20150413Comments.pdf

KARL T. KLEIN ,.ti :it,r i
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION ifiii IiFR lij pli Z' ? I
PO BOX 83720
BOISE, IDAHO 83720-0074 l_,.i , .(20S)334-0320 .:lil 'll:l';ll'lrir'i "'
IDAHO BAR NO. 5156
Street Address for Express Mail:
472 W . WASHINGTON
BOISE, IDAHO 83702-5918
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIBS COMMISSION
IN THE MATTER OF IDAHO COUNTY LIGHT )
& POWER COOPERATM ASSOCIATTON, ) CASE NO. AVU-E-15-02
INC.'S APPLICATION FOR APPROVAL OF AN )
AGREEMENT ALLOCATING TERRITORY ) COMMENTS OF THE
WITH AVTSTA CORPORATTON DBA AVTSTA ) COMMTSSTON STAFFUTILITIES. )
The Idaho Public Utilities Commission comments as follows on Idaho County Light &
Power Cooperative, Inc.'s Application.
BACKGROUND
On March 9,20l5,Idaho County Light & Power Cooperative Association, Inc. (ICLP)
applied to the Commission for an Order, issued under the Electric Supplier Stabilization Act
(ESSA), Idaho Code $$ 6l-332 et seq., that would approve Avista Corporation dba Avista
Utilities' Agreement to Assign Electric Customers to ICLP.
ICLP's Application explains that Elbert and Janet Hendren are developing residential
building sites in the River View Estates Subdivision (the Subdivision) in Idaho County, Idaho.
The Subdivision contains 23 lots. Two lots have been developed and are being served by Avista.
The developers have asked ICLP to serve the remaining 21 undeveloped lots. ICLP and Avista
have entered the Agreement to facilitate this arrangement.
STAFF COMMENTS APRIL I3,2OI5
STAFF REVIEW
A. The ESSA.
The ESSA generally prohibits an electric supplier from serving another electric supplier's
existing or former customers. Idaho Code $ 6l-3328. 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(l). 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 ldaho Code 5$ 61-333(l) and 6l-334B(1). As set out in ldaho
Code $ 6l-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.
B. The Agreement.
After reviewing the Application and Agreement and speaking with ICLP's and Avista's
representatives, Staff believes the Agreement conforms with the purposes of the ESSA. Under
the Agreement, Avista releases its rights to serve 2l undeveloped lots in the 23- lot Subdivision
to ICLP. ICLP, which owns a 12.47 kilovolt, three-phase distribution line that traverses the
Subdivision, will install facilities and serve the 2l undeveloped lots.l Avista will serve the
remaining two lots-Lot Nos. 2 and 23-which are already developed. By way of background,
the two developed lots are owned by individuals who also own property that adjoins the
Subdivision. Avista currently serves both customers. One customer has extended electrical
power from his Avista-served, adjoining property to out-buildings on his lot in the Subdivision.
The second customer plans to do the same in the near future. The Agreement will enable Avista
to continue serving these customers while allowing ICLP to serve the remaining lots. Staff
believes the Agreement will enable ICLP and Avista to serve the Subdivision while avoiding
' ICLP's distribution line was installed as a single-phase distribution line in the 1970s. In 1985,
ICLP modified the line to permit three-phase power distribution.
STAFF COMMENTS APRIL 13,2015
territorial disputes and needlessly duplicating facilities and service, and that the Agreement thus
conforms to the purposes of the ESSA.
C. Customer Relations.
The Commission's Notice of Application and Notice of Modifred Procedure sets an April
13,2015 comment deadline. After the Notice issued, Staff ensured it was mailed to the
Subdivision property owners that currently receive electric service or who have expressed an
interest in being served by a particular service provider. As of April 8, 2015, no customers have
commented.
STAFF RECOMMENDATION
Staff recommends that the Commission: (1) find the Agreement conforms with the
purposes of the ESSA; and (2) approve the Application.
Respecttully submitted this t3dl^ day of April20l5.
Technical Staff: Mike Morrison
Jolene Bossard
i:umisc/comments/avuel 5.2kkmmjb comments
Karl T. Klein
Deputy Attorney General
STAFF COMMENTS APRIL 13,20I5
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 13'h DAY OF APRIL 2015, SERVED
THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN CASE
NO. AVU.E.15-02, BY MAILING A COPY THEREOF, POSTAGE PREPAID, TO THE
FOLLOWING:
J.A. WRIGHT
ATTORNEY AT LAW
PO BOX 25
GRANGEVILLE ID 83530
E-MAIL : j awri eht@qwestoffi ce.net
DAVID J MEYER
VP & CHIEF COUNSEL
AVISTA CORPORATION
PO BOX3727
SPOKANE W A 99220-3727
E-MAIL : [e-mail]
KELLY NORWOOD
VP - STATE & FED REG
AVISTA CORPORATION
PO BOX3727
SPoKANE W A 99220-3727
E-MAIL : [e-mail]
CERTIFICATE OF SERVICE