2001 Legislation
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HOUSE BILL NO. 142 – Electric Supplier Stabilizatn Act

HOUSE BILL NO. 142

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H0142......................................................by STATE AFFAIRS
ELECTRIC SUPPLIER STABILIZATION ACT - Amends, repeals and adds to existing
law to modify the Electric Supplier Stabilization Act to bring it into
conformity with principles articulated by the Ninth Circuit Court of
Appeals in the 2000 decision of Snake River Valley Electric Association v.
PacifiCorp and State of Idaho; to provide that any member of a cooperative
association that provides electric service may apply to the district court
of the county where the member's service entrance is located for a
determination that the cooperative association's charges for electric
service to that member are fair, just, reasonable and are not
discriminatory or preferential; to provide circumstances when the court
will remand the matter to the cooperative association; to provide that any
consumer of a municipal electric system may apply to the district court of
the county where the consumer's service entrance is located for a
determination that the municipality's charges for electric service to that
consumer are fair, just and reasonable and not discriminatory or
preferential; and to provide circumstances when the court will remand the
matter to the municipality.
                                                                        
02/02    House intro - 1st rdg - to printing
02/05    Rpt prt - to St Aff
02/09    Rpt out - rec d/p - to 2nd rdg
02/12    2nd rdg - to 3rd rdg
02/15    3rd rdg - PASSED - 69-0-1
      AYES -- Barraclough, Barrett, Bedke, Bell, Bieter, Black, Boe, Bolz,
      Bradford, Bruneel, Callister, Campbell, Chase, Clark, Collins, Crow,
      Cuddy, Deal, Denney, Ellis, Ellsworth, Eskridge, Field(13),
      Field(20), Gagner, Gould, Hadley, Hammond, Harwood, Henbest, Higgins,
      Hornbeck, Jaquet, Jones, Kellogg, Kendell, Kunz, Lake, Langford,
      Loertscher, Mader, Marley, McKague, Montgomery, Mortensen, Moss,
      Moyle, Pearce, Pischner, Pomeroy, Raybould, Ridinger, Roberts,
      Robison, Sali, Schaefer, Sellman, Shepherd, Smith, Smylie, Stevenson,
      Stone, Swan, Tilman, Trail, Wheeler, Wood, Young, Mr. Speaker
      NAYS -- None
      Absent and excused -- Meyer
    Floor Sponsor -- Stevenson
    Title apvd - to Senate
02/16    Senate intro - 1st rdg - to St Aff
02/22    Rpt out - rec d/p - to 2nd rdg
02/23    2nd rdg - to 3rd rdg
02/26    3rd rdg - PASSED - 34-0-1
      AYES -- Andreason, Boatright, Branch(Bartlett), Brandt, Bunderson,
      Burtenshaw, Cameron, Danielson, Darrington, Deide, Dunklin, Frasure,
      Geddes, Goedde, Hawkins, Ingram, Ipsen, Keough, King-Barrutia, Lee,
      Lodge, Noh, Richardson, Risch, Sandy, Schroeder, Sims, Sorensen,
      Stegner, Stennett, Thorne, Wheeler, Whitworth, Williams,
      NAYS -- None
      Absent and excused -- Davis
    Floor Sponsors -- Lee & Noh
    Title apvd - to House
02/27    To enrol
02/28    Rpt enrol - Sp signed - Pres signed - to Governor
02/28    Governor signed
         Session Law Chapter 29
         Effective: 02/28/01

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  First Regular Session - 2001
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 142
                                                                        
                                 BY STATE AFFAIRS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE ELECTRIC SUPPLIER STABILIZATION ACT; REPEALING CHAPTER 1, LAWS
  3        OF THE FIRST EXTRAORDINARY SESSION OF 2000;  TO  PROVIDE  A  STATEMENT  OF
  4        INTENT;  AMENDING  SECTION  61-332, IDAHO CODE, TO CLARIFY THE PURPOSES OF
  5        THE ELECTRIC SUPPLIER STABILIZATION ACT AND TO MAKE TECHNICAL CORRECTIONS;
  6        AMENDING SECTION 61-332A, IDAHO CODE, TO REVISE DEFINITIONS, TO  DELETE  A
  7        REFERENCE TO OBSOLETE MATERIAL AND TO MAKE TECHNICAL CORRECTIONS; AMENDING
  8        SECTION  61-332B,  IDAHO CODE, TO REQUIRE APPROVAL OF THE PUBLIC UTILITIES
  9        COMMISSION FOR TRANSFERRING CONSUMERS;  AMENDING  SECTION  61-332C,  IDAHO
 10        CODE,  TO  PROVIDE  PROVISIONS  FOR SELECTING AN ELECTRIC SUPPLIER FOR NEW
 11        ELECTRIC SERVICE ENTRANCES AND TO  MAKE  TECHNICAL  CORRECTIONS;  AMENDING
 12        CHAPTER 3, TITLE 61, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 61-332D,
 13        IDAHO  CODE,  TO  SUPERVISE  WHEELING  SERVICES;  AMENDING SECTION 61-333,
 14        IDAHO CODE, TO REQUIRE ELECTRIC SERVICE TERRITORY CONTRACTS  TO  BE  FILED
 15        WITH  AND  APPROVED  BY  THE  PUBLIC  UTILITIES COMMISSION, TO PROVIDE FOR
 16        NOTICE AND HEARING REGARDING CONTRACT APPROVAL AND TO MAKE TECHNICAL  COR-
 17        RECTIONS;  AMENDING SECTION 61-334, IDAHO CODE, TO PROVIDE THAT THE PUBLIC
 18        UTILITIES COMMISSION HAS CERTAIN AUTHORITY  OVER  ELECTRIC  SUPPLIERS,  TO
 19        PROVIDE FOR APPLICATION OF PUBLIC UTILITIES LAW AND TO MAKE TECHNICAL COR-
 20        RECTIONS; REPEALING SECTION 61-334A, IDAHO CODE; AMENDING SECTION 61-334B,
 21        IDAHO  CODE, TO REDESIGNATE THE SECTION, TO PROVIDE FOR FILING A COMPLAINT
 22        WITH THE PUBLIC UTILITIES COMMISSION, TO PROVIDE FOR NOTICE AND  HEARINGS,
 23        TO PROVIDE REMEDIES AND TO MAKE TECHNICAL CORRECTIONS; AMENDING CHAPTER 3,
 24        TITLE  61,  IDAHO  CODE,  BY  THE ADDITION OF A NEW SECTION 61-334B, IDAHO
 25        CODE, TO PROVIDE COMMISSION SUPERVISION AND AUTHORITY; AMENDING CHAPTER 3,
 26        TITLE 61, IDAHO CODE, BY THE ADDITION OF  A  NEW  SECTION  61-334C,  IDAHO
 27        CODE,  TO  PROVIDE  ELECTRIC  SUPPLIER IMMUNITY; AMENDING SECTION 30-3-14,
 28        IDAHO CODE, TO PROVIDE THAT ANY MEMBER OF A COOPERATIVE  ASSOCIATION  THAT
 29        PROVIDES  ELECTRIC  SERVICE  MAY APPLY TO THE DISTRICT COURT OF THE COUNTY
 30        WHERE THE MEMBER'S SERVICE ENTRANCE IS LOCATED FOR  A  DETERMINATION  THAT
 31        THE  COOPERATIVE ASSOCIATION'S CHARGES FOR ELECTRIC SERVICE TO THAT MEMBER
 32        ARE FAIR, JUST AND REASONABLE AND ARE NOT DISCRIMINATORY  OR  PREFERENTIAL
 33        AND  TO PROVIDE CIRCUMSTANCES WHEN THE COURT WILL REMAND THE MATTER TO THE
 34        COOPERATIVE ASSOCIATION; AMENDING SECTION 50-325, IDAHO CODE,  TO  PROVIDE
 35        THAT ANY CONSUMER OF A MUNICIPAL ELECTRIC SYSTEM MAY APPLY TO THE DISTRICT
 36        COURT OF THE COUNTY WHERE THE CONSUMER'S SERVICE ENTRANCE IS LOCATED FOR A
 37        DETERMINATION THAT THE MUNICIPALITY'S CHARGES FOR ELECTRIC SERVICE TO THAT
 38        CONSUMER ARE FAIR, JUST AND REASONABLE AND NOT DISCRIMINATORY OR PREFEREN-
 39        TIAL,  TO  PROVIDE  CIRCUMSTANCES WHEN THE COURT WILL REMAND THE MATTER TO
 40        THE MUNICIPALITY AND TO MAKE A  TECHNICAL  CORRECTION;  AND  DECLARING  AN
 41        EMERGENCY.
                                                                        
 42    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 43        SECTION  1.  That  Chapter  1,  Laws of the First Extraordinary Session of
 44    2000, be, and the same is hereby repealed.
                                                                        
                                           2
                                                                        
  1
  2         SECTION 2.  LEGISLATIVE INTENT. The provision of a safe and reliable sup-
  3    ply of electricity in a manner that prohibits the "pirating" of consumers  and
  4    discourages  duplication  of  facilities  is  essential  to  the well-being of
  5    Idaho's citizens and its economy. It was for these and other reasons that  the
  6    legislature passed the Electric Supplier Stabilization Act in 1970. The legis-
  7    lature  has been advised of federal antitrust litigation alleging that confor-
  8    mance with the provisions of this act does not confer federal antitrust  immu-
  9    nity  upon  parties  in  compliance with the act. The legislature finds that a
 10    negative judicial ruling would have the effect of repealing applicable  provi-
 11    sions of the act, undercutting the purposes for which this act was enacted.
 12        It  is  and  has been the intention of the legislature to confer antitrust
 13    immunity upon parties acting in compliance with the act under what is known as
 14    the state action doctrine. While the legislature believes that compliance with
 15    the existing provisions of this act confers such immunity, it  has  determined
 16    to  amend  the act to more fully address this issue. The legislature therefore
 17    finds that it is in the public interest to enact the following amendments.
 18        It is the intent of the legislature in enacting Sections 14 and 15 of this
 19    act that relevant court precedent in existence on the effective date  of  this
 20    act  be applicable in the interpretation of Sections 30-3-14 and 50-325, Idaho
 21    Code. Such court precedent shall include, but not be  limited  to,  Kiefer  v.
 22    City of Idaho Falls, 49 Idaho 458 (1930).
                                                                        
 23        SECTION  3.  That  Section  61-332, Idaho Code, be, and the same is hereby
 24    amended to read as follows:
                                                                        
 25        61-332.  PURPOSE OF ELECTRIC SUPPLIER STABILIZATION ACT.  A.(1)  This  act
 26    includes  sections 61-332, 61-332A, 61-332B, 61-332C, 61-333, 61-334, 61-334A,
 27    and through 61-334BC, Idaho Code, as herein enacted,  section  61-333A,  Idaho
 28    Code,  as  herein  amended,  and  sections 61-333B and 61-333C, Idaho Code, as
 29    already enacted, and shall be referred to herein as  "this  act"  and  may  be
 30    cited and referred to as the "eElectric sSupplier  sStabilization aAct."
 31        B.(2)  This  act  is  and  its  amendments are designed to promote harmony
 32    among and between electric suppliers furnishing electricity within  the  state
 33    of  Idaho,  prohibit the "pirating" of customers consumers of another electric
 34    supplier, discourage duplication of electric  facilities,  actively  supervise
 35    certain conduct of electric suppliers as it relates to this act, and stabilize
 36    the  territories and customers consumers served with electricity by such elec-
 37    tric suppliers.
                                                                        
 38        SECTION 4.  That Section 61-332A, Idaho Code, be, and the same  is  hereby
 39    amended to read as follows:
                                                                        
 40        61-332A.  DEFINITIONS  FOR ELECTRIC SUPPLIER STABILIZATION ACT. As used in
 41    this act, unless the context requires otherwise:
 42        (1.)  "Public utility" means an electric utility regulated  by  the  Idaho
 43    public utilities commission.
 44        (2.)  "Cooperative"  means  a  cooperative corporation furnishing electric
 45    service in the state of Idaho to its consumer-members who own and operate  the
 46    cooperative.
 47        (3.)  "Municipality"  means  any  municipal corporation or quasi-municipal
 48    corporation furnishing electric service to its citizens the consumers  of  the
 49    municipality in the state of Idaho.
 50        (4.)  "Electric  sSupplier"  means  any  public   utility, cooperative, or
 51    municipality supplying or intending to supply electric service to a consumer.
                                                                        
                                           3
                                                                        
  1        (5.)  "Electric service" means electricity furnished to an  ultimate  con-
  2    sumer by an electric supplier.
  3        (6.)  "Consumer" is any person, firm, corporation, or other entity receiv-
  4    ing or intending to receive  electric service at a specific service entrance.
  5        (7.)  "Service  entrance"  means  the  entrance  of  electric service from
  6    facilities of the supplier to the  service equipment or utilization  equipment
  7    of  the consumer. In determining "service entrance" reference shall be made to
  8    the definition of "entrance of the service to the service equipment or  utili-
  9    zation  equipment" as defined in the national electrical code of 1965 location
 10    on the consumer's property where the consumer's main disconnect  switch, fuses
 11    or other disconnect equipment exists, and which are intended  to  provide  the
 12    means of cutoff of the supply.
 13        (8.)  "New  service  entrance"  means  a  service  entrance not previously
 14    served with electricity. A change, improvement, replacement,  enlargement,  or
 15    change  in  location  of a service entrance shall not be deemed a "new service
 16    entrance" if utilized to serve any service or utilization equipment previously
 17    served with electricity from the former service entrance, but  for  the  rules
 18    provisions of this act shall be deemed the former "service entrance." A change
 19    in consumer shall not be construed to make an existing service entrance a "new
 20    service  entrance." A change, enlargement, or other modification of service or
 21    utilization equipment served from an existing service entrance  shall  not  be
 22    construed to make it a "new service entrance."
 23        (9.)  "Transmission  line," for the purposes  of this act, means any elec-
 24    tric line of an electric supplier for carrying a voltage of sixty-nine (69) KV
 25    or more.
 26        (10.) "Service line," for the purposes of  this act, means any  single  or
 27    multi-phase  electric line of an electric supplier used for carrying less than
 28    sixty-nine (69) KV and used or capable of use to provide electric service  for
 29    a consumer.
 30        (11.) "Existing service line" means any electric service line in existence
 31    at the time of the event in question and constructed to supply a consumer that
 32    could  be  lawfully  served by that electric supplier under this act. It shall
 33    not mean any service line constructed to obtain an advantage under  this  act,
 34    or to evade its purpose or terms.
 35        (12) "Commission" means the Idaho public utilities commission.
                                                                        
 36        SECTION  5.  That  Section 61-332B, Idaho Code, be, and the same is hereby
 37    amended to read as follows:
                                                                        
 38        61-332B.  ELECTRIC SUPPLIER PROHIBITED FROM SERVING  CONSUMERS  OR  FORMER
 39    CONSUMERS  OF  ANOTHER ELECTRIC SUPPLIER. No electric supplier shall construct
 40    or extend facilities, nor make any electric connections, nor permit  any  con-
 41    nections  to  be  made  to  any of its facilities for the purpose of supplying
 42    electric service nor shall it supply or furnish electric service to any  elec-
 43    tric service entrance that is then or had at any time previously been lawfully
 44    connected  for  electric  service  to facilities of another electric supplier,
 45    without the written consent of such other electric  supplier;  provided,  how-
 46    ever,  (a)  such  other  electric supplier is then, or was previously the last
 47    supplier, lawfully connected to said electric service entrance, and  (b)  such
 48    other  electric supplier is willing and able to provide adequate electric ser-
 49    vice except as provided in this act.
                                                                        
 50        SECTION 6.  That Section 61-332C, Idaho Code, be, and the same  is  hereby
 51    amended to read as follows:
                                                                        
                                           4
                                                                        
  1        61-332C.  RULES  PROVISIONS  FOR SELECTING ELECTRIC SUPPLIER FOR NEW ELEC-
  2    TRIC SERVICE ENTRANCES. (1) In the event more than one  electric  supplier  is
  3    willing and able to provide adequate electric service to a consumer at any new
  4    electric  service  entrance, the following rules shall determining which elec-
  5    tric supplier will provide electric service for a new  service  entrance,  the
  6    following provisions will govern:
  7        1.(a)  If  no  electric  supplier  has an existing service line within one
  8        thousand three hundred and twenty (1,320) feet (1,320 ft.) of  the  a  new
  9        service  entrance  the consumer shall have the right of choice of electric
 10        supplier.
 11        2.(b)  If only one (1) electric supplier  has  an  existing  service  line
 12        within  one  thousand three hundred and twenty (1,320) feet (1,320 ft.) of
 13        the new service entrance that electric supplier shall have  the  right  to
 14        serve the consumer at the new service entrance.
 15        3.(c)  If more than one (1) electric supplier has an existing service line
 16        within  one  thousand three hundred and twenty (1,320) feet (1,320 ft.) of
 17        the new service entrance the electric supplier whose existing service line
 18        is nearest the new service entrance shall have the right to serve the con-
 19        sumer at the new service entrance.
 20        4.(d)  If more than one (1) electric supplier has an existing service line
 21        within one thousand three hundred and twenty (1,320) feet (1,320  ft.)  of
 22        the  new  service  entrance and the existing service lines are equidistant
 23        from the service entrance, or and it cannot be determined by  proof  which
 24        service  line is nearest the new service entrance, then the consumer shall
 25        have the right of choice of supplier or an electric supplier  shall  peti-
 26        tion  the  commission  for an order determining which electric supplier is
 27        nearest the new service entrance.
 28        (e)  For purposes of this act distances shall mean the exact distance mea-
 29        sured using standard land surveying practices as established by the  board
 30        of professional engineers and land surveyors of the state of Idaho.
 31        (2)  No  electric  supplier shall construct or extend facilities, nor make
 32    any electric connections, nor permit any connection to be made from any of its
 33    facilities to any new service entrance nor shall it supply electric service to
 34    any new service entrance in violation of the rules herein, without the written
 35    consent of any electric supplier with a prior right under the rules  to  serve
 36    the  consumer  at the new service locations provisions of this section, except
 37    as ordered by the commission pursuant to this act.
                                                                        
 38        SECTION 7.  That Chapter 3, Title 61, Idaho Code,  be,  and  the  same  is
 39    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 40    ignated as Section 61-332D, Idaho Code, and to read as follows:
                                                                        
 41        61-332D.  WHEELING  SERVICES.  (1)  An  electric  supplier  shall  not  be
 42    required to provide wheeling service over its system if such  service  results
 43    in retail wheeling and/or a sham wholesale transaction.
 44        (2)  An  electric  supplier declining to furnish wheeling service pursuant
 45    to this section shall petition the  commission  for  review  of  the  electric
 46    supplier's  action  in  respect  to a request for such service. The commission
 47    shall, upon notice and opportunity for hearing, review the electric supplier's
 48    action for consistency with the purposes and provisions of this act, and issue
 49    an order in accordance with its finding, ordering  either  that  the  wheeling
 50    service shall, or shall not, be required.
                                                                        
 51        SECTION  8.  That  Section  61-333, Idaho Code, be, and the same is hereby
 52    amended to read as follows:
                                                                        
                                           5
                                                                        
  1        61-333.  AUTHORIZING CONTRACTS AMONG ELECTRIC SUPPLIERS TO RESOLVE  TERRI-
  2    TORIES, CONSUMERS AND TO TRANSFER FACILITIES. A.(1)  Any electric supplier may
  3    contract  in writing with any other electric supplier for the purpose of allo-
  4    cating territories, consumers, and future consumers between the electric  sup-
  5    pliers  and  designating  which territories and  consumers are to be served by
  6    which contracting electric supplier. The territories and  consumers  so  allo-
  7    cated  and  designated  may  include all or any portion of the territories and
  8    consumers which are being served by any or all  of  the  contracting  electric
  9    suppliers at the time the contract is entered into, or which could be economi-
 10    cally  served by the then existing facilities of any contracting electric sup-
 11    plier, or by reasonable and economic extensions thereto.  All  such  contracts
 12    shall  be  filed  with  the commission. The commission shall, after notice and
 13    opportunity for hearing, review and approve or reject contracts between  coop-
 14    eratives,  between cooperatives and public utilities and between public utili-
 15    ties. The commission shall, after notice and opportunity for  hearing,  review
 16    and  approve  or  reject contracts between municipalities and cooperatives, as
 17    well as between municipalities and public  utilities,  provided  however,  the
 18    commission shall have jurisdiction only over cooperatives and public utilities
 19    in such approvals. The commission shall approve such contracts only upon find-
 20    ing that the allocation of territories or consumers is in conformance with the
 21    provisions and purposes of this act.
 22        B.(2)  Any  electric  supplier may also contract in writing with any other
 23    electric supplier for the sale, exchange, transfer, or lease of  equipment  or
 24    facilities  located  within  territory  which is the subject of any allocation
 25    contracted for under subsection A hereof. C.  Any (1) of this section and  any
 26    contract  validly  entered  pursuant  to this section into and approved by the
 27    commission after notice and opportunity for hearing shall be binding and shall
 28    be legally enforceable pursuant to this act, or by any other  remedy  provided
 29    by law.
                                                                        
 30        SECTION  9.  That  Section  61-334, Idaho Code, be, and the same is hereby
 31    amended to read as follows:
                                                                        
 32        61-334.  SPECIAL RULES OF INTERPRETATION. Nothing contained  in  this  act
 33    shall be construed to:
 34        (1.)  Grant  Idaho public utilities the commission jurisdiction over coop-
 35    eratives or municipalities except as authorized in this act.
 36        (2.)  Apply to controversies between two (2) or more public utilities.
 37        (3.)  Preclude any electric supplier from extending  electric  service  to
 38    its  own  property  or  facilities or to another electric supplier for resale,
 39    provided any line extension made under this clause shall not be considered  in
 40    determining  the  right  of  electric suppliers to serve new service entrances
 41    under section 61-332C, Idaho Code.
 42        (4)  Abrogate or limit the authority of any municipality under  any  other
 43    statute  or  law with respect to the municipality providing electricity to the
 44    municipality or the consumers of the municipality within the boundaries of the
 45    municipality.
                                                                        
 46        SECTION 10.  That Section 61-334A, Idaho Code, be, and the same is  hereby
 47    repealed.
                                                                        
 48        SECTION  11.  That Section 61-334B, Idaho Code, be, and the same is hereby
 49    amended to read as follows:
                                                                        
 50        61-334BA.  LEGAL REMEDIES FOR VIOLATION OF THIS ACT.  A.(1)  Any  electric
                                                                        
                                           6
                                                                        
  1    supplier  or consumer whose rights under this act shall be violated or threat-
  2    ened with violation, shall be  entitled  to  injunctive  relief  against  said
  3    violation  upon proper may file a complaint and proof in accordance with Idaho
  4    rules of civil procedure in district court, against the  other with  the  com-
  5    mission  against an electric supplier and any other person responsible for the
  6    violation.
  7        B.(2)  In any suit for injunctive relief After notice and opportunity  for
  8    hearing,  the  commission  shall  make findings of fact and conclusions by the
  9    court that any rules under of law determining whether this act or any   orders
 10    issued  under  this  act  have  been violated or threatened to be violated and
 11    shall require findings and conclusions by the court of determine whether there
 12    is actual or threatened irreparable injury as to the electric supplier or con-
 13    sumer whose rights are violated or threatened with violation as  a  basis  for
 14    equitable relief hereunder granting relief.
 15        C.(3)  The  injunctive  relief to be granted under this section for viola-
 16    tion of this act shall be negative in form, enjoining forbid further  acts  in
 17    violation    of  such  rules orders, shall be affirmative in form in requiring
 18    order the removal of any electric connections, facilities  or  equipment  that
 19    constitute  the  violation, and shall be or a combination thereof necessary to
 20    enforce compliance with this act.
 21        D.  Any aggrieved party may also pursue any other remedy provided by law.
                                                                        
 22        SECTION 12.  That Chapter 3, Title 61, Idaho Code, be,  and  the  same  is
 23    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 24    ignated as Section 61-334B, Idaho Code, and to read as follows:
                                                                        
 25        61-334B.  COMMISSION SUPERVISION AND AUTHORITY. (1) Upon a petition by  an
 26    electric  supplier  or  consumer for an exception to the provisions of section
 27    61-332B or 61-332C(1)(a), (b) or (c), Idaho Code, the commission  shall  issue
 28    an  order granting such request only upon finding that granting the request is
 29    consistent with the purposes of this act as set forth in section 61-332, Idaho
 30    Code.
 31        (2)  The commission shall have power to issue  authorizations  and  orders
 32    requested  under  this  act, or to refuse to issue the same, and may attach to
 33    any authorization and order as a condition of approval such terms  and  condi-
 34    tions as it determines are consistent with the purposes and provisions of this
 35    act.
 36        (3)  In  all  matters  arising  under this act, which are submitted to the
 37    commission for decision, order or review, the procedure shall be  governed  by
 38    chapters  6  and 7, title 61, Idaho Code, and the commission's rules of proce-
 39    dure. Reconsideration of, appeal from, enforcement  of,  and  stay  of  orders
 40    issued  pursuant  to  this act shall be governed by law as for other orders of
 41    the commission in other matters.
                                                                        
 42        SECTION 13.  That Chapter 3, Title 61, Idaho Code, be,  and  the  same  is
 43    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 44    ignated as Section 61-334C, Idaho Code, and to read as follows:
                                                                        
 45        61-334C.  ELECTRIC SUPPLIER IMMUNITY. No action under the  Idaho  competi-
 46    tion  act, chapter 1, title 48, Idaho Code, or any other provision or doctrine
 47    of law of the state of Idaho shall lie against an electric supplier for action
 48    or inaction that is in compliance with the provisions of this act or any  com-
 49    mission order issued pursuant to this act.
                                                                        
 50        SECTION  14.  That Section 30-3-14, Idaho Code, be, and the same is hereby
                                                                        
                                           7
                                                                        
  1    amended to read as follows:
                                                                        
  2        30-3-14.  JUDICIAL RELIEF. (1) If for any  reason  it  is  impractical  or
  3    impossible  for  any  corporation to call or conduct a meeting of its members,
  4    delegates or directors, or otherwise obtain their consent, in the manner  pre-
  5    scribed by its articles, bylaws or this act, then upon petition of a director,
  6    officer, delegate, or member, the district court may order that such a meeting
  7    be called or that a written ballot or other form of obtaining the vote of mem-
  8    bers,  delegates  or  directors  be  authorized, in such a manner as the court
  9    finds fair and equitable under the circumstances.
 10        (2)  The court shall, in an order issued pursuant to this section, provide
 11    for a method of notice reasonably designed to give actual notice to  all  per-
 12    sons  who  would be entitled to notice of a meeting held pursuant to the arti-
 13    cles, bylaws and this act, whether or not the method results in actual  notice
 14    to  all  such persons or conforms to the notice requirements that would other-
 15    wise apply. In a proceeding under this section the court may determine who the
 16    members or directors are.
 17        (3)  The order issued pursuant to  this  section  may  dispense  with  any
 18    requirements  relating  to  the  holding of or voting at meetings or obtaining
 19    votes, including any requirement as to quorums or as to the number or percent-
 20    age of votes needed for approval, that would otherwise be imposed by the arti-
 21    cles, bylaws or this act.
 22        (4)  Whenever practical, any order issued pursuant to this  section  shall
 23    limit  the  subject matter of meetings or other forms of consent authorized to
 24    items, including amendments to the articles or bylaws, the resolution of which
 25    will or may enable the corporation to continue managing  its  affairs  without
 26    further  resort  to  this  section; provided however, that an order under this
 27    section may also authorize the obtaining of whatever votes and  approvals  are
 28    necessary for the dissolution, merger or sale of assets.
 29        (5)  Any  meeting  or other method of obtaining the vote of members, dele-
 30    gates or directors conducted pursuant to an order issued under  this  section,
 31    and that complies with all the provisions of such order, is for all purposes a
 32    valid  meeting  or vote, as the case may be, and shall have the same force and
 33    effect as if it complied with  every  requirement  imposed  by  the  articles,
 34    bylaws and this act.
 35        (6)  Any  member  of a cooperative association that provides electric ser-
 36    vice may apply to the district court of the county where the member's  service
 37    entrance  is  located  for  a determination that the cooperative association's
 38    charges for electric service to that member are fair, just and reasonable  and
 39    are not discriminatory or preferential. In the event that the court determines
 40    that the rate is not fair, just and reasonable or is discriminatory or prefer-
 41    ential,  the  court  shall remand the matter to the cooperative association to
 42    alter or amend the rate in conformance with the standards set forth herein.
                                                                        
 43        SECTION 15.  That Section 50-325, Idaho Code, be, and the same  is  hereby
 44    amended to read as follows:
                                                                        
 45        50-325.  POWER PLANTS -- POWER DISTRIBUTION. (1) Cities shall have author-
 46    ity:  to  acquire,  own,  maintain and operate electric power plants, purchase
 47    electric power, and provide for distribution to the residents of the city, and
 48    to sell excess power subject to the provisions of section 50-327, Idaho Code.
 49        (2)  Any consumer of a municipal electric system may apply to the district
 50    court of the county where the consumer's service entrance  is  located  for  a
 51    determination  that  the  municipality's  charges for electric service to that
 52    consumer are fair, just and reasonable and are not discriminatory or preferen-
                                                                        
                                           8
                                                                        
  1    tial. In the event that the court determines that the rate is not  fair,  just
  2    and  reasonable  or  is discriminatory or preferential, the court shall remand
  3    the matter to the municipality to alter or amend such rate in conformance with
  4    the determination of the court.
                                                                        
  5        SECTION 16.  An emergency existing therefor,  which  emergency  is  hereby
  6    declared to exist, this act shall be in full force and effect on and after its
  7    passage and approval.

Statement of Purpose / Fiscal Impact


                      STATEMENT OF PURPOSE
                          RS10858C3

This Legislation repeals House Bill No. 1 of the Extradordinary
Session of 2000 and will clarify that the purpose of the
Electric Supplier Stabilization Act is to confer certain
immunities, including antitrust immunity, upon electric
suppliers who are in compliance with the Act. The Legislation
will provide the Idaho Public Utilities Commission with active
supervisory authority over certain electric supplier contracts,
including contracts for wheeling services. The legislation also
permits members of cooperative associations or consumers of
municipal electric systems to apply to state district court for
a determination that cooperative's or municipality's charges for
electric service are fair, just and reasonable and are not
discriminatory or preferential. The provisions of this
Legislation shall be effective upon passage and approval.


                         FISCAL IMPACT
                                
                                
There should be no impact on the General Fund or other state
government funds.
Contact
      Name:    Rep. Bert Stevenson
      Phone:332 1240
      Name:    Senator Robert Lee
      Phone:332 1369

STATEMENT OF PURPOSE/FISCAL NOTE               H 142