20030707Notice of Application Order No 29281.pdf

Office of the Secretary
Service Date
July 7 2003
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 PURSUANT TO IDAHO CODE
~ 61-333(1).
CASE NO. GNR-O3-
NOTICE OF APPLICATION
NOTICE OF MODIFIED
PROCEDURE
ORDER NO. 29281
On June 20, 2003 , United Electric Co-op, Inc. and the City of Rupert filed an
Application for approval of a service territory contract pursuant to the Idaho Electric Suppliers
Stabilization Act (ESSA). United is the successor entity following the consolidation of Rural
Electric Company and Unity Light & Power. Both United and the City supply electric service to
their respective consumers in adjacent and contiguous service territories. Idaho Code ~ 61-
332A(4).
NOTICE OF APPLICATION
The parties ask that the Commission approve their "Service Area Agreement" and its
amendment dated April 2, 1985 and May 6, 2003, respectively. In the 1985 Agreement, United'
predecessor Rural Electric and the City agreed to establish a separate service territory for each
party in Minidoka County. The Agreement also addressed the exchange of customers and
facilities resulting from the allocation of the two service territories. Exhibit No.1 at ~ 2. The
Agreement provided that if the City annexes land that lies within United's service area, then
United shall be allowed to continue to serve "existing future consumers in said service territory.
(T)he City agrees that it will not exercise the power of commendation... as to any of (United'
service area as established under this Agreement....Id. at ~ 3.
In the 2003 amendment, the parties modified the initial Agreement by changing the
boundary line dividing the parties' service territories. Exhibit No.2. The amendment also
identified two customers "who are in close proximity to the service area of the City of Rupert
and (they) may continue to be served by United, if in fact they are in the Rupert service area.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29281
Amendment at 2. All other tenns and conditions of the initial Agreement remain in full force
and effect.
The Application states that the Agreement was negotiated to settle and establish
service territories between the parties, to provide stability and safety in service to consumers, and
to eliminate duplication of services. Application at ~ 3. Because the initial Agreement predated
the 2000 amendments to the ESSA, the parties now request that the Commission approve the
Service Area Agreement.
THE ESSA
The purpose of the ESSA is to promote harmony among and between electric
suppliers furnishing electricity within Idaho. More specifically, the ESSA: (1) prohibits the
pirating" of consumers already served by another supplier; (2) discourages duplication of
electric facilities; (3) actively supervises certain conduct of electric suppliers; and (4) stabilizes
the territories and consumers served by such electric suppliers. Idaho Code ~ 61-332. Under the
ESSA, all agreements or contracts for the allocation of service territories or consumers shall be
filed with the Commission. Idaho Code ~ 61-333(1).
United and the City are defined as "electric supplier(s)" under the ESSA. Idaho Code
~ 61-332A(2-4). Idaho Code~ 61-333(1) provides that any electric supplier may contract with
any other electric supplier for the purpose of "allocating territories, consumers, and future
consumers . .. and designating which territories and consumers are to be served by which
contracting electric supplier.This section further provides that the Commission may, after
notice and opportunity for hearing, "approve or reject contracts between cooperatives, ... (and)
between municipalities and cooperatives." The Commission "shall approve such contracts only
upon finding that the allocation of territories or consumers is in confonnance with the provisions
and purposes of' the ESSA. Id.61-334B.
NOTICE OF MODIFIED PROCEDURE
YOU ARE HEREBY NOTIFIED that Idaho Code ~ 61-333(1) reqUIres electric
suppliers to file all contracts that allocate service territories, consumers, or future consumers with
the Commission. This section further provides that the Commission shall approve all such
contracts if they are in confonnance with the provisions and purposes of the ESSA. See also
Idaho Code ~ 61-334B.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29281
YOU ARE FURTHER NOTIFIED that the Commission has detennined that the
public interest may not require a fonnal 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
twenty-one (21) days from the service date of this Notice. The comment must contain a
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 to the Commission and the Applicants at the addresses reflected below:
COMMISSION SECRETARY
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
Street Address for Express Mail:
WILLIAM A. PARSONS
PARSONS, SMITH & STONE, LLP
PO BOX 910
BURLEY, ID 83318
wparsons~pmt.org
472 W WASHINGTON ST
BOISE, ID 83702-5983
Attorney for United Electric Co-op
GOODMAN & BOLLAR
PO BOX D
RUPERT, ID 83350
Attorneys for City of Rupert
These 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 may do so by accessing the
Commission s home page located at www.puc.state.id.. Click the "Comments and Questions
icon, and complete the comment fonn, using the case number as it appears on the front of this
document. These comments must also be sent to the Applicants at the e-mail addresses listed
above, if available.
YOU ARE FURTHER NOTIFIED that the Application in Case No. GNR-03-
can be reviewed at the Commission office and at the Commission s web site
www.puc.state.id.under the "file room" icon.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29281
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission s jurisdiction under Title 61 of the Idaho Code and specifically
Idaho Code ~~ 61-332 61-333(1), and 61-334B.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission s Rules of Procedure, IDAP A 31.01.01.000 et seq.
ORDER
IT IS HEREBY ORDERED that this Application be processed under Modified
Procedure. Persons interested in submitted written comments regarding this matter should do so
within 21 days ofthe service date of this Order.
DONE by Order ofthe Idaho Public Utilities Commission at Boise, Idaho this 3/1-61--
day of July 2003.
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6UL MARSHA H. SMITH, COMMISSIONER
ATTEST:
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NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29281