HomeMy WebLinkAbout20260306Service Allocation Agreement.pdf _ ROCKY MOUNTAIN 1407 W.North Temple,Suite 330
POWER. Salt Lake City,UT 84116
A DIVISION OF PACIFICORP
March 6, 2026 RECEIVED
MARCH 6, 2026
VIA ELECTRONIC DELIVERY IDAHO PUBLIC
UTILITIES COMMISSION
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
Pursuant to Order No. 36950 in the above-referenced matter,Rocky Mountain Power and the City
of Idaho Falls hereby submit this compliance filing, including the executed Electric Service
Agreement
Informal inquiries may be directed to Jana Saba,Director of Regulation and Regulatory Operations
at(801) 220-2823.
Very truly yours,
9k__)a1__'_D
Joe Steward
Senior Vice President, Regulation
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 h�'iQX(,
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 Territorv. 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. Cite Option. 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 S 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 tenn 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. Inte zra�• tion. 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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1 5.
CITY OF IDAHO FALLS
B
Name: Rebecca L.Noah Casper
Title: Mayor, Idaho Falls, Idaho
STATE OF IDAFIO )
)ss.
County of Bonneville )
On this ___JL� day ofDC/�W 2025, before me, the undersigned, a notary public for said
State, personally appeared REBECCA L.NOAFI CASPER, known to me to be the Mayor of the City of Idaho Falls,the
municipal corporation that executed the foregoing document,and ackno�io me that such City executed the same.
IN WITNESS WHEREOF,I have hereunto set my hand an fixed my oft' 'al seal this da nd year first above written.
EMILY A.GEISLER otary Public of 1 ah
COMMISSION#39430
NOTARY PUBLIC Residing at,;. J/Y
STATE OF IDAHO /
My Co
i(mission = gyres: ( `
51
PACIFICORP
By:
Name: �i iti V✓ /��
Title:
v1GPi ��l2�lGt� LAI
STATE OF
)ss.
County of Q kk LW, )
(o
On this day of fM dro ,202S/,before me,the undersigned,a notary public for the said
State, personally appeared ant zxr t" known to me to be the UP a►e.j 6#,m .l Couin tvl 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 off U�a%,%
Residing at: VMUdyoJi, , +
My Commission Expires: a z' ao 30
PNDANO
Notary Public-State
tate of Utah
Comm.No.747460
My Co t mmission Expires on
Feb 21,2030
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