Order No 29018.pdf

Office of the Secretary
Service Date
May 13, 2002
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION TO
APPROVE A CUSTOMER ALLOCATION
AGREEMENT BETWEEN A VISTA
CORPORATION AND THE CITY OF PLUMMER.
CASE NO. A VU-02-
ORDER NO. 29018
On March 11 2002, Avista Corporation (A vista) filed an Application for approval
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 the Notice of Application and Modified Procedure
issued on March 28, 2002, the Commission solicited comments regarding Avista s Application.
Order No. 28957. Only the Commission Staff submitted comments, which supported adoption
of the Customer Allocation Agreement. In this Order the Commission approves the Customer
Allocation Agreement as set out in greater detail below.
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
Electric) 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.
ORDER NO. 29018
THE CUSTOMER ALLOCATION AGREEMENT
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. 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.
After providing background information regarding the Court proceeding, the
Agreement stated that A vista was willing to provide electric service to the facility. Id. Thus, the
City agreed to assign its right to A vista to provide electric service to Seeds. Id. A vista 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 agreed to several other provisions for
amendment, assignment, indemnification and severability of the Agreement. Id. at 1-
STAFF COMMENTS
Staff filed the only comments received by the Commission in this case.Staff
reviewed the Application and discussed the filing with the City of Plummer, Avista, and Seeds
Inc. According to Staff, Seeds clearly experienced significant service quality problems as a
customer of the City, which the District Court resolved by allowing Seeds to arrange for another
utility company to provide service to Seeds at Tilma. Staff believes A vista is the most
appropriate alternate service provider since Avista s facilities are approximately 800 feet from
the Seeds facility, whereas the next nearest provider is roughly 8 miles away. Avista s nearest
ORDER NO. 29018
facilities have the capacity to serve the Seeds load and A vista is willing to provide service to
Seeds.
A vista has proposed to serve Seeds through Schedule 21 - Large General Service.
Staff believes this is the most appropriate service schedule for Seeds. Although the Company
line extension tariff provides an allowance that exceeds connection costs, Seeds will be
responsible for removing and replacing metering and related service materials prior to
connection. Because Seeds will be serviced under Avista s approved tariff schedule and line
extension tariff that generally reflect cost of service, the addition of Seeds to Avista s system
should not unduly burden the existing customers. For these reasons , Staff recommended
approval of the Customer Allocation Agreement.
DISCUSSION
After reviewing the Application, the Customer Allocation Agreement and the
pertinent provisions of the ESSA, we find that the Customer Allocation Agreement should be
approved. We note that there were no opposing comments and the only comments submitted
supported approval of the Agreement. A vista and Staff agree that A vista can provide superior
service quality, even though the City has the right to serve this customer under the ESSA. We
find that this Customer Allocation Agreement is a reasonable resolution under the circumstances
and thus promotes "harmony among and between electrical suppliers furnishing electricity
within the state ofldaho.Idaho Code 9 61-332(2) (2001). Consequently, we conclude that the
Customer Allocation Agreement is in conformance with the purposes of the ESSA.
ORDER
IT IS HEREBY ORDERED that Avista Utilities ' Application for approval of a
Customer Allocation Agreement formed on February 27, 2002, between Avista Utilities and the
City of Plummer is approved.
THIS IS A FINAL ORDER. Any person interested in this Order (or in issues finally
decided by this Order) or in interlocutory Orders previously issued in this Case No. A VU-02-
may petition for reconsideration within twenty-one (21) days of the service date of this Order
with regard to any matter decided in this order or in interlocutory Orders previously issued in this
Case No. A VU-02-3. For purposes of filing a petition for reconsideration, this order shall
become effective as of the service date. Idaho Code 9 61-626. Within seven (7) days after any
ORDER NO. 29018
person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See Idaho Code 9 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this /0 tI..
day of May 2002.
~SIDENT
~~~
Ii 8n~
MARSHA H. SMITH, COMMISSIONER
ATTEST:
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ORDER NO. 29018