20030723_564.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
FROM:DON HOWELL
DATE:JULY 9, 2003
RE:APPLICATION FOR APPROVAL OF A SERVICE TERRITORY
AGREEMENT BETWEEN THE CITY OF HEYBURN AND RIVERSIDE
ELECTRIC COMPANY, CASE NO. GNR-03-
On July 3 , 2003 , the City of Reyburn and Riverside Electric Company filed an
Application for approval of their "Service Area Stabilization Agreement." The Electric
Stabilization Act (ESSA) requires that all contracts to allocate territories, consumers, and future
consumers be submitted to the Commission for its review.
THE APPLICATION
The parties ' Service Area Stabilization Agreement is dated May 14, 2003. The
parties state in the Agreement that they had a pre-existing oral understanding relative to their
respective service areas and have now agreed to reduce these understandings to writing.
Agreement at ~ 1.3. As more specifically described in Exhibit A to their Agreement, Riverside
service territory generally is located north and east of the City s service territory. Each party
shall serve all new customers in their respective service territories. !d. at ~ 2.
The Agreement also provides that the parties will exchange two customers; one from
Riverside to the City and the other from the City to Riverside. Id. ~ 3; Exhibit C. The
Agreement states that these two customers have been contacted regarding the proposed transfer
and the "customers have expressed no objection to the change of electric provider....Id. at ~ 3.
These customers will not be charged any connection or disconnection fee and all cost of the work
done to accomplish the change in service shall be borne by the parties to the Agreement. Id.
DECISION MEMORANDUM
The Agreement also notes that Riverside has acquired a 12.5 KV distribution line
owned by the City. Id. at ~ 4. The parties further agree that this line shall not be considered a
service line" for purposes of determining which electric supplier may serve a new consumer
pursuant to Idaho Code ~ 61-332C.
The parties assert that their Agreement comports with the purposes of the ESSA.
More specifically, the parties assert that their Agreement provides for stability of service to
consumers, eliminates duplication of services, and provides for the safety in their respective
territories. Application at ~
STAFF RECOMMENDATION
Given the Agreement of the parties, Staff recommends that the Application be
processed under Modified Procedure.
COMMISSION DECISION
Does the Commission concur that this Application should be processed under
Modified Procedure?
j)~
Don Rowell
Vld/M:GNREO311
DECISION MEMORANDUM