20060925_1672.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:DONOV AN E. WALKER
DATE:SEPTEMBER 21, 2006
SUBJECT:AVISTA'APPLICATION TO APPROVE A TERRITORY
ALLOCA TION AGREEMENT WITH NORTHERN LIGHTS, INC., CASE
NO. A VU-06-
On September 11 , 2006, A vista filed an Application to approve an agreement
allocating service territory with Northern Lights, Inc. pursuant to the Electric Supplier
Stabilization Act (ESSA), Idaho Code ~~ 61-332 et seq. The Company requests that this
Application be processed by Modified Procedure.
Application by Modified Procedure.
Staff also recommends processing the
THE APPLICATION
According to the Application the parties have entered into an agreement pursuant to
the ESSA in order to allocate territory, avoid disputes between utilities, and to provide
consumers with the best possible service. Both utilities have existing service lines near a new
development (Development) in Sandpoint, Idaho, and both utilities are able and willing to supply
electric service to consumers who may establish service entrances in the Development. The
utilities have agreed to an allocation of service territory to each utility as set forth in their
Agreement.
The Agreement Allocating Territory as well as a map of the designated service areas
(Exhibit B) and a legal description of the boundaries (Exhibit A) was filed with the Application.
According to the Agreement, A vista and Northern Lights will each be entitled to extend their
electric facilities, to the exclusion of the other, within the territory allocated to each as outlined
on Exhibit B , and to provide service to customers who locate new electric service entrances
within such territory. The Agreement states that, within the territory allocated, each utility shall
DECISION MEMORANDUM
provide line extensions and electric service pursuant to the provisions of their respective line
extension policies, rate schedules, and/or tariffs in force at the time such extensions or services
are requested. The Agreement further provides that a line extension installed within the
boundaries of the Development to serve an electric service located within the territory allocated
by the Agreement shall not be considered an "existing service line" and may not be used as a
future measuring point for the purpose of determining which utility is entitled to provide electric
service under the ESSA to new service entrances located in territory not allocated pursuant to the
Agreement. Additionally, the Agreement states that the utilities current electric service lines as
shown on Exhibit B, as well as any line extensions external to the boundaries defined in the
Agreement and outlined on Exhibit B which are required to reach existing infrastructures within
the Development and which are installed in accordance with the ESSA, may be used
determine future electric service rights to new service entrances located in territory not allocated
pursuant to the Agreement. Lastly, the Agreement states that the boundaries set forth by the
Agreement and shown on Exhibit B will not be affected by any subsequent changes in lot lines
roadways, or other boundaries within the Development that occur after the date of the
Agreement.
THE ESSA
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 Northern Lights 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(I). As set out in Idaho
Code ~ 61-332(2), the purpose of the ESSA is to: discourage duplication of facilities; prohibit
pirating" of consumers; stabilize service territories and consumers; and promote harmony
between electric suppliers.
STAFF RECOMMENDATION
Staff recommends that the Company s Application be processed by Modified
Procedure with a 21-day comment period.
DECISION MEMORANDUM
COMMISSION DECISION
Does the Commission preliminarily find that the public interest may not require a
hearing to consider the issues presented in this case, and that this case is appropriate for
Modified Procedure pursuant to Commission Rules of Procedure 201 through 204?
pea-
Donovan E. Walker
DECISION MEMORANDUM