20050317_1125.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
CO MMISSI 0 NER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
FROM:DON HOWELL
DATE:MARCH 10, 2005
RE:SERVICE TERRITORY AGREEMENT BETWEEN A VISTA AND
KOOTENAI ELECTRIC COOPERATIVE, CASE NO. A VU-05-
On January 27, 2005, Avista Corporation dba Avista Utilities filed an Application
seeking the Commission s approval of a contract between A vista and Kootenai Electric
Cooperative, Inc. to allocate service territories and future consumers. The parties
' "
Agreement
Allocating Territory" is dated November 28, 2004. The Agreement was executed pursuant to the
provisions of the Electric Supplier Stabilization Act (ESSA) and specifically Idaho Code ~ 61-
333(1 ).
On February 14, 2005 , the Commission issued Order No. 29707 requesting that
interested persons file comments regarding the ESSA Agreement no later than March 7, 2005.
Only the Commission Staff filed comments and it recommended that the Commission approve
the ESSA Agreement.
THE APPLI CA TI 0 N
A vista and Kootenai propose to allocate service territory in the Stateline Business
Park located in Post Falls, Idaho. Generally, the boundaries for the business park are: Seltice
Way on the north side; the Idaho-Washington border (the "Stateline ) on the west; Interstate 90
on the south; and the eastern boundary runs between Interstate 90 on the south side and Jacklin
Road on the north side. The Business Park is roughly divided in half by Baugh Way-Road B.
The parties have agreed that A vista and Kootenai will serve the western and eastern portions of
the Business Park, respectively. Exhibit C to the Agreement illustrates the exact boundaries in
greater detail.
DECISION MEMORANDUM
Both parties have existing facilities within the Business Park. A vista and Kootenai
are willing and able to supply electric service to consumers within their respective allocated
territories. The parties assert that the allocation of service territory will avoid duplication of
facilities, avoid "disputes between the parties, and provide consumers with the best possible
servIce. The Agreement is also endorsed by the two developers of the Business Park:
Greenstone Corporation and Stateline Business Park, LLC. The developers agreed to comply
and be bound by the Agreement.
Idaho Code ~ 61-333(1) provides that electric suppliers may 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." Under the ESSA, both
Avista and Kootenai are defined as electric suppliers. Idaho Code ~ 61-332A(4). After notice
and opportunity for hearing, the Commission may approve agreements allocating service
territories and customers between electric suppliers only upon finding that the allocation is in
conformance with the purposes of the ESSA. Idaho Code ~ 61-333A(1); .The purposes of the
ESSA are to: discourage duplication of facilities; prohibit the "pirating" of consumers; stabilize
service territories and consumers; and promote harmony between electric suppliers. Idaho Code
~ 61-332(2).
ST AFF COMMENTS
After reviewing the Application and the accompanYIng Agreement Staff
recommends that the Commission approve the Agreement. Staff noted that the Agreement will
allow A vista and Kootenai to avoid duplication of services, stabilize their respective service
territories and customers, and promote harmony by avoiding territory disputes. Idaho Code
~ 61-332(2).
COMMISSION DECISION
Does the Commission wish to approve the territory and customer allocation
Agreement between A vista and Kootenai Electric? Does the Commission find that the
Agreement comports with the purposes of the ESSA?
Don Howell
Vld/M:A VUEO52 dh2
DECISION MEMORANDUM