20061101final_order_no_30173.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 ALLOCA TIN
TERRITORY WITH NORTHERN LIGHTS,
INc.
ORDER NO. 30173
CASE NO. A VU-06-
On September 11 , 2006, A vista Corporation dba A vista Utilities 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 parties
Agreement Allocating Territory" is dated July 24, 2006. The Agreement was executed pursuant
to the provisions of the Electric Supplier Stabilization Act (ESSA) and specifically Idaho Code
961-333(1).
On October 2, 2006, the Commission issued Order No. 30134 requesting that
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. Based upon our review, we grant the Application and approve the parties
Agreement.
THE APPLICATION
According to the Application the parties have entered into an agreement pursuant to
the ESSA in order to allocate territory, avoid disputes between utilities, and to provide
consumers with the best possible service. Both utilities have existing service lines near a new
development (Development) in Sandpoint, Idaho, and both utilities are able and willing to supply
electric service to consumers who may establish service entrances in the Development. The
utilities have agreed to an allocation of service territory to each utility as set forth in their
Agreement.
The Agreement Allocating Territory, a map of the designated service areas and a
legal description of the boundaries were filed with the Application. According to the Agreement
A vista and Northern Lights will each be entitled to extend their electric facilities, to the
exclusion of the other, within the territory allocated to each as outlined in the Agreement, and to
provide service to customers who locate new electric service entrances within such territory.
The Agreement states that, within the territory allocated, each utility shall provide line
ORDER NO. 30173
extensions and electric service pursuant to the provisions of their respective line extension
policies, rate schedules, and/or tariffs in force at the time such extensions or services are
requested. The Agreement further provides that a line extension installed within the boundaries
of the Development to serve an electric service located within the territory allocated by the
Agreement shall not be considered an "existing service line" and may not be used as a future
measuring point for the purpose of determining which utility is entitled to provide electric
service under the ESSA to new service entrances located in territory not allocated pursuant to the
Agreement. Additionally, the Agreement states that the utilities current electric service lines as
shown on Exhibit B, as well as any line extensions external to the boundaries defined in the
Agreement and outlined on Exhibit B which are required to reach existing infrastructures within
the Development and which are installed in accordance with the ESSA may be used to
determine future electric service rights to new service entrances located in territory not allocated
pursuant to the Agreement. Lastly, the Agreement states that the boundaries set forth by the
Agreement and shown on Exhibit B will not be affected by any subsequent changes in lot lines
roadways, or other boundaries within the Development that occur after the date of the
Agreement.
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 COMMENTS
After reviewing the Application and the accompanYIng 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 9 61-332(2).
ORDER NO. 30173
Staff also recommended the Commission actively support a broader expanSIOn
agreement plan for the North Idaho Region between A vista, Northern Lights, and Kootenai
Electric in order to ensure that electric infrastructure and expansion is developed in an
economically efficient manner.
FINDINGS
Idaho Code 961-333(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
Agreement Allocating Territory" comports with the purposes of the ESSA.
ORDER
IT IS HEREBY ORDERED that Avista Corporation dba Avista Utilities
Application and the "Agreement Allocating Territory" dated July 24, 2006, between Avista 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 9 61-
626.
ORDER NO. 30173
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this I gf
day of November 2006.
P .. L KJELLA , PRESIDENT
"""
MARSHA H. SMITH, COMMISSIONER
ATTEST:
O:A VU-O6-07 dw2
ORDER NO. 30173