20120210Decision Memo.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: KARL KLEIN
DEPUTY ATTORNEY GENERAL

DATE: FEBRUARY 10, 2012

SUBJECT: AVISTA’S APPLICATION TO APPROVE A TERRITORY
ALLOCATION AGREEMENT WITH CLEARWATER POWER
COMPANY, CASE NO. AVU-E-12-02

On February 6, 2012, Avista Corporation dba Avista Utilities applied to the
Commission for an Order approving Avista’s Electric Service Letter of Agreement with
Clearwater Power Company. The Agreement would enable Avista to provide electric service to
Clearwater customer Steven A. Henderson under the Electric Supplier Stabilization Act (ESSA),
Idaho Code §§ 61-332 et seq.
Avista asks the Commission to process the Application by Modified Procedure. Staff
agrees that Modified Procedure should be used.
THE APPLICATION
According to the 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 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.
DECISION MEMORANDUM 2
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 CPC will be
used as a measuring point to determine CPC electric service rights to other customers. Id. at 3.
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 Clearwater 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 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.
STAFF RECOMMENDATION
Staff recommends that the Company’s Application be processed by Modified
Procedure with a 21-day comment period.
COMMISSION DECISION
Does the Commission preliminarily find that the public interest may not require a
hearing to consider the issues presented in this case, and that this case is appropriate for
Modified Procedure under Commission Rules of Procedure 201 through 204?

M:AVU-E-12-02_kk