20061101final_order_no_30172.pdf

Office of the Secretary
Service Date
November 1 , 2006
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF A VISTA CORPORATION TO APPROVE
AN AGREEMENT ALLOCATING
TERRITORY WITH NORTHERN LIGHTS,
INC.
ORDER NO. 30172
CASE NO. A VU-06-
On September 7, 2006, A vista Corporation dba A vista Utilities filed an Application
to approve a Customer Allocation Agreement with Northern Lights, Inc. pursuant to the Electric
Supplier Stabilization Act (ESSA), Idaho Code 99 61-332 et seq. The Agreement was executed
pursuant to the provisions of the Electric Supplier Stabilization Act (ESSA) and specifically
Idaho Code 9 61-333(1).
On October 2, 2006, the Commission issued Order No. 30133 requesting interested
persons file comments regarding the ESSA Agreement no later than October 23 , 2006. Only the
Commission Staff filed comments and recommended the Commission approve the ESSA
Agreement.
Agreement.
Based upon our review, we grant the Application and approve the parties
THE APPLICATION
The parties have entered into an agreement pursuant to the ESSA in order to allow
Avista to supply electric service to a Northern Lights customer, Treeland Partners LLC (the
Developer). Northern Lights has agreed to relinquish the right to serve the Developer s 34-10t
parcel in Sandpoint, Idaho to A vista.
The Application states that Northern Lights currently provides electric service to two
structures adjacent to a portion ofthe development. These two structures are currently scheduled
for demolition, and a new access road is scheduled to go in at the demolition site. The Developer
has requested Northern Lights remove its electric facilities from the demolition site to enable the
construction of the access road. Once the facilities are removed A vista will be the closest utility
to the majority of the 34 lots within the development.
According to the Customer Allocation Agreement, the Developer has requested
A vista to provide the backbone infrastructure and to provide electric and natural gas services to
the entire development, and that it is in the Developer s best interest to have a single source
ORDER NO. 30172
utility provider to serve the development. Northern Lights has agreed to allow A vista to provide
electric service to the entire development.
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 Northern Lights are defined as electric suppliers. Idaho Code 961-332A(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 961-333A(1). As set out in Idaho
Code 9 61-332(2), the purpose of the ESSA is to: discourage duplication of facilities; prohibit
pirating" of consumers; stabilize service territories and consumers; and promote harmony
between electric suppliers.
STAFF COMMENTS
After reviewing the Application and the accompanYlllg Agreement Staff
recommended the Commission approve the Agreement. Staff recommended that the Agreement
is in conformance with the provisions and purposes of the ESSA, specifically those found in
Idaho Code ~ 61-332(2).
FINDINGS
Idaho Code ~ 61-333(1) requires the Commission to review consumer and territory
allocation Agreements between electric suppliers. 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 Avista and Northern Lights, Inc. 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 "Customer
Allocation Agreement" comports with the purposes of the ESSA.
ORDER NO. 30172
ORDER
IT IS HEREBY ORDERED that Avista Corporation dba Avista Utilities
Application and the "Customer Allocation Agreement" between Avista Utilities and Northern
Lights, Inc. is approved.
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 Sf"
day of November 2006.
, PRESIDENT
tJ~
MARSHA H. SMITH, COMMISSIONER
ATTEST:
~LDJe D. Jewell
Co mission Secretary
O:A VU-O6-06 dw2
ORDER NO. 30172