20091222final_order_no_30967.pdf

Office of the Secretary
Service Date
December 22 2009
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF RAFT RIVER RURAL ELECTRIC
COOPERATIVE, INc. FOR AN ORDER
APPROVING AN ALLOCATION
AGREEMENT BETWEEN RAFT RIVER
AND IDAHO POWER COMPANY
PURSUANT TO THE ELECTRIC SUPPLIER
STABILIZATION ACT
CASE NO. Cll-09-
ORDER NO. 30967
On October 30, 2009, Raft River Rural Electric Cooperative filed an Application
seeking the Commission s approval of an "Allocation Agreement" between Raft River and Idaho
Power Company so Raft River may serve a single customer located in Idaho Power s service
territory. Raft River is an electric cooperative operating in southeast Idaho. Both Raft River and
Idaho Power are considered "suppliers" under the Electric Suppliers Stabilization Act (ESSA),
Idaho Code ~ 61-332 et seq.
On December 2, 2009 , the Commission issued Order No. 30956 requesting public
comment on the parties' Allocation Agreement. Comments were to be filed with the
Commission no later than December 16, 2009. The only comments filed were submitted by the
Commission Staff.
THE APPLICATION
Raft River and Idaho Power have agreed that "it is in the best interest of all involved
for Raft River to provide power to Mr. Benson s property. . . ." Application at 1. Mr. Benson
property is located in Idaho Power s service area. The parties agreed to allow Raft River to
supply this single customer with new, three-phase electrical service because Raft River can
install the requested service at a lower cost. The parties further recognize that the Agreement is
not intended to modify the service territories of either Idaho Power or Raft River.
THE ESSA
Idaho Code ~ 61-333(1) provides that electric suppliers may 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." Under the ESSA, both
Raft River and Idaho Power are defined as electric suppliers. Idaho Code ~ 61-332A(4). The
ORDER NO. 30967
Commission is authorized to approve agreements allocating customers between suppliers only
upon finding that the allocation is in conformance with the purposes of the ESSA. Idaho Code
~ 61-333(1). As set out in Idaho Code ~ 61-332(2), the purposes of the ESSA are to: (1)
discourage duplication of facilities; (2) prohibit "pirating" of consumers; (3) stabilize service
territories and consumers; and (4) promote harmony between electric suppliers.
STAFF COMMENTS
Based upon its review, Staff believes that approving the Allocation Agreement
between Raft River and Idaho Power is appropriate. More specifically, the agreement to serve
this single customer does not adversely affect the customer base or service territories of either
supplier and promotes harmony between Raft River and Idaho Power. In addition, the parties
agree that it its less expensive for Raft River to supply service to Mr. Benson. Consequently, the
Staff recommended that the Commission approve the Allocation Agreement pursuant to its
authority under Idaho Code ~ 61-333(1).
FINDINGS
Idaho Code ~ 61-333(1) requires the Commission to review consumer allocation
agreements between public utilities and electric cooperatives. Pursuant to this statute, we must
determine whether the allocation of the customer in this case is in conformance with the
purposes of the ESSA. After reviewing the Agreement and the Staffs comments, we grant the
Application and approve the Allocation Agreement. In particular, we find that the Agreement
avoids the installation of expensive distribution facilities to serve a single customer and promotes
harmony between Idaho Power and Raft River. We further note that there was no public
opposition to the Agreement. Based upon these findings, we conclude that the Allocation
Agreement comports with the purposes of the ESSA.
ORDER
IT IS HEREBY ORDERED that the Customer Allocation Agreement dated August
, 2009, between Raft River Rural Electric Cooperative and Idaho Power Company is
approved.
IT IS FURTHER ORDERED that approval of the Allocation Agreement is not
intended to modify the service territories of either Raft River or Idaho Power.
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. Within seven (7)
ORDER NO. 30967
days after any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See Idaho Code 9 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho thisc9d-~
day of December 2009.
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t:~d.
. KEMPTON, P SIDENT
~a-
MARSHA H. SMITH, COMMISSIONER
ATTEST:
(lw fluv
rbara Barrows
Assistant Commission Secretary
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bls/O:CII-09-01 dh2
ORDER NO. 30967