20211210News Release.pdf

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CaseNo. SUZ-W-I8-02
Case No. EAG-W-I8-01
OrderNo.35247
Contact:Adam Rush
Office: [phone]
E-mail : [e-mail]. gov
NEWS RELEASE: Commission approves proposed settlernent agreement allowing SUEZ Water
Idaho to acquire Eagle Water Company
BOISE @ec. 10,2021) - The Idaho Public Utilities Commission has approved a settlement
agreement that spells out the terms allowing SUEZ Water ldaho to acquire the assets of Eagle
Water Company.
The commission found that the asset acquisition and settlement are in the public interest, and that
customers of both utilities will benefit from the acquisition. For SUEZ customers, the acquisition
allows SUEZ to prospectively avoid about $11.2 million in future water supply and other
expenses. For Eagle Water customers, SUEZ represents a capable system operator with access to
capital that can be invested in much-needed system upgrades.
SUEZ said it plans to make $14.6 million in capital improvonents in the Eagle Water systern
during the next five years. Improvements include interconnecting to the Redwood Creek
pipeline, building a new two-million-gallon water storage tank, adding a supervisory control and
data acquisition systern to allow 24-hour monitoring of the Eagle Water system to better control
pumping operations, addressing delayed investment in safety upgrades, security investments,
well cleaning, and distribution piping replacements.
SUEZ will be entitled to an acquisition adjustment amount of $10,475,000 to be amortized over
40 years beginning at the implementation of rates in its next rate case. The approved settlement
agreanent also directs Eagle Water to refund approximately $592,020 to existing customers of
the utility. The refund is intended to offset all or part of a first-year rate increase for existing
Eagle Water customers who were customers on the day the acquisition was approved by the
commission, Dec.9.
The commission approved a seven-year phased increase in rates for existing Eagle Water
customers. Beginning Jan. l, 2022, existing Eagle Water customers' rates will be set at 50
percent of SUEZ's approved rates. Each year thereafter on Jan. l, existing customers' phase-in
rates will increase by approximately 8.33 percent until their rates are 100 percent of SUEZ's
approved rates.
The rate increase for existing Eagle Water customers will follow this progression:
Jan. 1,2022- 50percent
Jan. 1, 2023 - 58.33 percent
Jan. l, 2024 - 66.67 percent
Jan. 1, 2025 - 75 percent
Jan. 1, 2026 - 83.33 percent
Jan. l, 2027 -91.67 percent
Jan. l, 2028 - 100 percent
The seven-year phase-in is only available to existing Eagle Water customers. New customers
starting service or connecting to service in the present Eagle Water service territory will pay
current SUEZ rates when beginning service.
The commission found the rates across the seven-year schedule to be just, reasonable and in the
public interest. Because of the transaction, Eagle Water customers will receive water service that
meets standards set by state regulatory agencies and enhanced customer service.
SUEZ, Eagle Water, and commission staffsigred the settlernent agreonent that was approved by
the commission. Other parties involved in settlement negotiations did not sign on to the
agreement.
For additional information on the approved settlement and the case, please visit:
puc.idaho. gov/case/Details/3 6 I 0.