Order No 28957.pdf

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 28957 1
Office of the Secretary
Service Date
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION TO
APPROVE AN AGREEMENT ALLOCATING
TERRITORY BETWEEN AVISTA UTILITIES
AND KOOTENAI ELECTRIC COOPERATIVE.
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CASE NO. AVU-E-02-2

NOTICE OF APPLICATION

NOTICE OF MODIFIED
PROCEDURE

ORDER NO. 28957

On February 5, 2002, Avista Utilities (Avista) filed an Application for approval of an
Agreement Allocating Territory 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 a nd 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
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 28957 2
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Agreement Allocating Territory
(Agreement) submitted for the Commission’s review was executed on December 29, 2001. This
Agreement was reached because Keystone Partners, LLC and Pleasant View Investments, LLC
(Developer) requested that Avista and Kootenai install facilities to provide three-phase electric
service to consumers who may construct service entrances within the Developer’s real property.
Agreement at 1. The Developer owns an interest in real property known as “Expo at Post Falls,”
“Expo at Post Falls Fourth Edition,” and “Expo at Post Falls Fifth Edition” in Kootenai County,
Idaho as depicted on the plat map labeled “Exhibit A” that accompanies the Application. Id.
YOU ARE FURTHER NOTIFIED that both Kootenai and Avista have existing
service lines on or near the Developer’s real property. Id. Furthermore, both are able and
willing to supply electric service to consumers who may establish service entrances on the
Developer’s property. Id. Pursuant to the provisions of the ESSA, Avista and Kootenai have
entered into an Agreement Allocating Territory within the confines of the Developer’s real
property. The parties entered into the Agreement to: 1) avoid unnecessary duplication of
facilities; 2) avoid disputes as to which utility is entitled to provide service to new service
entrances; and 3) provide the best possible service to consumers who locate their electric service
entrances on the Developer’s real property. Id.
YOU ARE FURTHER NOTIFIED that as depicted in “Exhibit A,” the Agreement
divides the Developer’s real property into territories labeled “Kootenai Electric Service Area”
and “Avista Service Area.” The Agreement allows Avista and Kootenai to extend their facilities,
to the exclusion of the other, within the territory allocated to it in “Exhibit A.” Id. at 2. Within
their respective territories, Avista and Kootenai shall each provide line extensions and service to
consumers pursuant to the provisions of their line extension policies, rate schedules, or tariffs in
force at the time such extension or service is requested. Id.
YOU ARE FURTHER NOTIFIED that Avista and Kootenai also agree that any line
extension which serves a service entrance located within the territory allocated by this
Agreement shall be considered an “existing service line” for the purpose of determining which
electric supplier is entitled to provide electric service to a new service entrance located in
territory not allocated pursuant to the provisions of this Agreement. Id.

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 28957 3
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. at
2-3. If the Commission approves the Agreement, it shall be binding upon the parties, their
successors and assigns. Id. at 3.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that Idaho Code § 61-333(1) requires the
Commission to review Territory 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, March 12, 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 Friday, March 15, 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

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 28957 4
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.

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 28957 5
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 20th
day of February 2002.
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PAUL KJELLANDER, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

DENNIS S. HANSEN, COMMISSIONER

ATTEST:

Jean D. Jewell
Commission Secretary