20211015Notice_of_Proposed_Settlement_Order_No_35198.pdf

NOTICE OF PROPOSED SETTLEMENT
NOTICE OF AMENDED SCHEDULE
ORDER NO. 35198 1
Office of the Secretary
Service Date
October 15, 2021
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE JOINT
APPLICATION OF SUEZ WATER IDAHO,
INC., TO ACQUIRE EAGLE WATER
COMPANY
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CASE NOS. SUZ-W-18-02
EAG-W-18-01

NOTICE OF PROPOSED
SETTLEMENT

NOTICE OF AMENDED
SCHEDULE

ORDER NO. 35198

On June 8, 2021, Eagle Water Company, Inc. (“Eagle Water”) and SUEZ Water Idaho
Inc. (“SUEZ”) (collectively the “Companies”) filed a motion to recommence proceedings in this
docket. The same day, Eagle Water and SUEZ filed an amendment to its joint application
requesting approval of the acquisition of Eagle Water’s assets by SUEZ (“Amended Joint
Application”) and amendment of Certificate of Public Convenience and Necessity No. 143.
On July 14, 2021, the Commission granted SUEZ and Eagle Water’s motion to
recommence proceedings and issued a Notice of the Amended Application. Order No. 35104.
At the Commission’s August 31, 2021 Decision Meeting, Staff represented that the
parties had met and discussed procedure and scheduling for this case. Staff noted that not all parties
agreed on procedure—with some parties preferring a technical hearing to modified procedure—
but the parties agreed on a general timeline by which to process this matter.
On September 9, 2021, the Commission issued a Notice of Scheduling, Notice of
Modified Procedure, Notice of Public Workshop, and Notice of Customer Hearing. Order No.
35160.
On October 8, 2021, Staff, SUEZ, and Eagle Water (collectively the “Stipulating
Parties” or individually “Party”) filed a proposed stipulation and settlement (“Settlement”) and a
joint motion of approval of stipulation and settlement (“Motion”). At the Commission’s October
12, 2021, Decision Meeting, Staff recommended the Commission issue a Notice of Proposed
Settlement and Notice of Amended Comment Deadlines.
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF AMENDED SCHEDULE
ORDER NO. 35198 2
On October 15, 2021, the Commission issued Order No. 35196 providing updated call-
in information for the November 1, 2021 customer hearing scheduled for 7:00 PM mountain time.
The updated call-in information allows participants to listen-only or to testify.
With this Order, the Commission now issues this Notice of Proposed Settlement,
Notice of Amended Schedule, and sets new comment deadlines for Staff and Intervenors and for
the Companies’ reply.
NOTICE OF PROPOSED SETTLEMENT
YOU ARE HEREBY NOTIFIED that the Stipulating Parties entered the Settlement as
a reasonable compromise of the issues raised in the proposed acquisition of Eagle Water’s assets
by SUEZ.
YOU ARE FURTHER NOTIFIED that the Stipulating Parties agree that SUEZ will be
entitled to an acquisition adjustment amount of $10,475,000 that will be included in its next rate
case. The acquisition adjustment amount will be amortized over 40 years beginning at the
implementation of rates in SUEZ’s next rate case. The acquisition adjustment amount will be
allocated between the Utility Plant Acquisition regulatory asset and the incurred transaction costs.
The gross amount of utility plant in service as related to the Eagle Water Company assets acquired
and included in rate base will be offset with an equal amount in the related accumulated
depreciation account. Costs associated with customer communications will be treated as an
operational expense.
YOU ARE FURTHER NOTIFIED that Parties agree that new rates for existing
customers of Eagle Water Company as of the date on which the transaction closes (“Existing Eagle
Water Company Customers”) shall be implemented over seven years. On January 1, 2022, Existing
Eagle Water Company Customers’ rates will be set at 50% of SUEZ’s approved rates. Each year
thereafter on January 1st Existing Eagle Water Company Customers will increase approximately
8.33% until Existing Eagle Water Company Customers’ rates are 100% of SUEZ’s approved rates.
The rate phase-in for Existing Eagle Water Company Customers to SUEZ approved rates will
follow the following progression:1

1 The phase-in schedule for Existing Eagle Water Company Customers is provided in Exhibit 1 to the Settlement.
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF AMENDED SCHEDULE
ORDER NO. 35198 3
January 1, 2022—50.00%
January 1, 2023—58.33%
January 1, 2024—66.67%
January 1, 2025—75.00%
January 1, 2026—83.33%
January 1, 2027—91.67%
January 1, 2028—100.00%

YOU ARE FURTHER NOTIFIED that the Stipulating Parties agree that Eagle Water
will refund approximately $592,020.00 to Existing Eagle Water Company Customers. The
Commission required Eagle Water to set aside certain funds for the benefit of customers. See Order
No. 34265. The refund is intended to offset the increase in rates Existing Eagle Water Company
Customers will experience beginning January 1, 2022.
YOU ARE FURTHER NOTIFIED that the Settlement precludes the Stipulating Parties
from asserting contrary positions during subsequent litigation in this proceeding or related appeals.
YOU ARE FURTHER NOTIFIED that the Stipulating Parties agree that the Settlement
should be accepted, without modification, because it is just, fair, and reasonable, in the public
interest, and otherwise in accordance with law or regulatory policy. The Stipulating Parties further
agree that the rates and tariffs that SUEZ Water will charge if the Settlement is accepted are just
and reasonable.
YOU ARE FURTHER NOTIFIED that the Stipulating Parties agree that they support,
and will continue to support, the Commission’s adoption of the terms of the Settlement and
approval of SUEZ’s acquisition of the assets of Eagle Water upon the terms set forth in the
Settlement.
YOU ARE FURTHER NOTIFIED that if the Commission rejects any part or all of the
Settlement or imposes any additional conditions on approval of the Settlement, each Party reserves
the right, upon written notice to the Commission and the other Stipulating Parties to this
proceeding, within 14 days of the date of such action by the Commission, to withdraw from the
Settlement. In such case, no Party shall be bound or prejudiced by the terms of the Settlement, and
each Party shall be entitled to seek reconsideration of the Commission’s final order and do all other
things necessary to put on such case as it deems appropriate.
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF AMENDED SCHEDULE
ORDER NO. 35198 4
YOU ARE FURTHER NOTIFIED that the Settlement in Case Nos. EAG-W-18-
01/SUZ-W-18-02 has been filed with the Commission and is available for public inspection during
regular business hours at the Commission’s office or on the Commission’s web site at
www.puc.idaho.gov. Click on the “WATER” tab in the left-hand column of the home page, click
“Open Cases,” click on either case number as shown on the front of this document. You then may
access the Settlement by clicking on “STIPULATION AND SETTLEMENT.PDF” under the
“Company” heading.
YOU ARE FURTHER NOTIFIED that the Commission is not bound by the Settlement
reached by the Stipulating Parties. The Commission will independently review any proposed
settlement to determine whether the settlement is just, fair, and reasonable, and in the public
interest, or otherwise in accordance with law or regulatory policy. The Commission may accept a
settlement, reject a settlement, or state additional conditions under which a settlement will be
accepted. See IDAPA 31.01.01.274-.276.
AMENDED NOTICE OF SCHEDULING
YOU ARE FURTHER NOTIFIED that, because a proposed Settlement was filed, the
Commission finds it reasonable to amend the procedural schedule previously laid out in Order No.
35160. The new schedule is:
Staff/Intervenor Comment Deadline October 27, 2021
Customer Hearing November 1, 2021
Customer Comment Deadline November 8, 2021
Companies’ Reply Deadline November 8, 2021
YOU ARE FURTHER NOTIFIED that the October 13, 2021, Staff/Intervenor Reply
Deadline established in Order No. 35160 is no longer necessary with the proposed Settlement and
is hereby vacated.
O R D E R
IT IS HEREBY ORDERED that the proposed Settlement will be processed by
Modified Procedure, Rule 201-204 (IDAPA 31.01.01.201-.204). Staff and Intervenors shall file
comments by October 27, 2021. Persons interested in submitting written comments must do so by
November 8, 2021. The Companies must file any reply comments by November 8, 2021.
IT IS FURTHER ORDERED that the amended schedule, as set forth above, is adopted.
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF AMENDED SCHEDULE
ORDER NO. 35198 5
IT IS FURTHER ORDERED that Parties should continue to comply with Order No.
35058, issued June 3, 2021. All pleadings should be filed with the Commission electronically and
shall be deemed timely filed when received by the Commission Secretary. See Rule 14.02. Service
between parties should also be accomplished electronically. Voluminous discovery-related
documents may be filed and served on CD-ROM or a USB flash drive.
DONE by order of the Idaho Public Utilities Commission at Boise, Idaho this 15th day
of October 2021.

PAUL KJELLANDER, PRESIDENT

KRISTINE RAPER, COMMISSIONER

ERIC ANDERSON, COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

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