20060922Decision memo.pdf

DECISION MEMORANDUM
TO:CO MMISSI 0 NER KJELLAND ER
CO MMISSI 0 NER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:DONOVAN E. WALKER
DATE:SEPTEMBER 20, 2006
SUBJECT:A VISTA'APPLICATION TO APPROVE A TERRITORY
ALLOCATION AGREEMENT WITH NORTHERN LIGHTS, INC., CASE
NO. A VU-06-
On September 7, 2006, A vista filed an Application to approve an agreement
allocating service territory with Northern Lights, Inc. pursuant to the Electric Supplier
Stabilization Act (ESSA), Idaho Code 99 61-332 et seq. The Company requests that this
Application be processed by Modified Procedure.
Application by Modified Procedure.
Staff also recommends processing the
THE APPLICATION
According to 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 Avista.
The Application states that Northern Lights currently provides electric service to two
structures adjacent to a portion of the 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 to 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 (Attachment #1 to the
Application) 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
DECISION MEMORANDUM
Developer s best interest to have a single source utility provider to serve the Development.
Northern Lights has agreed to allow Avista to provide electric service to the entire Development.
THE ESSA
Idaho Code 961-333(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.
ST AFF RECOMMENDATION
Staff recommends that the Company s Application be processed by Modified
Procedure with a 21 day comment period.
COMMISSION DECISION
Does the Commission preliminarily find that the public interest may not require a
hearing to consider the issues presented in this case , and that this case is appropriate for
Modified Procedure pursuant to Commission Rules of Procedure 201 through 204?
Donovan E. Walker
DECISION MEMORANDUM