20050422Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:DONOVAN E. WALKER
DATE:APRIL 19, 2005
SUBJECT:CONSUMER ALLOCATION AGREEMENT BETWEEN A VIST.
UTILITIES AND IDAHO COUNTY LIGHT & POWER COOPERATIVE
CASE NO. AVU-05-
On March 10, 2005 , Avista Corporation dba Avista Utilities filed an Application to
approve an Agreement to Assign Electric Customers with Idaho County Light & Power
Cooperative (ICLP). The parties
' "
Agreement to Assign Electric Customers" is dated February
, 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. 29742 requesting that
interested persons file comments regarding the ESSA Agreement no later than April 18, 2005.
Only the Commission Staff filed comments and it recommended that the Commission approve
the ESSA Agreement.
THE APPLICATION
The parties have entered into an agreement pursuant to the Electric Supplier
Stabilization Act (ESSA), Idaho Code ~~ 61-332 et seq.by which ICLP has agreed to relinquish
its electric service rights to serve any portion of the Crimson Ridge Subdivision, Phase I, located
in Idaho County. The Agreement and property description are attached to Avista s Application.
Buy-The-Way LLC (Developer) is developing residential building sites in the
Crimson Ridge Subdivision, Phase I, consisting of 32 large lots. The Application states that
A vista and ICLP each have electric service rights under the ESSA to provide electric service to
certain portions of the development. The Developer has requested that A vista provide electric
DECISION MEMORANDUM
service to the entire development. Through the Agreement ICLP has released its electric service
rights to serve any portion of the development. 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 is also
endorsed by the Developer, Buy-the-Way LLC. The Developer approves, and agrees to 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 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(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).
ST AFF COMMENTS
After reviewing the Application and the accompanyIng Agreement Staff
recommends that the Commission approve the Agreement. Staff noted that the Agreement will
allow A vista and ICLP to avoid duplication of services, stabilize their respective service
territories and customers, and promote harmony by avoiding interconnection disputes. Idaho
Code ~ 61-332(2).
COMMISSION DECISION
Does the Commission wish to approve the territory and customer allocation
Agreement between Avista and Idaho County Light Power Cooperative?
Commission find that the Agreement comports with the purposes of the ESSA?
Does the
DECISION MEMORANDUM