20181130final_order_no_34197.pdf

Office of the Secretary
Service Date
November 30,2018
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE AMENDED )CASE NO.PAC-E-18-06
APPLICATION FOR APPROVAL OF THE )
CUSTOMER TRANSFER AGREEMENT )
BETWEEN ROCKY MOUNTAIN POWER )ORDER NO.34197
AND THE CITY OF IDAHO FALLS )
On July 23,2018,Rocky Mountain Power ("Company")filed an application seeking
approval of a Customer Transfer Agreement ("Agreement")with the City of Idaho Falls.The
Agreement transfers the rights and obligations to serve two small telecommunications customers
located on South Holmes Drive in Idaho Falls.On September 11,2018,the Commission issued a
Notice of Application,Notice of Modified Procedure,and Notice of Telephonic Hearing.Order
No.34142.On October 11,2018,the Commission vacated the telephonic hearing.Order No.
34169.With this Order,the Commission approves the Customer Transfer Agreement between the
Company and the City of Idaho Falls.
PRIOR HISTORY
In its original application,the Company cited both the Idaho Electric Supplier
Stabilization Act ("ESSA")Idaho Code §61-332,et seq.,and the electric utility asset transfer
statute,Idaho Code §61-328.Application at 1.The latter statute states the Commission "shall
conduct a public hearing upon the application."On September 11,2018,the Commission issued
a Notice of Application,Notice of Modified Procedure,and Notice of Telephonic Hearing.Order
No.34142.On October 3,2018,the Company filed an amended application that clarified the
Company's reference to an Asset Purchase Agreement and citation to Idaho Code §61-328 in the
original application was in error.Amended Application at 1.
BACKGROUND
The purpose of the ESSA is 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 §61-332.The ESSA prohibits an electric supplier (e.g.,a utility,municipality,or co-
op)from serving another electric supplier's existing or former customers.Idaho Code §61-332B.
As an exception to this general rule,the ESSA allows electric suppliers to contract for the purpose
ORDER NO.34197 1
of "allocating territories,consumers,and future consumers ...and designating which territories
and consumers are to be served by which contracting electric supplier."Idaho Code §61-333(l).
Such allocation contracts must be submitted to the Commission for approval.Id.The Commission
approves the contracts if it finds that the agreement furthers the goals and purposes of the ESSA.
Id.,Idaho Code §61-334(B)(l).
THE APPLICATION
The Customer Transfer Agreement is the result of a dispute between the Company and
the City regarding the relocation of the Company's distribution facilities along South Holmes
Drive in order to accommodate a road-widening project planned by the City.On May 23,2018,
the City served the Company with a Notice and Order to Vacate Construction Zone.The Company
and the City continued negotiations until June 13,2018,when the City filed a Verified Complaint
in the Seventh District Court alleging Trespass.The Company agreed to relocate its facilities the
next day.Subsequently,the Company's facilities have been de-energized and removed.Amended
Application at 2-3.
The Company seeks approval of the Agreement under the ESSA,Idaho Code §§61-
332 through 6l-334C.No assets will be transferred as a result of the Agreement.Id.at 3.The
customers subject to the Agreement are two small telecommunications facilities located on or near
the distribution assets that were de-energized and removed as part of the road-widening project on
South Holmes Drive.One such facility is owned by CenturyLink,and the other is owned by Cable
One.Id.The combined load of the communications facilities is approximately 3 kW.Agreement
at 1.Because the load and revenue associated with the electric service to the customers are
minimal,the Company and the City have agreed to transfer the customers at no cost to either party.
Amended Application at 3.
STAFF'S COMMENTS
Staff filed the only comments in this matter,and recommended the Commission
approve the amended application.AlthoughStaff recommended approval of the application,Staff
expressed reservations about the manner in which the Agreement was reached and is concerned
that similar tactics could be used again in higher value situations,potentiallyleaving Company
ratepayers with stranded costs.Staff recommended that the Company and the City work together
to develop a framework to determine which party should bear the burden of costs in future rights
of way disputes.
i;R ok ML 34197
COMMISSION FINDINGS AND DECISION
The Commission has jurisdiction over this matter to "review and approve or reject
contracts between ...municipalities and public utilities ...."Idaho Code §61-333(1).The
Commission shall "approve such contracts only upon finding that the allocation of territories or
consumers is in conformance with the provisions and purposes of [the ESSA]."Id.As set out in
Idaho Code §61-332(2),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.The ESSA further contains a requirement of "just compensation"in such transactions.
Idaho Code §61-333B.
The Commission has reviewed the record in this case,including the proposed
Agreement,the original application,the amended application,and comments of Commission Staff.
We find that the proposed Agreement meets the requirements of the ESSA.Accordingly,we
approve the Agreement.Further,we concur with Staff that it would be beneficial for the City of
ldaho Falls and the Company to have an agreement in place regarding allocation of costs due to
right-of-wayexpansions before the next dispute arises.Therefore,we direct the parties to confer
with each other and with Staff to reach such an agreement.
ORDER
IT IS HEREBY ORDERED that the amended application for approval of the Customer
Transfer Agreement between the Company and the City of Idaho Falls to serve the CenturyLink
and Cable One telecommunications facilities located on South Holmes Drive in Idaho Falls 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 with regard to any
matter decided in 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.34197 3
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of November 2018.
PAUL KJELLANDER,PRESIDENT
KRIS INE RAPER,CO MISSIONER
ERIC ANDERSON,COMMTSSIONER
ATTEST·
Diane M.Hanian
Commission Secretary
I:\Legal\PAC-E-18-06\Orders\PACE1806 final order_ej
ORDER NO.34197