20240111Customer Allocation Agreement_Notice of Intent.pdf

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Peter J. Richardson ISB No. 3195
RICHARDSON ADAMS, PLLC
515 N. 27th Street
Boise, Idaho 83 702
[phone]
[e-mail]
Attorneys for United Electric Co-op, Inc.
BEFORE THE IDAHO
PUBLIC UTILITIES COMMISSION
9 IN THE MATTER OF UNITED ELECTRIC
CO-OP INC.'S FORMAL COMPLAINT FOR
Case No.: Cl5-E-23-0l
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VIOLATION OF CONTRACT ENTERED
INTO PURSUANT TO THE IDAHO
ELECTRIC STABILIZATION ACT.
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JOINT APPLICATION TO APPROVE
CUSTOMER ALLOCATION AGREEMENT
AND NOTICE OF INTENT TO DISMISS
COMPLAINT
United Electric Co-op, Inc. ("United Electric") and the City of Burley ("City"),
(referred to herein collectively as the "Parties") pursuant to the Electric Supplier Stabilization
Act, I.C. § 61-333, (the "Act") hereby makes application to the Idaho Public Utilities
Commission ("Commission") for approval of the Customer Allocation Agreement dated January
3, 2024, and attached hereto as Exhibit No. 1 ("Agreement").
The Customer Allocation Agreement fully resolves the dispute between the Parties
relative to the provision of electric service to the Suntado milk processing plant (herein
"Customer") -the subject matter of the instant complaint action. In addition to fully resolving
the dispute that is the subject of United Electric's Complaint, the Customer Allocation
Agreement also furthers the purposes and intent of the Electric Supplier Stabilization Act by
promoting continued harmony between electric suppliers (United Electric and the City of
Burley), preventing the pirating of customers and discouraging the duplication of electric
JOINT APPLICATION TO APPROVE CUSTOMER ALLOCATION AGREEMENT AND NOTICE OF INTENT
TO DISMISS COMPLAINT-I
RECEIVED
Thursday, January 11, 2024 10:21:21 AM
IDAHO PUBLIC
UTILITIES COMMISSION
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facilities. In short, the Customer Allocation Agreement is in the public interest. The
Commission is respectfully urged to approve the same which is more fully described below.
CUSTOMER ALLOCATION AGREEMENT
Salient provisions of the Customer Allocation Agreement provide, inter alia, that:
1. United Electric's right to be the sole provider of electric service to the Customer is
recognized, while at the same time provides that United Electric will allow the City to
serve to the customer under the specific terms and conditions contained in the
Agreement, and;
2. The City will bear full and complete responsibility for serving the Customer for the
duration of the Agreement, and;
3. The City is prohibited from extending its facilities into or over any of United
Electric's other service territory without prior permission from United Electric, and;
4. All electric facilities located on the Customer's property shall be owned by the
Customer and not the City, and;
5. The City will pay United Electric a Service Allocation Fee of three percent of the
Customer's gross billings, and;
6. The ongoing integrity of the existing service territory allocation agreements between
the City and United Electric are recognized and the City's provision of electric
service to the Customer does not in any way modify said agreements, and:
7. The Agreement will not become effective until and unless it is approved by the
Commission.
JOINT APPLICATION TO APPROVE CUSTOMER ALLOCATION AGREEMENT AND NOTICE OF INTENT
TO DISMISS COMPLAINT-2
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The Parties assert that the Agreement furthers the purposes of the Electric
Stabilization Act and it promotes harmony between the City and United Electric, prevents the
pirating of consumers and reduces the likelihood of duplication of facilities. Furthermore, the
Agreement resolves a difficult dispute that has been actively litigated before this Commission fo
over a year. The agreement was unanimously approved by the Board of Directors of United
Electric and it was approved by the City of Burly by a unanimous vote of the Burley City
Council on January 2, 2024. The Commission is urged to issue its order, pursuant to I.C. § 61-
334B, approving the Agreement and finding that the Agreement is consistent with the purposes
of the Act and is in the public interest.
MODIFIED PROCEDURE
The Commission issued a notice of the pendency of this proceeding to all
potentially affected persons on July 21, 2023. No petitions to intervene were submitted, there ar
no other parties to this complaint proceeding. The Parties believe that a hearing is not necessary
to consider the issues presented herein and respectfully request that this Application be proces e
under Modified Procedure, i.e., by written submissions rather than by hearing pursuant to
Commission Rule of Procedure No. 201. If, however, the Commission determines that a hearing
is required, the Parties stand ready for immediate consideration of this Application and will
present their testimony to support the Application at such hearing.
WITHDRAW AL OF PLEADING
The Customer Allocation Agreement (Exhibit l) between United Electric and the
City will render United Electric's complaint in this docket moot. Therefore, upon approval of
the Agreement by a final and non-appealable order of the Commission, United Electric hereby
JOINT APPLICATION TO APPROVE CUSTOM ER ALLOCATION AGREEMENT AND NOTICE OF INTENT
TO DISMISS COMPLAINT-3
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provides notice that it will withdraw its complaint pursuant to Rule 68 of the Commission's
Rules of Procedure.
COSTS AND MISCELLANEOUS
Each Party agrees to bear its own costs, including attorney fees, relating to this matter
and stands ready to provide witness(es) at hearing (should the Commission so desire) supporting
the assertions herein as to the reasonableness of the Agreement.
WHEREFORE, United Electric Co-op, Inc. and the City of Burley respectfully request the
Commission issue its order approving, without modification or condition, the Agreement
attached hereto as Exhibit 1. Once said order is issued and final and non-appealable, United will
submit its notice of withdrawal of its complaint herein.
~
Dated this _l_l_ day of January 2024.
UNITED ELECTRIC COOPERATIVE, INC
Peter J. Richard 'on
Richardson Adams, PLLC
Attorney's for United Electric Cooperative,
Inc.
THE CITY OF BURLEY, IDAHO
/s/ Jaxon C. Munns
Jaxon C. Munns
Murray, Ziel, & Johnston, PLLC
Attorneys for The City of Burley, Idaho
JOINT APPLICATION TO APPROVE CUSTOMER ALLOCATION AGREEMENT AND NOTICE OF INTENT
TO DISMISS COMPLAINT-4
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CERTIFICATE OF SERVICE
I hereby certify that on this \I~ of January 2024, I caused to be delivered, via
electronic mail only, the foregoing JOINT APPLICATION TO APPROVE CUSTOMER
ALLOCATION AGREEMENT AND NOTICE OF INTENT TO DISMISS COMPLAINT,
Docket No. Cl5-E-23-01 on the following Parties:
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Idaho Public Utilities Commission
10 Jan Noriyuki, Commission Secretary
Chris Burdin, Deputy Attorney General
Idaho Public Utilities Commission
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chris.burdin
JOINT APPLICATION TO APPROVE CUSTOMER ALLOCATION AGREEMENT AND NOTICE OF INTENT
TO DISMISS COMPLAINT -5
Customer Allocation Agreement
This Customer Allocation Agreement ("Agreement") to supply new electric service is
entered into this~day of January , 20 24 , by and between, United Electric Co-op, Inc., an
Idaho cooperative corporation (hereinafter "UEC"), and the city of Burley, Idaho, an Idaho
municipality (hereinafter the "City"), individually a "Party" and collectively the "Parties".
WHEREAS, UEC and the City each own and operate electrical power systems that provide
electric service to customers in southern klaho, and;
WHEREAS, UEC and the City have specifically delineated service territories pursuant
to Service Territory Allocation Agreements entered into in accordance with the terms and
conditions ofldaho Code 61-332, et seq., the Idaho Electric Supplier Stabilization Act ("the
Act") and approved pursuant to, and by, the Idaho Public Utilities Commission ("IPUC") in
Order No. 29355 (the "Order") in Case No. GNR-E-03-03, and;
WHEREAS, Suntado, LLC ("Customer") owns properly and facilities that are being
developed as an industrial processing plant located within the service territory of UEC yet has
requested electrical service be provided by the City through a service entrance connection with
the City's electrical system adjacent to the property, and;
WHEREAS, solely pursuant to the terms and conditions herein, UEC agrees to allow the
City to provide electric service to Customer and the City agrees to provide electric service to
Customer;
NOW, THEREFORE, in consideration of the foregoing, and for good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, and intending to be
legally bound, the Parties agree as follows:
1. The City desires to provide Customer with Customer's electric service needs at the
following location, to wit: Township l O South, Range 23 East of the Boise Meridian,
Cassia County, Idaho and more particularly described on the attached Exhibit "A".
2. Notwithstanding UEC's right to be the sole provider of electric service to Customer
pursuant to the Parties' Service Tenitory Allocation Agreements, Section 61-332C of
the Act and the Order, by this Agreement, UEC hereby agrees to allow the City to
provide electric service to the Customer.
3. Notwithstanding the location of Customer's facilities within UEC's service territory, the
Parties agree that the City shall bear full and complete responsibility for all liabilities
and costs of serving Customer including, but not limited to, costs of co1mecting the
Customer to the City's electric system, or for any other cost of operations and
maintenance, supply, transmission, distribution and/or metering of power applicable to
the Customer. The City shall indemnify and hold UEC harmless from any and all
liabilities arising from this Settlement Agreement and from the City's provision of
electric service to Customer.
4. For purposes of this Agreement, the electric service to be provided to Customer by the
City shall be deemed a "new service entrance" pursuant to the Act.
Customer Allocation Agreement Page 1 of 3
5. The Parties agree the Customer's service entrance must be connected to the City's
electrical system adjacent to the Customer's property and shall not otherwise crossover
or be placed on or through UEC's service territory. Electric Service pursuant to this
Agreement shall only be provided Lo the Customer's facilities located on Customer's
property specified in Exhibit A.
6. The Parties agree that all electric facilities located on or through Customer's property
specified in Exhibit A shall be owned by the Customer, and not by the City. The Parties
further agree that no service lines or feeder ties owned by the City shall be constructed
or installed within UEC's service territory to provide electric service to the Customer.
7. Commencing on the date written above, the Parties agree that the City shall pay to
UEC a Service Allocation Fee, which is three (3) percent of the Customer's, its
successors or assigns, gross billing for electric service paid to the City. Gross billing
shall include, but is not limited to, all charges billed to Customer for electric service
such as customer/fixed, meter, demand, and energy. The Service Allocation Fee will be
paid to UEC not less than once every three months, or quarterly of each year. UEC
shall have the right to review on an annual basis all billing invoices and payment
statements, or other information necessary for UEC to verify gross billing between the
City and Customer.
8. This Agreement to provide electric service to Customer shall not be modified unless
mutually agreed upon by and between UEC and the City ( or their successors in interest)
or unless modified by statute. Should the Customer ( or its successors or assigns) cease
operations at the property described in Exhibit A then this Agreement shall terminate
and UEC's exclusive rights and obligations to provide electric service at the prope1ty
described in Exhibit A shall be reinstated.
9. Except for UEC's allowance of the City's provision of electric service to this particular
Customer as described within this Agreement; no modification to UEC's and the City's
present service territories ( or Service Territory and/or Customer Allocation
Agreements) is made, implied or intended by this Agreement.
10. This Agreement is subject to review and approval or rejection of the IPUC. In the event
the IPUC docs not approve this Agreement without modification then this Agreement
shall have no force or effect.
11. Each Party represents and warrants that it is validly existing and in good standing in the
state in which it is organized, and it has the requisite authority to execute this
Agreement.
12. This Agreement may be executed in any number of counterparts, each of which shall be
deemed an original and all of which taken together shall constitute a single instrument.
Customer Allocation Agreement Page 2 of 3
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be duly
executed as of the date above written.
By:~,
Name: Atciae/ ✓">.a r1:1:z,/2;,
Title: General Manager. United Electric
o-op, Inc.
Customer Allocation Agreement
ity of Burle~ &
By: s S. _,e -1<
Name: -S't~~ Orm on d
Title: Mayor. City of Burley, Idaho
Page 3 of 3
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