20171114Comments.pdf

DAPHNE HUANG
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 8370
IN THE MATTER OF THE JOINT
APPLICATION OF THE CITY OF'IDAHO
FALLS AND ROCKY MOUNTAIN POWER FOR
APPROVAL OF A SERVICE ALLOCATION
AGREEMENT.
RECEIVED
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Street Address for Express Mail:
472 W . WASHINGTON
BOISE, IDAHO 83702-5918
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSTON
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CASE NO. PAC-E..I7-IT
COMMENTS OF THE
COMMISSION STAFF
COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its
Attorney of record, Daphne Huang, Deputy Attorney General, and in response to the Notice of
Application and Notice of Modified Procedure issued in Order No. 33921, submits the following
Comments.
BACKGROUND
On October 12,2017, the City of Idaho Falls and Rocky Mountain Power jointly applied to
the Commission for approval of their Service Allocation Agreement pursuant to the Idaho Electric
Supplier Stabilization Act (ESSA), Idaho Code $ 6l-332 through 6l-334C. The parties requested
that the Application be processed by Modified Procedure.
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." Both Rocky Mountain and the
1STAFF COMMENTS NOVEMBER 14,2OI7
City of Idaho Falls are electric suppliers as defined in the ESSA. Idaho Code $ 6l-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 $ 6l-3334 (l).
Rocky Mountain Power and the City of Idaho Falls state they requested approval of a
previous electric consumer exchange agreement in 2005. Application at 3 (referring to Case No.
PAC-E-05-07). That agreement was in place for tenyears. Id.
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 service territory agreement. Id.
The parties thus negotiated the Agreement that is the subject of this Application. 1d
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 3-4. The Agreement
will become effective upon such approval, with five-year terms and a clause allowing automatic
extensions for consecutive five-year periods unless one party notifies the other of its intent not to
renew. Id. at 4.
STAFF ANALYSIS
During its investigation of this case, Staff reviewed the Joint Application, the previous
Idaho Falls Allocation Agreement dated August 26,2005, and the new Service Allocation
Agreement submitted with this filing to replace the 2005 agreement. In the new Service Allocation
Agreement, the City wanted to address annexations, service territory coordination, transfer of
consumers in the areas annexed by the City, and the term of the Agreement.
Consistent with the City of Idaho Falls intent, the new Agreement includes additional
language to allow the City to provide service to customers located in areas annexed by the City
after the effective day of the Agreement:
1.1 "Newly Annexed Area" shall mean land that is lawfully annexed into the legal
boundaries of the City after the Effective Date of this agreement. Agreement at l.
4. City Option. Where the City extends its municipal boundaries through annexation, it
may elect to provide Electric Service to existing Service Entrances within the Newly
Annexed Area being served by Rocky Mountain Power, subject to the provisions of
Sections 5 and 6. Agreement at 2.
The new Agreement also defines the requirements imposed on the City if it chooses to
provide service in an area currently served by Rocky Mountain Power:
2STAFF COMMENTS NOVEMBER 14,2OI7
5. No Partial Transfer of Consumers in Annexed Area. If the City elects to provide
Electric Service to any existing Service Entrances served by Rocky Mountain Power in
an area annexed by the City following the Effective Date of this Agreement, it must
provide service to all existing Service Entrances served by Rocky Mountain Power
within the Newly Annexed Area, and will purchase facilities of Rocky Mountain
Power used to serve these existing Service Entrances, on an as-is where-is basis,
including distribution facilities, transmission facilities, and substations, subject to the
provisions of Section 5.1,5.2, and 5.3. Agreement at 2
Finally, the new Agreement also includes more specific language regarding service
territories and transfers to prevent duplication ofservices:
2. Service Territory. The Parties intend to establish respective service territories as of the
Effective Date of this Agreement. Following Commission approval of this Agreement,
Rocky Mountain Power agrees not to provide Electric Service to a new Service
Entrance located within City municipal boundaries as they exist on the Effective Date
of this Agreement, and City agrees (unless serving City-owned facilities located
outside its municipal boundaries) not to provide Electric Service to a new Service
Entrance located outside its municipal boundaries as they exist on the Effective Date of
this Agreement, unless provision of such service is performed pursuant to the terms of
this Agreement and there is a separate and express written agreement of the other Party
allowing such service (and, where allowed or required by law, with the approval of the
Commission to provide such service). Agreement at l.
The purposes of the ESSA are to: (1) promote harmony between electric suppliers; (2)
prohibit the "pirating" of consumers; (3) discourage duplication of electric facilities; (4) actively
supervise the conduct of electric suppliers; and (5) stabilize service territories and consumers.
Idaho Code $ 6l-332(2). Staff believes that the new terms promote harmony between Rocky
Mountain Power and the City of Idaho Falls by supervising the electric suppliers' conduct. The
terms discourage duplication of electric facilities and prevent pirating of consumers, thereby
stabilizing service territories.
STAFF RECOMMENDATION
Staff believes that the new Service Allocation Agreement complies with purposes of the
ESSA. Therefore, Staff recommends the Commission approve the new Service Allocation
Agreement between PacifiCorp and the City of Idaho Falls, Idaho dated September 28,2017 .
aJSTAFF COMMENTS NOVEMBER 14,2OI7
Respecttully submitted this I +tday of November 2017.
Huang
Deputy Attorney
Technical Staff: Kevin Keyt
i.umisc:comments/pace I 7. I 2djhkk comments
4STAFF COMMENTS NOVEMBER 14,2OI7
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 14th DAY OF NOVEMBER 2017,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN
CASE NO. PAC-8,-17-12, BY MAILING A COPY THEREOF, POSTAGE PREPAID,
TO THE FOLLOWING:
TED WESTON
DANIEL E SOLANDER
ROCKY MOTINTAIN POWER
I4O7 WEST NORTH TEMPLE STE 330
SALT LAKE CITY UT 841 16
E-MAIL: ted.weston@pacifi com.com
Daniel. solander@pacifi corp. com
DATA REQUEST RESPONSE CENTER
E.MAIL ONLY:
datareq uest@pacifi corp. com
JACKIE FLOWERS
CITY OF IDAHO FALLS
140 S CAPITOL AVE
IDAHO FALLS ID 83402
YS
CERTIFICATE OF SERVICE