20211014Comments.pdf

ERICK SHANER
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-007 4
[phone]
IDAHO BAR NO. 5214
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 COOPERATM,INC. )
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Street Address for Express Mail:
1133I W CHINDEN BLVD, BLDG 8, SUITE 2OI-A
BOISE, ID 83714
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. AVU-E.-21-12
COMMENTS OF THE
COMMISSION STAFF
STAFF OF the Idaho Public Utilities Commission, by and through its attomey of record,
Erick Shaner, Deputy Attorney General, submits the following comments:
BACKGROUND
On August 5,2021, Avista Corporation ("Avista" or "Company") filed a Petition
requesting the Commission approve an Amended and Restated Agreement for Administering
Residential Developments ("Amended Agreement") between Avista and Kootenai Electric
Cooperative, Inc. ("KEC").
On March 27,2001, the Commission issued Order No. 28681 approving a Service
Territory Agreement between Avista and KEC ("Original Agreement"). In the Original
Agreement, 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 $ 6l-332C.
1STAFF COMMENTS ocroBER 14,2021
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. In that Order, the Commission also directed the Company to provide the Commission
with quarterly updates on its progress, as well as notifu the Commission by October 1,2021, 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.
Avista and KEC have entered into the Amended Agreement to replace the Original
Agreement in its entirety effective J;uly 26,2021, or such other date set by the Commission.
STAFF ANALYSIS
The ESSA
The ESSA generally prohibits an electric supplier from serving another electric supplier's
existing or former customers. Idaho Code $ 6l-n2Br. As an exception to this general rule, the
ESSA allows electric suppliers to contract for the purpose of "allocating territories, consumers,
and future consumers... and designating which territories and consumers are to be served by
which contracting electric supplier." Idaho Code $ 61-333(l). However, such contracts are
subject to Commission approval. Specifically, the Commission must approve the contract if,
after notice and opportunity for hearing, the Commission finds that the allocation conforms
with the purposes of the ESSA. Idaho Code $ 61-333(1) and 6l-3348(1). As set out in Idaho
Code $ 61-332, the purposes of the ESSA are to: (1) promote harmony between electric
suppliers; (2) prohibit "pirating" of consumers; (3) discourage duplication of electric facilities;
(4) actively supervise the conduct of electric suppliers; and (5) stabilize service territories and
consumers served.
The Application
The Amended Agreement replaces the Original Agreement in its entirety effective on
Jlly 26,2021, or other date set by the Commission. The Amended Agreement will have an
I Avista and Kootenai Electric are "electric suppliers" as dehned in the ESSA. Idqho Code $ 6l-332A(4) ("Electric
supplier" means any public utility, cooperative, or municipality supplying or intending to supply electric service to a
consumer).
2STAFF COMMENTS ocToBER 14,2021
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 party written notification of its intent not to renew
at least sixty days prior to the expiration of the then-current five-year term.
The Amended Agreement clarifies whether Avista or KEC will have the right to serve
defined residential 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 ofelectric 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
Utility.2
The Amended Agreement also 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 Agreement3.
STAFF RECOMMENDATION
Staff has reviewed the Amended Agreement and believes that it conforms with the
provisions and purposes of the ESSA, and therefore recommends approval.
Respecttully submitted this $f day of October 2021
Erick Shaner
Deputy Attorney General
Technical Staff: Kathy Stockton
Kevin Keyt
Rick Keller
i:umisc:comments/avue2 l. I 2esklskkrk comments
2 Amended Agreement at Section V.A.
3 1d. Sections II, V.B., VL
JSTAFF COMMENTS ocroBER 14,2021
CERTIFICATE OF SERYICE
I HEREBY CERTIFY THAT I HAVE THIS l4th DAY OF OCTOBER 2021,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN
CASE NO. AVU.E.2I-12, BY E-MAILING A COPY THEREOF, TO THE
FOLLOWING:
PATRICK EHRBAR
DIR OF REGULATORY AFFAIRS
AVISTA CORPORATION
POBOX3727
SPOKANE WA99220-3727
E-MAIL: [e-mail]
dockets@,avi stacorp. com
DOUG ELLIOTT
KOOTENAI ELECTRIC
COOPERAVTIVE INC
2451W DAKOTA AVE
HAYDEN ID 83835
E-MAIL: [e-mail]
MICHAEL G ANDREA
SENIOR COUNSEL
AVISTA CORPORATION
PO BOX3727
SPoKANE WA99220-3727
E-MAIL: [e-mail]
Jo
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CERTIFICATE OF SERVICE