20050321Final Order No 29728.pdf

Office of the Secretary
Service Date
March 21, 2005
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION TO
APPROVE AN AGREEMENT ALLOCATING
SERVICE TERRITORY BETWEEN A VISTA
CORPORATION DBA A VISTA UTILITIES AND )
KOOTENAI ELECTRIC COOPERATIVE, INC.
PURSUANT TO THE IDAHO ELECTRIC
SUPPLIER STABILIZATION ACT.
CASE NO. A VU-O5-
ORDER NO. 29728
On January 27, 2005, Avista Corporation dba Avista Utilities filed an Application
seeking the Commission s approval of a contract between A vista and Kootenai Electric
Cooperative, Inc. to allocate seryice territories and future consumers. The parties
' "
Agreement
Allocating Territory" is dated November 28, 2004. The Agreement was executed pursuant to the
provisions of the Electric Supplier Stabilization Act (ESSA) and specifically Idaho Code ~ 61-
333(1 ).
On February 14, 2005, the Commission issued Order No. 29707 inviting interested
persons to file comments regarding the ESSA Agreement no later than March 7 2005. Only the
Commission Staff filed comments and it recommended that the Commission approve the
Agreement.
Agreement.
Based upon our review we grant the Application and approve the parties
THE ESSA AGREEMENT
A vista and Kootenai propose to allocate service territory in the Stateline Business
Park located in Post Falls, Idaho. Generally, the boundaries for the business park are: Seltice
Way on the north side; the Idaho-Washington border (the "Stateline ) on the west; Interstate 90
on the south; and the eastern boundary runs between Interstate 90 on the south side and Jacklin
Road on the north side. The Business Park is roughly divided in half by Baugh Way-Road B.
The parties have agreed that A vista and Kootenai will serve the western and eastern portions of
the Business Park, respectively. Exhibit C to the Agreement illustrates the exact boundaries in
greater detail.
Both parties have existing facilities within the Business Park. A vista and Kootenai
are willing and able to supply electric service to consumers within their respective allocated
ORDER NO. 29728
territories. The parties assert that the allocation of service territory will avoid duplication of
facilities, avoid disputes between the parties, and provide consumers with the best possible
servIce. The Agreement is also endorsed by the two developers of the Business Park:
Greenstone Corporation and Stateline Business Park, LLC. The developers agreed to comply
and be bound by the Agreement.
Idaho Code ~ 61-333(1) provides that electric suppliers may contract for the purpose
of "allocating territories, consumers, and future consumers... and designating which territories
and consumers are to be served by which contracting electric supplier." Under the ESSA, both
Avista and Kootenai are defined as electric suppliers. Idaho Code ~ 61-332A(4). After notice
and opportunity for hearing, the Commission may approve agreements allocating service
territories and customers between electric suppliers only upon finding that the allocation is in
conformance with the purposes of the ESSA. Idaho Code ~ 61-333A(1). The purposes of the
ESSA are to: discourage duplication of facilities; prohibit the "pirating" of consumers; stabilize
service territories and consumers; and promote harmony between electric suppliers. Idaho Code
~ 61-332(2).
STAFF COMMENTS
After reviewing the Application and the accompanYIng Agreement Staff
recommended that the Commission approve the Agreement. Staff noted that the Agreement will
allow A vista and Kootenai to avoid duplication of services , stabilize their respective service
territories and customers, and promote harmony by avoiding territory disputes. Idaho Code
~ 61-332(2).
FINDINGS
Idaho Code ~ 61-333(1) requires the Commission to reVIew territory allocation
Agreements between public utilities and electric cooperatives. Pursuant to this statute, we must
determine whether the allocation of service territory and future customers is in conformance with
the provisions and the purposes of the ESSA. After reviewing the Agreement and the Staffs
comments, we grant the Application and approve the allocation Agreement. In particular, the
Agreement avoids duplication of services, stabilizes service territories and customers, and
promotes harmony between A vista and Kootenai Electric. We further find that both electric
suppliers are willing and able to furnish the requested service. We also note that there was no
ORDER NO. 29728
public opposition to the Agreement. Based upon these findings we conclude that the
Agreement Allocating Territory" comports with the purposes of the ESSA.
ORDER
IT IS HEREBY ORDERED that the "Agreement Allocating Territory dated
November 28 , 2004, between Avista Utilities and Kootenai Electric Cooperative is approved.
addition, the Commission also grants A vista s Application.
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-05-
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-05-Within seven (7) days after any person has petitioned for
reconsideration, any other person may cross-petition for reconsideration. See Idaho Code ~ 61-
626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this :2 f sf
day of March 2005.
MARSHA H. SMITH, COMMISSIONER
, COMMISSIONER
ATTEST:
~~.
J~ D. Jewell
Commission Secretary
vld/O:A VUEO52 dh2
ORDER NO. 29728