20070502Application.pdf

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May 1 , 2007
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VIA OVERNIGHT DELIVERY
Ms. Jean D. Jewell
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
PAC-07-08
Re:Joint Application of Idaho Falls Power and Rocky Mountain Power for Approval of
a Customer Allocation Agreement
Dear Ms. Jewell:
Rocky Mountain Power, a division ofPacifiCorp, hereby submits for filing an original and seven
copies of its Joint Application of Idaho Falls Power and Rocky Mountain Power for Approval of
a Customer Allocation Agreement.
Communications relating to this proceeding should be served on the following representatives
for Rocky Mountain Power:
Justin Lee Brown
Senior Counsel
Rocky Mountain Power
201 South Main Street, Suite 2300
Salt Lake City, Utah 84111
J ustin.Brown~Pacifi Corp .com
Brian Dickman
Manager, Idaho Regulatory Affairs
Rocky Mountain Power
201 South Main Street, Suite 2300
Salt Lake City, UT 84111
Brian.Dickman~Pacifi Corp. com
Communications relating to this proceeding should be served on the following representative for
Idaho Falls Power:
Peter Richardson
Richardson & O'Leary PLLC
515 N. 27ili Street
O. Box 7218
Boise, Idaho 83702
peter~richardsonandoleary .com
Rocky Mountain Power
Joint Application
Page 2
In addition, it is respectfully requested that all formal correspondence and Staff requests
regarding this material be addressed to:
By E-mail (preferred):datareq uest~ pac ifi corp. com
By Fax:[phone]
By Regular mail:Data Request Response Center
PacifiCorp
825 NE Multnomah, Suite 2000
Portland, OR 97232
Sincerely,
(V~-t,
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1~~~ K.~arsen
Vice President, Regulation
Enclosure
cc: Service List
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 1st day of May, 2007, I served a true and correct copy
via U.S. Mail, of the foregoing Joint Application of Idaho Falls Power and Rocky Mountain
Power for Approval of a Customer Allocation Agreement. Copies of this application were
provided to the following parties:
Peter Richardson
Richardson & O'Leary PLLC
515 N. 27th Street
O. Box 7218
Boise, Idaho 83702
peter~richardsonandoleary. com
Hand Delivered
S. Mail
Overnight Mail
MAIL
David Oler
1110 East 97 North
Idaho Falls, Idaho 83404
Hand Delivered
S. Mail
Overnight Mail, E-MAIL
ggy
SupervIsor, Regulation Administration
PETITION OF ROCKY MOUNTAIN POWER
Peter Richardson ISB #3195
Richardson & O'Leary PLLC
515 N. 27th Street
O. Box 7218
Boise, Idaho 83702
Telephone: [phone]
Fax: [phone]
peter~richardsonando leary. com
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Attorneys for Idaho Falls Power
Justin Lee Brown
Rocky Mountain Power
201 South Main, Suite 2300
Salt Lake City, Utah 84111
Telephone No. [phone]
Facsimile No. [phone]
i ustin. brown~Pacifi Corp. com
Attorney for Rocky Mountain Power
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE JOINT
APPLICATION OF IDAHO FALLS POWER
AND ROCKY MOUNTAIN POWER FOR AN
, ORDER APPROVING A CUSTOMER ALLOCATION AGREEMENT
CASE NO. PttC-E-o') -
JOINT APPLICATION OF IDAHO
FALLS POWER AND ROCKY
MOUNTAIN POWER FOR
APPROVAL OF A CUSTOMER
ALLOCATION AGREEMENT
Idaho Falls Power ("Idaho Falls" or the "City ) and Rocky Mountain Power, a division of
PacifiCorp ("Company" or "RMP") (collectively referred to herein as the "Parties ), by and
through their respective attorneys of record, hereby, jointly, submit this Application for approval
of a customer allocation agreement. This Application is filed pursuant to Rule 52 of the Rules of
Procedure of the Idaho Public Utilities Commission and Idaho Code 9 61-333. In support
Joint Application For
Approval of Customer Allocation Agreement
thereof, the Parties state as follows:
MODIFIED PROCEDURE
For the reasons discussed below, the Parties respectfully request that the Commission
proceed pursuant to an expedited form of modified procedure pursuant to Rules 201 through 204
of the Commission s Rules of Procedure.
II.
JURISDICTION
The City is a municipal corporation duly organized under the laws of the state of Idaho.
The City operates a municipal electric system for the convenience of its citizens. It is not subject
to the jurisdiction of this Commission. RMP operates an electric system in an area immediately
adjacent to and surrounding the City. RMP is a public utility and is subject to regulation by this
Commission pursuant to the public utility laws of the state of Idaho. Pursuant to Idaho Code
961-333(1), the Commission "shall, after notice and opportunity for hearing, review and approve
or reject" all customer allocation agreements between a municipality and a public utility.
III.
BACKGROUND
The City recently annexed into its boundaries a parcel of land upon which a subdivision
is currently being developed. (The subdivision is identified on the map attached hereto as
Exhibit A.) Upon completion of the subdivision, the City will provide electric service pursuant
to an existing customer allocation agreement that was approved by this Commission in Case No.
PAC-05-07. That existing customer allocation agreement prohibits the City from serving new
customers outside of the City limits unless such service is provided pursuant to this
Commission s approval.
Two existing buried electric distribution lines traverse the site of the proposed
Joint Application For
Approval of Customer Allocation Agreement
subdivision and provide service to two separate pumps owned by a Mr. Dave Oler. (The location
of the distributions lines and the two pumps are also shown on Exhibit A.) The two pumps in
question are currently served by RMP and are not located within the City limits.The
construction of the subdivision will require that the two buried lines be removed, thereby leaving
RMP with no economic method of continuing to serve Mr. Oler s pumps. The City, on the other
hand, has an existing distribution line immediately adjacent to Mr. Oler s pumps and can
immediately and economically provide electric service to Mr. Oler s pumps. However, the City
is prohibited, absent an order from this Commission, from providing such service.
RMP, Mr. Oler, the developer ofthe subdivision, and the City are all in agreement that it
is in everyone s best interests for the City to provide electric service to Mr. 01er s pumps. For
RMP to provide service it would literally' have to 'underhang' a new distribution line on existing
poles owned by the City. This would cause needless duplication of service facilities and would
be prohibitively costly.
To prevent such duplication of service, the City and RMP have entered into the attached
Customer Allocation Agreement in which the City assumes the obligation of providing electric
service to Mr. Oler s two pumps, and Mr. Oler consents to the provisioning of electric service to
his two pumps by Idaho Falls. (A duly executed copy of the agreement is attached hereto as
Exhibit B.)
The developer is actively proceeding with making the necessary improvements to the
annexed land for construction of the residential subdivision. The two buried distribution lines
are in immediate danger of being removed, if indeed they have not already been removed.
Therefore, the Commission is urged to approve this application in an expedited manner.
Joint Application For
Approval of Customer Allocation Agreement
IV.
STANDARD OF REVIEW
Idaho Code 961-333(1) provides that the Commission shall approve customer allocation
agreements only upon a "finding that the allocation of territories or consumers is in conformance
with the provisions and purposes of this act." The "act" that is referenced in 961-333(1) is the
Electric Supplier Stabilization Act ("AcC). The purposes of the Act are found at Idaho Code
961-332(2), and they are as follows:
This act.. .(is) designed to promote harmony among and between electric
suppliers furnishing electricity within the state of Idaho, prohibit the "pirating" of
consumers of another electric supplier, discourage duplication of electric
facilities, actively supervise certain conduct of electric suppliers as it relates to
this act, and stabilize the territories and consumers served with electricity by such
electric suppliers.
The City respectfully submits that approval of the attached Customer Allocation
Agreement furthers the purposes of the Act by: (1) promoting harmony between the City and
RMP because the Parties have negotiated a mutually beneficial resolution regarding the
provisioning of electric service to Mr. Oler s two pumps; (2) eliminating needless duplication of
electric facilities by permitting the City to serve Mr. Oler s two pumps; (3) stabilizing the
territories and consumers served with electricity by the City and RMP by utilizing the existing
infrastructure to efficiently serve Mr. Oler s two pumps; and (4) the submission of this
application to the Commission, who s subsequent review and decision is satisfactory evidence of
active supervision of the conduct of the City and RMP as it relates to the Act.
Based upon the foregoing, the Commission should approve the Customer Allocation
Agreement between the City and RMP because it conforms with the provisions and purposes of
the Act.
Joint Application For
Approval of Customer Allocation Agreement
PRAYER FOR RELIEF
The Parties respectfully request that this Commission issue its order approving the
attached Customer Allocation Agreement and that the Commission proceed pursuant to an
expedited form of modified procedure pursuant to Rules 201 through 204. Rule 204 provides
that the Commission must allow 21 days for notice to be effective "unless otherwise provided by
the notice of modified procedure." Due to the fact all potentially interested persons are already
aware of this application and, in fact, are in agreement that it should be approved, and due to the
uncertainty surrounding removal of the existing service lines and the immediate ability of the
City to step in and provide service, the Commission is urged to use its discretion and shorten the
notice period to no longer than seven days. No prejudice or harm should befall any party or
person as a result of a shortened notice period.
DATED this day of April, 2007.
RICHARDSON & O'LEARY P.L.L.C.
Joint Application For
Approval of Customer Allocation Agreement
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Carriagegate Preliminary Plat
SCALE: 1"= 400'
CUSTOMER ALLOCATION AGREEMENT
AGREEMENT made this day of March, 2007 by and between the CITY OF
IDAHO FALLS ("CITY"), whose mailing address is P.O. Box 50220, Idaho Falls, Idaho
83405; ROCKY MOUNTAIN POWER, A DIVISION OF PACIFICORP, an Oregon
corporation ("RMP"), whose address is 201 South Main Street, Suite 2400, Salt Lake City,
Utah 84111; and MR. DAVID OLER ("OLER") whose address is 1110 East 97 South, Idaho
Falls, Idaho 83404.
WITNESSETH:
WHEREAS, OLER owns certain agricultural property located outside the territorial
boundaries of the CITY OF IDAHO FALLS, which property has historically been irrigated
with the use of two irrigation pumps, both of which are served by buried electrical
distribution lines owned by OLER, and connected to electrical distribution lines owned byRMP;
WHEREAS , the parcel of land in which the OLER owned buried distribution lines lie
has been annexed into the CITY and is being developed as a residential subdivision which
will be served by the CITY;
WHEREAS, such development required that the OLER owned buried distribution
lines be removed, and; whereas, RMP has no other power lines in the vicinity from which it
can conveniently and economically provide continued service to the two irrigation pumps
owned by OLER;
WHEREAS, the CITY has an existing power line immediately adjacent to OLER'
two irrigation pumps, and; whereas, the CITY can conveniently and economically provide
electrical service to OLER;
WHEREAS, OLER has requested that his electrical service for the two irrigation
pumps be transferred to and served by the CITY, and; whereas, RMP is willing to allow such
transfer and the CITY is willing to provide such service, all subject to the terms and
conditions of this Agreement;
WHEREAS, the CITY and RMP have an existing agreement, dated August 26, 2005
(the "Allocation Agreement") providing for the allocation of customers and service territory
between the CITY and RMP, which has been approved by the Idaho Public Utilities
Commission ("IPUC"). The Allocation Agreement specifically requires that the IPUC
approve any transfer of any consumer previously receiving electric service from the CITY or
RMP to the other, only upon mutual consent of the consumer and approval by the IPUC
pursuant to Idaho Code Section 61-334(B).
WHEREAS, the parties to this agreement desire to, and/or are willing, to accomplish a
transfer of the electrical service ofOLER's irrigation pumps to the CITY;
NOW, THEREFORE, the parties hereto agree as follows:
1. Transfer of Electric Service. RMP hereby consents to the transfer of the
electrical service for OLER' S irrigation pumps to the CITY , and the CITY agrees to provide
electrical service to such irrigation pumps, subject to the terms and conditions hereof. The
location of such pumps and the two buried distribution lines , which will be abandoned, are
shown on Exhibit A, attached hereto. OLER, further hereby consents to such transfer of
electric service to the CITY and further agrees that the CITY's delivery of such electrical
service shall be subject to the terms and conditions of this Agreement.
2. Conditions for Delivery of Electrical Service. OLER agrees that such
electric service shall be supplied to OLER, or his heirs, successors or assigns subject to
OLER's compliance with the terms and conditions of Chapter 5, Title 8 of the Idaho Falls
City Code, as the same currently exists or as may be amended hereafter, and all reasonable
regulations and policies promulgated or adopted by the CITY pursuant thereto.
3. Just Compensation - Waiver. RMP, for the limited purpose of this agreement
and the transaction contemplated herein, agrees to waive any claim to the receipt of just
compensation pursuant to paragraph 7 ofthe Allocation Agreement that would otherwise be
payable to RMP on account of any distribution facilities that were previously serving
OLER's two irrigation pumps. RMP, the CITY, and OLER each agree that this waiver is for
the limited purpose of this agreement and the transaction contemplated herein, only, and that
this waiver shall not be used by or construed against any party hereto in any subsequent
proceeding for a claim for just compensation pursuant to paragraph 7 of the Allocation
Agreement.
4. Cost of Transfer. OLER agrees to solely bear the costs of accomplishing such
transfer and shall payor reimburse the CITY or RMP for any costs incurred by either of them
in accomplishing such transfer, all as required under the City Code or by RMP's IPUC
approved tariff.
5. Existing Service Entrance. The CITY and RMP, for the limited purpose of
this agreement and the transaction contemplated herein, agree to waive the restrictions
pertaining to the supply of electric service to a new service entrance set forth in paragraph 4
of the Allocation Agreement.
6. Approval by IPUC. The parties agree that this agreement shall become
binding upon the parties only upon the approval and execution of this agreement by all of the
parties and approval by the IPUC pursuant to Idaho Code Section 61-334(B). The parties
further agree that upon approval by the IPUC of this agreement, OLER shall be considered as
a customer of the CITY for all intents and purposes of the Electrical Supplier Stabilization
Act.
7. Preservation of Transfer Rights. Nothing herein shall be deemed as or
construed to prevent the re-transfer ofOLER'selectric service for such irrigation pumps to
RMP, pursuant to Paragraph 5.2 of the Allocation Agreement. However, in the event of a re-
transfer, the CITY hereby agrees to waive any claim for just compensation pursuant to
paragraph 7 of the Allocation Agreement, similar to RMP' s waiver set forth in paragraph 3
this agreement.
8. Notice. All notices 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 given by the respective party of a different address:
Idaho Falls Power
140 So. Capital
Box 50220
Idaho Falls, Idaho 83405
Rocky Mountain Power, a divisIon ofPacifiCorp
Office of General Counsel
201 South Main Street, Suite 2400
Salt Lake City, Utah 84111
David Oler Farms
11l.D0 East 97 South
Idaho Falls, Idaho 83404
9. Interpretation and Venue. The parties agree that the interpretation of this
agreement shall be governed by the laws of the state of Idaho and that the venue or any legal
action or suit arising there from shall be in the District Court of the Seventh Judicial District
of the State of Idaho or in the United States District Court for the State of Idaho.
10. Binding Effect. This agreement shall be binding upon the heirs, successors
and assigns of the parties hereto.
11. Severability. In the event that any provision of this Agreement shall be
determined to be unenforceable or invalid for any reason, such determination shall not affect
the enforceability of the remaining provisions.
12. Final Agreement. This writing evidences the complete andfmal agreement of
the parties hereto, and no prior statement, representation or understanding shall be binding
except as expressly set forth herein.
CITY OF IDAHO FALLS
J e
Mayor
Rocky Mountain Power, a division ofPacifiCorp
By: Auiliorized Agent
~d~
avid Oler
G:IWPDATAIDWS\2300 City of Idaho FallslElectriclAgreementslCustomer Exchange,Oler,doc:sm