20030714Comments.pdf

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DONALD L. HOWELL, II
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 3366
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LCD3 JUL t~ AM II:
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UTILiTiES COi':i'iISSiON
Street Address for Express Mail:
472 W. WASHINGTON
BOISE, IDAHO 83702-5983
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
VISTA CORPORATION DBA A VISTA
UTILITIES FOR AN ORDER APPROVING A
CONTRACT WITH KOOTENAI ELECTRIC
COOPERATIVE, INC. TO ALLOCATE
SERVICE TERRITORIES, A CONSUMER, AND )FUTURE CONSUMERS.
CASE NO. A VU-O3-
COMMENTS OF THE
COMMISSION STAFF
COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its
Attorney of record, Donald L. Howell, II, Deputy Attorney General, and in response to the
Notice of Application and Notice of Modified Procedure issued in Order No. 29268 on June 23
2003, submits the following comments.
On June 5, 2003 , Avista Utilities (Avista) filed an Application for approval of an
Agreement to Exchange Electric Customers (Agreement) between 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.
A VU-01-
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
STAFF COMMENTS JULY 14 2003
that 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 rej ect ( 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), 61-334 B(l). 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; and (5)
actively supervise certain conduct of the suppliers.
APPLICATION
The Application before the Commission is an Agreement to Exchange Electric
Customers between Kootenai and Avista. The Agreement transfers Mr. Roy Armstrong
electric service currently provided by A vista to Kootenai. It also transfers the electric service of
the Grayling Estates Subdivision ftom Kootenai to A vista. A vista s existing facilities are located
to the north of both properties and Kootenai's existing facilities are located to the south and east.
The Agreement defines the properties to be served by each utility.
STAFF COMMENTS
The proposal appears to be a least-cost exchange between Kootenai and A vista. Even
though Mr. Armstrong is an existing Avista customer, the agricultural property surrounding his
property is being developed into a residential subdivision served by Kootenai Electric.
Therefore, the Armstrong service is becoming more difficult and costly for A vista to serve
because of relocation and access requirements of the subdivision. Meanwhile Kootenai's service
will eventually encompass all of the Armstrong property and eliminate the need for Avista
facilities.
In essence, the parties seek an "exemption" to the anti-pirating provision of Idaho Code
~61-332B. See Idaho Code ~61-334B(1). The exchange of the Armstrong account at this time is
STAFF COMMENTS JULY 14, 2003
an efficient, least-cost alternative for both electric service providers. The exchange also avoids
the duplication of facilities and stabilizes the territories of the two suppliers.
The parties also propose to exchange the final phase of the Grayling Estates Subdivision.
Kootenai served the previous phases of the Grayling Estates Subdivision. However, the final
phase (41 lots) is closest to A vista s existing service territory. A vista is also the least-cost
provider for this final phase because Kootenai's line extension would require an expensive and
time consuming bore under an adjacent railroad right-of-way. Consequently, the parties propose
to exchange this service territory and these future customers.
Both Mr. Armstrong and the subdivision developer, Prairie Falls, L.L.c., endorse the
transfers. The Agreement provides the least cost service option for the customers and complies
with the ESSA by drawing a line between customers and clearly defining which utility will serve
the Armstrong Account and the Grayling Estates Subdivision. Therefore, the Agreement to
Exchange Electric Customers in this Application: (1) promotes harmony among and between
electric suppliers; (2) discourages duplication of electric facilities; and (3) stabilizes the territory
and consumers served by the suppliers as required by the Act.
STAFF RECOMMENDATION
Staff recommends that the Commission grant an exemption to Idaho Code ~61-332B so
that Kootenai may serve Mr. Armstrong. Staff further recommends approval of the Agreement
to Exchange Electric Customers between Kootenai Electric Cooperative and A vista Utilities, Inc.
Respectively submitted this J'/~ay of July 2003.
Donald L. Ho ell, II
Deputy Attorney General
Technical Staff: Michael Fuss
D H: i :umisc/commen ts/avueO3, 5dhmfuss
STAFF COMMENTS JULY 14 2003
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 14TH DAY OF JULY 2003
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN
CASE NO. AVU-03-, BY MAILING A COpy THEREOF, POSTAGE PREPAID, TO
THE FOLLOWING:
BRUCE FOLSOM MANAGER
REGULATORY COMPLIANCE
A VISTA CORPORATION
PO BOX 3727
SPOKANE W A 99220-3727
KELLY NORWOOD
VICE PRESIDENT
A VISTA CORPORATION
PO BOX 3727
SPOKANE WA 99220-3727
ROBERT L CRUMP
GENERAL MANAGER
KOOTENAI ELECTRIC COOP
PO BOX 278
HAYDEN ID 83835-0278
SE
CERTIFICATE OF SERVICE