20120817Decision Memo.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSION SECRETARY
COMMISSION STAFF

FROM: DON HOWELL
DEPUTY ATTORNEY GENERAL

DATE: AUGUST 17, 2012

SUBJECT: PACIFICORP’S APPLICATION FOR APPROVAL OF A SERVICE
TERRITORY AGREEMENT BETWEEN ITSELF AND IDAHO POWER
TO PROVIDE SERVICE TO A WIND QF, CASE NO. PAC-E-12-13

On August 16, 2012, PacifiCorp dba Rocky Mountain Power filed an “Joint
Application” seeking the Commission’s approval of a contract between itself and Idaho Power
Company to allow Rocky Mountain to serve a customer located in Idaho Power’s service
territory. The parties have entered to a “Service Area Exception Agreement” pursuant to the
provisions of the Electric Supplier Stabilization Act (“ESSA”) and specifically Idaho Code § 61-
333(1).
THE APPLICATION
In an agreement dated August 14, 2012, Rocky Mountain and Idaho Power have
agreed to allow Rocky Mountain to provide “station service” to a wind qualifying facility (Power
County Wind Park North) which is located in the certificated service territory of Idaho Power in
Power County, Idaho. In Order No. 30284, the Commission approved a power purchase
agreement (PPA) between Rocky Mountain and the QF. The Application maintains that the
amount of electric power generated by the QF “is insufficient to serve the Facility.” Application
at 2. The Application states that the nearest Idaho Power facilities are approximately five miles
from the point where Rocky Mountain interconnects with the wind facility. Id. at 2-3. Rather
than Idaho Power supplying station service to the QF delivering generation to Rocky Mountain,
the utilities have agreed to allow Rocky Mountain to provide such service to the facility. The
DECISION MEMORANDUM 2
parties contemplate no changes in their certificated service territories. Agreement at § 2.2. The
parties have requested that the Commission process this Application under Modified Procedure.
THE ESSA
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
Rocky Mountain and Idaho 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 § 61-333(1). The purposes of the
ESSA are to: (1) discourage duplication of facilities; (2) prohibit “pirating” of consumers; (3)
stabilize service territories and consumers; and (4) promote harmony between electric suppliers.
Idaho Code § 61-332(2).

STAFF RECOMMENDATION
Pursuant to the parties’ Application, Staff recommends that the joint Application be
processed under Modified Procedure in compliance with Idaho Code §§ 61-333 and 61-334B.
COMMISSION DECISION
Does the Commission concur that this matter should be processed under Modified
Procedure?

bls/M:PAC-E-12-13_dh