20120307Comments.pdf

KARL KLEIN
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
472 W. WASHINGTON STREET (83702)
PO BOX 83720
BOISE, IDAHO 83720-0074
Tel: [phone]
Fax: [phone]
Idaho Bar NO.5 1 56
RECEIVED
lOl2 MAR - 7 AM fO: 01
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF )
AVISTA CORPORATION TO APPROVE AN )
AGREEMENT ALLOCATING TERRTORY )
WITH CLEARWATER POWER COMPANY. )
)
)
CASE NO. A VU-E-12-2
COMMENTS OF THE
COMMISSION STAFF
~
The Staff of the Idaho Public Utilties Commission comments as follows on A vista
Corporation's Electric Service Letter of Agreement with Clearater Power Company.
BACKGROUND
On Februar 6,2012, Avista Corporation dba Avista Utilities applied to the Commission
for an Order approving Avista's Electric Service Letter of Agreement with Clearater 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.
According to the Application, Clearwater's customer curently receives single-phase
electric service to a residential dwellng from Clearater. Application at 1. However, the
customer wil 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.
STAFF COMMENTS 1 MARCH 7, 2012
The Application says the paries agree that A vista should provide the three-phase service
and that Clearater shall release the customer to A vista so A vista can also provide the single-
phase service. Clearater wil remove its facilities and A vista wil extend its existing electrical
facilties to provide electric service to the customer's entire premises. Id.
According to the Application, the paries further agree that the electric service line being
installed by Avista wil 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 Clearater will be
used as a measuring point to determine Clearater 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.1 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 terrtories 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 §§ 61-333(1) and 61-334B(1). As set
out in Idaho Code § 61-332(2), the purposes of the ESSA are to: (1) promote harony between
electric suppliers; (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 REVIEW AND RECOMMENDATION
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 provisions. Staff supports the exception request and notes that the
exchange of the single customer fuhers the purposes of the ESSA by avoiding duplication of
1 Avista and Clearwater are "electric suppliers" as defined in the ESSA. See Idaho Code § 61-332A(4) ("Electric
supplier" means any public utilty, cooperative, or municipality supplying or intending to supply electric service to a
consumer).
STAFF COMMENTS 2 MARCH 7, 2012
facilities and promoting harony between the two adjacent suppliers. Consequently, Staff
recommends that the Commission find that exchanging the single customer conforms with the
puroses of the ESSA, grant an exception to the ESSA's anti-pirating provisions, and approve
the Application and Agreement.
Respectfully submitted this 1- ~day of March 2012.
¿tJ 11L
Karl Klein
Deputy Attorney General
Technical Staff: Cathleen McHugh
i :umisc:commentsavue i 2.2kkcmchrps.doc
STAFF COMMENTS 3 MARCH 7, 2012
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 7TH DAY OF MARCH 2012,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN CASE
NO. AVU-E-12-02, BY MAILING A COPY THEREOF, POSTAGE PREPAID, TO THE
FOLLOWING:
PATRICK EHRBAR MGR
RATES & TARIFFS
A VISTA CORPORATION
1411 E MISSION AVE
SPOKANE W A 99220
E-MAIL: pat.ehrbar(ßavistacorp.com
~.~SECRETARY
CERTIFICATE OF SERVICE