20030620Application.pdf

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UTiLiTIES COi'H1ISSION
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\ApplicationRaftRiver. wpd)
Rigby Thatcher Andrus Rigby
Kam & Moeller
25 N. 2nd E.
P. O. Box 250
Rexburg, 10 83440-0250
Telephone: [phone]
Fax: [phone]
Attorneys for Raft River Rural Electric
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
- ---- - - --- -- ----- - --- ----- -- -- - -- ----- --- - - - - - - --- ---- - ---
I n the Matter of the Application of
United Electric Co-op, Inc. and
Raft River Rural Electric Cooperative
Inc. for an Order Approving a
Service Territory Agreement between
the Applicants.
) Case No.CAl~ If /Jq~lJk
APPLICATION
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Pursuant to Rule 51 of the IPUCRP , and Idaho Code ~ 61-333 , United Electric
Co-op, Inc. ("United") and Raft River Rural Electric Cooperative Inc. C'RR") jointly apply
APPLICATION - 1
for Commission approval of a Service Territory Agreement between United and RR on
the grounds and for the following reasons:
On December 8 , 2000, the Idaho Legislature, meeting in special session
amended the Idaho Electric Supplier Stabilization Act , ~~ 61-332 through 61-334B of the
Idaho Code. Idaho Code ~ 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 its approval.Approval by 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 and practiced a Territory
Agreement between them. Such Agreement predated the amendment to Idaho Code
~ 61-333, and therefore United and RR now seek approval of the Commission of the
existing Territory Agreement. A copy of that Agreement is attached hereto 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 duplication 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 RR request the Commission , after notice and hearing, approval of
the Agreement pursuant to law.
APPLICATION - 2
DATED this day of ~U N
APPLICATION - 3
2003.
PARSONS, SMITH & STONE , LLP
t1~
William A. Parsons
Attorneys for United
137 West 13th Street
P. O. Box 910
Burley, Idaho 83318
RIGBY, THATCHER, ANDRUS
RIGBY, KAM & MOELLER
Jer . Rigby
neys for RRP. . Box 250
Rexburg, Idaho 83340
SERVICE AREA STABILIZATION AGREEMENT
AGREEMENT made this ~day o~ , 2003 , by and between
UNITED ELECTRIC CO-OP, INC. of 1331 21st Street, Heyburn , 1083336
, ("
UNITED"
and RAFT RIVER RURAL ELECTRIC COOPERATIVE, INC., of Box 617 , Malta , 10
83342 ("RR"
RECITALS:
United and RR are electric non-profit corporations organized in the
State of Idaho and distributing electric energy to their respective members.
The service areas of United and RR, in part, are adjacent and
contiguous to each other.
The parties have, in recent years , had an oral understanding and
distribution practice relative to the respective service areas , however, the parties deem
it appropriate to reduce their respective understandings to this written Agreement and
to have the same approved by the Idaho Public Utilities Commission pursuant to Idaho
Code ~ 61-333.
In consideration of the recitals, the covenants and conditions herein contained
and by statutory authority the parties agree:
TERRITORY DEFINED: All of the area outside of the red line on Exhibit
, shall be the United territory ("UEC"). All lands within the red line shall belong to RR.
United shall serve all new customers in its defined area and RR shall serve all new
customers in its defined area.
EXISTING CUSTOMERS : To the extent that either party is currently
SERVICE AREA STABILIZATION AGREEMENT-
Exhibit 1
to Application
(United-Raft River Rural Electric)
providing service to customers within the service area assigned to the other party by this
Agreement, said parties shall continue to serve said customers. Neither United or RI3
shall be required to withdraw from the service area allocated to the other/but the right
to continue to serve existing customers within the service area of the other party shall not
be construed to authorize extension of service to new customers within the service area
allocated to the other party by this Agreement.
CAPTIONS : The captions of the paragraphs of this Agreement are for
identification purposes only and the captions shall not be construed to define or limit the
express provisions of the respective paragraphs.
ATTORNEY FEES: The prevailing party in any action arising under this
Agreement shall be entitled to reasonable attorney fees and costs in addition to all other
relief afforded by the court.
OTHER CUSTOMERS:Nothing contained herein shall prohibit the parties
hereto from entering into a written agreement to permit the service of a new customer
by a party whose distribution system is located in the service area of the other party, if
the new customer can be served more efficiently and safely from the existing service
lines of the non-service area party or by the extension of existing service lines of the non-
service area party. Such agreement shall be in writing, authorized by the respective
governing board of each party, and when executed shall be appended to this Agreement.
The entering into such agreement is discretionary with either party and neither party shall
have the right of action against the other for its exercise of such discretion.
TERM : This Agreement shall remain in full force and effect so long as
each of the parties shall continue to operate as electric suppliers under their present
SERVICE AREA STABILIZATION AGREEMENT - 2
form of ownership. In the event either party should terminate operations as an electric
supplier, the boundary lines established by the respective service area shall remain in
effect as to any successor(s) in interest to the terminating party. In the event either or
both parties merge, consolidate, sell or otherwise become a different entity, this
Agreement shall nevertheless remain in full force and effect as to any successor in
interest of the respective parties.
EFFECTIVE DATE:This Agreement shall be effective upon its execution
by the respective parties and approval by the Idaho Public Utilities Commission. When
so executed and approved a copy shall be recorded in the office of the County Record
County of Cassia , State of Idaho.
ENTIRE AGREEMENT & MODIFICATION : This Agreement constitutes
the entire understanding of the respective parties.All prior negotiations and
understandings are deemed merged herein. This Agreement may only be modified in
writing executed by the authorized officers of the parties and approved by the Idaho
Public Utilities Commission.
IN WITNESS WHEREOF the parties have executed this Agreement the day and
year first above written.
UNITED ELECTRIC CO-, INC.
Ron Osterhout, President
SERVICE AREA STABILIZATION AGREEMENT - 3
RAFT RIVER RURAL ELECTRIC
By:
STATE OF IDAHO)
) ss
County of ) eM!t-
On this day of 3D the year 2003 , before me, the undersigned , a Notary Public
in and for said State, personally appeared RON OSTERHOUT, known or identified to
me to be the President of United Electric Co-op, Inc., the corporation that executed
the instrument or the person who executed the instrument on behalf of said corporation
and acknOWledge~ t: ~e that such corporation
C WILLIAM A. PARSONS Notary Pu lic for IdahoNOTARY PUBLIC
STATE OF~ I~~HO -Residing at
My Commission Expires:-l "idiot(
STATE OF IDAHO)
) ss
County of )G/$6 II+--
On this day of , in the year 2003, before me , the undersigned, a Notary
Public in and for s ' id State , personally appeared RONALD S. SORENSEN , known or
identified to me to be the President of RAFT RIVER RURAL ELECTRIC
COOPERATIVE, INC., 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.
Notary PUbliC
9J
;, ahC?
Residing at'l-(llu t~,
My Commission Expires:- 7 -) 5 - OJ
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