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HomeMy WebLinkAbout20050819Decision memo.pdfDECISION 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