20130205Comments.pdf

KARL KLEIN
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
472 W. WASHINGTON STREET (83702)
P0 BOX 83720
BOISE, IDAHO 83720-0074
Tel: [phone]
Fax: [phone]
Idaho Bar No. 5156
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Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF )
AVISTA CORPORATION TO APPROVE AN ) CASE NO. AVU-E-13-01
AGREEMENT ALLOCATING TERRITORY )
WITH KOOTENAI ELECTRIC COOPERATIVE) COMMENTS OF THE
) COMMISSION STAFF
)
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 summary, 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. The
Commission's Staff submits these comments pursuant to that Order, and recommends that the
Commission approve the Agreement under the Electric Supplier Stabilization Act (ESSA), Idaho
Code §§ 61-332 etseq.
STAFF COMMENTS 1 FEBRUARY 5, 2013
BACKGROUND
1.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 §§ 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 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.
2.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
with one utility. Second, it enhances worker safety by allowing one utility to coordinate the
'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 electric
service to a consumer).
STAFF COMMENTS 2 FEBRUARY 5, 2013
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.
STAFF REVIEW AND RECOMMENDATION
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 provisions. 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 recommends that the Commission find that
the Agreement conforms with the purposes of the ESSA, grant an exception to the ESSA's anti-
pirating provisions, and approve the Application and Agreement.
Respectfully submitted this 5 ''
day of February 2013.
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Karl Klein
Deputy Attorney General
Umisc/avuell lkk comments
STAFF COMMENTS 3 FEBRUARY 5, 2013
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 5TH DAY OF FEBRUARY 2013,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN
CASE NO. AVU-E-13-01 BY MAILING A COPY THEREOF, POSTAGE PREPAID,
TO THE FOLLOWING:
PATRICK EHRBAR
MGR RATES AND TARIFFS
AVISTA CORPORATION
P0 BOX 3727
SPOKANE WA 99220-3727
EMAIL: [e-mail]
LINDA GERVAIS
MGR REGULATORY POLICY
AVISTA CORPORATION
P0 BOX 3727
SPOKANE WA 99220-3727
E-MAIL: [e-mail]
SECRETARY2
CERTIFICATE OF SERVICE