20070810final_order_no_30403.pdf

Office of the Secretary
Service Date
August 10, 2007
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF A VISTA CORPORATION TO APPROVE
AN AGREEMENT ALLOCATING SERVICE
TERRITORY WITH NORTHERN LIGHTS,
INC. PURSUANT TO THE IDAHO
ELECTRIC SUPPLIER STABILIZATION
ACT
ORDER NO. 30403
CASE NO. A VU-07-
On June 20, 2007, Avista Corporation dba Avista Utilities filed an Application
seeking the Commission s approval of a contract between Avista and Northern Lights to allocate
service territories and future consumers. Northern Lights is an electric cooperative operating in
northern Idaho. The parties
' "
Customer Allocation Agreement" is last dated May 23 2007. The
Agreement was executed pursuant to the provisions of the Electric Supplier Stabilization Act
(ESSA) and specifically Idaho Code ~ 61-333(1).
On July 10, 2007, the Commission issued a Notice of Application and Modified
Procedure requesting comments on the Application. The only party to respond was the
Commission Staff. Based upon our review, we approve the parties' Agreement.
THE APPLICATION
Avista and Northern Lights proposed to allocate customers and service territory in a
15-lot residential subdivision known as Spring Haven in Sandpoint, Idaho. The subdivision is
being developed by Jerry VanOoyen and Mike Dougherty. Both electric suppliers have existing
facilities that can serve the initial 15 lots. The parties have agreed that Northern Lights will
serve the initial 15 lots because its facilities are closer to the majority of lots. Agreement at ~ 1.
A plat of the subdivision is attached to the Agreement.
The parties asserted that the allocation of service territory will avoid duplication of
facilities, avoid dispute between the parties, and provide consumers with the best possible
service. The Agreement recognizes that A vista does not give up "its rights to serve future phases
of the Development or adjoining plats thereto, and (the Agreement) may not be used to
determine which supplier may serve other new customers. Id. at ~ 3.
The Agreement is also endorsed by Jerry VanOoyen, the owner-developer of the
property. The developers agreed to comply and be bound by the Agreement. Given the
agreement of the parties, they recommended that the Application be processed under Modified
ORDER NO. 30403
Procedure. The parties also acknowledged that the Agreement is subject to the Commission
approval. Id. at ~ 4.
THE ESSA
Idaho Code ~ 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 ~ 61-332A(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 ~ 61-333A(1). As set out in Idaho
Code ~ 61-332(2), the purposes of the ESSA are to: discourage duplication of facilities; prohibit
pirating" of consumers; stabilize service territories and consumers; and promote harmony
between electric suppliers.
ST AFF COMMENTS
Staff recommended that the Commission approve the Agreement. Staff commented
that Northern Lights facilities are closer to the majority of lots in the subdivision. After
reviewing the Application, Staff determined that the Agreement meets the purposes of the ESSA
by discouraging duplication, stabilizing service territories, and promoting harmony between
electric suppliers.
FINDINGS
Idaho Code ~ 61-333(1) requires the Commission to review consumer and territory
allocation Agreements between electric suppliers. After reviewing the Agreement and the
Staff s 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. We further find that
both electric suppliers are willing and able to furnish the requested service. We also note that
there was no opposition to the Agreement. Based upon these findings, we conclude that the
Agreement comports with the purposes of the ESSA.
ORDER NO. 30403
ORDER
IT IS HEREBY ORDERED that Avista Corporation dba Avista Utilities
Application is granted. The Customer Allocation Agreement last dated May 23 , 2007, 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 ~ 61-
626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
11-
day of August 2007.
MARSHA H. SMITH, COMMISSIONER
MACK A. REDFO
ATTEST:
Je D. Jewell
Commission Secretary
bls/O:AVU-07-05 dh2
ORDER NO. 30403