20171012Application.pdf

ROCKY MOUNTAIN
BP,XT',E,^N"",
ftHCI IVEO 1407 West North Temple, Suite 310
Salt Lake City, Utah 841't6
October 12,2017
VA OVERNIGHT DELIVERY
Diane Hanian
Commission Secretary
Idaho Public Utilities Commission
472 W. Washington
Boise,lD 83702
Re:CASE NO. PAC.E.I7-I2
IN THE MATTER OF THE JOINT APPLICATION OF THE CITY OF IDAHO
FALLS AIID ROCKY MOUNTAIN POWER FOR APPROVAL OF A SERVICE
ALLOCATION AGREEMENT
Dear Ms. Hanian:
Please find enclosed an original and seven (7) copies of Rocky Mountain Power and the city of
Idaho Falls' joint Application in the above referenced matter, along with Attachment A which is
an executed copy of the contract governing the Service Allocation Agreement.
Informal inquiries may be directed to Ted Weston, Idaho Regulatory Manager at (801) 220-
2963.
Very truly yours,
Jeffrey K. Larsen
Vice President, Regulation
l? fiFI 9:33
Daniel E. Solander (lSB# 8931)
1407 West North Temple, Suite 320
Salt Lake City, Utah 84116
Telephone No. [phone]
Facsimile No. [phone]
daniel. solander@nacifi corp.com
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Attorneyfor Rocky Mountain Power
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE JOINT
APPLICATION OF THE CITY OF IDAHO
FALLS AI\D ROCKY MOUNTAIN
POWER FOR APPROVAL OF A
SERVICE ALLOCATION AGREEMENT
CASE NO. PAC.E-I7.I2
JOINT APPLICATION
Comes now, Rocky Mountain Power, ("Company") and Idaho Falls Power, ("ldaho Falls"
or the "CiW"), to jointly (the "Applicants") file this Application respectfully requesting
Commission approval of the Service Allocation Agreement (the "Agreement") pursuant to Idaho
Code $ 6l-333 authorizing contracts among electric suppliers to resolve territories, consumers,
and to transfer facilities. In support of this filing the Applicants state as follows:
l. Rocky Mountain Power is authorized to do and is doing business in the state of
Idaho as an electric supplier. The Company provides retail electric service to approximately 77,000
customers in the state and is subject to the jurisdiction of the Commission. Rocky Mountain Power
is a public utility in the state of Idaho pursuant to Idaho Code $ 6l-129.
2. Idaho Falls Power is the electric department of the city of Idaho Falls, Idaho. Idaho
Falls is a municipal corporation duly organized underthe laws of the State of ldaho. Idaho Falls
Power provides retail electric service to approximately 28,000 customers, primarily within the
municipal boundaries of the City.
I
COMMUNICATIONS AND SERVICE OF PLEADINGS
J Communications regarding this Application should be addressed to:
Ted Weston
Daniel E. Solander
1407 West North Temple, Suite 330
Salt Lake city, utah 841l6
Telephone: [phone]
Email : ted.weston@oacifi com.com
daniel.solander@nacifi corp.com
ldahodockets@nacifi corp.com
Jackie Flowers
140 S Capital Ave,
Idaho Falls, ID 83402
Telephone : [phone]
Email : [e-mail]
In addition, the Company respectfully requests that all data requests regarding this matter
be addressed to one or more of the following:
By e-mail (preferred)
By regular mail
datarequest@pacifi corp.com
Data Request Response Center
PacifiCorp
825 NE Multnomah, Suite 2000
Portland, OR 97232
BACKGROUND
4. Idaho Code $$ 6l-332 - 334C is referred to as the ldaho Electric Supplier
Stabilization Act ("ESSA"). Idaho Code $ 6l-332 outlined the purpose of the ESSA as designed:
to promote harmony among and between electric suppliers furnishing electricity
within the state of ldaho, prohibit the 'pirating' of consumers of another supplier,
discourage duplication of electric facilities, actively supervise certain conduct of
electric suppliers as it relates to this act, and stabilize the teruitories and consumers
served with electricity by such electric suppliers.
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5. Idaho Code $ 6l-333 specifies that any electric supplier may contract in writing
with any other electric supplier for the purpose of allocating service territories and consumers. All
contracts must be filed with the Commission to approve or reject based upon its determination
whether such contracts conform to the provisions and purposes of the ESSA. However, the
Commission has no jurisdiction over municipal electric suppliers.
6. On September 6,2005,the Applicants filed ajoint application with the Commission
requesting approval of an electric consumer exchange agreement.l The initial term of the
agreement was for ten years from the date of the Commission's approval and would continue with
renewing ten year terms unless either party notified the other party of intent not to renew within
sixty days of the renewal date. In 2015, coming up on the ten-year anniversary of the exchange
agreement, the City provided the Company with a notice to terminate the Agreement. The City
expressed a desire to negotiate a new service territory agreement.
7. Since then, the Applicants have worked together to incorporate the City's desired
changes and draft a new Service Territory Allocation Agreement which is provided as Attachment
A to this Application.
CONFORMITY OF THE AGREEMENT TO THE ESSA
8. It is the Applicants' belief that the Service Allocation Agreement conforms to all
the provisions and purposes of the ESSA. First, it "promotes harmony" inasmuch as it reflects a
mutually acceptable methodology by which consumers are allocated between the Applicants.
Second, the Agreement is designed to prevent "pirating" of consumers by providing an orderly
transition of customers where municipal annexation by the City takes place. Third, the Agreement
is designed to discourage duplication of services by requiring the acquiring electric supplier to
J
I Case No. PAC-E-05-07
serve all or none of the customers in an area. The Agreement provides a formula-based approach
to determine the value of all consumer-related electrical service property, thus mitigating valuation
disputes. The Agreement provides a clear standard for the exchange of consumers along with a
Commission review to meet the "active supervision" mandated by the ESSA. Therefore the
Applicants recommend that the Agreement be approved by the Commission.
9. The Applicants agreed that the term of the Agreement would be for five years from
its effective date, which would be the date of Commission approval. Like the original exchange
agreement, this Agreement also has an evergreen clause allowing for the Agreement to
automatically extend for consecutive five-year periods unless one party notifies the other of the
intent not to renew the Agreement. This notice must be provided not less than sixty days prior to
the expiration period. The Agreement may be amended at any time following a sixty (60) day
notification by either of the parties.
MODIFIED PROCEDURE
10. The Applicants represent that a hearing is not necessary to consider the issues
presented herein and respectfully request that this Application be processed under Modified
Procedure; i.e., by written submissions rather than by hearing. RP 201 et seq. If, however, the
Commission determines that a technical hearing is required, the Company stands ready to prepare
and present its testimony in such hearing.
CONCLUSION
WHEREFORE, the Applicants respectfully request that the Commission issue an order
authorizing this Application to be processed under Modified Procedure and approve the Service
Allocation Agreement provided as Attachment A.
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DATED this l2th day of October,2\l7.
ROCKY MOTINTAIN POWER
Daniel E. Solander
1407 West North Temple, Suite 320
Salt Lake City, Utah 84116
Telephone No. [phone]
daniel.solander@pacifi corp.com
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ATTACHMENTA
I
SERI'ICE ALLOCATION AGREEMENT
THIS SERVTCE ALLOCATION AGREEMENT BETWEEN PACIFICORP AND THE,CITY
OF IDAHO FALLS, IDAHO, ("Agreement'') is made and entered into this 9q-a"y &fikfOf Z
between PrcifiCorp, a hrblic Utility doing business as Rocky Mountain Power ("Rocky Mountain
Powern) and the City of ldaho Falls, Idaho, a municipal ccporation of the State of ldaho, doing
business as ldaho Falls Power ('"the eiry'). In this Agreement, Rocky Mountain Power and the City
may be r€fcrrd to individually as a'?arty" aad collectively as ?arties."
RECITALS
The City is an Electric supplier to Consumers within tlrc boundaries of thc City, it is
also presently an Electric supplier to a mrmber of Consumers qrtside tlrc municipd
boundaries ofthe City.
Rocky Mountain Power is a Public Utility in the state of ldaho, and in addition to
scning Consumc,rs in the area surounding the City of l&ho Falls, it pr,esently is an
Electric supplier to a number of Consumers located within the boundaries ofthe City.
Rocky MountainPower and the City fuire to entcr into an agrecm€nq in accordance
with the puryoses of Idaho Code $ 6l-333 for the cfficient allocation of electric senrice
to existing Gonsumers and establish a prrocess forthe allocation of eletric scrvice to new
gusumers $'ithin the Parties' respective service territories.
AGREEMENT
2.
3
l Definitior.rs. As used in this Agreement, the following terms shall have ttre
rcepectine meanings set fo,rth inthis section.
'Newly Annexed ArEa" shall mean lard &at is laufirlly annexed into the legal
boundaries ofthe City after the Ef&ctive Date of ffris Agreement
'Service Entrance,"'Consumerr" "New Sen'ice Entrance." "Electric Setrvice,"
and'€ommission," shall have the meanings sct forth in ldaho Code $ 6l-332A.
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1.2
Scrvicc Territory. Thc Parties intend to establish rcspestive scrrrice rcrritories as of the
Effectivc Date of this Agrcement. Following Commission approval of this Agreement,
Rocky Mountrin Porver agrces not to provide Electric Scrvice to a new Sen ice Entnance
located within City municipal boundarics 8s thsy exist on the Eftctivc Datc of this
Agrecrnent, and City agrees (unless serving City-owned facilities located outsidc its
municipal boundaries) not to provide Electric Serrrice to a new Service Entrance located
ouride its municipol boundarics as thcy exist on thc Effective Date of this Agreement,
unless provision of such seruice is performed pur$ant to the tcrms of this Agreernent and
there is a scparate and express written agruoment oftlrc rfher Party allowing such scrvice
(and, where allorved or requirod by law, with the approval of the Commission to pcrovide
such service). The partie.s m&y agnce, subject to approval of the Commission, to transfer
,
SERVICE ATTOCATIO\ AGREEMEN'T PAGE I OF6
existing Service Enhances as described below when the trarnferwill prwent duplication of
facilities"
3.Existing Service Entrances. Subject to Parqgrryhs 4 and 5, Rocly Mountain Power slrall
continue to providc Electric Scrvicc to ail cristing Service Enhances to which it is p,roviding
clec'tric service within the City's municipal boudaries on the Efhctire Date of this
Agrccmcnt, and tIrc City shell continueto provide Electric Servie to all existing Servicc
Entranaes to which it is providittg Elcctic Scrvice to Service Enkances outside its municipal
bomdaries on the Effbctive Date of this Agreenrent.
Citv Option Wtrere the City ortcnds its municipal bouodaries through annexation, it may
elect to provide Electic ScTvicc to cxisting Service Entrances within thc Newly Anncxed
erea beirU serred by Rocky Mountain Power, subjcct to tbc provisions of Sections 5 and 6.
NoPrtialTrmsfcrofConsumersinAqcxod.Arca. If the City elects to provide
Elcctric Scrvice b any existing Scrvice Enhancos sonrcd by Rocky Mountain Power in
an area annexed by trc City folowing ftc Effectiw Datc of this Agrrement, it must
plovidc scrvice to all existing Service Entanoes sorrred by Rocky Mountain Pows
within the Newly Annexod Arca, and will puctuse facilities of Rocky Mountain Power
usod to scrve thcse existing Sstrice Entranoes, on an as-is wher+is basis, including
disribrilion frciliticr, ransmission facilitics, and subatdiong subject to the provisions
of Soction 5.1, 5.2, and 5.3. To Ore eilart fut tho facilitics will rro longsr bc usod by
Rock)'Mormtain Power due to the City's acquisition of Existing Scnricc Locations in
tho annexed ailEa, thc City will compensatc Rockv Mormtain Power in acordancc wi0r
Sc{ion 6. The City will not serrrc any exi$ing Servioe Entrances served by Rocky
Mountain Po*'er in an annexed area until it has providcd Rocky Mountain Powcr with
Conpcnsation in accordance with Scction 6.
5.1 The Porties agree that rct all tamftrs of crrstom€rs in a Nenly Annered
Area will matetially impact Rocky Mountain Power's tansrnission
facilities.5.2 Ddicated transrnission facilitics uscd b pmvide scrvioe to an cxisting
Servicc Entrance or Scrvicc Eohutces in a Neurly Annexod Aloa that the
City has electcd to provide ecrvice in will be purchased in their cntircty by
tho City. For othcr tansmissim frcilities, thc Partics agree to confcr
rcgarding the finmcid c,ftctsofttnsc impactr"5.3 \ilherc there is disagrecmeot regarding the natrre or qxteot of the adverse
impact to Rocky Mormtain PowEtr's trursrrission frcilitics duc o the
transfer of servie by thc City, the Parties agree to att€rnpt to rcsolve suctl
disagreanent thmug[t non-binding modiation or arbihation.
6. Corycns*lur. If Elcctric Servicc at an Existing Servicc location is nansftrred from
the City or Rocky Mountain Powcr to the offrcr (thc "Aoquiring Utihy) pursuant to
this Agrccmcot the Acquiring Utility shall pay the ottrcr PEty just oomparsdion for
the frcilitiee. If the City aunexes an arca and ctmses to provide Electric Senricc to the
existing Consumers being served by Rocky Mountain Powcr in thc rrwly anrmod areq
the City shall purclase trc facilities usod b providc scrvice as of the annexation datc at
rrplacenrent crrst of the fasilities, mirns depreciation (calculated utilizing ac@od
S tsRVICE ALLOCATTON AGREEM ENT
4.
5.
PAGE2 OF 6
business industry practice and pursu"nt to Rocky Motrntain Power filirrgs with the
Commission). In addition. the Aoquiring Utility will pay the other ttility an arnount equal
to one hundred sixty seven perceil U67%l ofthe Existing &nsumctr's revenue collected
from thc most recent twelve (12) monhs of actirrc provision of electric serrdcc, which
muqt be rvithin the past five (5) pan imnrcdiately preceding the time of transfer.
Idaho Electric Suppli€r Stsbilization Aet Nothing in this Agreonent is intcndod to
conflict with the ldaho Electric Suppliu Stabilization Act. Nothing in this Agreanent
strall alter or affect or diministr the City's right to extend scrvices to City properties and
facilities outsideof Idatro Falls City limib. See ldaho Code $ 6l-334(3). In the evcnt of
any conflict, thc provisions of the Act shdl oonhol. Nothing in this Agreenrent shall be
constmcd to affcc-t the rights ofury Corxumer to pctition thc Commission for reliefunder
the ldaho Electric Supplier Stabilization Act.
Drplication. The parties will wort togeiher in good faith to ideati$ facilitics that are
rcdrrrdant or duplicative and will coordinale to minimize ovcrlap whcn construc'ting new
facilities.
Tenn. This Agreenrent is subject to, and shall becune eftctive only upon apprornl by
the Cmnnission (the *Effective Date"). The tcrnr ofthis Agrcernent shall be for five (5)
laars fr,om thc date of Commission app,roval; pmvidc4 howwcr, that ttris Agrecrnent shall
bc extended automatically for $messive pcriods of five (5) pus upon the surc terms and
conditions set forth in this Agrwnatt, unlcss orr of tbe Puties notifies thcother, not
less than sixty (60) drys prior to thc end of tlre initial, or rene$'al lerm of Orc intent not
to reoew the Agrccmant. TheAgreemantmay bcameododbyagroeineotof0rePartiesat
anytimefollowing a sixty (60) day notification by onc of the partics of the desirc to
amend nrbject to approval bythe Commission.
Brcach: Non-WailEr. If eithcr Party bnnchcs any provision of this Agreement, tbe othcr
Party shall hate the right to terminafie the Agrcemcnt, at its soleo,ption, ard/or prnrc its
remcdies at law or equity, induding spocific permrnme No waivcr of any breach of
thisAgreernent shall aon*itute awaivs of anyother or su@uent breach. If anyaction
is bmught to enforce lhis Agreernent or any provision thcreof, to rescind the samc, to
collcct damages for an dlcgod brcach or fbr dcclaratory judgment therc undcr, the
prerniling Party in such action shdl bc cntitted to reasonable attomeys fees.
Interration. This Agreement constitutcs thc entire agreemmt betwe€o the Parties rcgarding
the subject matter hereof and shall srycrs*e rtat certain Idaho Falls Allocation
Agreement dated Augtt* 26, m05.
Notice. Notice allowcd orrcquired to be givcn undcr this Agrecurent shall be considercd
given by dcpositing such notice in ttre United States rnail with postage prepaid and
properly addressed to the Party. Notice shall be Eddr€ssed to the following addresses
until notice is given by the respoctivePartyofadifferent addrese:
City of ldaho Falls, Idaho dba IFP
140 S. Capital
Box 50220
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10.
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t2.
SERV ICE ALI;OCATION AGREEMENT PAGE ] OF6
Idatro Falls, Idaho 83405
PacifiCorp
dba Rocky Mountain Power
Oftice of General Counsel
1407 Wd Nuth Templg Suite 320
Salt lrke City, UT 84116
TO THE FULLEST D(TENT PERMTMED BY LAW, EACH OF THE PARTIES HERETO
WAIVES A}.IY RIGHT TT MAY HAVE TO A TRI.AL BY JURY IN RESPECT OF LTTIGATION
DIRECTLY OR INDIRECTLY ARISING OUT OF, IJNDER OR IN CONNECTION lryITH THIS
AGREEMENT. EACH PARTY FURTHER WATVES ANY RIGHT TO CONSOLIDATE, OR
TO REQUEST THE CONSOLIDATION OF, AITSY ACTION IN WHICH A JURY TRIAL HAS
BEEN WAIVED WITH ANY OITHER ACTTON IN WHICH A JURY TRIAL CANNOT BE OR,
IIAS NOT BEEN WAIVED.
CITY OF IDAHO FALLS
Namq Rebesca L.Casper
Title: I\[ayo'r, Ida]ro Falls, Idaho
Name:
Title:and General Counsel
t3.
SERVTCE ALLOCATTON AOREEMEN'T PAGE40r6
oo@t
euls
ATTEST:
I(ATHY
STATE OF rDAHO )
)ss.
Countyof Bonnwille )
on this ?1, dav oISEPfl-rrIHP20l?. Defore rne.lhe undersiened. a notarv oubtic for tdaho.
personally appcared REBECCA L NOAH CASPER" known to me to be the Malor of ttre City
of Idaho Falls, ihe muoicipal oorporation tbrt cxecuted thc foregoing documenl end
ae*nowtedged to me that such City exeartod thc same.
IN WITNESS WHEREOF, I have hereunto sct my hand and affixed my official seal the day and
written.
P
)-\PtrBtrc
of
Residing at ldalro Falls, ldaho
My Commission Expires:_1;-;i :- __.-
SERVICE AI,I.,OCATION ACREEMENT PAGE 5 OF6