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 ITE D\Application Farmers, wpd)
GOODMAN & BOLLAR
717 7th Street
P. O. Box 0
Rupert, Id 83350
Telephone: [phone]
Fax: [phone]
Attorneys for Farmers' Electric Company, Limited
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
- - --- --- - --- - ----- --- - - - -- - -- - ------- -- -- -- - --- ---- ---- - --
In the Matter of the Application of
United Electric Co-op, Inc. and
the Farmers' Electric Company, Limited
for an Order Approving a Service
Territory Agreement between the Applicants.
Case No. G;rI~'E- tf~/tJ7
APPLICA TION
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Pursuant to Rule 51 of the IPUCRP , and Idaho Code ~ 61-333 , United Electric
Co-op, Iric. ("United") and Farmers ' Electric Company, Limited ("Farmers ) respectfully
apply for Commission approval of a Service Territory Agreement between United and
APPLICATION - 1
Farmers 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 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 Agreement between
them. Such Agreement predated the amendment to Idaho Code ~ 61-333 , and therefore
United and Farmers 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 Farmers request the Commission , after notice and hearing, approval
of the Agreement pursuant to law.
APPLICATION - 2
DATED this Kday of
-$--
APPLICATION - 3
2003.
PARSONS, SMITH & STONE, LLP
Attorneys for United
137 West 13th Street
P. O. Box 910
Burley, Idaho 83318
GOODMAN & BOLLAR
Attorneys for Farmers
717 7th Street
O. Box D
Rupert, Idaho 83350
SERVICE AREA STABILIZATION AGREEMENT
AGREEMENT made this ;)3 day of Jip(21 L 2003 , by and between
UNITED ELECTRIC CO-, INC. of 1331 21st Street, Heyburn , ID 83336
, ("
UNITED"
and FARMERS' ELECTRIC COMPANY, LIMITED of Box 85, Heyburn , ID 83336
("FARMERS"
RECITALS:
United and Farmers' 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 Farmers , in part , are adjacent and
contiguous to each other.
The parties have, in recent years , had an oral understanding 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 west, north and east of the yellow
line and north of the freeway, identified on Exhibit 1 , shall be the United territory. All
lands within the yellow line shall belong to Farmers or Riverside. United shall serve all
new customers in its defined area and Riverside shall serve all customers in its defined
area.
EXISTING CUSTOMERS : To the extent that either party is currently
SERVICE AREA STABILIZATION AGREEMENT-
EXHIBIT 1
to Application United-Farmers
providing service to customers within the service area assigned to the other party by this
Agreement, said parties shall continue to serve said customer. United or Farmers' shall
not 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 United and Farmers' 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
from entering into a written agreement to permit the service of a new customer by party
whose distribution system is located in the service area of the other, if the new customer
can be served more efficiently and safely from the existing service lines of the other party
or by the extension of existing service lines, 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 the
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 the successors in interest. In the event either or both parties merge
conso I id ate , sell or otherwise become a different entity th is Ag reement s ha II nevertheless
remain in full force and effect as to the 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 Minidoka, 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.
10.EXISTING CUSTOMERS:Exhibit 2 attached contains certain exceptions
to the territory:
EXHIBIT 2 contains the names of members of Farmers and
United that may exist in the territory of the other party. The
parties will use good faith efforts to ascertain the exact
location of the members, however until the exact location is
determined the parties shall continue to serve the customers
or places illustrated on the Exhibit 2, If when the exact
location is determined that party shall use good faith efforts
to exchange customers that may be affected , however if no
exchange can take place then the customers may continue
to be served by the now serving entity or until other
arrangements are agreed upon by the parties.
SERVICE AREA STABILIZATION AGREEMENT - 3
IN WITNESS WHEREOF the parties have executed this Agreement the day and
year first above written.
UNITED ELECTRIC CO-, INC.
By
Ron Osterhout, President
FARMERS' ELECTRIC COMPANY , LIMITED
/r::;L'? ~L--
arY Buerkle, President
SERVICE AREA STABILIZATION AGREEMENT - 4
STATE OF IDAHO
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County of ft-
On this ~ay of , in the year 2003 , before me , the
undersigned , a Notary Public in ~sald 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 acknowledged to me that such corporation
executed the same.
~ WILLIAM A. PARSONS
NOTARY PUBLIC
STATE OF IDAHO Residing at
My Commission E ires
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,)d
STATE OF IDAHO
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County of
On this .2:i'-~ay of ~",L , in the year 2003 , before me, the
undersigned , a Notary Public in a d for said State , personally appeared GARY
BUERKLE , known or identified to me to be the President of FARMERS' ELECTRIC
COMPANY, LIMITED, the corporation that executed the instrument or the person who
executed the instrument on behalf of said corporati ,and acknowl dged to me that
such corporation executed the same.
(U NITED\F armersAgr. wpd)
SERVICE AREA STABILIZATION AGREEMENT - 5
MAP
CO NFID E NTIAL
NAMES & ADDRESSES
0 F CDS TO MERS