Order No 28987.pdf

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 28987 1
Office of the Secretary
Service Date
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION TO
APPROVE A CUSTOMER ALLOCATION
AGREEMENT BETWEEN AVISTA
CORPORATION AND THE CITY OF
PLUMMER.
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CASE NO. AVU-E-02-3

NOTICE OF APPLICATION

NOTICE OF MODIFIED
PROCEDURE

ORDER NO. 28987

On March 11, 2002, Avista Corporation (Avista) filed an Application for approval of
a Customer Allocation Agreement between Avista and the City of Plummer (City). The
Application notes that this filing is made pursuant to the Idaho Electric Supplier Stabilization Act
(ESSA), Idaho Code § 61-332 et seq. In this Order, the Commission finds that this case should
be processed under Modified Procedure and establishes a comment deadline.
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 the City) 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….th e 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. 28987 2
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that a document entitled “Assignment, Assumption
and Release of Customer” (Customer Allocation Agreement or Agreement) was executed on
February 27, 2002 and subsequently submitted for the Commission’s review.
YOU ARE FURTHER NOTIFIED that according to a Benewah County District
Court document entitled “Stipulated Findings of Fact, Conclusions of Law, and Order,” the City
of Plummer has provided electrical service to Seeds, Inc. (Seeds) at its seed cleaning and
processing facility located outside the City of Plummer (City) in the unincorporated area known
as Tilma, Idaho. Case No. CV98-00425. The voltage of the electric current delivered to Seeds
fluctuated considerably due to the length and condition of the electric supply line from the City
of Plummer. According to the Court’s order, this voltage situation has caused Seeds to incur
significant expense and hardship. While it found that Seeds was not entitled to damages or
refund of past electric charges, the District Court held that Seeds could arrange for another
electric supplier to provide service to its Tilma facility. The Court ordered the City of Plummer
to allocate Seeds as a customer to the electric supplier of Seeds’ choice and continue supplying
electricity until another supplier was willing and able to supply power to Seeds.
YOU ARE FURTHER NOTIFIED that the Agreement stated that Avista was willing
to provide electric service to the facility. Id. Thus, the City agreed to assign its right to Avista to
provide electric service to Seeds. Id. Avista agreed to assume the obligation to provide electric
service to Seeds under the rates, rules and regulations authorized by the Idaho Public Utilities
Commission. Id. The City also agreed to release Seeds as a customer on the City’s electric
system and disconnect Seeds from the City’s system when requested by Avista to do so. Id.
Avista and the City also settled to several other provisions for amendment, assignment,
indemnification and severability of the Agreement. Id. at 1-2.
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.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 28987 3
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 Friday, April 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 its Application in this case is Friday, April 26, 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.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 28987 4
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 28th
day of March 2002

PAUL KJELLANDER, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

DENNIS S. HANSEN, COMMISSIONER

ATTEST:

Jean D. Jewell
Commission Secretary

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