20240208Final_Order_No_36083.pdf

ORDER NO. 36083 1
Office of the Secretary
Service Date
February 8, 2024
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE JOINT
APPLICATION OF IDAHO POWER
COMPANY AND UNITED ELECTRIC CO-
OP, INC., TO APPROVE A TERRITORY
ALLOCATION AGREEMENT
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CASE NO. IPC-E-23-32

ORDER NO. 36083

On November 29, 2023, Idaho Power Company (“Idaho Power”) and United Electric Co-
op, Inc. (“United”) (collectively the “Parties”) filed a joint application (“Application”) with the
Idaho Public Utilities Commission (“Commission”), under the Electric Supplier Stabilization Act
(“ESSA”), Idaho Code §§ 61-332 et seq., requesting an order approving a Territory Allocation
Agreement (“Agreement”) for electrical service for Aaron Hepworth.
On December 15, 2023, the Commission issued a Notice of Application and Notice of
Modified Procedure. Order No. 36030.
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 § 61-332B. Section 61-332(2)
provides that 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. The ESSA enables electric utilities to allocate territories and customers if certain
conditions are satisfied. 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. The Commission will approve
contracts reviewed under the ESSA if, after notice and opportunity for hearing, the Commission
finds that the agreement conforms with the purposes of the ESSA. See Idaho Code §§ 61-333(1)
and 61-334B(1).
THE APPLICATION
The Parties represented that they each own and operate electrical power systems that
provide electric service to customers in Southern Idaho, and that the Parties currently have specific
ORDER NO. 36083 2
service territories in accordance with the terms and conditions of the ESSA. Application at 2. The
Parties represented that Mr. Hepworth wishes to receive electric service from United for a new
irrigation pump presently located within Idaho Power’s service territory. Id.
The Parties represented that it would be less expensive for Mr. Hepworth to interconnect
to United’s system for three-phase service to the irrigation pump than it was to interconnect to
Idaho Power’s system, and that Mr. Hepworth already had one or more service accounts with
United. Id. at 2-3. The Parties believed that the Agreement benefited Mr. Hepworth with lower
line extension charges, would avoid duplication of facilities, and would avoid disputes between
the Parties. Id. at 3.
STAFF COMMENTS
Staff reviewed the Agreement and Staff supported the exception request. Staff reasoned
that the Parties have agreed to an allocation of service territory to each utility as set forth in the
Agreement, which is designated on a map included as Attachment 2 of the Application. Staff noted
that according to the Agreement, Idaho Power would allow United to provide three phase electric
service to the Hepworth property in order to reduce the cost Mr. Hepworth would incur to extend
service to the irrigation pump.
Staff noted that under the Application, Idaho Power retained the right to be the sole
provider of single and three phase residential and irrigation electrical service to Mr. Hepworth on
the remaining 194.65 acres of the property as described below:
TOWNSHIP 9 SOUTH, RANGE 25 EAST, OF THE BOISE MERIDIAN, CASSIA
COUNTY, IDAHO
Section 16: That part of the East ½ lying South and East of the Southside Canal:
Excepting therefrom, the NE¼ of the NE¼ of said Section 16 lying South and East of the
Southside Canal.
Staff believed that this exception request furthered the ESSA’s purposes by avoiding
duplication of facilities and promoting harmony between suppliers, and Staff believed that the
Agreement was in conformance with the provisions and intent of the ESSA. Staff recommended
that the Commission approve the Agreement.
COMMISSION FINDINGS AND DECISION
The ESSA generally prohibits an “electric supplier” from serving another electric
supplier’s existing or former customers. Idaho Code § 61-332B. An “electric supplier” is any
public utility, cooperative, or municipality supplying or intending to supply electric service to a
ORDER NO. 36083 3
consumer. Idaho Code § 61 -332A(4). The purposes of the ESSA’s 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. Idaho Code § 61-332(2).
As an exception to the general rule barring electric suppliers from serving each other’s
customers, 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). However, the contracts
are subject to Commission approval. Id. Specifically, the Commission must approve the contract
if, after notice and opportunity for hearing, the Commission finds that the allocation conforms with
the purposes of the ESSA. Idaho Code §§ 61-333(1) and 61-334B(1).
The Commission finds that the Parties are “electric suppliers” as defined in the ESSA.
Having reviewed the Agreement, the comments, and all submitted materials, the Commission finds
that the Agreement conforms with the purposes of the ESSA because it will avoid the duplication
of facilities and promote harmony between the Parties.
ORDER
IT IS HEREBY ORDERED that the Territory Allocation Agreement is approved as filed.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date upon this Order regarding any
matter decided in this Order. Within seven (7) days after any person has petitioned for
reconsideration, any other person may cross-petition for reconsideration. Idaho Code §§ 61-626
and 62-619.

ORDER NO. 36083 4
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho, this 8th day of
February 2024.

ERIC ANDERSON, PRESIDENT

JOHN R. HAMMOND JR., COMMISSIONER

EDWARD LODGE, COMMISSIONER
ATTEST:

Monica Barrios-Sanchez
Commission Secretary

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