20050715Notice of Application Order No 29822.pdf

Office of the Secretary
Service Date
July 15 2005
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE JOINT
APPLICATION OF IDAHO FALLS POWER
AND P ACIFICORP FOR APPROVAL OF AN
ELECTRIC CONSUMER ALLOCATION AGREEMENT.
CASE NO. P AC-O5- 7
NOTICE OF APPLICATION
NOTICE OF
MODIFIED PROCEDURE
ORDER NO. 29822
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that on June 20, 2005 , Idaho Falls Power and
PacifiCorp dba Utah Power & Light Company (PacifiCorp) filed a Joint Application seeking the
Commission s approval of an electric consumer allocation agreement between the parties
(Agreement) dated May 27, 2005. The Agreement is submitted for the Commission s review
pursuant to the provisions of the Electric Suppliers Stabilization Act (ESSA). Idaho Code ~ 61-
332 et seq.
YOU ARE FURTHER NOTIFIED that the ESSA allows electric suppliers to contract
with one another for the purpose of allocating territories, consumers, and future consumers;
however, all such contracts must be filed with the Commission for approval. Idaho Code ~ 61-
333. The Commission shall approve such contracts only upon finding that the allocation or
transfer is consistent with the purposes of the ESSA. The purposes of the ESSA are: (1) promote
harmony among and between electric suppliers; (2) prohibit the "pirating" of consumers; (3)
discourage the duplication of electric facilities; (4) actively supervise the conduct of electric
suppliers; and (5) stabilize the territories and consumers served with electricity by such electric
suppliers. Idaho Code ~ 61-332(2). Pursuant to the ESSA, the Commission has authority to
approve or reject a contract between a municipality and a public utility. However, the
Commission has jurisdiction only over the public utility in such a proceeding. Idaho Code ~ 61-
333.
YOU ARE FURTHER NOTIFIED that Idaho Falls Power is the electric department
of the City of Idaho Falls, a municipal corporation duly organized under the laws of the State of
Idaho. Idaho Falls Power serves approximately 22 000 electric consumers, primarily within the
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29822
municipal boundaries of the City. However, Idaho Falls Power also provides electric service to
some consumers outside the municipal boundaries of the City. PacifiCorp is a public utility
providing electric service to approximately 50 000 consumers in eastern Idaho, including the
area immediately surrounding Idaho Falls. However, PacifiCorp provides electric service to
some consumers within the municipal boundaries of the City.
YOU ARE FURTHER NOTIFIED that, in order to reduce duplication of service and
promote stability in the respective service areas, Idaho Falls Power and PacifiCorp propose to
define their service areas and provide for circumstances under which an existing customer may
seek to change suppliers. Under the Agreement, Idaho Falls Power will continue to serve
existing customers outside the City and PacifiCorp will continue to serve existing customers
within the City. However, 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.
YOU ARE FURTHER NOTIFIED that the Agreement also addresses potential
requests from customers desiring to change electric service providers pursuant to the Agreement.
Specifically, in the event the City annexes property owned by a PacifiCorp customer, the City
may provide electric service to such a customer provided that (1) the customer makes a written
request to the City for electric service; and (2) the City pays PacifiCorp just compensation as
determined under the Agreement. Pursuant to the Agreement, in order to provide just
compensation, the acquiring utility shall: (1) pay the other utility an amount equal to 167% of
the exchanging customer s total electric bills from the previous 12 months; and (2) purchase all
poles, wires, cross arms, insulators, guys, and other facilities provided that these facilities are no
longer needed by the other utility and are necessary to provide new service. See Idaho Code
61-333B. If this standard for just compensation cannot be reasonably applied, the parties agree
to negotiate in good faith to determine other just compensation.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the Joint
Application in this case and has preliminarily determined that the public interest in this matter
may not require a hearing to consider the issues presented, and that the issues raised by the
Application may be processed under Modified Procedure , by written submission rather
than by hearing. IDAPA 31.01.01.210 - 204.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29822
YOU ARE FURTHER NOTIFIED that the Commission may not hold a hearing in
this proceeding unless it receives written protests or comments opposing the use of Modified
Procedure and stating why Modified Procedure should not be used. IDAPA 31.01.01.203.
YOU ARE FURTHER NOTIFIED that the deadline for filing written comments or
protests with respect to the Joint Application and the use of Modified Procedure in this case is
twenty-one (21) days from the service date of this Order. The comment must contain a statement
of reasons supporting the comment. Persons desiring a hearing must specifically request a
hearing in their written comments. Written comments concerning this Joint Application shall be
mailed to the Commission and the Applicants at the addresses reflected below:
Commission Secretary Peter Richardson
Idaho Public Utilities Commission Richardson & O'Leary, PLLCPO Box 83720 515 N. 2ih Street
Boise, ID 83720-0074 PO Box 7218
Boise, ID 83707
Mail: peter(g)richardsonandoleary.comStreet Address for Express Mail:
472 W. Washington Street
Boise, ID 83702-5983
Lisa Nordstrom
Office of the General Counsel
PacifiCorp
825 NE Multnomah, Suite 1800
Portland, OR 97232
Mail: lisa.nordstrom(g)pacificorp.com
These comments should contain the case caption and case number shown on the first page of this
document. Persons desiring to submit comments via email may do so by accessing the
Commission s home page located at www.puc.idaho.gov. Click the "Comments and Questions
icon, and complete the comment form using the case number as it appears on the front of this
document. These comments must also be sent to the Applicants at the e-mail addresses listed
above.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set, the Commission may consider the matter on its merits and may
enter its Order without a formal hearing. If written comments or protests are received within the
deadline, the Commission will consider them and in its discretion may set the matter for hearing
or may decide the matter and issue its Order based on the written comments before it. IDAP A
31.01.01.204.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29822
YOU ARE FURTHER NOTIFIED that the Application has been filed with the
Commission and is available for public inspection during regular business hours at the
Commission offices or on the Commission s website www.puc.idaho.gov by clicking on "File
Room" and "Electric Cases.
ORDER
IT IS HEREBY ORDERED that the Joint Application of Idaho Falls Power and
PacifiCorp be processed by Modified Procedure, IDAPA 31.01.01.201-.204. Persons interested
in submitting written comments in this matter must do so no later than twenty-one (21) days
from the service date of this Order.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this '-I-tft
day of July 2005.
PAUL KJELU NDER, PRESIDENT
~~-
iJ ~'A iJ~
MARSHA H. SMITH, COMMISSIONER
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ATTEST:
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NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29822