
June 2024.
ERI AND SON, PRESIDENT
J IN R. HAMMOND JR., COMMISSIONER
G
Gv�
EDWARD LODGE, CqMMISSIONER
ATTEST:
konica arrio - the
Commission Secretary
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ORDER NO. 36214 4