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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 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. 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. 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 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. 4 Page 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 6 Page