20030520Final Order No 29244.pdf

Office of the Secretary
Service Date
May 20, 2003
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
VISTA CORPORATION DBA A VISTA
UTILITIES FOR AN ORDER APPROVING AN
AMENDMENT TO A SERVICE TERRITORY
AGREEMENT BETWEEN A VISTA UTILITIES
AND KOOTENAI ELECTRIC COOPERATIVE, )INC.
CASE NO. AVU-O3-
ORDER NO. 29244
On March 11 , 2003, Avista Corporation dba Avista Utilities submitted an amendment
to its existing Service Territory Agreement with Kootenai Electric Cooperative, Inc. In
December 2002, Avista and Kootenai agreed to make two changes to their Service Territory
Agreement that was approved by the Commission in Order No. 28681 issued in March 2001.
Order No. 29217 issued April 7, 2003, the Commission issued a Notice of Modified Procedure
soliciting public comments on the parties' amendments (collectively referred to as Amendment
No.1) pursuant to the Idaho Electric Supplier Stabilization Act (ESSA). The only comments
received were filed by the Commission Staff.
THE APPLICATION
In Order No.28681 the Commission approved the Service Territory Agreement
entered into by Avista s predecessor "The Washington Water Power Company" and Kootenai.
The Commission approved the Agreement pursuant to the ESSA. In particular Idaho Code
961-333 provides that the Commission "shall after notice and opportunity for hearing, review
and approve or reject contracts. . .between cooperatives and public utilities.
The parties propose two changes to their Service Territory Agreement. First, they
propose to change the name of "The Washington Water Power Company" to "Avista
Corporation dba Avista Utilities." Second, the parties propose to delete Section 7 of the
underlying Agreement. This section includes provisions to determine which of two electric
suppliers would serve a real estate development when build-out of the development intersects a
competing supplier s service line. The parties assert that Section 7 is ambiguous and that it
should be deleted in its entirety.
ORDER NO. 29244
STAFF COMMENTS
Staff recommended that the Commission approve the amendments to the parties
Service Territory Agreement. The Staff also agreed with the parties that deletion of Section 7 of
the Agreement removes an ambiguity. Staff noted that Section 6 of the Agreement currently
allows a developer to utilize the same electric supplier throughout all phases of a development
regardless of the presence of a competing supplier s intersecting electrical lines.
FINDINGS
Having reviewed the parties ' proposed amendments to their Service Territory
Agreement and the Staff s supporting comments, we find that it is reasonable to approve the
changes to the Service Territory Agreement originally approved in Order No. 28681. More
specifically, we find that the name change clarifies the identity of the utility. In addition, we also
find that removal of Section 7 removes an ambiguity.
We further find that these changes are consistent with the purpose of the Electric
Supplier Stabilization Act. In particular, we find that the amended Agreement promotes
harmony among electric suppliers, discourages duplication, and, in particular, stabilizes the
territories and consumers served by these two electric suppliers. Consequently, we approve the
parties' Amendment No.1 dated December 26, 2002.
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-03-
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-03-Within seven (7) days after any person has petitioned for
reconsideration, any other person may cross-petition for reconsideration. See Idaho Code 961-
626.
ORDER NO. 29244
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this :LO ti..
day of May 2003.
Out of the Office on this Dat
MARSHA H. SMITH, COMMISSIONER
ENNIS S. HANSE , COMMISSIONER
ATTEST:
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ORDER NO. 29244