20091218Decision Memo.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER KEMPTON
COMMISSIONER SMITH
COMMISSIONER REDFORD
COMMISSION SECRETARY
COMMISSION STAFF

FROM: DON HOWELL
DEPUTY ATTORNEY GENERAL

DATE: DECEMBER 16, 2009

SUBJECT: APPLICATION FOR APPROVAL OF A CUSTOMER ALLOCATION
AGREEMENT BETWEEN RAFT RIVER AND IDAHO POWER, CASE
NO. C11-E-09-01

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.
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 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
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
DECISION MEMORANDUM 2
§ 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 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 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 recommends that the Commission approve the Allocation Agreement pursuant to its
authority under Idaho Code § 61-333(1).
COMMISSION DECISION
Does the Commission wish to approve the Customer Allocation Agreement between
Raft River and Idaho Power?
Does the Commission find the Agreement comports with the purposes of the ESSA?

bls/M:C11-E-09-01_dh2