20091216Comments.pdf

DONALD L. HOWELL, II
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
POBOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 3366
RECEI\l
2009 DEC 16 AM 10: 14
iDAHO
UTILITIES
Street Address for Express Mail:
472 W. WASHINGTON
BOISE, IDAHO 83702-5983
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF )
RAFT RIVER RURAL ELECTRIC ) CASE NO. Cll-E-09-01
COOPERATIVE, INC. FOR AN ORDER )
APPROVING AN ALLOCATION AGREEMENT )
BETWEEN RAFT RIVER AND IDAHO POWER) COMMENTS OF THE
COMPANY PURSUANT TO THE ELECTRIC ) COMMISSION STAFF
SUPPLIER STABILIZATION ACT )
)
The Staff of the Idaho Public Utilties Commission, by and through its Attorney of Record,
Donald L. Howell II, Deputy Attorney General, submits these comments pursuant to the
Commission's Notice of Modified Procedure issued December 2,2009.
BACKGROUND
On October 30,2009, Raft River Rural Electric Cooperative fied an Application seeking the
Commission's approval of an "Allocation Agreement" between Raft River and Idaho Power
Company so Raft River may serve a specific 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 Stablization Act (ESSA), Idaho Code § 61-332
et seq.
STAFF COMMENTS 1 DECEMBER 16, 2009
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's
property is located in Idaho Power's service area. The paries 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 paries 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 electrc suppliers may contract for the purose of
"allocating terrtories, 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
Commission is authorized to approve agreements allocating customers between suppliers only upon
finding that the allocation is in conformance with the puroses of the ESSA. Idaho Code § 61-
333(1). As set out in Idaho Code § 61-332(2), the puroses of the ESSA are to: (1) discourage
duplication of facilties; (2) prohibit "pirating" of consumers; (3) stabilze service territories and
consumers; and (4) promote harony between electric suppliers.
STAFF RECOMMENDATIONS
Based upon its review, Staff believes that approving the allocation agreement between Raft
River and Idaho Power is appropriate. More specifically, the agreement to service this single
customer does not adversely affect the customer base and promotes harony between Raft River
and Idaho Power. Consequently, the Staff recommends that the Commission approve the allocation
agreement pursuant to its authority under Idaho Code § 61-333(1).
Respectfully submitted this 16l~ay of December 2009.
iUftDonald L. ell, II
Deputy Attorney General
Technical Staff: TJ Golo
i:umisc/comments!cl le09. ldhtj comments
STAFF COMMENTS 2 DECEMBER 16, 2009
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 16TH DAY OF DECEMBER 2009,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN
CASE NO. Cll-E-09-01, BY MAILING A COPY THEREOF, POSTAGE PREPAID, TO
THE FOLLOWING:
JERRY R RIGBY
RIGBY ANDRUS & RIGBY
25 N SECOND EAST
REXBURG ID 83440
E-MAIL: jrigby(ßrex-law.com
BARTON L KLINE
IDAHO POWER COMPANY
POBOX 70
BOISE ID 83707-0070
E-MAIL: bkline(ßidahopower.com
~f~SECRË ARY: ==
CERTIFICATE OF SERVICE