20120320final_order_no_32490.pdf

Office of the Secretary
Service Date
March 20,2012
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF AVISTA CORPORATION TO APPROVE )CASE NO.AVU-E-12-02
AN AGREEMENT ALLOCATING )
TERRITORY WITH CLEARWATER )
POWER COMPANY )ORDER NO.32490
_________________________________________________________________________________
)
On February 6,2012,Avista Corporation dba Avista Utilities applied to the
Commission for an Order approving Avista’s January 6,2011 “Electric Service Letter of
Agreement”with Clearwater Power Company.If approved,the Agreement would enable Avista
to provide electric service to Clearwater customer Steven A.Henderson under the Electric
Supplier Stabilization Act (ESSA),Idaho Code §6 1-332 et seq.
On February 15,2012,the Commission issued a Notice of Application and Modified
Procedure that set a March 7,2012 public comment deadline.See Order No.32455.Staff filed
the only comments in the case.Staff recommended the Commission approve the Agreement.
With this Order,the Commission approves Avista’s Agreement with Clearwater.
THE APPLICATION
According to Avista’s Application,Clearwater’s customer currently receives single-
phase electric service to a residential dwelling from Clearwater.Application at 1.However,the
customer will require three-phase electric service for the shop under construction on his property.
Under the ESSA,Clearwater is entitled to provide this three-phase electric service,but Avista
can provide the service for substantially less cost due to the proximity of Avista’s overhead
distribution lines.Id.at 2.
The Application says the parties agree that Avista should provide the three-phase
service and that Clearwater shall release the customer to Avista so Avista can also provide the
single-phase service.Clearwater will remove its facilities and Avista will extend its existing
electrical facilities to provide electric service to the customer’s entire premises.Id.
According to the Application,the parties further agree that the electric service line
being installed by Avista will not be used as a measuring point to determine Avista’s electric
service right under the ESSA.Rather,the location of the poles being removed by Clearwater
ORDER NO.32490 1
will be used as a measuring point to determine Clearwater electric service rights to other
customers.Id.at 3.
THE ESSA
The ESSA generally prohibits an electric supplier from serving another electric
supplier’s existing or former customers.Idaho Code §61-332B.As an exception to this general
rule,the ESSA will allow electric suppliers to 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.”Idaho Code §61-333(1).However,such
contracts are subject to Commission approval.Id.Specifically,the Commission must approve
the contract if,after notice and opportunity for hearing,the Commission finds that the allocation
conforms with the purposes of the ESSA.See Idaho Code §sS 61-333(1)and 61-334B(l).As set
out in Idaho Code §61-332(2),the purposes of the ESSA are to:(l)promote harmony between
electric supplier;(2)prohibit the “pirating”of consumers;(3)discourage duplication of electric
facilities;(4)actively supervise the conduct of electric suppliers;and (5)stabilize service
territories and consumers.
STAFF COMMENTS
Staff reviewed the parties’allocation agreement to ensure it conforms with the ESSA.
Staff notes that the exchange of the customer requires the parties to seek an “exception”to the
ESSA’s anti-pirating provision.Staff supports the exception request and notes that the exchange
of the single customer furthers the purposes of the ESSA by avoiding duplication of facilities and
promoting harmony between the two adjacent suppliers.Consequently,Staff recommended that
the Commission:find that exchanging the single customer conforms with the purposes of the
ESSA,grant an exception to the ESSA’s anti-pirating provision,and approve the Agreement.
FINDINGS
Idaho Code §6 1-333(1)requires the Commission to review agreements that allocate
territories and consumers between electric suppliers,such as Avista and Clearwater.’Pursuant to
this statute,we must determine whether the allocation of the territory or customer conforms with
the purposes of the ESSA.After reviewing the Agreement and Staffs comments,we grant the
Application and approve the Agreement in this case.In particular,we find that the Agreement
See Idaho Code §61-332A(4)(“Electric supplier”means any public utility,cooperative,or municipality supplying
or intending to supply electric service to a consumer).
ORDER NO.32490 2
avoids the installation of expensive distribution facilities to serve a single customer and promotes
harmony between Idaho Power and Clearwater.We further note that there was no public
opposition to the Agreement.Based upon these findings,we conclude that the Agreement
conforms with the purposes of the ESSA.
ORDER
IT IS HEREBY ORDERED that the January 6,2011 “Electric Service Letter of
Agreement”between Avista and Clearwater 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 §6 1-626.
I)ONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of March 2012.
PXUL KJ ER,PRESIDENT
MACK A.REDFORD,COMMISSIONER
MARSHA H.SMITH,COMMISSIONER
ATTEST:
7ic)7i
Jan D Jewell
Commission Secretary
O:AVU-E-I 2O2kk2
ORDER NO.32490 3