HomeMy WebLinkAbout20050711Decision Memo.pdfDECISION MEMORANDUM
TO:CO MMISSI 0 NER KJELLAND ER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:KIRA DALE PFISTERER
DATE:JUL Y 7, 2005
RE:APPLICATION OF KOOTENAI ELECTRIC COOPERATIVE, INC. TO
APPROVE A CUSTOMER EXCHANGE AGREEMENT BETWEEN
KOOTENAI ELECTRIC AND THE CITY OF PLUMMER, CASE NO.
CO7 - E-05-0 1.
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. The exchange agreement between the parties is submitted for
the Commission s review pursuant to the provisions of the Electric Suppliers Stabilization Act
(ESSA). Idaho Code ~ 61-332 et seq. The exchange agreement is dated April 6, 2005.
THE AGREEMENT
The parties propose to exchange one existing customer solely for the purpose of
supplying three-phase electric service. More specifically, KEC will allow Plummer to provide
new three-phase electric service to KEC customer Kurt R. Morris of Benewah County. The
parties agree that Mr. Morris will remain a KEC customer for all current and future single-phase
electric service.
Mr. Morris is currently a KEC customer with single-phase electric service, and he
applied to KEC for three-phase electric 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 (114) 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.
DECISION MEMORANDUM
THE ESSA
The ESSA prohibits an electric supplier from serving a customer already served by
another supplier, except as provided in the Act. Idaho Code ~ 61-332B. The Act allows electric
suppliers to contract with one another for the purpose of exchanging customers; however, such a
contract must be filed with the Commission for approval. Idaho Code ~ 61-333. The
Commission shall approve such contracts only upon finding that the transfer is consistent with
the purposes of the ESSA. Idaho Code ~ 61-334(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 ~ 61-332(2). 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
~ ~
61-
333 , 61-334B(1).
STAFF RECOMMENDATION
Staff recommends that the Application be processed under Modified Procedure.
COMMISSION DECISION
Does the Commission wish to process Kootenai Electric s Application under
Modified Procedure?
Kir ale Pfisterer
M:CO7EO501 kdp
DECISION MEMORANDUM