20260302Final_Order_No_36950.pdf

Office of the Secretary
Service Date
March 2,2026
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE CITY OF IDAHO ) CASE NO. PAC-E-25-21
FALLS' AND ROCKY MOUNTAIN )
POWER'S JOINT APPLICATION FOR ) ORDER NO. 36950
APPROVAL OF A NEW SERVICE )
ALLOCATION AGREEMENT )
On November 12, 2025, Rocky Mountain Power, a division of PacifiCorp ("Company"),
and the City of Idaho Falls ("City") (collectively, "Applicants") applied to the Idaho Public
Utilities Commission("Commission")requesting approval of a new service allocation agreement
("Agreement") ("Application").
On December 16, 2025, the Commission issued a Notice of Application and a Notice of
Modified Procedure setting written comment deadlines. Order No. 36875. Commission Staff
("Staff") filed comments. The Commission received no public comments or Company reply
comments.
With this Order, the Commission approves the Applicants' proposed service allocation
Agreement.
BACKGROUND
In 2005, the Commission approved an electric consumer exchange agreement between the
Applicants. Order No. 29895. In 2017,the Commission approved a replacement service allocation
agreement between the Applicants that replaced the 2005 agreement. Order No. 33943.
THE APPLICATION
According to the Applicants, the Agreement maintains the key provisions of the existing
2017 service allocation agreement. Application at 4. However, the Agreement would allow the
City to request the Company begin transferring a customer to the City's electrical system while
awaiting Commission approval of the transfer. Id. The Applicants represented that the purpose of
the Agreement is to expedite the transfer of electric customers.Id.
The Applicants stated that any pre-Commission-approved customer transfer under the
Agreement would only begin after the City provides security for any reconnection costs that would
result from the Commission's ultimate denial of the transfer. Id. Should the Commission deny a
transfer that has already been initiated, the City would be responsible for all costs associated with
ORDER NO. 36950 1

returning the customer to the Company's system, and the Company would retain ownership of any
newly installed City facilities. Id.
The Applicants contended that the Agreement complies with the Idaho Electric Supplier
Stabilization Act ("ESSA") by promoting harmony among electric suppliers, prevents pirating of
customers, and discouraging duplication of services.Id. at 5.
STAFF COMMENTS
Staff reviewed the Application,the 2017 service allocation agreement, and the Agreement.
Staff Comments at 2. Based on its review, Staff recommended the Commission approve the
Agreement and require the Applicants submit a compliance filing containing an executed copy of
the Agreement. Id.
Staff emphasized that while the Agreement would allow the Applicants to begin the process
of transferring customers prior to obtaining authorization from the Commission, the City would
be prohibited from serving transfer customers without Commission approval. Id. at 3. Staff also
noted that under the Agreement, the City would assume the risk of absorbing costs incurred
through initiating a later-denied transfer.Id.
Staff believed the Agreement conformed with the purpose and intent of the ESSA.Id. Staff
agreed with the Applicants' assertion that the Agreement would promote harmony among electric
suppliers and prevent pirating of customers.Id. Additionally, Staff believed the Agreement would
allow for supervision of electric suppliers' conduct. According to Staff,the additional language in
the Agreement would potentially allow for the duplication of electric services if the Commission
denied a customer transfer after the City had installed new facilities in preparation of the transfer,
but Staff believed the Agreement contained safeguards rendering that possibility unlikely.Id.
COMMISSION FINDINGS AND DECISION
Under the ESSA electric suppliers are allowed 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). Also under the
ESSA, a municipality may extend its electric services to annexed areas served by a public utility
upon just compensation to the utility. Idaho Code § 61-333B. Both Applicants are electric
suppliers as defined in the ESSA.Idaho Code § 61-332A(4).
Prior to taking effect, the Commission must approve any agreements allocating service
territories and customers between electric suppliers based on a finding that the agreement conforms
ORDER NO. 36950 2

with the provisions and purposes of the ESSA.Idaho Code § 61-333(1). The ESSA is intended"to
promote harmony among and between electric suppliers ... within the state of Idaho, prohibit the
`pirating' of consumers of another electric supplier, discourage duplication of electric facilities,
actively supervise certain conduct of electric suppliers ..., and stabilize the territories and
consumers served with electricity by such electric suppliers."Idaho Code § 61-332.
The Commission has reviewed the record and finds that the Applicants' proposed
modification to their service allocation Agreement adheres to the provisions and purposes of the
ESSA. The Commission is satisfied that the Agreement promotes harmony among electric
suppliers, has a low risk of creating duplicative electric facilities, provides for supervision of
electric suppliers' conduct, and stabilizes the territories and consumers served by allowing for
cooperation between the Applicants. Additionally, we note that the Agreement protects the
Company's ratepayers from bearing the costs associated with initiated but later-denied customer
transfers.
ORDER
IT IS HEREBY ORDERED that the Applicants' proposed Agreement is approved.
IT IS FURTHER ORDERED that the Applicants shall submit an executed copy of the
Agreement as a compliance filing within 30 days of the service date of this Order.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date upon 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. Idaho Code §§ 61-626.
ORDER NO. 36950 3

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho, this 2nd day of
March 2026.
G
EDWARD LODGE, PR „ DENT
JO R. HAMMOND JR., COMMISSIONER
DAYN HA DIE, COMMISSIONER
ATTEST:
c o nchez
Commission Secretary
I:\Legal\ELECTRIC\PAC-E-25-21_SAA\orders\PACE2521_FO_jl.doex
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