20191203final_order_no_34498.pdf

Office of Secretary
Service Date
December 3,2019
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )CASE NO.AVU-E-19-10
OF AVISTA CORPORATION TO APPROVE )AGREEMENT ALLOCATING TERRITORY )WITH KOOTENAI ELECTRIC )ORDER NO.34498
COOPERATIVE )
On August 20,2019,Avista Corporation dba Avista Utilities ("Avista"or the "Company")
filed an Application requesting approval of its Agreement to Release Electric Service
("Agreement")with Kootenai Electric Cooperative ("Kootenai Electric")and Michael Lee
("Customer")under the Electric Supplier Stabilization Act ("ESSA"),Idaho Code §§61-332
through 61-334C.
The Commission issued its Notice of Application,Notice of Modified Procedure and Order
setting comment and reply deadlines.The Commission Staff ("Staff")filed written comments on
October 25,2019.
With this Order we approve the Company's Application and Agreement.
BACKGROUND
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.
Idaho Code §61-332(2).The ESSA generally prohibits an electric supplier from serving another
electric supplier's existing or former customers.See Idaho Code §§61-332 and 61-332B.
However,the ESSA allows electric suppliers to contract for "allocatingterritories,consumers,and
future consumers ...and designating which territories and consumers are to be served by which
contracting electric supplier."Idaho Code §61-333(l).All such allocation contracts must be filed
with the Commission and,after notice and opportunityfor hearing,the Commission will review
and approve or reject the contract depending on whether the Commission finds the contract
conforms to the provisions and purposes of the ESSA.See Idaho Code §61-333(1).
ORDER NO.34498 1
APPLICATION
Avista provides electric service to the Customer at his real property at 3970 N.Jonquil Ct.
in Coeur d'Alene,Idaho.The Customer is planning on building a shop on the property and needs
electric service for it.See Application at 1.Avista would have to obtain a permit to cross the
Williams Pipeline on the property before Avista could serve the shop,which creates difficulties.
Id.Avista states it would be in the best interests of all parties to the Agreement if another electric
supplier,Kootenai Electric,was allowed to serve the Customer's shop.Avista notes Kootenai
Electric can more cost-effectivelyserve the shop because Kootenai Electric has nearby equipment
and would not need to obtain a permit to cross the Williams Pipeline before serving the shop.See
Id.at 1-2.Avista asserts that the Agreement is consistent with the ESSA's provisions and purposes
and that the Commission should approve the Agreement.
STAFF COMMENTS
Staff reviewed the Company's Application and the Agreement to ensure the Agreement
complies with the ESSA.Staff noted that because of the ESSA's anti-pirating provisions,the
parties can only agree to allocate service to the Customer's shop if the Commission approves the
Agreement as being consistent with the ESSA.Staff Comments at 2.Staff believes the Agreement
is consistent with the ESSA because it would avoid facility duplication and promote harmony
between the suppliers.Id.at 2-3.Staff also asserted that Kootenai Electric's provision of service
would decrease the Customer's line extension costs and avoid construction delay that would
otherwise occur if Avista had to obtain permits to cross the Williams Pipeline.Id.at 3.Staff thus
recommended that the Commission approve the Agreement.
COMMISSION FINDINGS AND DECISION
The Commission has jurisdiction over this matter under Idaho Code §§61-119,61-129,
61-502,61-503 and 61-332 through 61-334C.
The Commission has reviewed the record in this case,including the Application,the
proposed Agreement,and Staff's Comments.The ESSA's anti-pirating provision prohibits
Kootenai Electric from supplying electricity to a customer served by Avista "except as provided
in [the ESSA]."Idaho Code §61-332B.However,Idaho Code §61-333 allows the parties to
exchange customers,territory,and equipment,subject to Commission supervision and approval.
ORDER NO.34498 2
Based on the record,the Commission finds the Agreement conforms to the ESSA's
provisions and purposes because it will avoid facility duplication and promote harmony between
the suppliers.In addition,allowingKootenai Electric to serve the Customer will decrease the
Customer's line extension costs and avoid construction delay that would otherwise occur if Avista
had to obtain a permit to cross the Williams Pipeline.We thus find it reasonable to approve the
Application and Agreement.
ORDER
IT IS HEREBY ORDERED that the Application and Agreement are 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 with regard to any
matter decided in 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.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of December 2019.
PAUL KJ DER,PRESIDENT
KIËTINE RAPER,C MMISSIONER
ERIC ANDERSON,COMMISSIONER
ATTEST:
Diane M.Hanian
Commission Secretary
I:\Legal\LORDERS\AVUEl910_jh_finaldoc
ORDER NO.34498 3