28942_mod.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION TO APPROVE A CUSTOMER ALLOCATION AGREEMENT BETWEEN AVISTA UTILITIES AND KOOTENAI ELECTRIC COOPERATIVE. )
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CASE NO. AVU-E-02-1

NOTICE OF APPLICATION

NOTICE OF
MODIFIED PROCEDURE

ORDER NO. 28942

On January 22, 2002, Avista Utilities (Avista) filed an Application for approval of an Agreement Allocating Customer between the Avista and Kootenai Electric Cooperative (Kootenai). According to the Application, this filing was made pursuant to the Idaho Electric Supplier Stabilization Act (ESSA), Idaho Code § 61-332 et seq. and Order No. 28681, which approved the service territory agreement between Avista and Kootenai in Case No. AVU-E-01-2.
BACKGROUND
In December 2000 and February 2001, the Idaho Legislature amended portions of the ESSA. In particular, Idaho Code § 61-333 was amended to provide that all service agreements which allocate territory or customers between electric suppliers (such as Avista and Kootenai) be filed with the Commission. Idaho Code § 61-333(1) now provides in pertinent part that
the commission shall after notice and opportunity for hearing, review and approve or reject [such] contracts…between cooperatives and public utilities….the commission shall approve such contracts only upon finding that the allocation of territories or consumers is in conformance with the provisions and purposes of this act.

Idaho Code § 61-333(1) (2001). As set out more fully in Idaho Code § 61-332, the purposes of the ESSA are to: (1) promote harmony among and between electric suppliers; (2) prohibit the “pirating” of consumers served by another supplier; (3) discourage duplication of electric facilities; (4) stabilize the territory and consumers served by the suppliers; (5) actively supervise certain conduct of the suppliers.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Agreement Allocating Customer (Agreement) submitted for the Commission’s review was executed on January 22, 2002. This Agreement was reached because a consumer, Mr. Kari Doerfler, wanted electric service extended to a service entrance located on his residential property.
YOU ARE FURTHER NOTIFIED that both Kootenai and Avista have existing service lines within 1,320 feet of the service entrance. Because Kootenai’s service line is nearest the service entrance, Kootenai thus has the right to serve Mr. Doerfler pursuant to the ESSA. Idaho Code § 61-332C(3). However, Mr. Doerfler requested that Avista extend a line from its facilities to his service entrance because a line extension from Kootenai’s existing service line would be substantially more expensive.
YOU ARE FURTHER NOTIFIED that pursuant to the provisions of Idaho Code § 61-333, Avista and Kootenai have entered into an agreement allowing Avista to extend its facilities to the service entrance. Agreement at 2. Avista and Kootenai also agree that Avista shall provide service to Mr. Doerfler and his successors at the service entrance. Id.
YOU ARE FURTHER NOTIFIED that the Agreement also provides the following limitation: “Avista’s line extension to Mr. Doerfler’s service entrance shall not be considered ‘an existing service line’ under the ESSA for the purpose of determining which electric supplier shall provide electric service for a new service entrance.” Id.
YOU ARE FURTHER NOTIFIED that the Agreement states that it is subject to the approval of the Idaho Public Utilities Commission and if rejected, shall be void ab initio. Id. If the Commission approves the Agreement, it shall be binding upon the parties, their successors and assigns. Id.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that Idaho Code § 61-333(1) requires the Commission to review Customer Allocation Agreements between public utilities and electric cooperatives. Pursuant to this statute, the Commission must determine whether the allocation of consumers is in conformance with the provisions and purposes of the ESSA.
YOU ARE FURTHER NOTIFIED that the Commission has determined that the public interest may not require a formal hearing in this matter and will proceed under Modified Procedure pursuant to Rules 201 through 204 of the Idaho Public Utilities Commission's Rules of Procedure, IDAPA 31.01.01.201 through .204.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this Application may file a written comment in support or opposition with the Commission on or before Tuesday, February 19, 2002. The comment must contain a statement of reasons supporting the comment. Persons desiring a hearing must specifically request a hearing in their written comments. Written comments concerning this Application shall be mailed to the Commission and the Applicant at the addresses reflected below:
COMMISSION SECRETARY
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074

Street Address for Express Mail:
472 W WASHINGTON ST
BOISE, ID 83702-5983 KELLY NORWOOD
VICE PRESIDENT ENERGY RESOURCES
AVISTA CORPORATION
1411 E MISSION AVENUE
PO BOX 3727
SPOKANE, WA 99220-3727 All comments should contain the case caption and case number shown on the first page of this document.
YOU ARE FURTHER NOTIFIED that the deadline for Avista Utilities to file written reply comments with respect to their Application in this case is Thursday, February 21, 2002.
YOU ARE FURTHER NOTIFIED that if no written comments are received within the time limit set, the Commission will consider this matter on its merits and enter its Order without a formal hearing. If written comments are received within the time limit set, the Commission will consider them and, in its discretion, may set the same for formal hearing.
YOU ARE FURTHER NOTIFIED that the Application together with supporting workpapers, testimonies and exhibits, have been filed with the Commission and are available for public inspection during regular business hours at the Commission offices. The Application and testimonies (excluding exhibits) are also available on the Commission's Website at www.puc.state.id.us under the "File Room" icon.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held pursuant to the Commission's jurisdiction under Title 61 of the Idaho Code and that the Commission may enter any final Order consistent with its authority under Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held pursuant to the Commission’s jurisdiction under Title 61 of the Idaho Code and specifically Idaho Code §§ 61-332 and 61-333(1).
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted pursuant to the Commission’s Rules of Procedure, IDAPA 31.01.01.000 et seq.
O R D E R
IT IS HEREBY ORDERED that this matter be processed under our rules of Modified Procedure. IPAPA 31.01.01.201-204.
IT IS FURTHER ORDERED that the Commission does hereby solicit written comment on this Application from the public, Applicants and Commission Staff in accordance with the foregoing schedule.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of January 2002.

PAUL KJELLANDER, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

DENNIS S. HANSEN, COMMISSIONER

ATTEST:

Jean D. Jewell
Commission Secretary

O:AVUE021_ln

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 28942 1

Office of the Secretary
Service Date
January 29, 2002