20050823final order no 29847.pdf

Office of the Secretary
Service Date
August 23 2005
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF KOOTENAI ELECTRIC COOPERATIVE, )
INC. FOR APPROVAL OF AN AGREEMENT)
TO RELEASE A CUSTOMER TO THE CITYOF PLUMMER
CASE NO. CO7-O5-
ORDER NO. 29847
On June 24, 2005, Kootenai Electric Cooperative, Inc. (KEC) filed an Application
seeking the Commission s approval of a contract between KEC and the City of Plummer to
exchange an existing customer (Agreement). The Agreement between the parties, dated April 6
2005 , is submitted for the Commission s review pursuant to the provisions of the Electric
Suppliers Stabilization Act (ESSA). Idaho Code 9 61-332 et seq. In this Order, the Commission
grants the Application and approves the Agreement.
BACKGROUND
Pursuant to the ESSA, the Commission has authority to approve or reject a contract
between a municipality and a cooperative. However, the Commission has jurisdiction only over
the cooperative in such a proceeding. Idaho Code 99 61-333 , 61-334B(1).
The ESSA generally prohibits an electric supplier from serving a customer already
served by another supplier, except as provided in the Act. Idaho Code 9 61-332B. The Act
further provides that electric suppliers may contract with one another for the purpose of
exchanging customers provided that the Commission approves the contract. Idaho Code 9 61-
333. The Commission approves such contracts only upon finding that the transfer is consistent
with the purposes of the ESSA. Idaho Code 961-334(B)(1). The purposes of the ESSA are: (1)
to promote harmony among and between electric suppliers; (2) prohibit the "pirating" of
consumers; (3) discourage the duplication of electric facilities; (4) actively supervise the conduct
of electric suppliers; and (5) stabilize the territories and consumers served with electricity by
such electric suppliers. Idaho Code 9 61-332(2).
THE AGREEMENT
The Agreement allows the City to extend its lines to provide new three-phase electric
service to a customer, Kurt R. Morris, who would otherwise be KEC's customer. Mr. Morris is
currently a KEC customer for single-phase electric service and applied to KEC for three-phase
ORDER NO. 29847
service. To provide three-phase service to this location, KEC would be required to extend its
facilities approximately three (3) miles at substantial cost to Mr. Morris. The City can provide
three-phase service to Mr. Morris at substantially less cost by making a line extension of
approximately one-quarter (1/4) mile. Plummer is willing to extend its three-phase service to
Mr. Morris, and KEC is willing to release Mr. Morris as a customer of three-phase electric
service. In addition, the parties agree that Mr. Morris will remain a KEC customer for all current
and future single-phase electric service.
STAFF COMMENTS
Staff reviewed the Agreement and found it was consistent with the purposes of the
ESSA. Staff determined the Agreement is consistent with the ESSA because it promotes
harmony between the electric suppliers who have jointly agreed to exchange the right to serve
the new customer; does not involve the pirating of customers; does not involve the duplication of
services; requires Commission approval; and does not pose a threat to or affect the stability of
either of the electric suppliers involved. Staff also noted that the Agreement provides the least
cost solution to the customer s request for service. Therefore, Staff recommended approval of
the Agreement.
COMMISSION FINDINGS
Based on our review of the Application and Staff recommendation, we find that the
Application for approval of a Customer Exchange Agreement should be granted. The
Agreement is consistent with the purposes of the ESSA, and, as Staff describes, is the least-cost
solution to the customer. Therefore, it is appropriate for the Commission to issue this Order
approving the Application and the Agreement.
ORDER
IT IS HEREBY ORDERED that the Customer Exchange Agreement dated April 6
2005, between Kootenai Electric Cooperative, Inc. and the City of Plummer is approved. In
addition, the Commission also grants KEC's Application.
THIS IS A FINAL ORDER. Any person interested in this Order (or in issues finally
decided by this Order) may petition for reconsideration within twenty-one (21) days of the
service date of this Order with regard to any matter decided in this Order. Within seven (7) days
after any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See Idaho Code 99 61-626 63-30291(4).
ORDER NO. 29847
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this ~3 ~
day of August 2005.
61~ MARSHA H. SMITH, COMMISSIONER
, COMMISSIONER
ATTEST:
~~l
Commission Secretary
O:CO7-05-0 1- kdp2
ORDER NO. 29847