20030620Application.pdf

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William A. Parsons
PARSONS, SMITH & STONE, LLP
137 West 13th Street
P. O. Box 910
Burley, Id 83318
Telephone: [phone]Fax: [phone]
Attorneys for United Electric Co-op, Inc.
(U N ITED\Application Heyburn. wpd)
Steven A. Tuft
1918 Overland Avenue
O. Box 759
Burley, Id 83318
Telephone: [phone]
Fax: [phone]
Attorney for City of Heyburn
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
----------------------------------------------------------
In the Matter of the Application of
United Electric Co-op, Inc. and
the City of Heyburn for an Order
Approving a Service Territory
Agreement between the Applicants.
~ Case No. &;(;f~ElJj~J~
APPLICA TION
---- -- -- ----- -- -- -- ------ -- -- -- -- -- -- -- --- -- -- ---- -- -- ----
Pursuant to Rule 51 of the IPUCRP , and Idaho Code 9 61-333, United Electric
Co-op, Inc. ("United") and City of Heyburn ("Heyburn ) respectfully apply for Commission
approval of a Service Territory Agreement between United and Heyburn on the grounds
APPLICA TION - 1
and for the following reasons:
On December 8 , 2000 , the Idaho Legislature, meeting in special session
amended the Idaho Electric Supplier Stabilization Act, 9961-332 through 61-334B of the
Idaho Code. Idaho Code 9 61-333 provides that any electric supplier may contract in
writing with another electric supplier for the purpose of allocating territories, consumers
and future consumers between electric suppliers and designating which territories and
consumers are to be served by which contracting electric supplier. The statute further
provides that the Commission shall , after notice and hearing review and approve or
reject such contracts between electric suppliers. This joint Application is filed with the
Commission for approval. Approval of the Commission of Service Territory Agreements
is necessary to comply with the purposes of the Electric Supplier Stabilization Act.
The Petitioners have for some time had a Territory Ag reement between
them. Such Agreement predated the amendment to Idaho Code 9 61-333 , and therefore
United and Heyburn seek approval of the Commission of the existing Territory
Agreement. A copy of that agreement is attached as Exhibit 1.
The Agreement was negotiated between the parties in order to settle a
service territory between the parties, provide for stability of service with consumers , to
eliminate duplicating of services and to provide safety in the respective territories.
For the foregoing reasons and to fulfill the requirements of Idaho Code
333 United and Heyburn request the Commission , after notice and hearing, approval
of the Agreement pursuant to law.
United is the successor in interest to Rural Electric by consolidation with
Rural Electric and Unity Light and Power.
APPLICATION - 2
DATED this day of :::rUN E:.
APPLICATION - 3
2003.
PARSONS SMITH & STONE LLP
illiam A. Parsons
Attorneys for United
137 West 13th Street
P. O. Box 910
Burley, Idaho 83318
STEVEN A. TUFT
/...;1/1
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Steven A. Tuft
Attorneys for Heyburn
1918 Overland Avenue
P. O. Box 759
Burley, ID 83318
SERVICE ARI TABILlZATION AND 'WHKM-I!'REE~i
TIllS AGREE11ENl entered into the i"l0 day of
;::"'
h--h~;ufi-I"."199b.. by and
between THE CITY OF REYBURN, a municipal corporation of the State ofulda , hereinafter
known as the City, and RURAL ELECfRIC CaMP ANY, a cooperative corporation of the State
of Idaho, hereinafter known as Rural
WHEREAS, each of the parties owns and operates an electric distribution system
with service areas which are contiguous to one another, and
WHEREAS, the City desires to extend water and sewer facilities into its Area of
Impact north of Interstate Highway 84 in an area currently served by Rural, and
WHEREAS, Rural and the City desire to cooperate in the development in the area
north of Interstate Highway 84, and
WHEREAS, it is in the public interest for the parties to enter into a service area
stabilization agreement, as authorized by the Idaho Electric Supplier Stabilization Act, to avoid
duplication of facilities and promote safety for each facility, now therefore
IT IS HEREBY MUTUALLY AGREED AS FOLLOWS:
1. Attached hereto and incorporated by reference as Exhibit "A" is a map of that
portion of Minidoka County which is situated north of 21st Street of the City which is also
identified as Alfresco Road and 400 South Road in Minidoka County, Idaho. Rural and the City
agree to divide the service area depicted on the map labeled Exhibit "A" as follows:
(A) Rural will serve the following described area:
Beginning at the north side of the MID Lower "B" canal and the point
(approximately 425 West) at which the Idaho Power Company 138 kV
transmission line crosses the Lower "B" canal, thence north parallel to
the east side of the Idaho Power Company 138 leV transmission line
to the north side of Interstate 84 (1-84), thence west along the north
side of 1-84 to an imaginary north-south line at approximately 575
West, thence south along the west side of this imaginary north-south
line to the north side of the MID Lower "B" canal, thence westerly
along the north side of Lower "B" canal to 600 West. Rural will serve
customers east of the Idaho Power Company line, north of 1-, west
of the imaginary north-south line at approximately 575 West and north
of the Lower "B" canal to 600 West.
(B) The City will serve the following area:
Beginning at the north side of 400 South road, also known as 21st
Street or the Alfresco Road, and the point (approximately 425 West)
at which the Idaho Power Company 138 kV transmission linc crosses
400 South to enter the BP A Reyburn Substation, thence north parallel
to the west side of the Idaho Power Company 138 k V transmission line
to the south side of Interstate 84 (1-84), thence west along the south
EXHIBIT 1
(To Application- United/City of Heyburn)
side of 1-84 t. imaginary north-:south line at a1 rimately 575
West, thence south along the east side of this inlagin..uy north-south
line to the south side of Minidoka Irrigation District (MID) Lower "
canal, to 600 West, thence south along the Reyburn city limits to the
Snake River. The City will serve customers west of the Idaho Power
Company line, south of 1-84, east of the il11aginalY north-south line at
approximately 575 West, south of the Lower "B" canal to 600 West
and east of the City limits to the Snake River.
(C) One Rural residential customer located at 575 West and 400 South (identified
as Rural meter #181800) will be transferred to the City from Rural. Within 30 days
of the transfer of the above described load from Rural to the City, the City shall
reimburse Rural the gross revenue obtained from this load for the period of the last
calendar year (12 months). Rural shall provide the City with the previous calendar
year billing information for this meter.
(D) TIle purpose of a temporary transfer of a residence located at 580 West and
395 South (identified as Rural meter #181900) is to eliminate an unsafe clearance
problem, facilitate the removal of Rural's underbuild line currently attached to the
City's poles, and allow the City to install a neutral conductor on said line. This
individual temporary transfer shall in no way alter the future application 'of this
agreement. This temporalY transfer is in Rural's territOlY and may be withdrawn
upon 30 days written notice to the City.
(E) Rural will continue to serve the Wellner shop (identified as Rural meter
156100, the residence identified as Rural meter # 156200, the residence identified
as Rural meter # 156300, and the Griswold farm identified as Rural meter #156400
until such time the City annexes the area and has also constructcd a distribution line
capable of serving the loads. Within 30 days of the transfer of the above described
loads from Rural to the City, the City shall reimburse Rural the gross revenue
obtained from each load transferred for the period of the last calendar year (12
months). Rural shall provide the City with the previous calendar year billing
information on each meter transferred.
(F) Each party reserves the necessary rights of way and easements for existing
distribution lines which will be necessalY to continue service to each utility's existing
customers. Reselvations of rights of way by either utility shall not authorize the utility
with the reserved rights of way to serve patrons in the selvice area designated for the
other utility.
2. Rural agrees to transfer to the City the existing selvice line, poles and meters
to the above mention meter connections. Each party will retain ownership of its own transfOlmers
to avoid confusion about responsibility for PCB contamination.
3. Prior to connecting any selvice on Rural, the City agrees to become a member
of Rural by purchasing a membership at the prescribed fee of $100 (One Hundred Dollars).
4. Neither party shall offer or extend selvice to a customer in the seiVice area
granted or selved to the other party under this agreement.
5. Notwi ,nding, the City's agreement to a Rural to be the exclusive
provider of service within the territory granted or reserved to Rural, the City shall have the right
to install its own street lights, pumps and other facilities which it hereafter operates within Rural'
service area and Rural agrees to deliver electrical energy and power to the City s facilities within
Rural's service area on the terms and conditions set forth herein. Distribution service hereunder
shall be provided in amounts necessary for the City to maintain culinary water delivery, waste water
disposal service, street lights, and other City services to its customers.
6. Rural shall furnish all transformers and meters (except as othelwise noted
hereinafter), at the point of delivelY to the City; The service provided by Rural shall include
facilities or equipment necessalY or used in the delivelY to the point of use by the City, and shall
include transforming, switching, fusing, and lightning arresters at the point of use by the City and
with respect to interconnection of Rural's system, at the point of delivelY to the City, Rural, at its
own expense shall furnish such equipment and devices as are required, provided, however, the City
shall install capacitors, on the load side of the pump panel contactor, adequate to maintain a 95%
power factor at all of its pump motors.
7. Electric power and energy distributed hereunder will be delivered to the City
at the nominal delivery voltages necessalY and will be measured by metering at each individual
point of delivelY by Rural. Rural will read all meters monthly on approximately the same date
each month. The City shall have the right to be present at and participate in all meter reading and
testing. The City may take meter readings each month or at the beginning and end of each year
jointly with Rural to confirm the energy used.
8. The City shall reimburse Rural for energy (kwh) and demand (kW) at the
current Rural retail commercial rate (minus the' monthly customer charge). which is subject to
adjustment from time to time, and which may be modified under separate agreement between the
City and Rural. In the event that the City desires to negotiate a separate agreement for a time of
day meteIing rate, the City shall pay to Rural the cost of the specialized meter and installation in
order to account for time of day usage (both diurnal and nocturnal periods), seasonal periods, light
load hours, heavy load hours, coincidental, and non-coincidental demand peaks, and any other data
acquisition required to put the separate agreement into effect.
9. Rural shall submit bills to the City on or before the 1st working day of each
month for service furnished during the preceding month, and payments shall be due and payable
by the City on the tenth day of the month immediately succeeding the date each bill is submitted.
10. Rural assumes responsibility for all distribution lines, line poles, insulators
transformers, fuses, and other appurtenances as necessmy for the purpose of clearing and
protecting the electric distribution systems of Rural from faults, grounds and other types of
electrical disturbances and will maintain and replace such items as are necessalY for the efficient
delivelY of electric power and energy. The City shall be responsible for and pay the cost of
repairing vandalism of any land occurring on the City s premises to facilities furnished by Rural
and for any damages to the facilities of Rural caused by any of the machinery and equipment of
the City coming into contact with the power lines and other facilities of Rural. Rural shall
maintain the facilities to deliver electric power and energy to the City with the same diligence with
which it serves its own members. Rural shall construct, operate and maintain its power system in
a manner which will not interfere with the operations of the system from which electric service is
supplied to Rural for delivery to the City, and which will coordinate with the protective relaying
and other protective arrangements on said system.
11. In opel .s and supplying electrical services, n its service area as defined
by this agreement, Rural shall operate in accordance with generally accepted standards of prudent
utility practice, such as, but not limited to, those promulgated by the American National Standards
Institute C2, which is entitled "National Electrical Safety Code , thc Occupational Safety and
Health Administration, the American Society for Testing and Materials, the Institute of Electrical
and Electronic Engineers, and others, together with all state and federal laws pertaining to Rural's
operations under any regulation imposed by the City; provided, however, that such City regulations
shall not be more burdensome nor restrictive than those imposed by the City upon its own electric
department.
12. Rural shall allow the City s community television cable franchisee to attach
to Rural's poles in areas annexed into the City on the same basis that the franchisee attaches to
the City's poles in the City s service area, but Rural, not the City, shall receive the pole attachment
fee in Rural's service area.
13. In the event the City elects to impose a franchise fee for service of customers
of Rural which are located within the City limits, including territories which may be annexed to the
City in the future, Rural agrees to collect said franchise fees from its customcrs within the annexed
area and transmit payment to the City not less than quarterly pursuant to the terms of the
applicable franchise ordinance of the City. Rural reserves the right to contest the validity of any
franchise fee which would have a detrimental economic impact on Rural or its customers who
would become subject to a franchise fee.
14. The provisions of this Agreement shall apply to and bind the successors and
assigns of the parties hereto. This Agreement shall remain in full force and effect as long as each
of the parties shall continue to operate as electrical suppliers under their present form of
ownership. In the event that Rural or the City should cease to operate as an electrical supplier
whether by sale or by change in the fonD of ownership, the consumers served shall remain the
same.
15. Nothing in this section shall be construed to render the City liable for any
claims, demands, costs, losses, causes of action, damages or liability of whatsoever kind or nature
arising out of or resulting from the construction, operation or maintenance of Rural's power system
used to deliver electric energy to the City.
16. Nothing in this Agreement shall be construed to render Rural liable to the
City for any claim, demands, costs, losses, causes of action, damages or liability of whatsoever kind
or nature, arising as a result of energy failures caused by acts, fault or neglect of the City, third
parties, interruption by the elements, or act of God.
17. Neither party, its officers, agents, employees or any of them, shall be liable
for the claims, demands, costs, losses, causes of action, damages or liability of whatsoever kind or
nature arising out of or resulting from construction, operation and maintenance activity performed
by the other party under this contract.
18. In the event either party shall commence an action to enforce the provisions
of this Agreement, the prevailing party shall be entitled to recover reasonable attorney fees as part
of its costs pursuant to the Idaho Rules of Civil Procedure.
19. A cop~ this agreement shall be recorde
Recorder of Minidoka Coumy, Idaho.
the office of the County
20. This agreement may only be modified by an instrument in writing signed by
the authorized representatives of Rural and the City. Upon execution of any modification, said
agreement shall be recorded in the office of the County Recorder of Minidoka County, Idaho. No
oral modifications of this agreement shall be enforceable.
IN WITNESS WHEREOF, the parties hereto have caused their names to be
subscribed the day and year first above written.
ATTEST:
i1 ti, 0,,
, ~,
Ruth Davis, City Clerk
TIEST:
7t
-t (t~Wl
Nels D. Moller
Board Secretary
. STATE OF IDAHO
County of Cassia )~.:i.
. ~n this :J 0 ~ay of ;l.dn~-'.all'' in the year of 199~, before me the undersigned
notaIY hC III ,,;:+nd for saId state, persona y appeared MayorA~'I" :i fW,~ 1/1_and City
Clerk ;aJv llJtt.1H.D , known or identified to me to be the persons whose
names are subscribed to the within instrument as Mayor and City Clerk and acknowledged to me
that they executed the same as such Mayor and City Clerk.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal
the day and year first above written.
cf )D"~--'i
otary Public
Residing at fi1~"C1/)\,
My Commission pires /;- ':1 / Il1
(SEAL)
STATE OF IDAHO
County of Mindoka )ss.
C?n this
261/t.,day of 199~, before me the undersigned no~ary public
III and for saId state, personally appeare
~~
f 11, .:/o-Twu as presIdent, and
~h--, ~l , as secretary, kno to me to be the president, and secretaIY,
of the corporation that executed the instrument or the person who executed the instrument on
behalf of said corporation, and acknowledged to me that such corporation executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal
the day and year first above written.
~~~~
Notary P lic
Residing at ~jl~
My Comll1issiOl expires 0/ !o-l-/ 2000
(SEAL)
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