20050302Comments.pdf

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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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 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-
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 submits the following
comments in response to Order No. 29707, issued on February 14 2005. Staff recommends that
the Commission approve the ESSA Agreement between A vista and Kootenai Electric
Cooperative, Inc.
BACKGROUND
On January 27, 2005 , Avista Corporation dba Avista Utilities filed an Application
seeking the Commission s approval of a contract between Avista 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
STAFF COMMENTS MARCH 2, 2005
provisions of the Electric Supplier Stabilization Act (ESSA) and specifically Idaho Code
9 61-333(1). The parties request that their Application be processed under Modified Procedure.
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
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 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
Avista 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
confonnance with the purposes of the ESSA. Idaho Code 9 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 hannony between electric suppliers. Idaho Code
9 61-332(2).
Idaho Code 9 61-333(1) requires the Commission to review territory allocation
agreements between public utilities and electric cooperatives. Pursuant to this statute, the
Commission must detennine whether the allocation of service territory and future consumers is
in confonnance with the provisions and the purposes of the ESSA.
ST AFF COMMENTS MARCH 2, 2005
STAFF RECOMMENDATION
Staff believes the November 28 2004 Agreement, between Avista and Kootenai Electric
Cooperative Inc. to allocate service territories and future consumers, is in confonnance with the
provisions and purposes of the ESSA. More specifically, the Agreement will allow the parties to
avoid duplication of services, stabilize service territories and customers, and promote hannony
by avoiding interconnection disputes. Idaho Code 9 61-332(2). Staff recommends that the
Agreement be approved.
Respectfully submitted this 2- day of March 2005.
Donald L. How , II
Deputy Attorney General
Technical Staff: Dave Schunke
umisc/comments/avueO5.2dhdes
STAFF COMMENTS MARCH 2, 2005
CERTIFICATE OF SERVICE
HEREBY CERTIFY THAT I HAVE THIS 2ND DAY OF MARCH 2005
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN CASE
NO. AVU-05-, BY MAILING A COpy THEREOF POSTAGE PREPAID TO THE
FOLLOWING:
DAVID J. MEYER
SR VP AND GENERAL COUNSEL
VISTA CORPORATION
PO BOX 3727
SPOKANE WA 99220-3727
E-mail dmeyer(fYavistacorp. com
KELLY NORWOOD
VICE PRESIDENT - STATE & FED. REG.
VISTA UTILITIES
PO BOX 3727
SPOKANE WA 99220-3727
E-mail Kell y.norwood(fYavistacorp. com
\C~
CERTIFICATE OF SERVICE