20050805Comments.pdf

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1..KIRA DALE PFISTERER
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BARNO. 6571
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Street Address for Express Mail:
472 W. WASHINGTON
BOISE, ID 83702-5983
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
KOOTENAI ELECTRIC COOPERATIVE, INC. )
FOR APPROVAL OF AN AGREEMENT TO
RELEASE A CUSTOMER TO THE CITY OF PLUMMER.
CASE NO. CO7-O5-
COMMENTS OF THE
COMMISSION STAFF
COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its
Attorney of record, Kira Dale Pfisterer, Deputy Attorney General, and submits the following
comments in response to Order No. 29823 , the Notice of Application and Notice of Modified
Procedure issued on July 15 , 2005.
BACKGROUND
On June 24, 2005 , Kootenai Electric Cooperative, Inc. ("KEC") filed an Application
seeking the Commission s approval of an Agreement between KEC and the City of Plummer
City
).
The Agreement allows the City to provide new three-phase service to a customer who
would otherwise be KEC's customer. The agreement is dated April 6, 2005 and is to become
effective on the date of Commission approval. The agreement has been submitted for the
ST AFF COMMENTS AUGUST 5 , 2005
Commission s reVIew pursuant to the provIsIons of the Electric Supplier Stabilization Act
(ESSA). Idaho Code ~ 61-332 et seq.
THE AGREEMENT
The Agreement allows the City to extend its lines and provide three-phase electric service
to a customer who already receives single-phase electric service from KEC. More specifically,
KEC will allow the City to provide new three-phase electric service to KEC customer Kurt R.
Morris of Benewah County. The parties agree that Mr. Morris will remain a KEC customer for
all current and future single-phase electric service.
Mr. Morris applied to KEC for three-phase electric service. However, to provide three-
phase service to his location, KEC would be required to extend its facilities approximately three
(3) miles at substantial cost to Mr. Morris. The City can provide three-phase service to Mr.
Morris at substantially lower cost by making a line extension of approximately one-quarter (1/4)
mile. The City is willing to extend its three-phase service to Mr. Morris, and KEC is willing to
release its right to serve Mr. Morris s three-phase electric requirements.
ST AFF REVIEW
Mr. Morris is building a new facility on his property that requires a new service entrance.
In determining which electric supplier will provide electric service for a new service entrance
the ESSA typically allocates the new customer to the utility whose distribution lines are closest
to the new customer if either utility s lines are within 1320 feet. Idaho Code 9 61-332C.
However, the Act also allows electric suppliers to contract with one another for the purpose of
exchanging service rights provided that the Commission approves the contract. Idaho Code
61-333.
While the Commission has authority to approve or reject a contract between a
municipality and a cooperative under the ESSA, the Commission has jurisdiction only over the
cooperative in such a proceeding. Idaho Code 99 61-333, 61-334B(1). Further, the Commission
shall approve such contracts only upon finding that the Agreement is consistent with the
purposes of the ESSA. Idaho Code 9 61-334(B)(1). The purposes of the ESSA are: (1) to
promote harmony among and between electric suppliers; (2) prohibit the "pirating" of
consumers; (3) discourage the duplication of electric facilities; (4) actively supervise the conduct
STAFF COMMENTS AUGUST 5, 2005
of electric suppliers; and (5) stabilize the territories and consumers served with electricity by
such electric suppliers. Idaho Code ~ 61-332(2).
In reviewing the Agreement in light of the purposes of the ESSA, Staff believes the
Agreement is reasonable. The Agreement promotes harmony between the electric suppliers who
have jointly agreed to exchange the right to serve the new customer; does not involve the pirating
of customers; does not involve the duplication of services; requires Commission approval; and
does not pose a threat to or affect the stability of either of the electric suppliers involved.
Further, the Agreement provides the least cost solution to the customer s request for new service.
Therefore, Staff believes the Agreement is reasonable and consistent with the purposes of the
ESSA.
STAFF RECOMMENDATION
Staff recommends that the Commission approve the Agreement as requested in KEC' s
Application.
Respectfully submitted this $'1k. day of August 2005.
Technical Staff: Keith Hessing
i:umisc/comments/co7eO5.1kdpkh
ST AFF COMMENTS AUGUST 5, 2005
CERTIFICATE OF SERVICE
HEREBY CERTIFY THAT I HAVE THIS 5TH DAY OF AUGUST 2005
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN
CASE NO. CO7-05-, BY MAILING A COpy THEREOF POSTAGE PREPAID
TO THE FOLLOWING:
STEPHEN M AYERS
ATTORNEY AT LAW
1424 SHERMAN AVE SUITE 100
COEUR D' ALENE ID 83814
LARRY BRYANT
MARKETING MANAGER
KOOTENAI ELECTRIC CO-
PO BOX 278
HAYDEN ID 83835
DONNA SPIER
CITY CLERK
CITY OF PLUMMER
PO BOX B
PLUMMER ID 83851
JoISE
CERTIFICATE OF SERVICE