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Home My WebLink About20070706Decision Memo.pdfDECISION MEMORANDUM TO:COMMISSIONER KJELLANDER CO MMISSI 0 NER SMITH COMMISSIONER REDFORD COMMISSION SECRETARY COMMISSION STAFF LEGAL FROM:NEIL PRICE DATE:JUNE 26, 2007 SUBJECT:APPLICATION FOR APPROVAL OF A SERVICE TERRITORY AGREEMENT FILED BY VISTA UTILITIES AND NORTHERN LIGHTS, 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, Inc. Northern Lights ) to allocate service territories and future consumers. Northern Lights is an electric cooperative operating in northern Idaho. The parties have entered into a "Customer Allocation Agreement" which is last dated May 19, 2007 and attached to A vista s Application. The Agreement was executed pursuant to the provisions of the Electric Supplier Stabilization Act ("ESSA"), specifically Idaho Code 9 61-333(1). THE APPLICATION Avista and Northern Lights propose to allocate service territory in a 13-10t residential subdivision development known as Lakewood Estates in Sandpoint, Idaho. A vista customer Alpine Property Development, Inc. ("Developer ) is developing the subdivision. Both electric suppliers have existing facilities that can serve the 13-10t subdivision. 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 in closer proximity to the development. Agreement at 1. A plat of the subdivision is attached to the Agreement. The parties assert that allowing Northern Lights to provide electric service to the subdivision will avoid duplication of facilities, avoid dispute between the parties and provide consumers the best possible service. For the aforementioned reasons, the parties agree that it is in the best interest of the customer "to have a single source-utility provider.Id. The Agreement DECISION MEMORANDUM 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 1 , ~ 3. The owner-developer of Alpine Property Development, Richard Lewis, has endorsed the Agreement. The Developer agrees to comply and be bound by the Agreement. Pursuant to their Agreement, the parties recommend that the Application be processed under Modified Procedure. Finally, the parties acknowledge that the Agreement is subject to the Commission approval. Id. at 1 , ~ 4. THE ESSA 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 9 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 9 61-333A(1). As set out in Idaho Code 9 61-332(2), the purposes of the ESSA are to: (1) discourage duplication of facilities; (2) prohibit "pirating" of consumers; (3) stabilize service territories and consumers; and (4) promote harmony between electric suppliers. STAFF RECOMMENDATION In accordance with the agreement between the parties and the consent of the affected Developer, Staff recommends that this Application be processed under Modified Procedure. CO MMISSI 0 N D ECISI ON Does the Commission concur that this mater should be processed under Modified Procedure? /I "'-- /f\) Neil Price M:A VU-O7- DECISION MEMORANDUM