20050209Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
CO MMISSI 0 NER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
FROM:DON HOWELL
DATE:FEBRUARY 1, 2005
RE:APPLICATION FOR APPROVAL OF A SERVICE TERRITORY
AGREEMENT FILED BY A VISTA UTILITIES AND KOOTENAI
ELECTRIC COOPERATIVE, CASE NO. AVU-05-
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 service 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 9 61-
333(1 ).
THE APPLI CA TI 0 N
As explained in greater detail i? their Agreement, A vista and Kootenai propose to
allocate service territory in the Stateline Business Park in Post Falls, Idaho. Generally, the
boundaries for the business park are: Seltice Way on the north side; the Idaho-Washington
boundary (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. The Business Park
roughly divided in half by Baugh Way-Road B. The parties have agreed Avista 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 boundaries of the Business Park.
A vista and Kootenai are willing and able to supply electric service to consumers within their
respective allocated territories. The parties assert that the allocation of service territory will
avoid duplication of facilities, avoid disputes between the parties, and provide consumers with
DECISION MEMORANDUM
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.
Given the Agreement of the parties, they recommend that the Application be
processed under Modified Procedure.
THE ESSA
Idaho Code 9 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
A vista and Kootenai are defined as electric suppliers. Idaho Code 9 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 961-333A(1). As set out in Idaho
Code 9 61-332(2), the purpose of the ESSA is to: discourage duplication of facilities; prohibit
pirating" of consumers; stabilize service territories and consumers; and promote harmony
between electric suppliers.
STAFF RECOMMENDATION
Given the Agreement of the parties and the consent of the two developers, Staff
recommends that this Application be processed under Modified Procedure.
COMMISSION DECISION
Does the Commission concur that this matter should be processed under Modified
Procedure?
Don Howell
Vld/M:A VUEO502 dh
DECISION MEMORANDUM