20030723Comments.pdf

DONALD L. HOWELL, II
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 3366
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Street Address for Express Mail:
472 W. WASHINGTON
BOISE, IDAHO 83702-5983
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
UNITED ELECTRIC CO-, 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-
COMMENTS OF THE
COMMISSION STAFF
COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its
attorney of record, Donald L. Howell, II, Deputy Attorney General, and submits the following
comments in response to Order No. 29281 issued on July 7 2003.
APPLICATION
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).
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
STAFF COMMENTS JULY 23, 2003
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. The agreement also provides that
United will deliver power to City facilities in any annexed area served by United.
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.
Amendment at 2. All other terms 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.
STAFF COMMENTS
In December 2000 and February 2001 , the Idaho Legislature amended portions of the
ESSA. In particular Idaho Code ~ 61-333 was amended to provide that all service agreements
that allocate territory or customers between electric suppliers be filed with the Commission. Idaho
Code ~ 61-333(1) now provides in pertinent part that
the commission shall after notice and opportunity for hearing, review
and approve or reject (such) contracts.. . between municipalities and
cooperatives.. ..the commission shall approve such contracts only upon
finding that the allocation of territories or consumers is in conformance
with the provisions and purposes of this act.
Idaho Code ~ 61-333(1) (2001). As set out more fully in Idaho Code ~ 61-332, the purposes of
the ESSA are to: (1) promote harmony among and between electric suppliers; (2) prohibit the
pirating" of consumers served by another supplier; (3) discourage duplication of electric
STAFF COMMENTS JULY 23 , 2003
facilities; (4) stabilize the territory and consumers served by the suppliers; (5) actively supervise
certain conduct of the suppliers.
The Agreement appears to provide the least cost service option for customers and complies
with the ESSA by drawing a boundary that identifies each utilities service territory. The
agreement provides for the orderly exchange of customers who were initially in the other party
service area. It is not known whether this exchange is complete at this point in time. Staff
believes that the Agreement contained in this Application fulfills the purposes and provisions of
the ESSA that have been previously stated.
Finally, Staff notes that Paragraph 17 of the Agreement provides that the prevailing party
to the Agreement may recover reasonable attorney fees if the party commences an action to
enforce the Agreement. At the time this Agreement was executed in 1996 Idaho Code ~ 61-334B
provided that any supplier whose rights under the ESSA are in jeopardy, may bring suit in district
court. This section was repealed and amended in December 2000 and February 2001.
Idaho Code ~ 61-334A now provides that an aggrieved customer or supplier "may file a
complaint with the Commission" and the Commission shall resolve the matter. See Idaho Code
~~ 61-334A(2-3); 61-334B(3). In other words, resolution of disputes was removed from the
court's jurisdiction and was to be submitted to the Commission. Under the Public Utilities Law
the Commission does not have authority to award attorney fees other than intervenor funds
pursuant to Idaho Code ~ 61-617A. See Idaho Power Companyv. Idaho PUC, 102 Idaho 744
639P.2d 442 (1981).
STAFF RECOMMENDATION
Staff recommends approval of the Agreement.
Respectfully submitted this 23
J day of July 2003.
Donald L. well, II
Deputy Attorney General
Technical Staff: Keith Hessing
i: :umisc/comments/gnrtO3 .9dhkh
STAFF COMMENTS JULY 23 , 2003
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 23RD DAY OF JULY 2003
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN CASE
NO. GNR-03-, BY MAILING A COpy THEREOF, POSTAGE PREPAID, TO THE
FOLLOWING:
WILLIAM A PARSONS
P ARSONS SMITH & STONE LLP
PO BOX 910
BURLEY ill 83318
GOODMAN & BOLLAR
PO BOX D
RUPERT ill 83350
kQL
CERTIFICATE OF SERVICE