20130212final_order_no_32738.pdf

Office of the Secretary
Service Date
February 12,2013
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF AVISTA CORPORATION TO APPROVE )CASE NO.AVU-E-13-O1
AN AGREEMENT ALLOCATING )
TERRITORY WITH KOOTENAI ELECTRIC )
COOPERATIVE )ORDER NO.32738
__________________________________________________________________________________
)
On January 7,2013,Avista Corporation dba Avista Utilities applied to the
Commission for an Order approving Avista’s Developer Release Agreement with Kootenai
Electric Cooperative (the “Agreement”).In sum,the Agreement provides that Kootenai Electric
releases its rights to provide electric service to certain structures within Copper Basin
Construction’s development in Coeur d’Alene,and Avista assumes electric service rights to the
entire development.
On January 15,2013,the Commission issued a Notice of Application and Notice of
Modified Procedure setting a February 5,2013 comment deadline.See Order No.32714.
Commission Staff filed the only comments,and recommended the Commission approve the
Agreement under the Electric Supplier Stabilization Act (ESSA),Idaho Code §S 61-332 et seq.
With this Order,the Commission approves the Agreement.
THE APPLICATION
Avista’s Application says that Copper Basin Construction is developing a
commercial/multi-family property at Seltice Way and Grand Mill Avenue in Coeur d’Alene.
Avista has electric service rights on the development’s north and east sides and at the service
point on the development’s south and southwest side.Application at 1.Copper Basin wants to
enter into an electric extension agreement that allows Avista to install electric distribution
facilities and provide electric service throughout the development.Id.at 1 -2.Kootenai Electric
has thus agreed to release its rights to provide electric service to those structures within Copper
Basin’s development that are near Kootenai Electric’s service points,and Avista has agreed to
install the facilities and provide electric service within the development.Id.at 3.
Avista says approving the Agreement so Avista can install the facilities and provide
electric service throughout Copper Basin’s development offers several benefits.First,it creates
cost efficiencies by avoiding duplicate services and allowing the developer to coordinate work
ORDER NO.32738 1
with one utility.Second,it enhances worker safety by allowing one utility to coordinate the
work.Third,it creates electric service continuity in the development and enhances customer
satisfaction.Fourth,the developer will be eligible for Avista’s demand-side management
program and will install more energy efficient equipment.Id.at 2.
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 allows 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 §S 61-333(1)and 61-
334B(l).As set out in idaho Code §61-332(2),the purposes of the ESSA are to:(1)promote
harmony 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 COMMENTS
Staff reviewed the Agreement to ensure it conforms with the ESSA.Staff notes that
allocating service for the development requires the parties to seek an “exception”to the ESSA’s
anti-pirating provision.Staff supports the exception request and notes that the planned allocation
furthers the ESSA’s purposes by avoiding duplication of facilities and promoting harmony
between the suppliers.Consequently,Staff recommended the Commission find that the
Agreement conforms with the purposes of the ESSA,grant an exception to the ESSA’s anti-
pirating provision,and approve the Application and Agreement.
Avista and Kootenai Electric are “electric suppliers”as defined in the ESSA.See Idaho Code §61-332A(4)(“Electric supplier”means any public utility,cooperative,or municipality supplying or intending to supply electricservicetoaconsumer.)
ORDER NO.32738
FINDINGS
Idaho Code §61-333(1)requires the Commission to review agreements that allocate
territories and consumers between electric suppliers like Avista and Kootenai Electric.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 Staff’s comments,we grant
the Application and approve the Agreement in this case.We find that the Agreement avoids the
duplication of facilities and promotes harmony between Avista and Kootenai Electric.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 Agreement between Avista and Kootenai
Electric 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 §61-626.
ORDER NO.32738 3
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this /
day of February 2013.
AJ\
ATTEST:
f’/
Ji D.Jewell jj
Cmmission Secretary
O:AVU-E-I 3-OIkk2
MACK A.REDFORD,COMMISSIONER
MARSHA H.SMITH,COMMISSIONER
ORDER NO.32738 4