20070523final_order_no_30318.pdf

Office of the Secretary
Service Date
May 23, 2007
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
ORDER NO. 30318
CASE NO. PAC-07-
On May 2, 2007, Idaho Falls Power and Rocky Mountain Power filed a Joint
Application for approval of a Customer Allocation Agreement pursuant to the Electric Supplier
Stabilization Act (ESSA), Idaho Code ~~ 61-332 et seq. Idaho Falls Power is a municipal
electrical supplier and is not subject to the jurisdiction of the Commission. Rocky Mountain
Power operates an electric system adjacent to Idaho Falls and is subject to regulation by the
Commission. Based upon our review, we grant the Application and approve the parties
Agreement.
The City of Idaho Falls recently annexed a parcel of land being developed for a
subdivision. Upon completion of the subdivision, Idaho Falls Power will provide electric service
to it. Two buried electric distribution lines currently traverse the subdivision property and
provide electric service to irrigation pumps owned by Mr. Oler. Rocky Mountain Power
currently provides electricity to Mr. Oler s pumps. Construction of the subdivision will require
that the two buried lines be removed, leaving it economically infeasible for Rocky Mountain
Power to continue to provide service Mr. Oler s pumps. Idaho Falls Power will be able to
provide service to Mr. Oler.
An existing Customer Allocation Agreement prohibits Idaho Falls Power from
serving new customers outside of the city limits unless such service is provided pursuant to the
Commission s approval. See Order No. 29895. The Application states that Rocky Mountain
Power, Idaho Falls Power, the developer of the subdivision, and Mr. Oler are all in agreement
that it is in everyone s best interest for Idaho Falls Power to provide service to Mr. Oler s pumps.
Idaho Falls Power and Rocky Mountain Power have entered into a Customer Allocation
Agreement in which Idaho Falls Power assumes the obligation to provide service to Mr. Oler
pumps and Mr. Oler consents to being served by Idaho Falls Power. Because the subdivision
developer is already proceeding with necessary improvements, the parties requested that the
ORDER NO. 30318
Commission process their Joint Application by Modified Procedure, but shorten the comment
period to seven days.
Idaho Code ~ 61-333(1) provides that electric suppliers may 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." Under the ESSA, both
Idaho Falls Power and Rocky Mountain Power are defined as electric suppliers. Idaho Code
~ 61-332A(4).After notice and opportunity for hearing, the Commission may approve
agreements allocating service territories and customers between electric suppliers only upon
finding that the allocation is in conformance with the purposes of the ESSA. Idaho Code ~ 61-
333A(l). As set out in Idaho Code ~ 61-332(2), the purpose of the ESSA is to discourage
duplication of facilities; prohibit "pirating" of consumers; stabilize service territories and
consumers; and promote harmony between electric suppliers.
Idaho Code ~ 61-333(1) requires the Commission to review consumer and territory
allocation Agreements between electric suppliers. Pursuant to this statute, we must determine
whether the allocation of service territory and future customers is in conformance with the
provisions and the purposes of the ESSA. After reviewing the Agreement, we grant the
Application and approve the Customer Allocation Agreement. In particular, the Agreement
avoids duplication of services, stabilizes service territories and customers, and promotes
harmony between Idaho Falls Power and Rocky Mountain Power. Based upon these findings
we conclude that the Customer Allocation Agreement comports with the purposes of the ESSA.
ORDER
IT IS HEREBY ORDERED that Idaho Falls Power and Rocky Mountain Power
Joint Application and Customer Allocation Agreement is approved.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order. Within seven (7)
days after any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See Idaho Code ~ 61-626.
ORDER NO. 30318
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this ;J.3nf.
day of May 2007.
~~"--------
MARSHA H. SMITH, COMMISSIONER
MACK A.
ATTEST:
Je ;D. Jewell
Cotrtmission Secretary
bls/O:PAC-07-08 ws
ORDER NO. 30318