HomeMy WebLinkAbout20251112Application.pdf _ ROCKY MOUNTAIN 1407 W.North Temple,Suite 330
POWER. Salt Lake City,UT 84116
A DIVISION OF PACIFICORP
RECEIVED
NOVEMBER 12, 2025
November 12, 2025 IDAHO PUBLIC
UTILITIES COMMISSION
VIA ELECTRONIC DELIVERY
Commission Secretary
Idaho Public Utilities Commission
11331 W. Chinden Blvd
Building 8 Suite 201A
Boise, ID 83714
RE: CASE NO. PAC-E-25-21
IN THE MATTER OF THE JOINT APPLICATION OF THE CITY OF IDAHO FALLS
AND ROCKY MOUNTAIN POWER FOR APPROVAL OF A NEW SERVICE
ALLOCATION AGREEMENT
Attention: Commission Secretary
Enclosed for electronic filing in the above-mentioned matter are Rocky Mountain Power's and the
city of Idaho Fall's Joint Application for approval of a new service allocation agreement.
Informal inquiries may be directed to Mark Alder, Idaho Regulatory Manager at(801) 220-2313.
Very truly yours,
bA 9L 0-1-D
Joelle Steward
Senior Vice President, Regulation
Joe Dallas (ISB# 10330)
PacifiCorp,Assistant General Counsel
825 NE Multnomah Street, Suite 2000
Portland, OR 97232
Email:joseph.dallas(ibpacifico1p.com
Attorney for Rocky Mountain Power
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE JOINT ) CASE NO. PAC-E-25-21
APPLICATION OF THE CITY OF IDAHO ) JOINT APPLICATION OF
FALLS AND ROCKY MOUNTAIN POWER ) THE CITY OF IDAHO FALLS
FOR APPROVAL OF A NEW SERVICE ) AND ROCKY MOUNTAIN
ALLOCATION AGREEMENT ) POWER
Comes now,Rocky Mountain Power, ("Company") and Idaho Falls Power, ("Idaho Falls"
or the "City"), to jointly (the "Applicants") file this Application respectfully requesting Idaho
Public Utilities Commission ("Commission") approval of an Amended and Restated Service
Allocation Agreement (the "Agreement") pursuant to Idaho Code § 61-333 authorizing contracts
among electric suppliers to resolve territories, allocate consumers, and to transfer facilities. In
support of this filing the Applicants state as follows:
1. Rocky Mountain Power ("Company") is authorized to do and is doing business in
the state of Idaho as an electric supplier. The Company provides retail electric service to
approximately 91,000 customers in the state and is subject to the jurisdiction of the Commission.
Rocky Mountain Power is a public utility in the state of Idaho pursuant to Idaho Code § 61-129.
2. Idaho Falls Power is the electric department of the city of Idaho Falls, Idaho. Idaho
Falls is a municipal corporation duly organized under the laws of the State of Idaho. Idaho Falls
Power provides retail electric service to approximately 33,000 customers, primarily within the
municipal boundaries of the City.
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COMMUNICATIONS AND SERVICE OF PLEADINGS
3. Communications regarding this Application should be addressed to:
If to Rocky Mountain Power:
Mark Alder
Joe Dallas
1407 W.North Temple, Suite 330
Salt Lake City, Utah 84116
Telephone: (801) 220-2313
Email: Mark.Alder(d)pacificorp.com
Joseph.Dallas&pacificorp.com
If to the City of Idaho Falls:
Idaho Falls City Power
Stephen Boorman
140 South Capital Avenue
Box 50220
Idaho Falls, Idaho 83405
sboormank ifpower.com
In addition, the Company respectfully requests that all data requests regarding this matter
be addressed to one or more of the following:
By e-mail (preferred): datarequest(&,pacificorp.com
By regular mail: Data Request Response Center
PacifiCorp
825 NE Multnomah, Suite 2000
Portland, OR 97232
BACKGROUND
4. Idaho Code §§ 61-332 — 334C is referred to as the Idaho Electric Supplier
Stabilization Act("ESSA"). Idaho Code § 61-332 outlined the purpose of the ESSA as designed:
to promote harmony among and between electric suppliers furnishing electricity
within the state of Idaho,prohibit the pirating'of consumers of another supplier,
discourage duplication of electric facilities, actively supervise certain conduct of
electric suppliers as it relates to this act, and stabilize the territories and consumers
served with electricity by such electric suppliers.
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5. Idaho Code § 61-333 specifies that any electric supplier may contract in writing
with any other electric supplier for the purpose of allocating service territories and consumers. All
contracts must be filed with the Commission to approve or reject based upon its determination
whether such contracts conform to the provisions and purposes of the ESSA. However, the
Commission has no jurisdiction over municipal electric suppliers.
6. On September 6,2005,the Applicants filed a joint application with the Commission
requesting approval of an electric consumer exchange agreement.1 The initial term of the
agreement was for ten years from the date of the Commission's approval and would continue with
renewing ten year terms unless either parry notified the other party of intent not to renew within
sixty days of the renewal date. In 2015, coming up on the ten-year anniversary of the exchange
agreement, the City provided the Company with a notice to terminate the Agreement. The City
expressed a desire to negotiate a new service territory agreement. The Applicants worked together
to incorporate the City's desired changes and draft a new Service Territory Allocation Agreement.
On October 9, 2017, Rocky Mountain Power and the City entered into a new Service Allocation
Agreement ("2017 Agreement") and that agreement was approved by the Commission on
December 5, 2017.2
7. In the summer of 2025, the City contacted the Company with a desire to revise the
2017 Agreement in order to expedite the transfer of customers from the Company to the City. The
City represented that some customers real estate projects were being hindered by the time it was
taking to obtain Commission approval of each customer transfer. The City and the Company held
several meetings and came to an agreement on changes to the 2017 Agreement that would expedite
1 See In the Matter of the Joint Application of PacifiCorp and Idaho Falls Power for an Order Approving an
Electric Consumer Exchange Agreement,Case No.PAC-E-05-07.
2 See In the Matter of the Joint Application of the City of Idaho Falls Power and Rocky Mountain Power for
Approval of a Service Allocation Agreement,Case No.PAC-E-17-12.
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the transfer of customers while still allowing for Commission approval or denial of the transfer
and protecting the interests of the City and the Company. Those changes have been incorporated
into the Agreement provided as Attachment A to this application. The Joint Applicants now submit
this application seeking approval of the Agreement.
THE AGREEMENT
8. The Agreement is intended to minimize delays customers may face while waiting
on Commission approval. Section 6 of the Agreement allows, after a field inspection, for the City
to request Rocky Mountain Power to start transferring a customer to the City's electrical system,
while awaiting on Commission approval, in compliance with the ESSA and the Agreement. The
transfer will only begin after the City pays the compensation amount and provides security for any
reconnection costs exceeding that amount, should the Commission ultimately deny the transfer. If
the Commission does deny the transfer, the City is responsible for all costs to return the customer
to Rocky Mountain Power's system, and Rocky Mountain Power retains ownership of any newly
installed City facilities.
9. The Agreement maintains the key provisions of the 2017 Agreement such as
specifying that existing customers as of the date of the agreement would continue to be served by
their current electric supplier irrespective of service territory boundaries. The Agreement also
provides for the transfer of a customer's electric service from one utility to the other as long as the
acquiring utility agrees to pay the utility currently providing service just compensation for lost
revenues and the distribution facilities used to serve that customer. The Company and the City
agreed that just compensation for lost revenues would be an amount equal to 167 percent of the
total of the respective customer's electric bills from the prior twelve-month period of service. In
addition, the acquiring utility would purchase the poles, wires, cross arms, insulators, guys and
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other facilities no longer needed or required by the other utility to service that customer. Each
customer transfer must be approved by the Commission.
CONFORMITY OF THE AGREEMENT TO THE ESSA
10. It is the Applicants' belief that the Agreement conforms to all the provisions and
purposes of the ESSA. First, it "promotes harmony" because it reflects a mutually acceptable
methodology by which consumers are allocated and transferred between the Applicants. Second,
the Agreement is designed to prevent"pirating"of customers by providing an orderly transition of
customers where municipal annexation by the City takes place. Third, the Agreement is designed
to discourage duplication of services by requiring the acquiring electric supplier to serve all or
none of the customers in an area. The Agreement provides a formula-based approach to determine
the value of all consumer-related electrical service property, thus mitigating valuation disputes.
The Agreement provides a clear standard for the exchange of consumers and a clear transfer
process while still allowing for a Commission review to meet the "active supervision" mandated
by the ESSA. Therefore, the Applicants recommend that the Agreement be approved by the
Commission.
11. The Applicants agreed that the term of the Agreement would be five years from its
effective date, which would be the date of Commission approval of the Agreement. Like the 2017
Agreement, this Agreement also has an evergreen clause allowing for the Agreement to
automatically extend for consecutive five-year periods unless one party notifies the other of the
intent not to renew the Agreement. This notice must be provided not less than sixty days prior to
the expiration period. The Agreement may be amended at any time following a sixty (60) day
notification by either of the parties.
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MODIFIED PROCEDURE
12. The Applicants represent that a hearing is not necessary to consider the issues
presented herein and respectfully request that this Application be processed under Modified
Procedure; i.e., by written submissions rather than by hearing. RP 201 et seq. If, however, the
Commission determines that a technical hearing is required, the Company stands ready to prepare
and present its testimony in such hearing.
CONCLUSION
WHEREFORE, the Applicants respectfully request that the Commission issue an order
authorizing this Application to be processed under Modified Procedure and approve the
Agreement provided as Attachment A.
DATED this 12"' day of November, 2025.
ROCKY MOUNTAIN POWER
Joe Dallas (ISB# 10330)
PacifiCorp,Assistant General Counsel
825 NE Multnomah Street, Suite 2000
Portland, OR 97232
Email:joseph.dallasgpacificorp.com
Attorney for Rocky Mountain Power
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ATTACHMENT A
AMENDED AND RESTATED SERVICE
ALLOCATION AGREEMENT
THIS AMENDED AND RESTATED SERVICE ALLOCATION AGREEMENT BETWEEN
PACIFICORP AND THE CITY
OF IDAHO FALLS, IDAHO, ("Agreement")is made and entered into this day of 2025
between PacifiCorp, a Public Utility doing business as Rocky Mountain Power ("Rocky
Mountain Power") and the City of Idaho Falls, Idaho, a municipal corporation of the State of
Idaho, doing business as Idaho Falls Power("the City"). In this Agreement, Rocky Mountain
Power and the City may be referred to individually as a "Party" and collectively as"Parties."
RECITALS
1. The City is an Electric supplier to Consumers within the boundaries of the City; it is
also presently an Electric supplier to a number of Consumers outside the municipal
boundaries of the City.
2. Rocky Mountain Power is a Public Utility in the state of Idaho, and in addition to
serving Consumers in the area surrounding the City of Idaho Falls, it presently is an
Electric supplier to a number of Consumers located within the boundaries of the City.
3. Rocky Mountain Power and the City desire to enter into an agreement, in accordance with
the purposes of Idaho Code§ 61-333 for the efficient allocation of electric service to existing
consumers and establish a process for the allocation of electric service to new consumers
within the Parties' respective service territories.
4. The Parties entered into the Service Allocation Agreement on October 9, 2017 ("Original
Service Allocation Agreement"). The Parties desire to enter into this Agreement to amend
and restate the Original Service Allocation Agreement to continue, as hereby amended and
restated, the terms and conditions for Original Service Allocation Agreement.
NOW, THEREFORE, in consideration of the foregoing and for other consideration the
sufficiency and receipt of which are hereby acknowledged, the Parties agree as follows:
AGREEMENT
1. Definitions. As used in this Agreement, the following terms shall have the respective
meanings.set forth in this section.
1.1 "Newly Annexed Area" shall mean land that is lawfully annexed into the legal
boundaries of the City after the Effective Date of this Agreement.
1.2 "Service Entrance""Consumer,"`.New Service Entrance,""Electric Service,"
and "Commission," shall have the meanings set forth in Idaho Code § 61-332A.
2. Service Territory. The Parties intend to establish respective service territories as of the
Effective Date of this Agreement. Following Commission approval of this Agreement,
Rocky Mountain Power agrees not to provide Electric Service to a new Service Entrance
located within City municipal boundaries as they exist on the Effective Date of this
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Agreement, and City agrees (unless serving City-owned facilities located outside its
municipal boundaries) not to provide Electric Service to a new Service Entrance located
outside its municipal boundaries as they exist on the Effective Date of this Agreement,
unless provision of such service is performed pursuant to the terms of this Agreement and
there is a separate and express written agreement of the other Party allowing such service
(and. where allowed or required by law, with the approval of the Commission to provide
such service). The parties may agree, subject to approval of the Commission, to transfer
existing Service Entrances as described below when the transfer will prevent duplication of
facilities.
3. Existing Service Entrances. Subject to Paragraphs 4 and 5,Rocky Mountain Power shall
continue to provide Electric Service to all existing Service Entrances to which it is
providing electric service within the City's municipal boundaries on the Effective Date
of this Agreement, and the City shall continue to provide Electric Service to all existing
Service Entrances to which it is providing Electric Service to Service Entrances outside
its municipal boundaries on the Effective Date of this Agreement.
4. CityOption. Where the City extends its municipal boundaries through annexation, it
may elect to provide Electric Service to existing Service Entrances within the Newly
Annexed area being served by Rocky Mountain Power, subject to the provisions of
Sections 5 and 6.
5. No Partial Transfer of Consumers in Annexed Area. If the City elects to provide Electric
Service to any existing Service Entrances served by Rocky Mountain Power in an area
annexed by the City following the Effective Date of this Agreement, it must provide
service to all existing Service Entrances served by Rocky Mountain Power within the
Newly Annexed Area, and will purchase facilities of Rocky Mountain Power used to
serve these existing Service Entrances, on an as-is where-is basis, including distribution
facilities, transmission facilities, and substations, subject to the provisions of Section
5.1, 5.2, and 5.3. To the extent that the facilities will no longer be used by Rocky
Mountain Power due to the City's acquisition of Existing Service Locations in the
annexed area, the City will compensate Rocky Mountain Power in accordance with
Section 6. Subject to Section 6 of this Agreement, the City will not serve any existing
Service Entrances served by Rocky Mountain Power in an annexed area until it has
provided Rocky Mountain Power with Compensation and obtained Commission
approval to serve the Service Entrances.
5.1 The Parties agree that not alltransfers of customers in a Newly Annexed Area will
materially impact Rocky Mountain Power's transmission facilities.
5.2 Dedicated transmission facilities used to provide service to an existing Service
Entrance or Service Entrances in a Newly Annexed Area that the City has
elected to provide service in, will be purchased in their entirety by the City. For
other transmission facilities, the Parties agree to confer regarding the financial
effects of those impacts.
5.3 Where there is disagreement regarding the nature or extent of the adverse impact
to Rocky Mountain Power's transmission facilities due to the transfer of service
by the City the Parties agree to attempt to resolve such disagreement through
non-binding mediation or arbitration.
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6. Customer Transfer Process. Once the field inspection of facilities associated with the
transfer of the customer and compensation accounting is complete, the City may request
that Rocky Mountain Power commence the transfer of the customer to the City's electrical
system while Commission approval to transfer the Customer to the City's electric system
is being sought, in compliance with the Idaho Electric Supplier Stabilization Act("ESSA")
and this Agreement. If such a request is made, Rocky Mountain Power will commence
transfer of the customer only after:
(1)the City pays Rocky Mountain Power the Compensation amount per this agreement, and
(2)If the reconnection cost exceed the above amount, the City provides security for the benefit
of Rocky Mountain Power in the form of cash, letter of credit, or a bond in the amount
determined by Rocky Mountain Power to be the difference between the Compensation amount
and the reconnection cost to transfer the customer back to Rocky Mountain Power's electric
system if the Commission denies the transfer.
Once payment is received, Rocky Mountain Power will commence the cutover of the customer
to the City's electrical system while the regulatory processing, in compliance with ESSA and
this agreement takes place. Should the Commission deny the transfer,Idaho Falls Power agrees
that Rocky Mountain Power will retain ownership of the Idaho Falls Power facilities installed
associated with the disapproved transfer at no cost to Rocky Mountain Power. The City shall
also be responsible for all reconnection costs, as determined by Rocky Mountain Power, to
return the denied customer transfer back to the Rocky Mountain Power electrical system. In
addition, Rocky Mountain Power shall remit to the City the remaining portion, if any, of the
Compensation amount associated with the transfer after subtracting for reconnection costs.
7. Compensation. If Electric Service at an Existing Service Location is transferred from the
City or Rocky Mountain Power to the other (the "acquiring Utility") pursuant to this
Agreement, the Acquiring Utility shall pay the other Party just compensation for the
facilities. If the City annexes an area and chooses to provide Electric Service to the existing
Consumers being served by Rocky Mountain Power in the newly annexed area, the City
shall purchase the facilities used to provide service as of the annexation date at replacement
cost of the facilities, minus depreciation (calculated utilizing accepted business industry
practice and pursuant to Rocky Mountain Power filings with the Commission). In addition,
the Acquiring Utility will pay the other utility an amount equal to one hundred sixty-seven
percent (167%) of the Existing Consumer's revenue collected from the most recent twelve
(12) months of active provision of electric service, which must be within the past five (5)
years immediately preceding the time of transfer.
8. Idaho Electric Supplier Stabilization Act.Nothing in this Agreement is intended to conflict
with the Idaho Electric Supplier Stabilization Act. Nothing in this Agreement shall alter or
affect or diminish the City's right to extend services to City properties and facilities outside
of Idaho Falls City limits. See Idaho Code § 61-334(3). In the event of any conflict, the
provisions of the Act shall control. Nothing in this Agreement shall be construed to affect
the rights of any Consumer to petition the Commission for relief under the Idaho Electric
Supplier Stabilization Act.
9. Duplication. The parties will work together in good faith to identify facilities that are
redundant or duplicative and will coordinate to minimize overlap when constructing new
facilities.
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10. Term. This Agreement is subject to and shall become effective only upon approval by the
Commission (the "Effective Date"). The term of this Agreement shall be for five (5) years
from the date of Commission approval provided. however, that this Agreement shall be
extended automatically for successive periods of five (5) years upon the same terms and
conditions set forth in this Agreement, unless one of the Parties notifies the other, not less
than sixty(60)days prior to the end of the initial, or renewal term of the intent not to renew
the Agreement. The Agreement may be amended by agreement of the Parties at any time
following a sixty (60) day notification by one of the parties of the desire to amend subject
to approval by the Commission.
11. Breach: Non-Waiver. If either Party breaches any provision of this Agreement, the other
Party shall have the right to terminate the Agreement, at its sole option, and/or pursue its
remedies at law or equity, including specific performance. No waiver of any breach of this
Agreement shall constitute a waiver of any other or subsequent breach. If any action is
brought to enforce this Agreement or any provision thereof, to rescind the same, to collect
damages for an alleged breach or for declaratory judgment there under,the prevailing Party
in such action shall be entitled to reasonable attorney's fees.
12. Integration.t�This Agreement constitutes the entire agreement between the Parties regarding the
subject matter hereof and shall supersede that certain Idaho Falls Allocation Agreement dated
August 26,2005.
13. Notice.Notice allowed or required to be given under this Agreement shall be considered
given by depositing such notice in the United States mail with postage prepaid and
properly addressed to the Party. Notice shall be addressed to the following addresses
until notice is given by the respective Party of a different address:
City of Idaho Falls, Idaho dba IFP
140 S. Capital
Box 50220
Idaho Falls, Idaho 83405
PacifiCorp, dba Rocky Mountain Power
Office of General Counsel
1407 West North Temple, Suite 320
Salt Lake City, UT 84116
14. TO THE FULLEST EXTENT PERMITTED BY LAW, EACH OF THE PARTIES HERETO
WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF LITIGATION
Directly OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS
AGREEMENT. EACH PARTY FURTHER WAIVES ANY RIGHT TO CONSOLIDATE, OR
TO REQUEST THE CONSOLIDATION OF, ANY ACTION IN WHICH A JURY TRIAL HAS
BEEN WAIVED WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR
HAS NOT BEEN WAIVED.
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CITY OF IDAHO FALLS
By:
Name: Rebecca L.Noah Casper
Title: Mayor, Idaho Falls, Idaho
STATE OF IDAHO )
ss.
County of Bonneville )
On this day of , 2025, before me, the undersigned, a notary public for said
State,personally appeared REBECCA L.NOAH CASPER, known to me to be the Mayor of the City of Idaho Falls, the
municipal corporation that executed the foregoing document, and acknowledged to me that such City executed the same.
IN WITNESS WHEREOF,I have hereunto set my hand and affixed my official seal this day and year first above written.
Notary Public of Idaho
Residing at:
My Commission Expires:
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PACIFICORP
By:
Name:
Title:
STATE OF )
ss.
County of )
On this day of ,2025,before me,the undersigned, a notary public for the said
State, personally appeared known to me to be the of
PACIFICORP, and acknowledged to me that he/she is authorized to execute the same for and on behalf of
PACIFICORP.
IN WITNESS WHEREOF,I have hereunto set my hand and affixed my official seal this day and year first above written.
Notary Public of Idaho
Residing at:
My Commission Expires:
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