20170221Staff Comments.pdf

BRANDON KARPEN
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
(208) 334-03s7
IDAHO BAR NO. 7956
IN THE MATTER OF THE JOINT
APPLICATION OF IDAHO POWER
COMPANY AND UNITED ELECTRIC CO.
OP FOR APPROVAL OF A CUSTOMER
ALLOCATION AGREEMENT
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Street Address for Express Mail:
472W, WASHINGTON
BOISE, IDAHO 83702-59T8
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
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CASE NO. IPC-8.I6.29
COMMENTS OF THE
COMMISSION STAFF
The Staff of the Idaho Public Utilities Commission, by and through its Attorney of
record, Brandon Karpen, Deputy Attorney General, as follows an Idaho Power Company and
United Electric Co-Op's Joint Application for approval of the Customer Allocation Agreement
BACKGROUND
On November 22,20l6,Idaho Power and United Electric Co-Op, Inc. jointly asked
the Commission to approve a Customer Allocation Agreement involving a property in Idaho
Power's service territory that borders United Electric's service territory. The property has not
previously been provided with electric service. Application at l-2.
The property's owner would like to install a three-phase 480 volt service for a new pump.
For Idaho Power to provide that service, it would have to rebuild its 69 kilovolt transmission line
for approximately three quarters of a mile at the customer's expense. Altematively, United
1STAFF COMMENTS FEBRUARY 21,2017
Electric could serve the property with a three-phase power line that currently is about 300 feet
from the desired pump location. In order to not duplicate facilities or impose unnecessarily high
line extension charges, the utilities have agreed to allow United Electric to provide three-phase
electric service to the customer.
The parties have submitted a Customer Allocation Agreement to the Commission relating
to this transfer, and they note that the change is permanent and affects no other locations.
STAFF ANALYSIS
This Application falls under the Electric Supplier Stabilization Act (ESSA). Idaho Code
$ 6l-332 et seq. The purposes of the ESSA are to: (l) promote harmony between electric
suppliers; (2) prohibit the "pirating" of consumers; (3) discourage duplication of electric
facilities; (4) actively supervise the conduct of electric suppliers; and (5) stabilize service
territories and consumers. Id.
To fulfill these goals, the ESSA restricts competition for existing utility customers and
requires that utilities seek Commission approval before transferring service territory. The
Commission is authorizedto approve, conditionally approve, or deny transfer of any public
utility property. The Commission is charged with reviewing such transactions to determine
consistency with purposes of the ESSA. Idaho Code $ 6l-3348.
Here, Staff believes the transfer avoids duplication of facilities, stabilizes service
territories and customers, and promotes harmony between the two neighboring utilities.
Therefore, Staff believes the proposed transfer is consistent with the pu{poses of the ESSA.
Additionally, since Idaho Power currently does not provide electrical service to the property, it
will suffer no stranded costs associated with the transfer.
STAFF RECOMMENDATION
Staff notes that the Customer Allocation Agreement is unclear on whether it concerns the
transfer of the service territory, or the customer. However, both Idaho Power and United Electric
have clarified to Staff that the Agreement concerns only the transfer of the service territory.
Staff thus recommends that the Commission approve the Customer Allocation Agreement with
the foregoing clarifi cation.
2STAFF COMMENTS FEBRUARY 2I,2OI7
Respecttully submitted this Ll
gv
day ofFebruary 2017.
Brandon Karpen
Deputy Attorney General
Technical Staff: Yao Yin
i;umisc;comments/ipcc I 6.29kyy commons
3STAFF COMMENTS FEBRUARY 2I,2OI7
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 21ST DAY OF FEBRUARY 2017,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN
CASE NO. IPC-E-16.29, BY MAILING A COPY THEREOF, POSTAGE PREPAID, TO
THE FOLLOWING:
LISA D NORDSTROM
REGULATORY DOCKETS
IDAHO POWER COMPANY
PO BOX 70
BOISE ID 83707-0070
E-MAIL: lnordstrom(0idahopower.com
doc kets (d.i dahopower. com
LANCE A LOVELAND
ATTORNEY FOR UNTIED
ELECTRIC CO-OP INC
PO BOX 910
BURLEY ID 83318
E-MAIL : love9593 frD.pmt.ors
KRISTY PATTESON
IDAHO POWER COMPANY
PO BOX 70
BOISE ID 83707-0070
E-MAIL: [e-mail]
SAM ANDREW
UNITED ELECTRIC CO-OP
1330 21ST STREET
HEYBURN ID 83336
E-MAIL: [e-mail]
SECRETARY
CERTIFICATE OF SERVICE