20050819Decision memo.pdf

DECISION MEMORANDUM
TO:CO MMISSI 0 NER KJELLAND ER
CO MMISSI 0 NER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEG AL
FROM:KIRA DALE PFISTERER
DA TE:AUGUST 18, 2005
RE:APPLICATION OF VISTA CORPORATION TO APPROVE AN
AGREEMENT BETWEEN A VISTA CORPORA TION AND IDAHO
COUNTY LIGHT & POWER COOPERATIVE TO RELEASE AN
ELECTRIC CUSTOMER, CASE NO. A VU-05-
On August 4, 2005, Avista Corporation filed an Application seeking the
Commission s approval of a contract between A vista and Idaho County Light Power
Cooperative (ICLPC) to exchange a customer. The exchange agreement is submitted for the
Commission s review pursuant to the provisions of the Electric Suppliers Stabilization Act
(ESSA). Idaho Code ~ 61-332 et seq.
THE AGREEMENT
The parties propose to exchange a single customer, Ronda Edwards. ICLPC has
agreed to relinquish the right to serve Ms. Edwards' property in Grangeville , Idaho to A vista.
According to the Agreement, ICLPC has a transmission line within 250 feet of Ms.
Edwards' property, and Avista has an existing line within 600 feet of the property. However , it
would cost ICLPC considerably more than it would cost A vista to provide service to Ms.
Edwards' property. Avista is willing to supply the electric service to Ms. Edwards; ICLPC is
willing to release Ms. Edwards as a customer; and Ms. Edwards supports the exchange.
THE ESSA
Under the ESSA, if more than one service supplier has an existing service line within
320 feet of a new customer, the electric supplier whose existing service line is closest to the
new service entrance shall have the right to serve the customer. However, the ESSA also allows
DECISION MEMORANDUM
electric suppliers to contract with one another for the purpose of exchanging customers provided
that the Commission approves the agreement. Idaho Code ~ 61-333.
The Commission approves customer exchange contracts only upon finding that the
transfer is consistent with the purposes of the ESSA. Idaho Code ~ 61-334(B)(1). The purposes
of the ESSA are: (1) to promote harmony among and between electric suppliers; (2) prohibit the
pirating" of consumers; (3) discourage the duplication of electric facilities; (4) actively
supervise the conduct of electric suppliers; and (5) stabilize the territories and consumers served
with electricity by such electric suppliers. Idaho Code ~ 61-332(2). Pursuant to the ESSA, the
Commission has authority to approve or reject a contract between a municipality and a
cooperative; however, the Commission has jurisdiction only over the cooperative in such a
proceeding. Idaho Code ~~ 61-333 , 61-334B(1).
STAFF RECOMMENDATION
Staff recommends that the Application be processed under Modified Procedure.
COMMISSION DECISION
Does the Commission wish to process A vista Application under Modified
Procedure?
/UfdJ. Kira D Ie Pfisterer
M:A VUEO505 kdp
DECISION MEMORANDUM