20050906Revised joint application.pdf

Peter Richardson ISB #3195
Richardson & O'Leary PLLC
515 N. 2ib St.
O. Box 7218
Boise, Idaho 83707
Telephone: [phone]
Fax: [phone]
peter~ri chardsonando I eary. com
Attorneys for Idaho Falls Power
Lisa Nordstrom ISB # 5733
PacifiCorp Office of General Counsel
825 NE Multnomah, Suite 1800
Portland, Oregon 97232
Telephone [phone]
Fax [phone]
Ii sa. nordstrom~paci fi corp. com
Attorneys for PacifiCorp
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BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE JOINT
APPLICATION OF IDAHO FALLS POWER
AND P ACIFICORP FOR AN ORDER
APPROVING AN ELECTRIC CONSUMER
EXHANGE AGREEMENT.
CASE NO. P AC-05-
AMENDED JOINT APPLICATION BY
IDAHO FALLS POWER AND
ACIFICORP FOR APPROVAL OF
AN AMENDED ELECTRIC
CONSUMER EXCHANGE
AGREEMENT AND MOTION FOR
LEAVE TO WITHDRAW ORIGINAL
AGREEMENT
COMES NOW, Idaho Falls Power ("Idaho Falls" or the "City ) by and through its
attorney of record, Peter Richardson, and PacifiCorp dba Utah Power & Light ("PacifiCorp ) by
and through its attorney of record, Lisa Nordstrom
, ("
the Applicants ) and hereby lodges this
I This case number was changed by the Commission Secretary on July 7 2005 from GNR-05-
02.
Joint Application For
Approval of a AmendedAmended Electric Consumer Exchange Agreement
Amended Application for approval of an Amended electric consumer exchange agreement
between Idaho Falls and PacifiCorp. This Amended Application is filed pursuant to Rule 66 of
the Rules of Procedure of the Idaho Public Utilities Commission and Idaho Code ~ 61-333. In
support thereof, the Applicants state the following:
I. BACKGROUND
On June 20, 2005, the Applicants filed an Application ("Original Application ) seeking
approval of an electric consumer allocation agreement between Idaho Falls and PacifiCorp dated
May 27 2005. Informal discussions with Staff indicated that Staff would not support the
agreement as originally submitted due to concerns that possible duplication of service would
occur in the event the City annexed property but did not serve all of the customers in the newly
annexed parcel. See Staff comments lodged with the Commission on August 19, 2005. In
response to Staffs concerns, Idaho Falls and PacifiCorp have each approved an Amended
version of the agreement originally filed in this docket. This new version dated the 26th day
August 2005, addresses Staffs concerns by requiring Idaho Falls to either serve every customer
in a newly annexed parcel or to serve no customer in the newly annexed parcel. The parties also
made some additional minor changes that clarify their understanding of their respective
relationship - all of which further the goals of the Electric Supplier Stabilization Act.
II. INCORPORATION OF REPRESENTATIONS
All representations and assertions made by the Applicants in the Original Application in
this matter are incorporated herein by reference and made a part of this Amended Application.
III. PROCEDURE
It is the understanding of the Applicants that the Commission will consider this
application as an Amended Application without having to open a new docket. Although the
Joint Application For
Approval of a AmendedAmended Electric Consumer Exchange Agreement
SEP-06-2005 15: 04 FRl~: PRCIFICURP 5038137252 TO : ~ 120U93U7904 3/3
Applicants acl"Oowledge that a new notice and COnTInent period \vill have to be initiated in light
of the changes n1ade to the initial agreelncnt, we do not view this pleading as a newapplicatioll
but rather an alnendmcnt to the Original Application that initiated this docket.
IV. PRAYER FOR RELIEF
Based on the foregoing, Idaho Falls and PacifiCorp respectfully request tIns Commission to
enter its order pursuant to Idaho Code Section 61-333(1) approving the Amended electric
consumer exchange agreement attached hereto as Exhibit "A" and to foffi1ally 'withdraw the
initial agreement fronl consideration.
DATED this 6th day of September, 2005.
Richardson & 07Leary P .
d/)~Peter Richardson
Attorneys for Idaho
Falls Power
..)
PacifiCorp
J(1int Application ror
Approval (If a AmcndedAmcndc:d ~kctric Consumt:r E.xchangc Ag,reeTtlt:nl
EXH IT A
IDAHO FALLS ALLOCATION AGREEMENT
THIS AGREEMENT is made and entered into this j(dbday of August, 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.
RECITALS
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
presently 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 customer 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 9 61-33 2A.
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) ofPacifiCorp located within the municipal boundaries
of the City will continue to be served by PacifiCorp, subject to Sections 5 and 6.
IDAHO FALLS ALLOCATION AGREEMENT
Notwithstanding the provisions of Idaho Code 9 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.
5.2 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.
Subject to Section 6 and 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
mutual consent of the Consumer, and approval by the Idaho Public
Utilities Commission pursuant to Idaho Code 9 61-334B.
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.
Annexations In order to avoid duplication of electric facilities, upon annexation
into the City of property owned by a customer ofPacifiCorp, if the City elects to
provide service to any customer within the annexed area, the City shall provide
Electric Service to all customers within the annexed area, and shall, prior to such
service, make payment to PacifiCorp of just compensation in accordance with
Section 7 hereof.
Payments Upon Transfer. If Electric Service to a customer 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 customer 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 ofTen (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 rescind
the same, to collect damages for an alleged breach or for declaratory judgment
there under, 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 and shall supersede that certain Idaho Falls
Allocation Agreement dated May 27, 2005.
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 give by the respective Party of a different address:
Idaho Falls Power
140 S. Capital
Box 50220
Idaho Falls, Idaho 83405
P acifi Corp
dba Utah Power & Light
Office of General Counsel
825 NE Multnomah, Ste. 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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IDAHO FALLS ALLOCATION AGREEMENT 4