20181207notice_of_application_order_no_34203.pdf

Office of the Secretary
Service Date
December 7,2018
BEFORE THF IDAHO Pl BLIC El ILI flEN (OilvlISSION
IN THE MATTER OF THE JOINT )CASE NOS.SUZ-W-18-02
APPLICATION OF SUEZ WATER IDAHO )EAG-W-18-01
AND EAGLE WATER COMPANY FOR THE )ACQUISITIONOF EAGLE WATER )NOTICE OF APPLICATION
COMPANY )
)NOTICE OF
)INTERVENTION DEADLINE
)ORDER NO.34203
On November 15,2018,Suez Water Idaho,and Eagle Water Company,Inc.(jointly,
the "Applicants"),filed a Joint Application requesting that the Commission approve a proposed
acquisition of Eagle Water by Suez.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that Suez Water is a public traded global water and
wastewater company.Suez Water Idaho,formerly United Water,has been operating in the
Treasure Valley since 1928.Suez is a public traded company based in Paris,France.The water
company serves approximately 240,000 customers in the Boise area.
YOU ARE FURTHER NOTIFIED that Eagle Water is a privately held Idaho water
company serving approximately 4,200 customers near Eagle,Idaho.Application at 2.Eagle
Water holds Certificate of Public Convenience and Necessity No.278.Id.
YOU ARE FURTHER NOTIFIED that a third entity,H2O Eagle Acquisition,a
Wyoming LLC,is also involved in the pending Application.Id.According to the Applicants,
H2O Eagle will purchase Eagle Water for an undisclosed amount.Id.at 3.Simultaneously,Suez
will purchase Eagle Water from H2O Eagle for $10 million.Id.
YOU ARE FURTHER NOTIFIED that the Applicants state that,if approved by the
Commission,Suez would take over all ownership and operations of the Eagle Water system.The
Applicants state that Suez may or may not employ certain Eagle Water employees during the
transition,or make them Suez employees.Id.at 3-4.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.34203 1
YOU ARE FURTHER NOTIFIED that Suez proposes a three-year rate adjustment
period,to take place in a future rate proceeding,whereby Eagle Water customer rates would
increase until they are in parity with Suez rates.kl.at 2-4.According to Suez,Eagle Water
Residential customers would see an approximate monthly increase of $6.44 in their billings in
year one,an increase of $9.40 in year two,and an increase of $9.40 in year three.Cary Direct at
12.In other words,over the three-year period,Suez proposes to raise Eagle Water's existing
rates by approximately 235%(204%increase for residential customers,and 303%increase for
commercial customers).Id.at 12-13.
YOU ARE FURTHER NOTIFIED that the Applicants claim that,for Suez
customers,the acquisition will provide access to water through existing Eagle Water wells-a
cost avoidance for Suez of approximately $11.7 million.Cooper Direct at 5-6.
YOU ARE FURTHER NOTIFIED that the Applicants claim that,for Eagle Water
customers,the acquisition will provide capital improvements that will benefit those customers,
including upgraded pipelines and new meters.Id.at 10-11.
YOU ARE FURTHER NOTIFIED that the Applicants request that the Commission
approve an acquisition adjustment to Suez's rate base to be amortized over forty years equal to
the asset purchase price and acquisition costs through closing of the purchase.Application at 7.
YOU ARE FURTHER NOTIFIED that the Applicants request that Eagle Water's
CPCN and tariffs be cancelled,and that Suez's CPCN be amended to incorporate Eagle Water's
certified service area and customers.Id.at 8.
YOU ARE FURTHER NOTIFIED that the applicants request that this Application be
processed by modified procedure.The Applicants do not request a specific effective date.Id.
YOU ARE FURTHER NOTIFIED that the Application,supporting workpapers,
testimonies,and exhibits have been filed with the Commission and are available for public
inspection during regular business hours at the Commission offices.The Application and
testimonies are also available on the Commission's web site at www.puc.idaho.gov.Click on the
"File Room"tab at the top of the page,scroll down to "Water Cases,"and then click on the case
number as shown on the front of this document.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission's jurisdiction under Title 61 of the Idaho Code.The Commission
may enter any final Order consistent with its authority under Title 61.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.34203 2
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission's Rules of Procedure,IDAPA 31.01.01.000 et seq.
NOTICE OF INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this matter
for the purpose of presenting evidence or cross-examining witnesses at hearing must file a
Petition to Intervene with the Commission pursuant to this Commission's Rules of Procedure
72 and 73,IDAPA 31.01.01.072 and -.073.Persons intending to participate at the hearing must
file a Petition to Intervene no later than December 28,2018.Persons desiring to present their
views without parties'rights of participation and cross-examination are not required to intervene
and may present their comments without prior notification to the Commission or the parties.
YOU ARE FURTHER NOTIFIED that the Commission Secretary shall issue a
Notice of Parties after the deadline for intervention has passed.
YOU ARE FURTHER NOTIFIED that once the Notice of Parties is issued,the
Commission's Staff will convene an informal prehearing conference at the Commission's offices
for the parties to discuss a schedule to process this case and other issues as may be raised by the
parties.
YOU ARE FURTHER NOTIFIED that the followingpersons are designated as party
representatives in this matter:
For Suez:For Eagle Water:
Michael C.Creamer (ISB No.4030)Robert DeShazo
Givens Pursley LLP Eagle Water Company,Inc.
601 W.Bannock St.188 W.State St.
Boise,Idaho 83702 Eagle,Idaho 83616
[e-mail]
Marshall Thompson For H2O Eagle Acquisition,LLC:
Suez Water Idaho,Inc.
8248 W.Victory Rd.N.L.Bangle
Boise,Idaho 83709 188 W.State St.
marshall.thompson suez.com Eagle.Idaho 83716
nhunele a h2o-solutionsllc.net
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.34203
YOU ARE FURTHER NOTIFIED that all hearings and prehearing conferences in
this matter will be held in facilities meeting the accessibility requirements of the Americans with
Disabilities Act (ADA).Persons needing the help of a sign language interpreter or other
assistance in order to participate in or to understand testimony and argument at a public hearing
may ask the Commission to provide a sign language interpreter or other assistance at the hearing.
The request for assistance must be received at least five (5)working days before the hearing by
contacting the Commission Secretary at:
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE,IDAHO 83720-0074
[phone] (Telephone)
[phone] (FAX)
E-mail:[e-mail]
ORDER
IT IS HEREBY ORDERED that persons desiring to intervene in this matter shall file
a Petition to Intervene with the Commission no later than December 28,2018.After that,Staff
shall convene an informal conference with the parties to discuss appropriate scheduling of this
case going forward.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.34203 4
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this /
day of December 2018.
PAÚL KJELLAÑDEN;&RESIDENT
KRI TINE RAPER''OMMISSIONER
ERIC ANDERSON,COMMISSIONER
Diane M.Hanian
Commission Secretary
I:\Legal\WATER\EAGW1801_SUZWl802\ordersìSUZW1802EAGWl801_NtcofApp_bkl.doc
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.34203 5