20211207Final_Order_No_35248.pdf

ORDER NO. 35248 1

Office of the Secretary
Service Date
December 7, 2021
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

On August 5, 2021, Avista Corporation (“Avista” or “Company”) petitioned the
Commission for approval of an Amended and Restated Agreement for Administering Residential
Developments (“Amended Agreement”) between Avista and Kootenai Electric Cooperative, Inc.
(“KEC”). The Company requested that its Petition be processed by Modified Procedure.
On September 8, 2021, the Commission issued a Notice of Petition and Notice of
Modified Procedure setting comment and reply deadlines. See Order No. 35159. On October 14,
2021, Commission Staff (“Staff”) filed the only comments and supported the Company’s Petition.
The Company did not reply.
Having reviewed the record, the Commission approves the Amended Agreement, with
an effective date of July 26, 2021.
THE PETITION
On March 21, 2001, the Commission approved a Service Territory Agreement between
Avista and KEC (“Original Agreement”). See Order No. 28681; Petition at 2. Pursuant to the
Original Agreement, Avista and KEC agreed on a methodology to determine which entity would
provide electric service to residential developments and subsequent additions to such
developments pursuant to the Idaho Electric Supplier Stabilization Act (“ESSA”), Idaho Code §
61-332C. Id.
On February 11, 2021, the Commission issued Order No. 34924 approving an
amendment to renew the Original Agreement for successive twelve-month terms to provide Avista
and KEC time to complete negotiations on a new service territory agreement to replace the Original
Agreement. Id. at 2-3. In that Order, the Commission also directed the Company to provide the
Commission with quarterly updates on its progress and notify the Commission by October 1, 2021,
IN THE MATTER OF THE PETITION OF
AVISTA CORPORATION FOR APPROVAL
OF AN AMENDED AND RESTATED
AGREEMENT FOR ADMINISTERING
RESIDENTIAL DEVELOPMENTS
BETWEEN AVISTA CORPORATION AND
KOOTENAI ELECTRIC COOPERATIVE,
INC.
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CASE NO. AVU-E-21-12

ORDER NO. 35248

ORDER NO. 35248 2

if a new service territory agreement will be finalized. The Company complied with this order and
filed updates on March 25, 2021, and June 25, 2021, in Case No. AVU-E-21-02. Id. at 3.
Avista and KEC entered into the Amended Agreement to replace the Original
Agreement in its entirety effective July 26, 2021, or such other date set by the Commission. Id.
STAFF COMMENTS
Staff stated that the Amended Agreement replaces the Original Agreement in its
entirety effective on July 26, 2021, or such other date set by the Commission. Id. at 2. Staff noted
that the Amended Agreement has an initial term of five years from the effective date and renews
for successive five-year terms, unless either Avista or KEC provides the other party written
notification of its intent not to renew at least sixty days prior to the expiration of the then-current
five-year term. Id. at 2-3.
Staff noted that the Amended Agreement clarifies whether Avista or KEC will have the
right to serve defined residential developments.1 Id. at 3. Staff also noted that the Amended
Agreement clarifies that certain facilities cannot be used as measuring points and sets out the
process and remedies for any breach of the Amended Agreement2. Id.
Based on its provisions, Staff believed the Amended Agreement was consistent with
the provisions and purposes of the ESSA. Id.
COMMISSION FINDINGS AND DISCUSSION
The Commission has jurisdiction over this matter under Idaho Code §§ 61-501, -502,
-503, and -333. Under the ESSA, electric suppliers may contract with other electric suppliers to
allocate territories and consumers. Idaho Code § 61-333(1). The Commission has the authority to
review such contracts between cooperatives and public utilities. Id. The Commission approves
such contracts only upon a finding that the allocation of territories or consumers conforms with
the provisions and purposes of the ESSA. Id. The purpose of the ESSA is to “promote harmony
among and between electric suppliers furnishing electricity within the state of Idaho, prohibit the
‘pirating’ of consumers of another electric supplier, discourage duplication of electric facilities,
actively supervise certain conduct of electric suppliers as it relates to this act, and stabilize the
territories and consumers served with electricity by such electric suppliers.” Idaho Code § 61-332.

1 Amended Agreement at Section V.A.
2 Id. Sections V.B. and VI.
ORDER NO. 35248 3

Under this authority, we have reviewed the record and have determined that the
Amended Agreement conforms with the provisions and purposes of the ESSA. For instance, the
Amended Agreement includes provisions that adequately and reasonably set out which entity is to
serve defined residential developments; provide for an initial term of five years from the effective
date and renewals for successive five-year terms; clarify that certain facilities cannot be used as
measuring points; and set out the process and remedies for any breach of the Amended Agreement.
These provisions in the Amended Agreement promote harmony between Avista and KEC and
further the goals of prohibiting piracy, discouraging duplication of electric facilities, and
stabilizing the territories and consumers of Avista and KEC. We find that the allocation of
territories or consumers in the Amended Agreement conforms with the provisions and purposes of
the ESSA.
The Commission finds it just and reasonable to approve the Amended Agreement with
a July 26, 2021, effective date.
O R D E R
IT IS HEREBY ORDERED that the Amended Agreement between Avista and KEC is
approved, effective July 26, 2021.
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.
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ORDER NO. 35248 4

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 7th day
of December 2021.

PAUL KJELLANDER, PRESIDENT

KRISTINE RAPER, COMMISSIONER

ERIC ANDERSON, COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

I:\Legal\ELECTRIC\AVU-E-21-12\orders\AVUE2112_final_es.docx