20191025Comments.pdf

JOHN R. HAMMOND, JR.
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, rDAHO 83720-0074
(208) 334-03s7
IDAHO BAR NO.5470
RECETVED
019 OCT 25 Al{ 8: 5\
l!i"ift18r,o*
Street Address for Express Mail:
I I33I W. CHINDEN BLVD.
BLDG. 8, STE.201-A
BOISE, IDAHO 83714
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
)
)
)
)
)
CASE NO. AVU-E-Ig.IO
COMMENTS OF
COMMISSION STAFF
COMES NOW the Commission Staff ("Staff') of the Idaho Public Utilities Commission,
by and through its attomey ol record, John R. Flammond Jr.. Deputy Attorney General, and in
response to the Notice of Application and Modilied Procedure issued in Order No. 34455 on
October 4, 2019, in Case No. AVU-E-I9-10, submits the following comments.
BACKGROUND
On August 20,2019, Avista Corporation dba Avista Utilities ("Avista" or "Company")
applied to the Commission for an Order approving an "Agreement to Release Electric Service"
("Agreement") with Kootenai Electric Cooperative ("Kootenai Electric") and Michael Lee
("Customer"). Avista provides electric service to the Customer at his real property at 3970 N.
Jonquil Ct. in Coeur d'Alene, Idaho ("Property"). The Customer is planning on building a shop
on the Property and needs electric service fot it. See generally Application at 1 . Avista would
have to obtain a permit to cross the Williams Pipeline that is on the Property to provide service to
STAFF COMMENTS ocToBER 2s,2019
IN THE MATTER OF THE APPLICATION
OF AVISTA CORPORATION TO APPROVE
AN AGREEMENT ALLOCATING
TERRITORY WITH KOOTENAI ELECTRIC
COOPERATIVE
I
the shop which creates some difficulties. /d. Kootenai Electric has equipment near the shop and
can provide electric service to it in a more cost-effective manner than Avista can. Id.atl-2.
Avista asserts that it is in the best interest ofall parties to the Agreement to allow Kootenai
Electric to provide electric service to the shop only. .id.
The Company asserts that the Agreement conforms to all the provisions and purposes of
the Electric Supplier Stabilization Act ('ESSA'), Idaho Code $$ 6l-332 through 6t-334C, and
requests that the Commission approve the Agreement, which will become effective upon such
approval.
STAFF ANALYSIS
Statf reviewed the Company's Application and the Agreement to ensure it conforms with
the ESSA. As a result of its investigation, Staffasserts:
l. Allocating service through the Agreement to the Customer's shop requires the
pa(ies to seek an exception to the ESSA's anti-pirating provisions.
2. Staff supports the Agreement and believes it conforms to the ESSA's purposes.
As set out irr ldaho Code $ 6l-332(2), the purposes ofthe ESSA are to: (1) promote
harmony between electric suppliers; (2) prohibit the "pirating" ofconsumers; (3) discourage
duplication ofelectric facilities; (4) actively supervise the conduct of electric suppliers; and (5)
stabilize service territories and consumers.
The ESSA generally prohibits an electric supplier from serving another electric supplier's
existing or former customers. See ldaho Code $$ 61-332 and 6l-3328.r However, the ESSA
allows electric suppliers to contract for "allocating lerritories, consumers, and future consumers
. . . and designating which tenitories and consumers are to be served by which contracting
electric supplier." Idaho Code $ 6l -333(1). Atl such contracts must be filed with the
Commission and after notice and opportunity for hearing, it will review and approve or reject
such agreement if it is in conformance with the provisions and purposes of the ESSA. See ldaho
Code $g 6l-333(l) and 6l-334B(l).
Staffbelieves that the Agreement conforms to the ESSA'S purposes by avoiding
duplication of facilities and promoting harmony between the suppliers. In addition, by Kootenai
I Avista and Kootenai Electric are "electric suppliers" as defined in the ESSA. See ldaho Code $ 6l-332A(4).
STAFF COMMENTS 2 OCTOBER25,2OI9
Electric providing service, the Customer's line extension costs are reduced, and a construction
delay associated with the permitting process to cross the Williams pipeline is avoided.
STAFF RECOMMENDATION
Staff recommends that the Commission approve the Application and Agreement finding
that the Agreement conforms with the provisions and purposes of the ESSA.
Respectfully submitted this
tzA--1)' dav of October 201 9.
Jo Hammond Jr.
Attomey General
Technical Staff: Kathy Stockton
Bentley Erdwurm
Michael Eldred
i:umisc:comments/avuel9. l0jhklsbeme comments
STAFF COMMENTS OCTOBER 25, 2019J
I HEREBY CERTIFY THAT I HAVE THIS 25Ih DAY OF OCTOBER 2019,
SERVED THE FOREGOING COMMENTS O['THE COMMISSION STAtr'F, IN
CASE NO. AVU.E.19.1O, BY MAILING A COPY THEREOF, POSTAGE PREPAID,
TO THE FOLLOWING:
PATRICK EHRBAR
DIRECTOR REGULATORY AFFAIRS
AVISTA CORPORATION
POBOX3727
SPoKANE WA99220-3727
E-MAIL: patrick.e stac0rr.com
avistadockets(@avistacorp. com
S RE Y
CERTIFICATE OF SERVICE
CERTIFICATE OF SBRVICE
LINDA GERVAIS
MGR REGULATORY POLICY
AVISTA CORPORATION
POBOX3727
SPoKANE WA99220-3727
E-MAIL: linda.servais(@avistacorp.com