20250731Final_Order_No_36696.pdf

Office of the Secretary
Service Date
July 31,2025
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION ) CASE NO. C12-E-25-01
OF RIVERSIDE ELECTRIC COMPANY, )
LIMITED AND CITY OF RUPERT FOR AN )
ORDER APPROVING A SERVICE ) ORDER NO. 36696
TERRITORY AGREEMENT BETWEEN THE )
APPLICANTS )
On April 16, 2025, Riverside Electric Company, Limited("Company") and City of Rupert
("Rupert") (collectively "Parties"), applied to the Idaho Public Utilities Commission
("Commission") requesting approval of a Service Territory Agreement ("Agreement") between
the Parties ("Application").
On May 20, 2025,the Commission issued a Notice of Application and Notice of Modified
Procedure, establishing a June 25, 2025, deadline for public and Commission Staff ("Staff')
comments, and a July 2, 2025, deadline for the Parties to file reply comments. Order No. 36607.
Staff filed comments. No other public comments were received and the Parties did not respond.
Based on our review of the record,the Commission now issues this Final Order approving
the Agreement between the Parties.
BACKGROUND
The Electric Supplier 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.Idaho Code § 61-332(2)provides that the purpose of the ESSA
is 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
ORDER NO. 36696 1

opportunity for hearing, the Commission finds that the Agreement conforms with the purposes of
the ESSA. See Idaho Code § 61-333(1).
THE APPLICATION
The Parties stated their existing Agreement predated the amendment to Idaho Code § 61-
333 (requiring Commission approval of territory agreements). Application at 2. To become
compliant with Idaho Code § 61-333, the Parties applied for Commission approval and
memorialization of their existing Agreement. Id. The Parties included a copy of the Agreement
with the Application. Id. The Parties represented that the Agreement was negotiated between the
Parties to "settle a service territory between the [P]arties, provide for stability of service with
consumers, eliminate duplicating of services, and provide safety in the respective territories."Id.
The Parties stated that they believed the Agreement would be in the best interest of both entities
and their customers.Id.
STAFF COMMENTS
Staff reviewed the Application and recommended that the Commission approve the
Agreement. Staff Comments at 2. Staff believed the Agreement was in conformance with the
provisions and intent of the ESSA. Id. The Agreement included several terms and conditions that
Staff believed were consistent with the purpose of the ESSA.Id. Staff believed that the terms and
conditions that met the requirements of the ESSA included: (1) the defined boundaries between
the two service territories that each Party would 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.Id.
COMMISSION FINDINGS AND DECISION
The Commission has reviewed the record, including the Application, Agreement, and
comments. Specifically, as required by Idaho Code § 61-333, the Commission finds that the
Agreement is consistent with the public interest and promotes harmony between electric suppliers,
prohibits the "pirating" of consumers, discourages duplication of electric facilities, actively
supervises the conduct of electric suppliers, and stabilizes the service territory and consumers
served by the Parties. Additionally, we find the proposed Agreement follows the ESSA and prior
Commission orders. Because the Agreement complies with the ESAA and the requirements of
Idaho Code § 61-332, we find it reasonable to approve the Parties' Agreement.
ORDER NO. 36696 2

ORDER
IT IS HEREBY ORDERED that the Agreement between the Parties, identified in the
Application, 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 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. See Idaho Code § 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 3 1" day of
July, 2025.
G
EDWARD LODGE, PiaIDENT
a, _�4�
R. HAMMOND JR., COMMISSIONER
DAYN HA IE, COMMISSIONER
ATTEST:
M 1 a a s- chez
Commission Secretary
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ORDER NO. 36696 3