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HomeMy WebLinkAbout20250821Staff Comments.pdf RECEIVED August 21, 2025 ADAM TRIPLETT IDAHO PUBLIC DEPUTY ATTORNEY GENERAL UTILITIES COMMISSION IDAHO PUBLIC UTILITIES COMMISSION PO BOX 83720 BOISE, IDAHO 83720-0074 (208) 334-0318 IDAHO BAR NO. 10221 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 NORTHERN LIGHTS, INC. AND THE ) CASE NO. C10-E-25-01 CITY OF BONNERS FERRY FOR AN ORDER ) APPROVING A SERIVCE TERRITORY ) AGREEMENT BETWEEN THE APPLICANTS ) PRELIMINARY COMMENTS OF THE COMMISSION STAFF COMMISSION STAFF ("STAFF") OF the Idaho Public Utilities Commission ("Commission"), by and through its attorney of record, Adam Triplett, Deputy Attorney General, submits the following preliminary comments. FACTUAL BACKGROUND Northern Lights, Inc., an Idaho non-profit corporation and electric cooperative, and the City of Bonners Ferry ("City"), an Idaho municipal corporation (collectively, "Applicants") seek Commission approval of a service agreement they allegedly have followed since 1981 ("Agreement"). A district court case out of Bonner County, Idaho, may have prompted the Applicants to finally seek Commission approval of the Agreement after more than four decades. In June 2023, Idaho Forrest Group, LLC ("IFG") sued the City, claiming, among other things, that the city violated Idaho Code § 50-325 by charging unjust and unreasonable electric rates,and violated Idaho Code§ 50-1048 by adding a 5%general fund transfer fee to all customers' PRELIMINARY COMMENTS OF THE COMMISSION STAFF 1 AUGUST 21, 2025 bills,which exceeded the actual cost of providing electric service. See Idaho Forest Group LLC v. City ofBonners Ferry, Case No. CV11-23-0271 (Boundary County District Court). Subsequently, IFG amended its complaint to add a declaratory judgment action, seeking interpretation of relevant portions of the Electric Supplier Stabilization Act, Idaho Code §§ 61-333-61-334B, and declaratory judgment on the City's right to provide electric service to IFG. Following the district court's judgment against IFG on all claims, IFG appealed to the Idaho Supreme Court, where the case is currently pending. PROCEDURAL HISTORY On June 13,2025,Northern Lights, Inc. and the City jointly applied to the Commission for approval of a service agreement under Idaho Code § 61-333. On July 31, 2025, the Commission issued Order No. 36695, setting an August 21, 2025, deadline for public comments and a September 4, 2025, deadline for the Applicant's reply. On August 19, 2025, IFG filed a petition to intervene, asserting that approval of the Agreement could affect its electric rates or service quality, as well as a pending appeal before the Idaho Supreme Court concerning the same service territory. IFG's petition included a declaration from its counsel supporting eight attached exhibits—court orders and filings from both Rates and Service Litigation and a declaratory judgment action brought by IFG against the City in Bonner County district court. On August 20, 2025, Staff moved to vacate the comment deadlines established in Order No. 36695, arguing that additional time was necessary to determine how a decision in this case could affect the appeal currently pending before the Idaho Supreme Court described above. Because the Commission cannot rule on Staffs motion to vacate before the August 21, 2025, public comment deadline, Staff submits these preliminary comments. However, Staff reserves the right to submit supplemental comments should the Commission grant Staffs motion to vacate. STAFF'S PRELIMINARY COMMENTS Staff believes a thorough review of the factual and legal issues currently before the Idaho Supreme Court in Idaho Forest Group LLC v. City of Bonners Ferry is necessary for the Commission to make a fully informed decision to approve or reject the Application. Although Staff has not had time to fully analyze the 116 pages of documents submitted by IFG's counsel, it appears that IFG is challenging whether the City has the exclusive right to provide electrical service to IFG. However, it is unclear at this point what effect, if any, Commission approval of the PRELIMINARY COMMENTS OF THE COMMISSION STAFF 2 AUGUST 21, 2025 Agreement would have on the pending appeal. In short,Staff cannot provide meaningful comments on the Application without additional time to review the documents submitted by IFG's counsel. Consequently, Staff believes this case is not yet ready to proceed toward a final decision. If the Commission grants Staffs motion to vacate the comment deadlines set in Order No. 36695, Staff will coordinate with the parties to propose new deadlines that allow for evaluation of this case's interaction with Idaho Forest Group LLC v. City of Bonners Ferry. STAFF RECOMMENDATIONS Staff recommends the Commission issue an order: 1) Granting the relief sought in Staffs motion to vacate the comment deadlines, filed August 20, 2025; and 2) Directing Staff to recommend new comment deadlines after consulting with the parties. Respectfully submitted this 21 st day of August 2025. Adam Triplett Deputy Attorney General I:\LegahELECTRIC\CIO-E-25-01_N Lights\CI OE250 I_preliminary cmnts_at.docx PRELIMINARY COMMENTS OF THE COMMISSION STAFF 3 AUGUST 21, 2025 CERTIFICATE OF SERVICE S� I HEREBY CERTIFY THAT I HAVE THIS /DAY OF AUGUST 2025, SERVED THE FOREGOING PRELIMINARY COMMENTS OF THE COMMISSION STAFF, IN CASE NO. C10-E-25-01, BY E-MAILING A COPY THEREOF TO THE FOLLOWING: Northern Lights,Inc. SUSAN P. WEEKS 1626 LINCOLN WAY COEUR D'ALENE, ID 83834 E-MAIL: sweeks a jvwlaw.net City of Bonners Ferry TYLER R. WHITNEY 1455 SW BROADWAY, STE. 1500 PORTLAND, OR 97201-3412 E-MAIL: twhitneyLwcablehuston.com PATRICIA JORDA , SECRETARY CERTIFICATE OF SERVICE