20210805Application.pdf

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Avista Corp.
141 1 East Mission P.O. Box 3727
Spokane. Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170
August 5,2021
Jan Noriyuki, Secretary
Idaho Public Utilities Commission
ll33l W. Chinden Blvd. Bldg. 8, Ste. 201-A
Boise,Idaho 83714
RE: Case No. AVLI-E-21-12-
Dear Ms. Noriyuki:
Attached for filing with the Commission is Avista Corporation's, doing business as Avista
Utilities', application requesting that the Commission approve the Amended and Restated
Agree,lnent for Administering Residential Developments between Avista and Kootenai Electric
Cooperative, Inc.
Please direct any questions regarding this filing to Michael Andrea at 509-495-2564
([e-mail]) orme at509.495.8620 .
Sincerely,
lol ?anc& Afrid,,
Patrick Ehrbar
Director of Regulatory Affairs
Enclosure
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FOR AVISTA CORPORATION
MTCHAEL G. ANDREA (rSB NO. 8308)
SENIOR COTINSEL
AVISTA CORPORATION
14I1 EAST MISSION, MSC-I7
SPOKANE, WASHINGTON 99220
PHONE: (509) 49s-2564
IN THE MATTER OF THE PETITION OF )
AVISTA CORPORATION FOR APPROVAL )
OF AMENDED AND RESTATED )
AGREEMENT FOR ADMINISTERING )
RESIDENTIAL DEVELOPMENTS )
BETWEEEN AVISTA CORPORATION AND )
KOOTENAI ELECTRIC COOPERATIVE, )INC. )
BEFORE TIIE IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. AVU.E.?[. /,2,
APPLICATION OF AVISTA
In accordance with Idaho Code $61-333, Avista Corporation (*Avista")
respectfully requests that the Idaho Public Utilities Commission ("Commission") approve
the Amended and Restated Agreement for Administering Residential Developments
("Amended Agreement") between Avista and Kootenai Electric Cooperative, Inc.
("KEC'). The Amended Agreement is attached hereto as Exhibit 1. The Company
requests that this filing be processed under the Commission's Modified Procedure Rules
through the use of written comments.
1. Names and Addresses of Petitioner
Avista Corporation
1411 East Mission Avenue
Spokane, W499220
2. Nature of Businesses
Avista is a corporation created and organized under the laws of the State of
Washington with its principal office in Spokane, Washington. Avista is an investor-owned
Page - I APPLICATION OF AVISTA CORPORATION
utility engaged in, among other things, the business of generating, transmitting, and
distributing electric power to wholesale and retail customers in tdaho and Washington.
Avista also provides natural gas service to customers in Idaho, Washington, and Oregon.
As such, Avista's rates, charges, services and practices are regulated, in part, by this
Commission.
3. Names of Representatives
All communications, pleadings, and orders with respect to this proceeding should
be directed to:
For Avista Corporation:
Patrick Ehrbar
Director of Regulatory Affairs
Avista Corporation
l4l I E. Mission Avenue
Spokane, Washingto n 99220
Phone: [phone]
patrick. ehrbar@ avi stacorp. corn
Michael G. Andrea
Senior Counsel
Avista Corporation
l41l E. Mission Ave., MSC-I7
Spokane, WA99220
Phone: [phone]
mi chael. andrea@avistacorp. com
4. Background
On March 21,2001, the Commission issued Order No. 28681 approving a Service
Territory Agreement between Avista and KEC ("Original Agreement"). [n the Original
Agreernent, the Parties 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 Section
6l-332C. On January 11,2021, Avista submitted apetition for approval of an amendment
("Amendment") to the Original Agreement to allow the Original Agreement to renew for
successive l2-month terms. The purpose of the Amendment was to provide Avista and
KEC to complete negotiations on a new service territory agreernent to replace the Original
Page - 2 APPLICATION OF AVISTA CORPORATION
Agreement. On February 11,2021, the Commission issued Order No. 34924 approving
the Amendment.r The Amended Agreonent attached as Exhibit I replaces the Original
Agreement, as amended.
5. Description of Agreement
The Amended Agreement replaces the Original Agreement in its entirety efifective
on July 26, 2021, or such other date set by the Commission ("Effective Date"). The
Amended Agreement will have an initial term of five years from the Effective Date and
will renew for successive five-year terms, unless either Avista or KEC provides the other
written notification of its intent not to renew at least 60 days prior to the expiration of the
then-current fi ve-year term.
The Amended Agreement clarifies which utility (Avista or KEC) shall have the
right to serve defined residential developments (referred to as "Developments") by
providing that:
It is the intent of the Parties that the determination of which Party will provide
electric service to a Development shall be consistent with the provisions of the
Stabilization Act. Therefore, after one of the Parties, as a supplier of electric
service, undertakes to serve one or more lots within an established Service Entrance
(such Party is the "Serving Utility"), the Parties agree that the remainder of that
particular Development shall be served solely by that Serving Utiliry.2
The Amended Agreement further clarifies that certain facilities cannot be used as
measuring points, changes the term to successive five-year periods, and sets out the process
and remedies for any breach of the Amended Agreement.3
I In Order No.34924, the Idaho Fublic Utilities Commission approved Amendment No. 2 to the Service
Territory Agreement between Avista and Kootenai Electric Cooperative, Inc (KEC). As a part of that Order,
the Commission stated: "To ensure that the parties diligently pursue a new service territory agreement, we
direct the Company to provide the Commission with quarterly updates on progress and notiff the
Commission by October 1,2021if a new service territory agrcement will be finalized." Avista filed such
updates on March 25 , 2021 and June 25 , 2021 in Case No . AVU-E- 2l -02 .
2 Amended Agreement at Section V.A.
3 Id. atSections II, V.B., VI.
Page - 3 APPLICATION OF AVISTA CORPORATION
Pursuant to the ESSA, electric suppliers may contact with other electric suppliers to
allocate territories and consumers. Idaho Code $ 6l-333(l); see also Order No. 34924 at 2.
The Commission has the authority to review such contracts between cooperatives and public
utilities. 1d. The purpose of the ESSA is to "promote harmony among and between electric
suppliers fumishing 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." Id. 5 6l-332. 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. 1d.
6. Request for Approval
The Amended Agreement conforms with the provisions and purposes of the ESSA.
Accordingly, Avista respectfully requests approval of the Amended Agreement with an
Effective Date of July 26,2021, or such other date set by the Commission. The Company
requests that this filing be processed under the Commission's Modified Procedure Rules
through the use of written comments.
Respectfully submitted this 5th day of August,2l2l.
AVISTA CORPORATION
/s/ Michael Andrea
Michael G. Andrea
Senior Counsel
Page - 4 APPLICATION OF AVISTA CORPORATION
Docusign Envelope ]D: 731 E4BB7-A3BB-49DA-BOCfiBB92DE1772EA
AMENDED AND RESTATED AGREEMENT FOR
ADMINISTERING RESIDENTIAL DEVELOPMENTS
This Amended and Restated Agreement (Amended Agreement") for Administering
Residential Developments is made and entered into on this 26m day of July,2}zl,by and
between Avista Corporation, a Washington Corporation, ("Avista") and Kootenai Electric
Cooperative, Inc., an Idaho Cooperative Corporation ("KEC"). Avista and KEC are each
referred to herein as a "Party" and collectively as the "Parties".
RECITALS
WHEREAS, Avista and KEC are parties to the Agreement for Administering Residential
Developments dated February 15,1991, as amended by Amendment I dated Decernber 26,2002
("Original Agreement") ;
WHEREAS, the Parties continue to desire to promote operational effectiveness and to
enhance the reliability of their electric service to their respective customers and/or members;
WHEREAS, to promote such operational effectiveness and to enhance the reliability of
their electric service to their respective customers and/or members, the Parties desire to update
the Original Agreement by amending and restating the Original Agreement to, in accordance
with the Idaho Electric Supplier Stabilization Act,Idaho Code $ 6l-332, et seq., ("Stabilization
Act") reduce duplication of eleckic service, reduce capital expenditures, reduce burdens of
administrative time, hold down the cost of electric service, and to provide for proper engineering
of subdivision of projects;
WHEREAS, the Parties further intend this Amended Agreement to reduce the possibility
of disputes arising between the Parties and to assist residential developers in their planning
processes;
WHEREAS, the Parties intend this Amended Agreement to apply to residential and
multifamily developments; and
WHEREAS, the Parties intend this Amended Agreement to completely replace and
supersede the Original Agreement.
NOW THEREFORE, the Parties agree to amended and restate the Original Agreement as
follows:
Page - 1 AMENDED AND RESTATED AGREEMENT FOR
ADMINISTERING RESIDENTIAL DEVELOPMENTS
(evista Contract M-I 7260)
Docusign Envelope lD: 731 E4BB7-A3BB-49D4-B0C&8892DE177 2EA
AGREEMENT
I. Definitions
The definitions set forth in this Amended Agree,ment, whether separately set out as
definition or incorporated within any specific contractual provision, are only for the purpose of
this Amended Agreement. No definition contained within this Amended Agreement shall be
binding upon the Parties except in furtherance of the construction of this specific Amended
Agreement and its tems.
Any terrn defined in the Stabilization Act, and not otherwise defined herein, shall have
the meaning provided in the Stabilization Act.
A. "Devglopmen!" is defined as a group of six or more lots, parcels, single-family
homes, or multi-family residential units (each such single family home or multi-family
residential unit is a residential dwelling), connected by a common street or road system,
and platted (or to be platted) on a final corlmon plat(s) approved by the applicable county
or municipal authority. The term "Development" also encompasses subsequent additions
to the original Development that are substantially in accordance with the plan of the
original developer at the time of the original Development or, otherwise, is a natural
expansion of the original Development considering geography, street extension and
various utility (sewer, water, etc.) extensions.
For purposes of this Amended Agreement, it will be assumed, unless clearly
shown otherwise, that the Development name will define the geographic scope of the
Development (e.g., Pine Villa 1, Pine Villa 2, etc.). For purposes of this Amended
Agreement, the mere change in the name of a Development will not constitute a change
in the status of development.
For purposes of this Amended Agreement, the definition of "Developmenf' shall
not be dependent on the identity of the developer, since the Parties recognize and
acknowledge that developers may change during the course of an identified
Development.
B. "Effective Date" shall be the later of the date stated in the introductory paragraph
of this Amended Agreernent or such other date set by the ldaho Public Utilities
Commission ("Commission"). For the avoidance of doubt, in the event that this
Amended Agreement is rejected by the Commission this Amended Agreement shall
terminate on the date of the Commission order rejecting this Amended Agreement. If the
Commission accepts this Amended Agreement subject to changes or conditions
unacceptable to either Party, such Party may terminate this Amended Agreement by
providing written notice of termination to the other Party. Any written notice of
termination provided pursuant to this Section I.B. shall specifically identi$ the term or
condition imposed by the Commission that is the basis for such termination.
Page.2 AMENDED AND RESTATED AGREEMENT FOR
ADMINISTERING RESIDENTIAL DEVELOPMENTS
(Arrista Contract M-I 7260)
Docusign Envelope lD: 731 E4BB7-A3BB-49DA-BOC6-BB92OE1772EA
C. "Service Entrance" is defined as a metering point for the delivery of electric
service to a residential dwelling; provided, however, that the metering point must be
located within the boundaries of the lot or parcel upon which the residential dwelling is
located or to be built.
D. "Ligfuing-eitgri!" includes any secondary infrastructure with the sole primary
purpose to provide senrice to street or area light infrastructure.
II. Term
A. Duration of Term: Orieinal Agreernent Terminated and Replaced. The term of
this Amended Agreement shall be for five (5) years from the Effective Date subject to renewal as
set forth in Section II.B of this Amended Agreernent. Upon the Effective Date of this Amended
Agreement, the Original Agreernent is terminated, and this Amended Agreement shall supersede
and replace the Original Agree,ment in its entirety.
B. Renewal of Term. The term of this Amended Agreement shall be extended
automatically for successive periods of five (5) years, unless one of the Parties notifies the other
Part in writing, not less than sixty (60) days before the end of the then-current five-year term, of
its intent not to renew this Amended Agreement.
III. Termination
A. Termination: Effect of Termination or Expiration. It is agreed by and between the
Parties that, except as provided in Section I.B, Section II.B and Section VI of this Amended
Agreement, this Amended Agreement cannot be terminated during the term, including any
renewal term, except by mutual agreement in writing signed by both Parties. In the event of
termination or expiration of this Amended Agreement, this Amended Agreement shall remain in
full force and effect as to any Development in existence as of the termination or expiration date.
B. Development in Existence on the Date of Termination or Expiration. For
purposes of Section III of this Amended Agreement, the phrase "Development in existence" shall
mean a Development in which at least one (l) lot is served by a Party; or, for which a Party has
entered into a signed conhact for the provision of elecfric service to the subdivision and within
three (3) years of the date of such contract, that Party provides electic service to the first
residential dwelling to be constructed within the subdivision.
Page . 3 AMENDED AND RESTATED AGREEMENT FOR
ADMINISTERING RESIDENTIAL DEVELOPMENTS
(Avista Contract M-l 7260)
Docusign Envelope lD: 731 E4BB7-A3BB-49DA-B0CfiBB92DE1772EA
IV. Geographic Scope of Amended Agreement
The geographic area covered by this Amended Agreement shall be the service areas of
the Parties in the State of Idaho.
V. Service to Development
A. First Party to Serve. It is the intent of the Parties that the determination of which
Party will provide electric service to a Development shall be consistent with the provisions of the
Stabilization Act. Therefore, after one of the Parties, as a supplier of electric service, undertakes
to serve one or more lots within an established Service Entrance (such Party is the "Serving
Utility"), the Parties agree that the remainder of that particular Development shall be senred
solely by that Serving Utility.
B. Measurine Points. [n no event shall Lighting Circuits or facilities installed in
breach of this Amended Agreement or the Stabilization Act be used as measuring points or
otherwise to establish either Party's right to provide electric service to any customer.
VI. Breach of Amended Agreement
If either Party breaches any provision of this Amended Agreement, the non-breaching
Party shall have the right to terminate this Amended Agreement, at its sole option, and/or pursue
its remedies at law or equity for all damages proximately resulting from such breach or to seek
equitable relief. No waiver of any breach of this Amended Agreement shall be held to be a
waiver of any other or subsequent breach. In the event that either Party installs any facilities in
breach of this Amended Agreernent or the Stabilization Act, the Party installing such facilities
will, upon request of the non-breaching Party, promptly remove or abandon any such facilities at
the breaching Party's sole cost. All remedies afforded in this Amended Agreement shall be
taken and construed as cumulative, that is, in addition to every other remedy provided by law or
equity. If any action is brought to enforce this Amended Agreement or any provision thereof, to
rescind the same, to collect damages for an alleged breach thereof, or for an injunction or
declaratory judgment to enforce the terms of this Amended Agreement, the prevailing Party in
such action shall be entitled to its reasonable attorney fees and costs incurred.
In the event of a breach of this Amended Agreement, the non-breaching Party shall give
written notice of the breach and of the cure demanded. The breaching Party shall have fifteen
(15) days from the date of such written notice to provide the non-breaching Party written notice
of its agreement to cure the breach. Any breach of this Amended Agreement shall thereafter be
cured in a timely fashion with consideration of weather, the nature of the breach, and avoidance
of, or minimization of, disruption of electric service to any customer. In the event that the
breaching Party fails to provide written notice of its agreement to cure the breach or fails to
timely cure the breach, the non-breaching Party may, at its election, pursue its remedies provided
herein, including but not limited to termination of this Amended Agreement.
Page - 4 AMENDED AND RESTATED AGREEMENT FOR
ADMINISTERING RESIDENTIAL DEVELOPMENTS
(lvista Contract M-l 7260)
Docusign Envelope lD: 731 E4BB7-A3BB-49DA-B0C&BB92DE1 772E4
VII. Miscellaneous
A. Validi[v. It is understood and agreed by the Parties that if any part, term, or
provision of this Amended Agreement is held by the courts or any regulatory agency of
competent jurisdiction to be illegal or in conflict with any law of the State of Idaho, the validity
of the remaining portions or provisions shall not be affected, and the rights and obligations of the
Parties shall be construed and enforced as if the Amended Agreernent did not contain the
particular part, term, or provision held to be illegal or in conflict with any law of the State of
Idaho, so long as the intent of the Amended Agreernent, and the benefits arising therefrom will
continue substantially the same.
B. This Amended Agreement supersedes and replaces the Original Agreement in its
entirety. All other agreements between the Parties regarding the provision of electric service to
any customer shall remain in full force and effect.
C. Binding Effect. This Amended Agreement shall be binding upon the Parties
hereto and their successors and permitted assigns. Neither Party may assign or transfer this
Amended Agreement without the express prior written consent of the other Party; provided,
however, that either Party may assign this Amended Agreernent to an affiliate or a successor who
acquires all or substantially all of the assigning Party's assets without the other Party's written
consent.D. Headines. Section headings are for the purpose of convenience and reference
only and shall not be deerned to define, limit, or exte,lrd the scope or intent of the sections to
which they pertain.
E. Notice. Unless specifically stated to the contrary, notice required by this
Amended Agreement shall be considered grven on the date deposited in the United States Mail
with postage prepaid and properly addressed to the proper Party or sent via electronic mail to an
electronic email address provided by the receiving Party. Notices shall be addressed to the
following:
For Kootenai Electric Cooperative, [nc.:
Doug Elliott
Kootenai Electric Cooperative, Inc.
2451W. Dakota Ave.
Hayden,ID 83835
(208) 76s-t2oo
[e-mail]
For Avista Corporation:
Jamie Howard
Regional Account Executive
Avista Corporation
1735 N. 15th St., MSC-R3
Page. 5 AMENDED AND RESTATED AGREEMENT FOR
ADMINISTERING RESIDENTIAL DEVELOPMENTS
(Avista Contract M-l 7260)
DocuSUn Envelope lD: 731 E4BB7:A3BB49DA-B0CEBB92DE1 772EA
Coeur d'Alene,ID 83814
(208) 769-187r
j amie.howard@avistaco{p. com
Either Party may change its contact information for notices at any time by providing the
other Party written notice of such change.
WHEREFORE, each Party represents that this Amended Agreement is executed by a
duly authorized representative of such Party on the date first written above.
AVISTA CORPORATION KOOTENAI ELECTRIC COOPERATIVE,
INC./)*U-tt*!I
By:_Dennis Vermillion_
Title: President and CEO
axdt
Title: ceneral l,tanager ,/ cro
Page - 6 AMENDED AND RESTATED AGREEMENT FOR
ADMINISTERING RESIDENTIAL DEVELOPMENTS
(evista Contract M-17260)