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\ApplicationRupert. wpd)
GOODMAN & BOLLAR
717 7th Street
O. Box D
Rupert, Id 83350
Telephone: [phone]
Fax: [phone]
Attorneys for City of Rupert
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BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
- ------ - ------- ------------------- ------------ - -----------
In the Matter of the Application of
United Electric Co-op, Inc. and
the City of Rupert for an Order
Approving a Service Territory
Agreement between the Applicants.
~ Case No. eN J?- L:- (J3"d
APPLICATION
--------------------------------------------------------
Pursuant to Rule 51 of the IPUCRP , and Idaho Code S 61-333, United Electric
Co-OPt Inc. ("United") and City of Rupert ("Rupert") respectfully apply for Commission
approval of a Service Territory Agreement between United and Rupert on the grounds
APPLICATION - 1
and for the following reasons:
On December 8t 2000 , the Idaho Legislature, meeting in special session
amended the Idaho Electric Supplier Stabilization Act, SS 61-332 throug h 61-334B of the
Idaho Code. Idaho Code S 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 shallt 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 ofthe 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 amendmentto Idaho Code S 61-333 , and therefore
United and Rupert seek approval of the Commission ofthe existing Territory Agreement.
A copy of that Agreement is attached as Exhibit 1. A copy of the Amendment to Service
Area Agreement is attached as Exhibit 2.
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 Rupert request the Commission, after notice and hearing, approval of
the Agreement pursuant to law.
APPLICATION - 2
DATED this day of rl1
APPLICATION ... 3
2003.
PARSONS, SMITH & STONE , LLP
kLt1fJ William A. Parsons
Attorneys for United
137 West 13th Street
P. O. Box 910
Burley, Idaho 83318
GOODMAN & BOLLAR
Attorneys for City of Rupert
717 7th Street
O. Box D
Rupert, Idaho 83350
SERVICE AREA AGREEMENT
THIS AGREEMENT entered the day of
(~-
, 1985, hy and between the CITY OF RUPERT, a
Mun!cipal Corporation of the State of Idaho, h~reinafter known as
CITY", and RURAL ELECTRIC COMPANY, a Cooperative Corporation of
the State of Idaho, hereinafter known as "RURAL"
WITNESSETH:
WHEREAS, the parties hereto each own and opera
electric systems which supply electrical energy to customers in
areas which are contiguous to one another, and
WHEREAS, it is in the mutual interest of the parties
hereto and the present and future customers of ~ach that s~rvice
areas be established so that each utility may plan for orderly
and economical growth within its defined service area and avoid
conflicts with the other, and
WHEREAS, the Idaho Electric Supplier Stabilization Act
authorizes electric suppliers to contract in writing with one
another for the purpose of allocating territories, consumers and
future consumers between the suppliers and designating which
terri tories and consumers are to be served by which supplier,
NOW THEREFORE, IT IS MUTUALLY AGREED AS FOLLOWS:
The parties hereby establish a boundary line for
the purpose of allocating territories, consumers ~nd future
consumers of their electric services, which commences on 100 West
Road at Minidoka Irrigation District Lateral 164 which is
approximately 800 feet south of the intersection of Highway 24
and 100 West Road and runs in a northerly direction along the
centerline of 100 West Road to 200 North Road and then runs
easterly along the centerline of 200 North Road for approximatel~'
one-fourth mile (East End Mutual Service Area).Along 100 tiest
Road Rupert's service area shall be east of said boundary and
Rural's service area shall be west of said boundary.Along 200
SERVICE AREA AGREEMENT
...------....
--_oo......
EXHIBIT 1
(To Application- United/City of Rupert)
North Road' to 175 ~oJest, R'ap~rt' s service area shall be south' or
200 North and Rura2' s area shall be north of 200 North Road.The
boundary line established by thi~ agreement is shown on a map
bearing the signatures of the parties hereto and the date of
execution of this agreement which is attach~d hereto and
incorporated herein by reference as Exhibit "Said map
designates the respective service areas of the City and Rural as
established by
' .
this agreement.Each party shall have the right
to attach its conductors to poles of the other along the common
boundary: provided such attachments may be made with reasonable
safety.The parties specifically agree to share use of the poles
situated on the west side of 100 West Road which are owned
jointly by said utilities for serving their respective service
areas ' and to share the cost of maintaining and replacing said
poles.
From and after the date of execution of this
agreement, neither party shall extend service to any customer
within the service area designated on the attached map as the
service area of the other, and each party shall commence the
orderly withdrawal from any territory which is established by
this agreement to be the service area of the other.
territories relinquished und~r this agreement the withdrawing
party shall disconnect its service from each consumer in the
relinquished ~erritory when the party acquiring the territory is
prepared to connect said consumer to its system.:rhe parties
shall cooperate with one another in making such change of service
to avoid inconvenience to the affected consumers.The supplier
discontinuing service to a consumer shall be entitled to remove
its meter and all other equipment owned by it at the time of
change of service unless ownership of said equipment is
transferred to the party undertaking to serve said consumer by a
Bill of Sale delivered before or at the time of change of
service.Nei ther party shall disconnect service to a consumer
presently served by the other party, but if either party to this
SERVICE AREA AGREEMENT
. o
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.,:!.greement fails or refu!res 1:0 disconnect a consumer in the
service area of-the other for 10 days af~er a written demand to
disconnect said consumer has been made by the party entitled to
serve said consumer under the terms of this agreement, the party
who fails or refuses to disconnect said consumer to allow the
other to commence service shall forfeit and pay to party entitled
to serve said consumer the sum of $50.00 each day such failure or
refusal continues beyond the expiration of the notice period.
The demand shall be effective when delivered to the business
office of the offending party.The notice shall specify the name
and location of the consumer, and it may include more than one
consumer.In the event of multiple violations, the penalty shall
be applied for each consumer day the violation continues.The
penalty provided herein shall not preclude any other legal or
equi table remedy.
3.. In the event of annexation by the City of land
which lies within Rural's service area as the same has been
established under this agreement Rural shall pay to the City a
Franchise fee in the amount and under the terms set forth herein,
and Rural shall be allowed to continue to serve existing and
future consumers in said service area.In consideration of the
establishment of service areas for the parties and establishment
of a franchise fee agreement with Rural, the City agrees that it
will not exercise the power of condemnation, whether now existing
or hereafter created, as to any of Rural' s servic~ area as
established under this agreement while Rural shall continue to
exist and operate as a rural electric cooperative.
Each party relinquishes and agrees to transfer to
. I the other by appropriate instrument of conveyance all easements
and rights of way for service lines within territories
relinquished under this agreement, provided, however, that each
party reserves necessary rights of way and easements for existing
distribution lines which will be necessary to continue service to
SERVICE AREA AGREEMENT
i'"
c9nsumers within its ser7ice area as determined- under this
agreement.
Each party shall entitled to - require
consumers in territory acquired under . this agreement not
presently served by the party acquiring said territory that said
new consumers pay the membership fee or meter deposit required of
its other consumers wi thin the service area as a condition
precedent to connection.If the consumer being served by a
. withdrawing party refuses to pay the appropriate meter deposit or
membership of the party acquiring the territory in which the
consumer is located prior to the ----- day of
---
, the withdrawing party shall be required to terminate
serv~ce to said consumer not later than the day of
, 19
---
, whether said consumer has made
arrangements to acquire electrical service from the other party
or not.It shall be the responsibility of the party withdrawing
from a territory to give adequate notice ?f proposed cancellation
of service to the consumer whose servic~ will be terminated.
The withdrawing party shall be responsible for
collection and settlement of its accounts within the territory
relinquished according to its own rules and procedures, and
neither party shall be responsible for assumption of payment of
account obligations of the other within the affected territories.
The franchise fee to be paid by Rural is an amount
equal to 5' of the gross periodic billing for elec~rical energy
to each consumer within the portions of Rural's service area
which become annexed to the City of Rupert.The franchise fee
shall not apply to interest, service charges, equipment sales or
rental or sales and excise taxes of any nature, but shall apply
exclusively to electrical energy charges.The franchise fee
shall not be reduced by uncollected billings.The rate charged
SERVICE AREA AGREEMENT
...
-.J;?y Rural for electrical "E!I1ergy, within the annexed area to which
the franchise applies shall be the rate applicable to the same
classes of . consumers within its\service area not annexed by the
City.
Prior to annexation of any of Ruralt s service area,
the City shall adopt an ordinance granting Rural a franchise to
serve patrons inside the corporate limits of the City of Rupert
in the service area of Rural which has been determined by this
agreement.The City agrees. that it shall not modify any
substantive right of Rural under said franchise ordinance without
the written consent of Rural, except as provided in part 13 of
this agreement.
At such times as the City shall annex portions of
Rural's service area Rural shall be required to wheel power to
any facility of the. City located within said annexed area without
charge, other than an adjustment for line loss, provided that the
City supplies and installs the necessary poles, conduit,
transformers and related equipment for delivery of the electrical
energy to the City facility from Rural's nearest existing point
of delivery.At such time as Rural shall utilize equipment
supplied by the City in service of other consumers, Rural shall
reimburse the City the fair value for such equipment.In the
event it is more convenient for the parties that the City
purchase power from Rural to energize the City s facilities
within the annexed areas, the rate charged by Rural to the City
shall be not greater than the wholesale cost of said power, plus
adjustment for line loss in the amount of 7%.
10.The franchise fee to be paid by Rural under this
agreement shall be computed and paid quarterly to the City on the
basis of billings by Rural within the quarter.The quarters
shall correspond to the four quarters of the calendar year.The
amount of the franchise fee for the respective quarters shall be
determined not later than the 15th day of the calendar month
following the close of a quarter, and payment of the franchise
SERVICE AREA AGREEMENT
,.I
fee shall be delivered to th~ City not. later than the last day of .
the month follo~~~g the close of a calendar quarter.In the
event said fees are not paid ov~r when due they shall ~ear
interest at 10% per annum from the due date until paid.
11.In operating and supplying electrical services
within its service area within areas annexed to the City of
Rupert, Rural shall comply with and conform to all safety
:: regulations promulgated by N.C., N.C., A.I., C-2
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:: together will all State and Federal laws regulating its
:: operations and any reasonable regulations of the City,' provided,
however, that such City regulations shall not be more burdensome
or restrictive than those imposed upon itself by the City.
12.The books and records of Rural covering consumers
served by Rural within the City limits of the City of Rup~rt
: shall be . open to audit by the City for sixty (60) days after the
close of each calendar year so that the City may determine that
franchise revenues required under this agreement and the attached
ordinance are being properly accounted for and remitted by Rural.
13.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 .the City should terminate operations as an
electrical supplier, the boundary line establishing the
respective service areas shall remain in effect as to Rural and
the successor to the City s service area, but the franchise
provisions except for the rate of franchise fee may be
unilaterally modified by the City provided that it applies the
same provisions to any other electrical supplier operating within
the City and provided further that Rural will not be obligated to
maintain a uniform rate between customers of the same class in
annexed and unannexed territories.In the event that Rural
should cease to operate as an electrical cooperative within its
service area, whether by sale of part or all of the service area
or by change in the form of ownership of Rural to a stock company
SERVICE AREA AGREEMENT
it.
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or proprietorship other-zhan a cooperative, the~service a~eas
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established by ihis' agr~ement shall' remain the s~;e, but the City
shall have the power to change .,the terms of 'its franchise
, ordinance as it relates to Rural's successor, and the City shall
no longer be prohibited from exercising it~ right of
condemna tion.
14.Neither party shall be permitted to extend its
service into the service area granted to the other by this
agreement by acquiring the service area of any electrical
supplier which is not a party to this agreement.
15.The City shall assume the obligations of Rural to
wheel power to the Minidoka Irrigation District office and shop
within the service area acquired by the City.
16.Rural shall be obligated to allow the City
comm~ity television antenna franchisee to attach to Rural'
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.
17.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.
IN WITNESS WHEREOF, the parties have hereto have caused
their names to be subscribed the day and year fir~t above
written.
CITY OF RUPERT
F'JJuifl " IjJ/::;p(;;:)F. "Bill" Whittom
Rupert City Mayor
ATTEST:
SERVICE AREA AGREEMENT
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ATTEST:
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SECRETA Y
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RURAL ELECTRIC COMPANY
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PRESIDENT
SERVICE AREA AGREEMENT
...
AMENDMENT TO SERVICE AREA AGREEMENT
AGREEMENT made this day of ~Cty , 2003, by and between
the CITY OF RUPERT, a municipal corporation t ("CITY") and UNITED ELECTRIC CO.
OP, INC. , ("UNITED"
RECITALS: The parties recite:
Rupert and Rural Electric entered into a Service Area Agreement
dated April 2, 1985,
United is the successor in interest to Rural Electric by consolidation
with United light and Power.
A Territory Agreement was entered into between Rupert and Rural
and the parties desire to amend said Agreement in part and to amend Exhibit "
illustrating the territory.
IN CONSIDERATION OF THE RECITALS and the benefits to the parties it is
agreed:
Paragraph 1 of the Service Area Agreement is amended to read as follows:
1. The parties hereby establish a boundary line for the
purpose of allocating territories, consumers and future
consumers of their electric services. The boundary line
established by this agreement is shown on a map initialed by
the parties hereto which is attached hereto and incorporated
hereby by reference as Exhibit ". Said map designates the
respective service areas ofthe City and Rural as established
by this agreement. Each party shall have the right to attach
its conductors to poles of the other along the common
boundary; provided such attachments may be made with
reasonable safety. The parties specifically agree to share
use of the poles situated on the west side of 100 West Road
which are owned jointly by said utilities for serving their
respective service areas and to share the cost of maintaining
AMENDMENT TO SERVICE AREA AGREEMENT -EXHIBIT 2
to Application
...
United Electric/City of Rupert
and replacing said poles. On Exhibit "B" there are two
customers who are in close proximity to the service area of
the City of Rupert and such parties may continue to be
served by United , if in fact they are in the Rupert service
area.
Except as herein amend all other terms all other terms and conditions of
the Service Area Agreement remain in full force and effect, provided, however, that the
Territory map identified as Exhibit "A" has been altered and initialed by representatives
of the respective parties.
IN WITNESS WHEREOF this Agreement has been executed effective the day
and year first above written.
UNITED ELECTRIC CO-, INC.
BY ~~I:
President
ATTEST:
Secretary
CiTY OF RUPERT
ATTEST:
Ci Clerk
BY t1~
ay,
(U N ITED\RupertAmendment. wpd)
AMENDMENT TO SERVICE AREA AGREEMENT - 2
MAP
CO NFID E NTIAL
NAMES & ADDRESSES
OF CUSTOMERS