20070810final_order_no_30406.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. 30406
CASE NO. A VU-07-
On June 15, 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 19, 2007. The
Agreement was executed pursuant to the provisions of the Electric Supplier Stabilization Act
(ESSA) and specifically Idaho Code g 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.
THE APPLICATION
Avista and Northern Lights proposed to allocate servIce territory in a 13-10t
residential subdivision known as Lakewood Estates in Sandpoint, Idaho. Alpine Property
Development, Inc is developing the subdivision. Both electric suppliers have existing facilities
that can serve the initial 13 lots. The parties recite in their Agreement that Northern Lights
already serves two existing homes in the development and will serve the remaining 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 would 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 owner-developer of Alpine, Richard Lewis, has endorsed the Agreement. The
Developer agrees to comply and be bound by the Agreement. Given the agreement of the
ORDER NO. 30406
parties, they recommended that the Application be processed under Modified Procedure. The
parties also acknowledged that the Agreement is subject to the Commission s approval. Id. at ~
THE ESSA
Idaho Code g 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 g 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 g 61-333A(1). As set out in Idaho
Code g 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 g 61-333(1) requires the Commission to review consumer and territory
allocation Agreements between electric suppliers. 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. 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. 30406
ORDER
IT IS HEREBY ORDERED that Avista Corporation dba Avista Utilities
Application is granted. The Customer Allocation Agreement last dated May 19, 2007, between
A vista 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. Within seven (7)
days after any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See Idaho Code g 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this JO'f'i..
day of August 2007.
MARSHA H. SMITH, COMMISSIONER
ATTEST:
I'
~~.
D. Jewel
Commission Secretary
O:A VU-O7-np2
ORDER NO. 30406