20170802Comments.pdf

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SEAN COSTELLO
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 8743
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Street Address for Express Mail:
472 W. WASHINGTON
BOISE, IDAHO 83702-5918
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF'THE JOINT
APPLICATION OF IDAHO POWER COMPANY
AND THE CITY OF RUPERT TO APPROVE A
TERRITORY ALLOCATION AGREEMENT.
CASE NO. IPC-E.17.10
COMMENTS OF THE
COMMISSION STAFF
COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its
Attorney of record, Sean Costello, Deputy Attorney General, and in response to the Notice of
Application and Notice of Modified Procedure issued in Order No. 3381 I on July 12,2017 , in
Case No. IPC-E-17-10 to submit the following comments.
BACKGROUND
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 $$ 6l-332 et seq., for an Order approving the Parties'
Territory Allocation Agreement ("Agreement"). The ESSA enables electric utilities to allocate
territories and customers if certain conditions are satisfied.
Under the Agreement, the Parties propose that Rupert be allowed to serve an Idaho
Power customer who operates grain bins on 1.98 acres of property in Idaho Power's service
territory. The Parties' ask the Commission to process the Application by Modified Procedure.
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1STAFF COMMENTS AUGUST 2,2017
The ESSA prohibits an electric supplier (e.g., a utility, municipality, or co-op) from
serving another electric supplier's existing or former customers. Idaho Code $ 6l-3328. As an
exception to this general rule, the ESSA allows electric suppliers to contract for the purpose of
"allocating territories, consumers, and future consumers . . . and designating which territories and
consumers are to be served by which contracting electric supplier." Idaho Code $ 61-333(1).
Such contracts must be submitted to the Commission for approval. Id. In sum, contracts
reviewed under the ESSA will be approved if, after notice and opportunity for hearing, the
Commission finds that the agreement conforms with the purposes of the ESSA. See ldaho Code
$$ 61-333(1) and 61-3348(l). Section 6l-332(2) states 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.
With this Application, the Parties ask the Commission to approve their Agreement to
allow Rupert to provide three phase 480 volt service to grain bins on 1.98 acres in Idaho Power's
service territory. Application at l-2. Although this parcel is in Idaho Power's territory, the
parcel is closer to Rupert's power lines. Consequently, if Rupert is allowed to serve the parcel,
the customer will not need to invest as much money to obtain three phase 480 volt servrce. Id. at
3. Idaho Power has agreed to release its rights to serve the grain bins on the customer's 1.98 acre
parcel, and Rupert has agreed to serve the grain bins on thatparcel. Id.
According to the Application, approving the Agreement and allowing Rupert to install
facilities and provide electric service offers benefits including lowering customer line extension
charges, avoiding facilities duplication between electric suppliers, and avoiding future disputes
between the Parties. 1d.
STAFF RE,VIEW
This application falls under the Electric Supplier Stabilization Act (ESSA). Staff
reviewed the Agreement for the service territory allocation associated with Case No. IPC-E-17-
l0 and supports the exception request.
The utilities have agreed to an allocation of service territory to each utility as set forth in
their Agreement and designated on a map of the service area (Attachment 2 of the Application).
According to the Agreement, Idaho Power Company will allow the City of Rupert to provide
2STAFF COMMENTS AUGUST 2,2017
three phase electric service to the 1.98 acre portion of Luke Adams's parcel in order to reduce
the cost Mr. Adams would incur to extend service to the grain bins at that location. Idaho Power
Company retains the right to be the sole provider of single and three phase residential and
irrigation electrical service to Mr. Adams on the remainder of the 350 acre parcel.
This exception request furthers ESSA's purposes by avoiding duplication of facilities and
promoting harmony between suppliers. Staff confirms the Agreement is in conformance with the
provisions and intent of the ESSA.
RECOMMENDATIONS
After reviewing the Application and accompanying agreement, Staff recommends the
Commission approve the Agreement.
Respectfully submitted this
7JL day of August 2017.
/k
Sean Costello
Deputy Attomey General
Technical Staff: Rachelle Farnsworth
aJSTAFF COMMENTS AUGUST 2,2017
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 2Nd DAY OF AUGUST 2017,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN
CASE NO. IPC.E-|7-IO, BY MAILING A COPY THEREOF, POSTAGE PREPAID, TO
THE FOLLOWING:
LISA D NORDSTROM
IDAHO POWER COMPANY
PO BOX 70
BOISE rD 83707-0070
E-mail : [e-mail]
MICHAEL P TRIBE
ROBINSON & TRIBE
PO BOX 396
RUPERT ID 83350
E-mail: [e-mail]
KRISTY PATTESON
REGULATORY DOCKETS
IDAHO POWER COMPANY
PO BOX 70
BOrSE rD 83707-0070
E-mail: [e-mail]
dockets@ idahopower. com
JAMES BOWERS
RUPERT CITY DEPT MANAGER
CITY OF RUPERT
121 SOUTH 50 WEST
PO BOX 426
RUPERT ID 83350
E-mail : [e-mail]
CERTIFICATE OF SERVICE