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HomeMy WebLinkAbout20250814Staff Comments.pdf RECEIVED JEFFREY R. LOLL August 14, 2025 DEPUTY ATTORNEY GENERAL IDAHO PUBLIC IDAHO PUBLIC UTILITIES COMMISSION UTILITIES COMMISSION PO BOX 83720 BOISE, IDAHO 83720-0074 (208) 334-0357 IDAHO BAR NO. 11675 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 RIVERSIDE ) ELECTRIC COMPANY, LIMITED's AND ) CASE NO. C12-E-25-02 EAST END MUTUAL ELECTRIC, LIMITED's ) APPLICATION FOR A SERVICE ) TERRITORY AGREEMENT BETWEEN THE ) COMMENTS OF THE APPLICANTS ) COMMISSION STAFF COMMISSION STAFF ("STAFF") OF the Idaho Public Utilities Commission ("Commission"), by and through its attorney of record, Jeffrey R. Loll, Deputy Attorney General, submits the following comments. BACKGROUND On June 11, 2025, Riverside Electric Company, Limited("Company") and East End Mutual Electric, Limited("East End") (collectively"Parties") applied to the Commission for approval of a Service Territory Agreement("Agreement")between the Company and East End ("Application"). 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. Section 61-332(2)provides that the purposes of the ESSA STAFF COMMENTS 1 AUGUST 14, 2025 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 Parties 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 A to the Application. Id. The Parties represent that the Agreement was negotiated between the Parties to settle a service territory between the Parties,provide for stability of service with consumers, eliminate duplicating services, and 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 Staff reviewed the Service Territory Agreement and recommends that the Commission approve the 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 the ESSA. Some important terms and conditions include: (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 Party; and(4) the exceptions of customers in the defined territories. STAFF COMMENTS 2 AUGUST 14, 2025 The Agreement was executed by the Parties, as ordered in Case No. C12-E-24-03, which was dismissed by the Commission through Order No. 36362 because of the failure to obtain a signature from the Parties. Further, Staff discovered that two paragraphs were revised or added to the unexecuted agreement in the case. Paragraph 5 "ATTORNEYS' FEES"was revised to be consistent with Idaho Code § 61-617A and paragraph 6 "DELAYED RESPONSE" was added to encourage each Party to sign the Agreement within the allotted time. Staff believes that these paragraphs are consistent with the intent of the ESSA. STAFF RECOMMENDATION Staff recommends the Commission approve the executed Agreement between the Company and East End, pursuant to Idaho Code § 61-333. Respectfully submitted this 14th day of August 2025. ofLoll Deputy Attorney General Technical Staff. Seungjae Lee I:\Utility\UMISC\COMMENTS\C12-E-25-02 Comments.doex STAFF COMMENTS 3 AUGUST 14, 2025 CERTIFICATE OF SERVICE I HEREBY CERTIFY THAT I HAVE THIS 141h DAY OF AUGUST 2025, SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN CASE NO. C12-E-25-02, BY E-MAILING A COPY THEREOF TO THE FOLLOWING: Riverside Electric Co., Ltd. BRADLEY S. RICHARDSON CAMERON G. FRANCIS ATTORNEYS FOR RIVERSIDE ELECTRIC CO., LTD. 738 S. BRIDGEWAY PLACE, STE. 100 EAGLE, ID 83616 E-MAIL: bradAgarrettrichardson.com cameron a,garrettrichardson.com East End Mutual Electric, Limited. ALAN GOODMAN 717 7TH STREET, P.O. BOX D RUPERT, ID 83350 E-MAIL: 2goodman Ldpmt.org PATRICIA JORDA , SECRETARY CERTIFICATE OF SERVICE