20050620Application.pdf

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Peter Richardson ISB #3195
Richardson & O'Leary PLLC
515 N. 2ih St.
O. Box 7218
Boise, Idaho 83707
Telephone: [phone]
Fax: [phone]
peter(fYrichardsonando leary. com
Attorneys for Idaho Falls Power
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Lisa Nordstrom ISB # 5733
PacifiCorp Office of General Counsel
825 NE Multnomah, Suite 1800
Portland, Oregon 97232
Telephone [phone]
Fax [phone]
lisa.nordstrom(fYpacificorp. com
Attorney for PacifiCorp
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF )
IDAHO FALLS POWER, FOR AN ORDER
APPROVING AN ELECTRIC CONSUMER
EXHANGE AGREEMENT BETWEEN IT
AND P ACIFICORP DBA UTAH POWER &
LIGHT
CASE NO. GNR-05-02.,...-
JOINT APPLICATION BY IDAHO
FALLS POWER AND P ACIFICORP
FOR APPROV AL OF AN ELECTRIC
CONSUMER EXCHANGE
AGREEMENT
COMES NOW Idaho Falls Power ("Idaho Falls" or the "City ) by and through its
attorney of record, Peter Richardson, and PacifiCorp by and through its attorney of record, Lisa
Nordstrom, and hereby lodges this Application for approval of an electric consumer allocation
agreement between Idaho Falls and PacifiCorp, dba Utah Power & Light ("UP&L.) This
Application is filed pursuant to Rule 52 of the Rules of Procedure of the Idaho Public Utilities
Commission and Idaho Code 9 61-333. In support thereof, Idaho Falls says as follows:
Idaho Falls' Application For
Approval of an Electric Consumer Exchange Agreement
I. BACKGROUND
Idaho Falls Power is the electric department of the City of Idaho Falls, Idaho. Idaho
Falls, Idaho is a municipal corporation duly organized under the laws of the State of Idaho.
Idaho Falls serves over 22 000 electric consumers, primarily within the City. UP&L, whose
principal office is in Salt Lake City, Utah, is an operating division ofPacifiCorp, which is an
Oregon Corporation with its principal office in Portland, Oregon. PacifiCorp is qualified to do
business in the State of Idaho. UP&L provides electric service to over 50 000 consumers in
Eastern Idaho, including the immediate environs surrounding the City of Idaho Falls, Idaho.
II. PURPOSE OF APPLICATION
Applicants, Idaho Falls and UP&L, petition this Commission for approval of an electric
consumer allocation agreement ("the Agreement") entered into by Idaho Falls and UP&L. The
Agreement is attached as Exhibit "A" and is more fully described below:
Exhibit A
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Exhibit A consists of a four-page agreement dated~. Exhibit A recites:
PacifiCorp and the City desire to enter into an agreement, in accordance with
Idaho Code 9 61-333, to reduce duplication of service and promote stability in
their respective service areas.
Exhibit A at p.
This general statement of purpose is implemented pursuant to the terms of the Agreement
by specifying under what circumstances a consumer of either Idaho Falls or UP&L may change
suppliers. The statement of purpose is further implemented through a detailed methodology by
which the costs and facilities of such exchanges are fairly allocated between the two electric
suppliers.
Joint Application For
Approval of an Electric Consumer Exchange Agreement
III. LEGAL STANDARD
The Idaho Legislature recently amended portions of the Idaho Electric Supplier
Stabilization Act (ESSA), Idaho Code 99 61-332 - 334C, to require all agreements allocating
territory or consumers between electric suppliers to be filed with the Idaho Public Utilities
Commission ("the Commission
).
Idaho Code Section 61-332 instructs that the ESSA is
designed
to promote harmony among and between electric suppliers furnishing electricity within
the state of Idaho, prohibit the 'pirating' of consumers of another supplier , discourage
duplication of electric facilities, actively supervise certain conduct of electric suppliers as
it relates to this act, and stabilize the territories and consumers served with electricity by
such electric suppliers.
The code defines electric supplier very broadly to include "any public utility, cooperative or
municipality supplying or intending to supply electric service to a consumer.Idaho Code 9 61-
332A(4). The Idaho Legislature directed that, after notice and opportunity for hearing, the
Commission shall review and approve or rej ect contracts between municipalities and public
utilities. Further, the Legislature instructed that "(t)he 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 Section 61-333 (1).
The Commission s jurisdiction is, therefore, limited to approving or rejecting the attached
Agreement. The ESSA provides that the Commission shall not have jurisdiction over
municipalities by providing:
The commission shall, after notice and opportunity for hearing, review and approve or
rej ect contracts between municipalities and cooperatives as well as between
municipalities and public utilities, provided however, the commission shall have
jurisdiction only over cooperatives and public utilities in such approvals.
Idaho Code 9 61-333(1)
Joint Application For
Approval of an Electric Consumer Exchange Agreement
Although acting with limited jurisdiction, the Commission must still apply the standard set forth
above and make its finding relative to whether the Agreement is in "conformance" with the
ESSA. As will be shown below, the Agreement that is attached hereto is in conformance with
the ESSA and should therefore be approved by this Commission.
IV. CONFORMITY OF THE AGREEMENT
The Agreement that is the subject of this Application conforms to all of the provisions and
purposes of the ESSA. First, it "promotes harmony" inasmuch as it reflects a mutually
acceptable and agreeable methodology by which consumers are allocated between UP &L and
Idaho Falls. Second, the Agreement is designed to prevent "pirating" of consumers by allowing
UP &L consumers who are located in the City to take City service while allowing City consumers
located outside the City to take service from UP&L. Third, the Agreement is designed to
discourage duplication of electric facilities by clearly delineating the respective service
responsibilities of the two electric suppliers. Furthermore, the Agreement specifically requires
the transfer (along with the consumer) of consumer-related "poles, wires, cross arms, insulators
guys and other facilities " thereby efficiently eliminating duplicative facilities. See Exhibit A at
p. 2. Finally, the Agreement serves to stabilize the service territory between Idaho Falls and
Utah Power & Light through the use of a clear and articulate standard for the exchange of
consumers. The Agreement accomplishes all of the goals of the ESSA while at the same time
providing the State of Idaho, through this Commission s review, with the "active supervision
that is mandated by the ESSA.
IV. PRAYER FOR RELIEF
Based on the foregoing, the Applicants respectfully request this Commission to process this
Joint Application For
Approval of an Electric Consumer Exchange Agreement
Application under Modified Procedure and enter its order pursuant to Idaho Code Section 61-
333(1) approving the Agreement attached hereto as Exhibit "
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DATED this day of,Mgy, 2005.
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Joint Application For
Approval of an Electric Consumer Exchange Agreement
Richardson & O'Leary P.
PacifiCorp
IDAHO FALLS ALLOCATION AGREEMENT
THIS AGREEMENT is made and entered into this day of May, 2005, by and
between PacifiCorp, doing business as Utah Power & Light Company ("PacifiCorp ) and the
City of Idaho Falls ("City ). In this Agreement, PacifiCorp and City may be referred to
individually as a "Party" and collectively as "Parties.
RECIT ALS
City owns and operates an electric power system, and in addition to providing
electric service to customers within the boundaries of the City, it presently
provides electric service to a number of customers outside the municipal
boundaries of the City.
PacifiCorp operates as an electric corporation and public utility in the state of
Idaho, and in addition to serving customers in the area surrounding Idaho Falls, it
presentl y provides electric service to one or more customers located within the
boundaries of the City.
PacifiCorp and the City desire to enter into an agreement, in accordance with
Idaho Code ~ 61-333 , to reduce duplication of service and promote stability in
their respective service areas.
AGREEMENT
Definitions. As used in this Agreement, the following terms shall have the
respective meanings set forth in this section.
1.1 Existing Customer" shall mean a consumer that, as of the date of this
Agreement, has a service entrance through which it receives Electric
Service from PacifiCorp or the City as the case may be.
1.2 Service Entrance
" "
Consumer
" "
Electric Service," and "New Service
Entrance" shall have the meanings set forth in Idaho Code ~ 61-332A.
The Existing Customer(s) of the City located outside the municipal boundaries of
the City will continue to be served by the City, subject to Section 5.
The Existing Customer(s) of PacifiCorp located within the municipal boundaries
of the City will continue to be served by PacifiCorp, subject to Section 5.
IDAHO FALLS ALLOCATION AGREEMENT
Notwithstanding the provisions of Idaho Code ~ 61-332C, PacifiCorp will not
provide Electric Service to a New Service Entrance within the municipal
boundaries .of the City, and the City will not provide Electric Service to a New
Service Entrance outside its municipal boundaries.
Transfers of Customers
The City may provide Electric Service to an Existing Customer of
PacifiCorp having a Service Entrance within the boundaries of the City if
the customer requests in writing that the City provide such service and the
City pays PacifiCorp in accordance with Section 7.
PacifiCorp may provide Electric Service to an Existing Customer of the
City having a Service Entrance outside the boundaries of the City if the
customer requests in writing that PacifiCorp provide such service and
PacifiCorp pays the City in accordance with Section 7.
5.3 Except as otherwise provided in this Agreement, the City and PacifiCorp
may provide Electric Service to a Consumer previously or then receiving
Electric Service from the other only upon written request or consent of the
Consumer, and approval by the Idaho Public Utilities Commission
pursuant to Idaho Code ~ 61-334 B .
5.4 Nothing in this Agreement shall be construed to affect the rights of any
Consumer to petition the commission for relief under the Idaho Electric
Supplier Stabilization Act (the "Act"
The Parties shall work together in good faith to accomplish any Consumer
transfer(s) pursuant to this Agreement.
Transfers of New Customers. Upon annexation into the City of property owned
by a customer of PacifiCorp who has established a New Service Entrance upon
such property after the effective date of this Agreement, the City may provide
Electric Service to such customer upon the following conditions: (i) the customer
makes a written request to the City for Electric Service and (ii) the City pays
PacifiCorp just compensation in accordance with Section 7 hereof.
Payments Upon Transfer.If Electric Service to a Consumer is transferred from
the City or PacifiCorp to the other (the "Acquiring Utility ) pursuant to this
Agreement, the Acquiring Utility shall pay the other Party just compensation for
IDAHO FALLS ALLOCATION AGREEMENT 2
the distribution facilities. The Parties agree that such just compensation shall be
determined in accordance with the following.
(a)The Acquiring Utility will pay the other utility an amount equal to 167%
of the total of the respective Consumer s electric bills from the prior
twelve months.
(b)The Acquiring Utility will purchase, if no longer needed by the other
utility and required for new service, poles, wires , cross arms, insulators
guys and other facilities. The purchase price for such items will be based
on the current price levels, adjusted for age and service ability.
Provided, however, that if circumstances exist such that the foregoing
cannot reasonably be applied to provide just compensation, the Parties will
negotiate in good faith to arrive at a determination of such just
compensation.
Term.This Agreement is subject to, and shall become effective only upon
approval by the Commission. The duration of this Agreement shall be for Ten
(10) years; provided, however, that this Agreement shall be extended
automatically for successive periods of Ten (10) years upon the same terms and
conditions set forth in this Agreement, unless one of the Parties notifies the other
not less than Sixty (60) days prior to the end of the initial, or renewal term of the
intent not to renew the Agreement.
Breach: Non-Waiver.If either Party breaches any provision of this Agreement
the other Party shall have the right to terminate the Agreement, at its sole option
and/or pursue its remedies at law or equity. No waiver of any breach of this
Agreement shall constitute a waiver of any other or subsequent breach. If any
action is brought to enforce this Agreement or any provision thereof, to rescindthe same, to collect damages for an alleged breach or for declaratory judgment
thereunder, the prevailing Party in such action shall be entitled to reasonable
attorney s fees.
10.Integration.This Agreement constitutes the entire agreement between the Parties
regarding the subject matter hereof.
IDAHO FALLS ALLOCATION AGREEMENT
11. Notice.Notice allowed or required to be given under this Agreement shall be
considered given by depositing such notice in the United States mail with postage
prepaid and properly addressed to the Party. Notice shall be addressed to the
following addresses until notice is given by the respective Party of a different
address:
Idaho Falls Power
140 S. Capital
Box 50220
Idaho Falls, Idaho 83405
PacifiCorp
dba Utah Power & Light
Office of General Counsel
825 NE Multnomah, Suite 2000
Portland, Oregon 97232
12.In consideration of the premises and the terms and conditions of this Agreement
PacifiCorp agrees not to challenge the City s legal authority to provide Electric
Service to the Existing Customers outside the municipal boundaries of the City.
However, nothing in this Agreement shall be construed as a recognition or
acknowledgement by PacifiCorp of the City s or any other municipality
authority to provide Electric Service to customers located beyond municipal
boundaries.
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ACIFICORP
By:
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Its: Executive Vice President
IDAHO FALLS ALLOCATION AGREEMENT 4