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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. 1 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. 2 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. 3 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 4 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. 5 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 6 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 1 Page 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. 2 Page 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. 3 Page 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. 4 Page 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: 5 1 P a g e 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: 6 1 P a g e