20161212_5142.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF

FROM: BRANDON KARPEN
DEPUTY ATTORNEY GENERAL

DATE: DECEMBER 7, 2016

SUBJECT: JOINT APPLICATION OF IDAHO POWER AND UNITED ELECTRIC
CO-OP TO APPROVE A CUSTOMER ALLOCATION AGREEMENT;
CASE NO. IPC-E-16-29

On November 22, 2016, Idaho Power and United Electric Co-op, Inc. filed a joint
Application requesting that the Commission approve a Customer Allocation Agreement between
the two companies. Application at 1-2. The agreement concerns a property in Idaho Power’s
service territory that borders the United Electric service territory and has not previously provided
with electric service. By way of summary, the applicants request that the Commission approve
an agreement granting United Electric the right to establish a new service entrance and provide
electric service at that location. The Application falls under the Electric Supplier Stabilization
Act (ESSA), Idaho Code §§ 61-332, et seq. The applicants ask the Commission to process the
Application by Modified Procedure.
BACKGROUND
The ESSA prohibits an electric supplier (e.g., a utility, municipality, or co-op) from
serving another electric supplier’s existing or former customers. Idaho Code § 61- 332B. As an
exception to this general rule, the ESSA allows electric suppliers to 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.” Idaho Code § 61-333(1).
Such contracts must be submitted to the Commission for approval. Id. In sum, contracts
reviewed under the ESSA will be approved if, after notice and opportunity for hearing, the
Commission finds that the agreement conforms with the purposes of the ESSA. See Idaho Code
§§ 61-333(1) and 61-334B(l). Section 61-332(2) states the purposes of the ESSA are to: (1)
DECISION MEMORANDUM 2
promote harmony between electric suppliers; (2) prohibit the “pirating” of consumers; (3)
discourage duplication of electric facilities; (4) actively supervise the conduct of electric
suppliers; and (5) stabilize service territories and consumers.
THE APPLICATION
Idaho Power and United Electric Co-op have agreed to the transfer of the service area
of the property of one customer. The property has historically been irrigated through the use of
flood irrigation. However, the owner of the property would now like to install a three phase 480
volt service in order to use a pump. For Idaho Power to provide that service it would have to
rebuild approximately three quarters of a mile of transmission lines at the customer’s expense.
The property is adjacent to United Electric’s service area, which has three phase
power approximately 300 feet from the desired pump location. Accordingly, in order to avoid
duplication of facilities, and avoid the imposition of unnecessarily high line extension charges,
the utilities have agreed that United Electric service the property going forward. That agreement
is now before the Commission for consideration.
STAFF RECOMMENDATION
Staff concurs in the Company’s proposal to process this case by Modified Procedure.
Staff further recommends that the Commission set a 21-day intervention deadline and that once
the deadline has passed, that the parties determine and recommend a comment schedule.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application, set a deadline for
intervention, and direct the parties to develop a schedule?

M:IPC-E-16-29_bk