20171020Decision Memo.pdf

DECISION MEMORANDI.IM
TO:COMMISSIONER KJELLA}IDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
FROM:DAPHNE HUANG
DEPUTY ATTORNf,Y GENERAL
DATE: OCTOBER 18,2017
SUBJECT:THE JOTNT APPLICATION OF THE CITY OF IDAHO tr'ALLS AND
ROCKY MOUITITAIN POWER TO APPROYE A SERVICE
ALLOCATION AGREEMENT; CASE NO. PAC-E-17-12.
On October 12,2017, the City of ldaho Falls and Rocky Mountain Power jointly
applied to the Commission for approval of their Service Allocation Agrcernent pursuant to the
Idaho Electric Supplier Stabilization Act (ESSA),ldaho Code $$ 6l-332 through 6l-334C. The
parties request that the Application be processed by Modificd Procedure.
THE ESSA
Idaho Code $ 6l-333(l) provides that electric suppliers may contract for the purpose of
"allocating territories, consumes, and futurc consumers ... and designating which tenitorics and
consumers are to be served by which contracting electric supplier." Both Rocky Mountain and
the City of ldaho Falls are electric supplien as defined in the ESSA. Idaha Code $ 6l-332A(4).
Affer 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 conforrnance with the purposes of the ESSA. Idaho Code $ 5l-333A(l). As set out in
Idaho Code $ 6l-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.
THE APPLICATION
The parties explain that in 2005, they had requested Commission approval of a previous
electric consumer exchange agreement. Application at 3 (refening to Case No. PAC-E-15-07),
DECISION MEMORANDUM I
That agreement was in place for ten years. /d. After the initial ten-year term, the City of Idaho
Falls chose not to renew the agreement and instead told Rocky Mountain that it wanted to
negotiate a new scrvice territory agreement. Id. Ttrc parties thus negotiated the Agreement that
is the subject of this Application. /d.
The parties assert that the Agreement conforms to all the provisions and purposes of
the ESSA and recommend that the Commission approve the Agreement. Id. at 34. The
Agreement will become effectivc upon such approval. Id, at 4. The parties requcst that the
Application be processed by Modified Procedure. Id.
STAFF RECOIT{MEN DATION
Staff recommends that the Company's Application be processed by Modified
Procedure with a 2l4ay comment period, followed by a 7 day pcriod for the Company to reply
if desired.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure, with a 2l day comment period, followed by a7 day reply period?
Deputy Attorney
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2DECISION MEMORANDUM