20050624Application.pdf

STEPHEN M. AYERS
ATTORNEY AT LAW
1424 SHERMAN AVENUE, SUITE 100
COEUR D'ALENE, IDAHO 83814-4045
PHONE: [phone]
FACSIMILE: 208-667-9576
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ATTORNEY FOR THE APPLICANT
BEFORE THE IDAHO PUBLIC UTiliTIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF KOOTENAI ELECTRIC COOPERATIVE
INC. TO APPROVE AGREEMENT TO
RELEASE CUSTOMER TO THE CITY OF PLUMMER
CASE NO. CD? -E-0 f
APPLICATION OF
KOOTENAI ELECTRIC
COOPERATIVE , INC.
I. INTRODUCTION
Kootenai Electric Cooperative, Inc. (referred to herein as "KEC"
),
PO Box 278
Hayden , Idaho 83835 , is an Idaho nonprofit corporation which furnishes electric service in
the state of Idaho to its consumer-members. KEC is a "cooperative" as defined in the
Idaho Electric Supplier Stabilization Act (IESSA), Idaho Code 99 61-332 et seq. Pursuant
to 9 61-333 of IESSA, KEC seeks the approval of the Commission to allocate a consumer
as set forth in the Assiqnment. Assumption and Release of Customer (referred to herein as
the "Agreement"), a copy of which is attached and marked Appendix A, attached hereto
and incorporated herein by reference. The Agreement is between KEC and the City of
Plummer (referred to herein as "Plummer
).
Plummer is an Idaho municipal corporation
which owns and operates an electric distribution system and furnishes electric service to its
consumers. Plummer is a "municipality" as that term is defined in IESSA. Both KEC and
Plummer are "electric suppliers" for the purposes of IESSA. If the Agreement is approved
by the Commission , Plummer will provide three phase electric service to Kurt R. Morris
APPLICATION OF KOOTENAI ELECTRIC COOPERATIVE, INC.: 1
(hereinafter referred to as "Morris
),
PO Box 374, Plummer, Idaho 83851-0374 who
occupies real property in Section 17, Township 46 North, Range 4 West, Boise Meridian
Benewah County, Idaho. Morris is a "consumer" as that term is defined by IESSA.
KEC requests that this filing be processed under the Commission modified
procedure rules. Communications in reference to this application should be addressed to:
Stephen M. Ayers
Attorney at Law
1424 Sherman Avenue , Suite 100
Coeur d'Alene, Idaho 83814
[phone]
[phone] (facsimile)
Larry Bryant
Marketing Manager
Kootenai Electric Cooperative, Inc.
PO Box 278
Hayden, Idaho 83835
[phone] , ext. 1210
[phone] (facsimile)
Donna Spier, City Clerk
City of Plummer
PO Box B
Plummer, Idaho 83851
[phone]
[phone] (facsimile)
II. PURPOSE FOR REQUEST
KEC currently provides single phase electric service to Mr. Morris at his real
property in Benewah County. Mr. Morris applied to KEC for three phase electric service to
his property. In order for KEC to provide three phase service at this location , KEC would
be required to extend its facilities approximately three (3) miles at a substantial cost to Mr.
Morris.Plummer could provide three phase service to Mr. Morris by making a line
extension of approximately one-quarter (1/4) mile. The cost to Mr. Morris for a line
APPLICATION OF KOOTENAI ELECTRIC COOPERATIVE, INC.: 2
extension by Plummer would be far less than if KEC were to extend its three phase
facilities. The City of Plummer is willing to extend its three phase service to Mr. Morris.
KEC will continue to provide single phase service to Mr. Morris at this location. KEC and
Plummer have entered into the Agreement which becomes effective upon approval by the
Commission. This Agreement advances the purposes of IESSA by promoting harmony
between electric suppliers and by avoiding the duplication of electric facilities. In addition it
will provide Mr. Morris with three phase service at a substantial savings. Mr. Morris desires
that Plummer provide three phase service to him and he has reviewed and approved the
content of the Agreement.
III. REQUEST FOR APPROVAL
KEC requests that the Commission approve the allocation of a consumer as set
forth in the attached Assignment. Assumption and Release of Customer so that Plummer
may extend its facilities to provide three phase electric service to Mr. Morris.
DATED this ay of ~.J--f)-
APPLICATION OF KOOTENAI ELECTRIC COOPERATIVE, INC.: 3
ASSIGNMENT~ ASSUMPTION AND RELEASE OF CUSTOMER
THIS AGREEMENT, dated as of April 2005, is made and
entered into by and between The City of Plummer, (hereinafter referred to as the "City"
and Kootenai Electric Cooperative, Inc. (hereinafter referred to as "KEC"), hereinafter
sometimes referred to, individually as a "Party, and collectively, as the "Parties
WITNESSETH:
WHEREAS, City is a municipal corporation of the State of Idaho, owning an
electrical distribution system furnishing electricity to the citizens of Plummer and
surrounding area;
WHEREAS, KEC is a cooperative electrical system, owning an electrical
distribution system furnishing electricity in the area surrounding Plummer;
WHEREAS, Kurt Morris is currently an electrical customer of KEC and has
requested three phase power to a location on his property in Section 17, Township 46 N,
Range 4 W, B., Benewah County, Idaho, which is not available to be supplied by KEC
in the close vicinity;
WHEREAS, the parties desire to enter into an agreement pursuant to the
provisions of the Idaho Electric Supplier Stabilization Act (Idaho Code ~~ 62-332 et seq.
in order to allocate a consumer for the supply of three phase electric service to avoid
unnecessary duplication of facilities;
WHEREAS, City has three phase power close to this location and is willing to
provide three phase electric service~
WHEREAS , the customer, Kurt Morris, has made application to the City for three
phase power in the anticipation of this release; and
WHEREAS, the Parties hereto desire to enter into an Agreement whereby KEC
agrees to release Kurt Morris as a customer for the proposed three phase service as an
electric customer to City, as set forth herein;
NOW, THEREFORE, in consideration of the covenants and agreements herein
contained, it is agreed as follows:
PUC Approval.Though the Commission has no jurisdiction over the City,
pursuant to the provisions of Idaho Code ~ 61-331(1) the Idaho Public
Utilities Commission does have jurisdiction over KEC with respect to the
allocation of electric service territory and consumers. This Agreement shall
be filed with the Commission for approval and this Agreement shall become
effective upon approval by the Commission. If the Commission rej ects this
APPENDIX n
Agreement, then this Agreement shall be void ab initio. KEC shall prepareand submit the application for approval to the Commission and the City shall
join in, and otherwise cooperate, in the application, provided, however, that bysuch joinder or cooperation the City is not submitting itself to the jurisdiction
of the Public Utilities Commission. Upon approval by the Commission, thisAgreement shall be binding upon the parties, their successors and assigns.
Release of Kurt Morris. KEC agrees to release its right, entitlement andinterest in providing three phase electric service to Kurt Morris to a location
on his property in Section 17, Township 46 N, Range 4 W, B., BenewahCounty, Idaho.
Continuation of Service. City agrees that this release is only for a three phase
service and that KEC will continue to serve all current and future single phase
electric service to Kurt Morris.
Assumption of Obliga~. City agrees to accept Kurt Morris as a customer
and to provide three phase electric service, under the rates, fees, rules andregulations of the City of Plummer.
Effect of Line Constructed.The three phase line extension constructed by the
City in accordance with the terms of this Agreement to serve Kurt Morris, hissuccessors and assigns, shall not be considered in determining the right of the
parties to serve new service entrances under section 61-332C of the Idaho
Code. The line to be constructed is depicted in appendix "" attached hereto
and incorporated herein by reference.
Indemnification and Hold Harmless Protection
City specifically and expressly agrees to release, indemnify,
defend, and hold harmless KEC, its directors, officers, employees,
and agents from any and all claims, demands, suits, losses, costs
and damages of every kind and description, including attorneys
fees, brought or made against or incurred by KEC resulting from
arising out of, or in any way connected with any act, omission
fault, or negligence of City, its employees, agents, representative
or subcontractors of any tier, their employees, agents, or
representatives in connection with KEC's performance or
nonperformance of its obligations under this Agreement or in any
way related to this Agreement.
KEC specifically and expressly agrees to release, indemnify,
defend, and hold harmless City, its directors, officers, employees,
and agents from any and all claims, demands, suits, losses, costs
and damages of every kind and description, including attorneys
fees, brought or made against or incurred by City resulting from
arising out of, or in any way connected with any act, omission
fault, or negligence of KEC, its employees, agents, representative
or subcontractors of any tier, their employees, agents, or
representatives in connection with City's performance or
nonperformance of its obligations under this Agreement or in any
way related to this Agreement.
Amendment and Waiver. This Agreement contains all of the terms and
conditions bearing upon the subject matter and shall not be modified or varied
except by written agreement executed by each of the Parties hereto through
authorized representative. If at any time the terms hereto are not strictly
adhered to or enforced, such requirements shall not thereby be deemed waived
or modified, but shall at all subsequent times and dates be deemed in full force
and effect.
Assignment of Agreement.Neither Party may assign this Agreement without
the prior written consent of the other Party, unless to a successor which
acquires all or substantially all of the assets and liabilities of the assignor and
assumes in writing the obligations of this Agreement.
Severabilit.Y. If any provision of this Agreement is held invalid for any
reason, the remaining provisions of this Agreement shall remain valid and
enforceable, and the Parties shall substitute for the invalid provision a valid
provision that most closely approximates the intent and economic effect of the
invalid provision.
10.Notices Unless otherwise specified, any notice required under this
Agreement shall be given in writing, and shall be effective from the date
received by the Party to whom it is provided at the location set forth below.
Party hereto may change the place or address for delivery of notices to it by
giving notice to the other Party as thus described.
To KEC:
Kootenai Electric Cooperative, Inc.
O. Box 278
Hayden, Idaho 83835-0278
To City:
City of Plummer
O. Box B
Plummer, Idaho 83851
11.Governing Law. This Agreement shall be construed and interpreted in
accordance with the laws of the State of Idaho, excluding any choice of law
rules which may direct the application of laws of another jurisdiction.
12.Suit or Action. If suit or action is required to interpret or enforce any
provision of this Agreement, the prevailing party shall be entitled to cost of
action, including attorney fees to the extent deemed reasonable by the court.
13.Headings The section headings in this Agreement are for convenience only
and shall not be considered part of, or used in, the interpretation of this
Agreement.
IN WITNESS WHEROF, the Parties hereto have caused this Agreement to be executed
in duplicate by the respective officers hereto, duly authorized as of the date fIrst above
written.
AGREED TO BY:
The City of Plummer
ACCEPTED BY:
Kootenai Electric Cooperative, Inc;-'
Signature)
~fl,l. Uv- fi:GIfLL
(Printed Name)
/1/) 17 '1 (/
(Title)
Robert L. Crump
(Printed Name)
'l'~ ?I A ;)
(Date)
General Manager
(Title)
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(Date
y'
CUSTOMER APPROVAL
I am the consumer requesting three phase electric power.
Agreement and I approve its content.
~~~
Kurt Morris
I have reviewed the foregoing
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(Date)
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appendix n Ail