The Idaho Falls City Council on Oct. 23 approved a service allocation agreement between Idaho Falls Power and Rocky Mountain Power (doing business as Pacific Corp) intended to expedite electric service transfers when municipal annexations occur.

Interim Idaho Falls Power general manager Steven Forman told the council the agreement allows Idaho Falls Power to begin serving customers inside newly annexed municipal boundaries before the Idaho Public Utilities Commission (PUC) completes its formal approval of any transfer. If the PUC later requires a different outcome, the agreement provides for returning the customer to the original utility and making the agreed financial adjustments.

Forman said the change shortens delays that occasionally prevent developers from starting subdivisions because buyout and PUC approval processes can take “6 months to a little over a year.” Under the current practice the city typically waits for PUC approval before serving customers; the new agreement moves some actions earlier in the process to avoid construction delays.

Councilors asked about legacy customers outside municipal boundaries and the effect on rates. Forman said Idaho Falls Power generally serves customers inside municipal limits and that some legacy customers served under prior agreements would remain legal nonconforming customers. He added that the city recovers capital costs associated with buying out Rocky Mountain Power infrastructure, often splitting the customer’s share so the customer can pay it off over time while still seeing immediate bill savings.

The motion approved the service allocation agreement, authorizing the mayor and city clerk to execute the necessary documents. Council voted in favor by roll call.

Staff noted the arrangement remains subject to PUC approval and that the city will present the signed agreement to the PUC for final acceptance.