20050428Final Order No 29774.pdf

Office of the Secretary
Service Date
April 28, 2005
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF A VISTA CORPORATION TO APPROVE
AGREEMENT TO RELEASE CUSTOMER
WITH INLAND POWER & LIGHT
COMP ANY ORDER NO. 29774
CASE NO. A VU-O5-
On February 17, 2005 , Avista Corporation dba Avista Utilities filed an Application
seeking the Commission s approval of a contract between A vista and Inland Power & Light
Company (Inland Power) to release a customer. The parties
' "
Agreement to Release Customer
is dated January 25 , 2005. The Agreement was executed pursuant to the provisions of the
Electric Supplier Stabilization Act (ESSA) and specifically Idaho Code ~ 61-333(1).
On March 28, 2005 , the Commission issued Order No.29741 requesting that
interested persons file comments regarding the Agreement no later than April 18, 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 Inland Power have proposed an Agreement whereby Inland Power has
agreed to relinquish the right to serve the West Bonner Library District's new facility located in
Spirit Lake, Idaho. The West Bonner Library District intends to construct a library in Spirit
Lake. A vista has existing service lines near the property; however, Inland Power s existing
service lines are closer and therefore it had the right to serve the customer. Based upon the
physical location of Inland Power s infrastructure, with a building in the way of the service
access, its cost to serve the new library would be substantially more than A vista s cost to serve.
The Application states that the Agreement is in the best interest of the customer, will avoid
duplication of facilities, avoid disputes between parties, and provides the consumer with the best
possible service. The Agreement and property description are attached to the Company
Application. The Agreement is also endorsed by a representative of the West Bonner Library
District, the customer to be served by this Agreement. The customer approves, and agrees to be
bound by, the Agreement.
ORDER NO. 29774
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 Inland Power 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 ~~ 61-333(1), 61-334B(I). 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 Inland Power to avoid duplication of services, stabilize their respective service
territories and customers, and promote harmony by avoiding interconnection disputes. Idaho
Code ~ 61-332(2).
FIND IN GS
Idaho Code ~ 61-333(1) requires the Commission to review consumer 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 Inland Power & Light. We further find that both electric
suppliers are willing and able to furnish the requested service. We also note that there was no
public opposition to the Agreement. Based upon these findings we conclude that the
Agreement to Release Customer" comports with the purposes of the ESSA.
ORDER
IT IS HEREBY ORDERED that the "Agreement to Release Customer" dated
January 25, 2005 , between Avista Utilities and Inland Power & Light Company is approved. In
addition, the Commission also grants A vista s Application.
ORDER NO. 29774
THIS IS A FINAL ORDER. Any person interested in this Order 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.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 J..8f1'-
day of April 2005.
0lJ;L
MARSHA H. SMITH, COMMISSIONER
ATTEST:
~ew~li
Co mission Secretary
O:A VUE0503 dw2
ORDER NO. 29774