Wwp, Co-Op Stake Claims To Serve Park

Washington Water Power Co. Wednesday tried to persuade the Idaho Supreme Court to reverse a ruling that allowed competing Kootenai Electric Cooperative Inc. to service a local commerce park.

KEC won the right last March to provide power to the Coeur d’Alene Commerce Park on Kathleen Avenue near Ramsey Road.

The cooperative had sued WWP for running an electric line near the park under violation of the Electric Supplier Stabilization Act. The act is designed to prevent duplication of electric services to customers, but a lack of legal challenges to it have left it open to interpretation.

First District Court Judge James Judd sided with KEC’s interpretation of the act. Since KEC had transmission lines surrounding the park before WWP built its new line, it had the right under the act to service the 60-acre commercial development, Judd ruled.

But WWP counsel Patrick Miller argued to the five-member Supreme Court that the Spokanebased utility met the requirements of the stabilization act when it built the line. The feeder tie line was carefully engineered to improve service to other WWP customers in the area, not to encroach upon KEC’s territory, Miller said.

If the line’s sole purpose was to serve customers, then WWP did not violate the act and did not create a competitive advantage in servicing the future commerce park, he said.

But Stephen Ayers of KEC said that WWP had specifically built the line to pirate commerce park customers away from the cooperative.

Proof of WWP’s intent included a contract signed by WWP and commerce park developer Pat Acuff, Ayers said. The contract established WWP as the exclusive utility to provide power to the park, and offered to install the equipment at no charge.

That contract, signed before WWP’s extension was built, clearly showed that WWP intended to service the future commercial park tenants, Ayers said. That proves WWP built the line for competitive advantage, violating the act’s provisions, he said.

Miller claimed the contract was void and had nothing to do with what the court was hearing. WWP wants to focus on the line itself and whether it fits within guidelines of the act.

If so, the company should be able to service the park. The line, built in 1992, is closer to the park than surrounding KEC lines, the company said. The act provides that the closer line to the park would have priority to service the development.

At stake is about $1 million in potential revenue for providing power to the commerce park tenants. WWP currently provides power to one of the buildings at the commerce park, but KEC now services other tenants there.

Wednesday’s hearing continues the David vs. Goliath feud between the two utilities over territory in North Idaho. With 44,145 Coeur d’Alene customers and nearly 260,000 overall, WWP towers over KEC, which has about 12,500 Coeur d’Alene customers.

WWP was fined $75,000 last November by the Idaho Public Utility Commission for “willingly” violating tariff laws to extend its service area.

The Idaho Supreme Court should rule on the matter later this year.