20190906Decision Memo.pdf

DECISION MEMORANDUM
TO COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:JOHN R. HAMMOND JR.
DEPUTY ATTORNEY GENERAL
DATE: SEPTEMBER 6,2019
SUBJECT:AVISTA CORPORATION'S APPLICATION TO APPROVE
AGREEMENT ALLOCATING TERRITORY WITH KOOTENAI
ELECTRIC COOPERATIVE; CASE NO. AVU-E-19-10.
On August 20, 2019, Avista Corporation dba Avista Utilities ("Avista" or the
"Company") filed an Application requesting approval of an Agreement to Release Electric Service
("Agreement") that allows its customer ("Customer") to obtain electric service from Kootenai
Electric Cooperative ("Kootenai Electric").
APPLICATION
Avista provides electric service to the Customer at his real property located at 3970 N.
Jonquil Ct. in Coeur D'Alene, Idaho ("Property"). The Customer is planning on building a shop
on the Property ("Shop") and needs electric service for it. See generally Application at l. Avista
represents it would have to obtain a permit to cross the Williams Pipeline that is on the Property
to provide electric service to the Shop. /d.
Avista states Kootenai Electric has an electric service line and junction enclosure near
the Shop and can provide electric service to it. Id. at l-2. Kootenai Electric's equipment is also
located closer to the Shop than Avista's and would not have to cross the Williams Pipeline. /d.
Avista asserts allowing Kootenai Electric to provide electric service to the Shop will reduce the
Customer's line extension costs and avoid the construction delay associated with the permitting
process. 1d.
The Agreement provides Avista will release its rights to provide electric service to the
Shop only and Kootenai Electric has committed to install facilities and supply electric service to
it. Id. Avista states that in the Agreement Kootenai Electric also acknowledges that the Company
1DECISION MEMORANDUM
will retain the electric service rights to Customer's Property other than the Shop. See Agreement,
Attachment A to the Application. Avista asserts approval of the Agreement will allow the parties
to avoid the duplication of facilities, disputes between them and provides the Customer with the
best possible service. Application at 2. Avista states the Parties entered into the Agreement under
the Idaho Electric Supplier Stabilization Act. Id. at l; see also ldaho Code $$ 6l-332 through 61-
334C.
STAFF RECOMMENDATION
Staff recommends that the Commission issue a Notice of Application and Notice of
Modified Procedure. Staff recommends a twenty-one (21) day deadline for any interested party to
file written comments. Staff also recommends a seven (7) day deadline thereafter for the parties
to the Agreement to file written reply comments if they wish to.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and a Notice of Modified
Procedure, with a twenty-one (21) day deadline to file written comments and a seven (7) day reply
comment deadline for the parties to the Agreement?
Hammond Jr.
Attomey General
J,
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