Order No 29020.pdf

Office of the Secretary
Service Date
May 13 2002
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF UNITED ELECTRIC CO-OP, INc. FOR
APPROVAL OF AN AGREEMENT
PURSUANT TO IDAHO CODE ~ 61-333.
) CASE NO. GNR-02-
) NOTICE OF APPLICATION
) NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29020
On May 6, 2002, United Electric Co-op, Inc. filed an Application notifying the
Commission of United's intent to purchase the City of Heyburn s municipal electric system.
United was formed in 1998 when the Rural Co-op was consolidated with Unity Light and Power.
Application at 2. The Application is made pursuant to the Idaho Electric Supplier Stabilization
Act (ESSA) and specifically Idaho Code g 61-333.
NOTICE OF APPLICATION
United is a cooperative electric supplier within the meaning of the ESSA. United
provides services to its members in Minidoka and Cassia Counties. Its principal office is located
in Heyburn. The City of Heyburn is an Idaho municipal corporation and is an electric supplier
within the meaning of the ESSA. The City has owned and operated its electrical distribution
system for many years and serves approximately 1300 customers.
Heyburn has determined that it would be in the best interest of its citizens to transfer
the City s electric system to United. Following the transfer, Heybum would cease to provide
service to its customers and United would provide service to all of Heyburn' s current and future
customers. The parties have reached an agreement in principle and are currently negotiating the
final agreement.
The parties assert that the Agreement is in the public interest. More specifically, the
Application states that the Transfer Agreement promotes harmony among and between electric
suppliers and discourages duplication of facilities. In addition, the Agreement stabilizes the
territories and consumers served by electric suppliers. Heyburn and United have had a territory
agreement for a number of years. A copy ofthe territory map is attached to the Application.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29020
Given the limited scope of this transaction and the agreement of the parties, United
believes that this matter may be appropriately handled under Modified Procedure. In order to
finalize this transaction in an expedited basis, United requests that the comment period be
shortened to 14 days from the date of the Commission s Notice.
THE STABILIZATION ACT
Idaho Code g 61-333 provides that all agreements which allocate territory or
customers between electric suppliers such as United and the City be filed with the Commission.
Section 61-333(1) provides that electric suppliers may contract in writing "for the purpose of
allocating territories, consumers and future consumers between the electric suppliers and
designating which territory and consumers are to be served by which contracting electric
supplier." This section further provides that all such contracts shall be filed with the
Commission. Id. After notice and opportunity for hearing, the Commission shall approve or
reject contracts between municipalities and cooperatives. This section and Idaho Code g 61-
334(1) restricts the Commission s jurisdiction over cooperatives and municipalities to that
authorized in the ESSA. For example, the Commission neither sets the rates nor prescribes the
customer service rules for co-ops and municipalities.
As set out more fully in Idaho Code g 61-332, the purposes of the ESSA are to: (1)
promote harmony among and between electric suppliers; (2) prohibit the "pirating" of consumers
served by another supplier; (3) discourage duplication of electric facilities; (4) stabilize the
territory and consumers served by the suppliers; and (5) actively supervise certain conduct of the
suppliers.
NOTICE OF MODIFIED PROCEDURE
YOU ARE HEREBY NOTIFIED that the Commission has determined that the
public interest may not require a formal hearing in this matter and will proceed under Modified
Procedure pursuant to Rules 201 through 204 of the Idaho Public Utilities Commission s Rules
of Procedure, IDAPA 31.01.01.201 through -204.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
Application may file a written comment in support or opposition with the Commission within
fourteen (14) days from the date of this Notice. The Commission finds that there is good cause
to expedite consideration of this matter. IDAPA 31.01.01.202.02. The comment must contain a
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29020
statement of reasons supporting the comment. Persons desiring a hearing must specifically
request a hearing in their written comments. Written comments concerning this application shall
be mailed or e-mailed to the Commission and the Applicant at the addresses reflected below:
COMMISSION SECRETARY
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
Street Address for Express Mail:
WILLIAM PARSONS
P ARSONS, SMITH & STONE, LLP
PO BOX 910
BURLEY, ID 83318
E-mail: wparsonsCIDpmtorg
472 WWASHINGTON ST
BOISE, IDAHO 83702-5983
STEVEN A. TUFT
TUFT LAW OFFICE, PA
PO BOX 759
BURLEY, ID 83318
E-mail: tuftlawCIDpmtorg
All comments should contain the case caption and case number shown on the first page of this
document.
Persons desiring to submit comments via e-mail to the Commission may do so by
accessing the Commission s homepage located at www.puc.state.id.under the heading
Contact Us." Once at the "Contact Us" page, select "Email Case Comments or Questions " fill
in the case number as it appears on the front of this document, and enter your comments.
YOU ARE FURTHER NOTIFIED that this Application can be reviewed during
regular business hours at the Idaho Public Utilities Commission, 472 West Washington Street
Boise, Idaho. In addition, the Application may be viewed by accessing the Commission
Website at www.puc.state.id.under the "File Room" icon and selecting the appropriate topic
heading.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission s Rules of Procedure, IDAPA 31.01.01.000 et seq. and
specifically Idaho Code g 61-333.
ORDER
IT IS HEREBY ORDERED that this matter be processed under Modified Procedure.
Persons intending to submit written comments must do so no later than 14 days from the date of
this Notice.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29020
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 10 f1-
day of May 2002.
PAUL KJE R, PRESIDENT
Jl (Yn~
MARSHA H. SMITH, COMMISSIONER
ATTEST:
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NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29020