20170818final_order_no_33844.pdf

Office of the Secretary
Service Date
August 18.2017
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE JOINT )
APPLICATION OF IDAHO POWER )CASE NO.IPC-E-17-1O
COMPANY AND THE CITY OF RUPERT TO )
APPROVE A TERRITORY ALLOCATION )ORDER NO.33844
AGREEMENT )
On June 29.2017.Idaho Power Company (“Idaho Power”)and the City of Rupert
(“Rupert”)(collectively the “Parties”)applied to the Commission under the Electric Supplier
Stabilization Act (ESSA),Idaho Code §61-332 ci seq..for an Order approving the Parties’
Territory Allocation Agreement (“Agreement”).The ESSA enables electric utilities to allocate
territories and customers if certain conditions are satisfied,Under the Agreement,the Parties
propose that Rupert be allowed to serve an idaho Power customer who operates grain bins on
1 .98 acres of property in Idaho Power’s service territory.
On July 12,2017,the Commission issued a Notice of Application and Notice of
Modified Procedure setting an August 2,2017,comment deadline.Staff was the only person or
party to file comments.
BACKGROUND
The ESSA prohibits an electric supplier (e.g.,a utility,municipality,or co-op)from
serving another electric supplier’s existing or former customers.Idaho Code §6l-332B.As an
exception to this general rule,the ESSA allows electric suppliers to contract 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.”Idaho Code §61-333(1).
Such contracts must be submitted to the Commission for approval.Id.
Agreements reviewed under the ESSA should be approved if after notice and
opportunity for hearing,the Commission finds that the agreement conforms with the purposes of
the ESSA.See Idaho Code §6 1-333(1)and 61-334B(1).Section 6 1-332(2)states the purposes
of the ESSA are to:(I)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.
ORDER NO.33844
THE APPLICATION
The Parties have agreed to allow Rupert to provide three phase 480 volt service to
grain bins on 1.98 acres in Idaho Power’s existing service territory.Application at 1-2.
Although this parcel is in Idaho Power’s service territory,the parcel is closer to Rupert’s existing
power lines.Consequently,if Rupert is allowed to serve the parcel,Idaho Power’s customer will
not need to invest as much money to obtain three phase 480 volt service.Id.at 3.Idaho Power
has agreed to release its right(s)to serve the grain bin on the customer’s 1.98 acre parcel,and
Rupert has agreed to serve the grain bins on that parcel.Id.
The Parties maintain that approval of the Agreement and allowing Rupert to install
facilities and provide electric service to Idaho Power’s customer offers benefits including
lowering customer line extension charges,avoiding facility duplication between electric
suppliers,and avoiding future disputes between the Parties.Id.
THE COMMENTS
Commission Staff provided the only comments on this matter and provided the
Commission with a thorough review of the Company’s request.Staff commented that the
Agreement furthers the ESSA’s purpose by avoiding duplication of facilities and promoting
harmony between electric suppliers.Staff recommended the Commission find that the
Agreement conforms to the ESSA’s purposes and grant the Application and approve the
Agreement.
DISCUSSION AND FINDINGS
The Idaho Public Utilities Commission has jurisdiction in this matter to “review and
approve or reject contracts between ...municipalities and public utilities....”Idaho Code §61-
333(1).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 [the ESSA].”Id.
As set out in Idaho Code §6 1-332(2),the purposes of the ESSA are to:(1)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.
Section 61-333 allows the Parties to exchange customers and territory subject to
Commission supervision of such transactions.The Commission has reviewed the record,
ORDER NO.33844
including the proposed Agreement.We find that the proposed Agreement meets the
requirements of the ESSA.Accordingly,we approve the Agreement.
ORDER
IT IS HEREBY ORDERED that the Application to approve the Parties’proposed
Territory Allocation Agreement is granted.
IT IS FURTHER ORDERED that the exchange shall be effective upon execution of
the Agreement by both Parties.
THIS IS A FINAL ORDER.Any person interested in this Order may petition for
reconsideration within twenty-one (21)days of the service date of this Order.Within seven (7)
days after any person has petitioned for reconsideration,any other person may cross-petition for
reconsideration.See Idaho Code §61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of August 2017.
KRI E RAPER,COMMISSIONER
ATTEST:
Diane M.Hanian
Commission Secretary
O:IPC-E-1 7-1 Osc2
ERIC ANDERSON,COMMISSIONER
ORDER NO.33844