20200622Petition.pdf

Michael C. Creamer (ISB No. 4030)
Preston N. Carter [ISB No. 8462)
Givens Pursley LLP
601 W. Bannock St.
Boise, ID 83702
Telephone: [phone]
Facsimile: (208) 388-l 300
mcc (gr, gi vensrrurslelu. com
pnc(n )qivenspursIey.com
Attorneys for SUEZ Water ldaho Inc.
BEFORE THE IDAIIO PIIBLIC UTILITIES COM1VIISSION
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IN THE MATTER OF THE PETITION OF
SUEZ WATER IDAHO, INC. FOR
AUTHORZATION TO ELIMINATE
COLLECTION OF GROSS.UP PAYMENTS
ASSOCIATED WITH CONTRIBUTIONS IN
AID OF CONSTRUCTION
CaseNo. SUZ-W-20-01
PETTTTON AND REQTTEST FOR
MODIFIED PROCEDT]RE
SUEZ Water Idaho Inc. ("SUEZ" or "Company"), pursuant to Commission Rule of
Procedure 31.01.01.053 hereby petitions for an order modifying Commission Order 34074 issued
on May 31, 2018 in Case No. GNR-U-I8-01 to permit SUEZ to no longer collect the federal and
state income tax gross-up amount related to Contributions in Aid of Construction and to revise its
existing tarifl Schedule . [n support thereof, the Company respectfully shows as follows:
FACTUAL BACKGROUND
SUEZ is a water corporation within the meaning of the Idaho Public Utility Law and is
subject to the jurisdiction of the Commission. SUEZ provides municipal water service within
Ada County, Idaho pursuant to its Certificate of Public Convenience and Necessity No. 146 as
amended.
SUEZ Warsn IDAHo INC.'s PrrrrroN Fon AuruonzATroN To ElurNerr Cou-ecrroN Op Gnoss-Up PevlreNrs
Assocmrso Wrru CoNTRTBUTIoNS IN Am On CousrRucrtoN- I
SUEZ's rates, charges, rules and regulations for services are contained in its tariff,
approved by and on file with the Commission. SUEZ's tariff includes rules governing requests
for service for individual, industrial and commercial development and sets forth certain charges
and allowances for the related main extensions. Among the charges the developer incurs in
connection with main extensions requiring special facilities are the actual construction costs,
general overheads allocated annually by the Company over the new development projects, and
variously over the years, a payment to offset the Company's federal and/or state income tax
liability associated with the developer-contributed payments or facilities (i.e., contributions in aid
of construction or "CIAC").
Most recently, the Federal 2017 Tax Cuts and Jobs Act ("TCJA") eliminated the
exemption of CIAC from inclusion in income for water utilities that has been recognized since
1996. Effective January l, 2018, CIAC has been included in the Company's annual taxable
lncome.
ln response to the reduced corporate tax rate included in the TCJA, the Commission
established Generic Case No. GNR-U-I8-01 and directed all regulated utilities to: l) account for
the tax benefits as a regulatory liability; 2) report to the Commission how the tax changes in the
TCJA affected them; and 3) show how they could pass any resulting benefits to customers. See
Order No. 33965 at l-2. SUEZ filed its report with the Commission on March 29,2018
addressing both the effect of the reduced corporate tax rate and the inclusion of CIAC in taxable
income on the Company's tax liabilities.
In its May 31,2018 Order 34074 the Commission ordered that SUEZ decrease rates by
$2,722,791effective June 1, 2018, and file an update to its deferred tax accounts. Id. at 4-5.
Order 34074 also directed that SUEZ gross-up its CIAC charge to contributing developers to
SUEZ Werrn Ioeso INc.'s PBrlrtoN FoR AurHoRzerroN To ELTMTNATE Cor-mcrroN On Gnoss-Up Plyrr,rBNrs
AssocrATED Wrrs CoNrnmurroNs IN An Or CoNsrRucuoN- 2
account for the taxability of the contributions. Id. at 5. SUEZ's tariffwas revised accordingly
effective June 1, 2018 to include a table illustating the basis for calculating the tax gross-up
factor whereby the charge reflects the net present value of ClAC-related cash flows and the
future tax deductibility of the contributed asset. ,See SUEZ Tariff, Sheet 27, fl85. Since June 1,
2018, SUEZ has included this gross-up factor in the special facilities charges to developers to
offset the increased tax liability associated with CIAC per the TCJA. The Commission approved
this approach, noting that requiring the developer to pay the income tax consequences of CIAC
will ensure that SUEZ's customers do not subsidize the developer through rates. Order 34074 at
4.
COMPAI\Y EXPERIENCE WITH THE CIAC GROSS-UP
As explained in the accompanying Direct Testimony of Cathy Cooper, SUEZ's
experience with including the gross-up factor over the past two years has been that this charge
places it at a competitive disadvantage vis a vis non-regulated, tax-exempt municipal water
providers. SUEZ's normal general overhead charges and the recently-included CIAC gross-up
can now amount to up to an additional forty-five to fifty percent of the total project construction
cost. Rather than incur these costs that are necessarily passed on to home buyers, developers
who do not have the option to choose a municipal water provider, may choose to create and
operate a separate community water system. In either case, SUEZ's existing customers are
negatively impacted because of the lost opportunity to absorb and spread the Company's costs
over a larger customer base. ^See also Direct Testimony of Jarmila Cary fied
contemporaneously herewith.
SUEZ WaTgn IDAHo INC.,S PETITIoN FoR AUTHoRIZATIoN To ELMTNATE CoT-IecTIoN OT Gnoss-Up PAYMENTS
Assocnrnn Wrrg CoNrnrBUTroNS Ir.r ArD Or CoNsrnucrroN- 3
SUEZ'S PROPOSED REYISION TO CIAC TREATMENT
To respond to this developing issue, the Company is proposing a modification to the
method approved in Order 34074 to address the TCJA tax liability for CIAC. SUEZ is
proposing that it pay the CIAC tax rather than the developer. Analysis performed by the
Company based on recent experience confirms that new developments can generate enough
revenue through existing rates to cover the annual revenue requirement for the CIAC tax. This
will continue to ensure that development pays the additional costs its imposes and that the
Company's existing customers do not subsidize the developer tlrough rates.
If this Petition is approved by the Commission, SUEZ would revise its tariffas indicated
in the strike-out/underline and clean versions of its current tarriff attached hereto as Exhibits A
and B.
The rationale for SUEZ's requested treatment of the CIAC tax obligation is more fully
explained in the accompanying Direct Testimony of Ms. Cary and Ms. Cooper.
COMMUNICATIONS AND SERVICE OF PLEADINGS
Communications and service of pleadings in this matter should be sent to the following:
Mr. Marshall Thompson
SUEZ Water Idaho Inc.
8284 West Victory Rd.
Boise,ID 83709
marshall.thompson(@ suez. com
Michael C. Creamer
Givens Pursley LLP
601 W. Bannock St.
Boise,ID 83702
P.O. Box 2720-83701
mcc@ sivenspurslev. com
SUEZ Wersn Ioeso INC.'s PETrrroN FoR AurHoRzATIoN To ELIMrNers ColmcrroN Or Gnoss-Up PevlrsNrs
AssocrATED WlrH CoNrnrBUTroNS IN Aro Op CoNsrRucttoN- 4
REQUEST FOR MODIFIED PROCEDURE
SUEZ does not believe that a hearing is necessary to consider the matters presented
herein and requests that this Petition be processed by Modifred Procedure under Commission
Rules of Procedure 201-204. If, however, the Commission determines a hearing is required,
SUEZ is prepared for immediate hearing, based on the direct testimonies and exhibits
accompanying this Petition.
PRAYER FOR RELIEF
Wherefore, SUEZ respectfully requests that the Commission enter its Order:
l. Approving Modified Procedure;
2. Approving SUEZ's requested change in method for addressing its CIAC income
tax liability by allowing SUEZ to pay the tax associated with CIAC and recover the increased
revenue requirement through revenues generated by the new customers served;
3. Approving SUEZ's revisions to its tariffas proposed in Exhibits A and B hereto;
and
4. Granting such other and further relief as it appropriate in the circumstances.
Respectfully submitted this 22nd day of June,2020.
SUEZ Water Idaho Inc.
By:
Michael C. Creamer
Preston N. Carter
Givens Pursley LLP
A tt orn ey s for P eti ti oner
SUEZWergn IDAHo INC.,S Pgrnrcu Fon AUTHoRZATIOU TO EI-N INITE COIIECNON OT GNOSS.UP PAYMENTS
ASSoCIATED WITU CONTNIBUTIONS IN AIO ON CONSTNUCTION- 5
Case Nos. SUZ-W-20-01
PETITION AND REQUEST FOR MODIFIED
PROCEDURE
EXHIBIT B
CLEAN TARIFF PAGES
Case Nos. SUZ-W-20{'|
PMTPNAI.ID REQUEST FOR MODIFIED PR@EDURE
E(HIBITB-PagE1
Sheet No. 1
Replacing all Previous Sheets
SUEZ WATER IDAHO INC.
SUEZ WATER IDAHO INC
RATE SCHEDULES
RULES AND REGULATIONS
GOVERNING THE RENDERING OF WATER SERVICE
AND WATER MAIN EXTENSIONS
lssued Per IPUC Order No. XXXX
Effective - XXXX, Y\X,2020
lssued by SUEZ WATER IDAHO INC.
Marshall Thompson, Vice President
8248West Mctory Road, Boise, ldaho
Cso 1.loo. SIJZ-\,V-2O01
PETMONAI.ID REOUEST FOR MODIFIED PR@EDURE
E(HIBITB-PagB2
TABLE OF CONTENTS
Title Page
Table of Contents
Schedules of Rates
Schedule Number 1 General Metered Service
Schedule Number 1A DEQ Fee
Schedule Number 1B Flat Rate Service
Schedule Number 1C Brian Subdivision Surcharge
Schedule Number 2 Public Hydrants and Street Sprinkling
Schedule Number 3 Private Fire Sprinkler and Service
Schedule Number 4 Private Fire Hydrant Service
Schedule Number 5 Miscellaneous Fees and Charges
Schedule Number 6 Municipal Franchise Fees
Application for Service
Service Connection
Meters
Meter Setting
Meter Testing
Bills
Di sc,onti nuance of Servi ce
Customer's Deposits
Builder's Temporary Service
Fire Protection
Miscellaneous
Definitions - Water Service
Definitions - Water Main Extension
Water Main Extensions - General
Water Main Extensions - Connection Fees
Water Main Extensions - lndividual Residences
Water Main Extensions - Residential Subdivision or Multiple Family Housing
Development
Water Main Extensions - Commercial, lndustrial, or Municipal Development
Special Facilities
Non-contiguous Expansion
Water Main Extension Agreement, lndividuals, Advances, Refunds
Water Main Extension Agreement, Residentia!, Multiple Family Housing,
Commercial, lndustrial, or Municipal Development
Residential or Multiple Family Housing Non-contiguous Water System
Agreement
Sheet Number
1
2
3
4
5
5A
6
7
8
9,9A, 10
11
12
12,13,14
14
14,15
15
16
16,17
17
17,18
19
19
19,20
21
21
21,22
22,23
23,24
,24
,25
23
24
26
27
30
32
35
38
42
45
48
,28,29,
,31
,33,34,
,36,37,
,39,40,41
,43,44,
,46,47,
,49,50
Sheet No. 2
Replacing all Previous Sheets
SUEZ WATER IDAHO INC.
lssued Per IPUC Order No. XXXX
Effective -,2020
lssued by SUEZ WATER IDAHO lNC.
Marshall Thompson, Vice President
8248 West Victory Road, Boise, ldaho
Caee Nos. SUZ-W-2GOI
PETITIONAIID REQUEST FOR MODIFIED PROCEDURE
D(HIBITB-Page3
Sheet No. 27
Replacing all Previous Sheets
SUEZ
Exhibit A
INDIVIDUAL RESIDENCE
MAIN EXTENSION AGREEMENT
C.E.A. No.
AGREEMENT between SUEZ WATER IDAHO lNC., hereinafter called
"Company'', and , hereinafter called the "Applicant".
NOW, THEREFORE, in consideration of the premises and of the mutual
covenants and agreements herein contiained, THE PARTIES HERETO AGREE AS
FOLLOWS:
1. The Applicant(s) hereby applies to the Company for the said extension for its
system, and the Company agrees to construct the said extension upon the terms and
conditions hereinafter set forth in accordance with its Rules and Regulations. Said
extension is described as follows and shown on the attached sketch which is hereto
made a part of this Agreement:
2. Applicant shall contribute to the Company upon the execution hereof the sum of
Dollars ($ ) which amount the Company estimates to be the cost
of installing the said "on-site" extension as described above including overhead cost to
the Company such as supervision, engineering, accounting, legal expenses and the
cost of obtaining any necessary governmental permits. Any difference between the
actual cost and the amount contributed, shall be shown as a revision of the amount of
contribution, and shall be payable within thirty (30) days of submission. The actual cost
thus finally determined shall be referred to as the "contributed cost of on-site facilities". !f
it is necessary to adjust the amount of Applicant's contribution, in accordance with the
terms of this paragraph, a supplemental memorandum will be prepared setting forth the
"contributed cost of on-site facilities" and sha!! be attached hereto and made a part
hereof.
3. Applicant shall contribute to the Company upon the execution hereof the
sum of Dollars ($ ) which amount the Company estimates to be
the cost of installing the said off-site main extension including overhead cost to the
Company such as supervision, engineering, accounting, legal expenses and the cost of
obtaining any necessary governmental permits. Any difference between the actual cost
and the amount contributed shall be shown as a revision of the amount contributed and
shall be payable within thirty (30) days of submission. The actual e,ost thus finally
determined shall be referred to as the "contributed cost of off-site mains". If it is
necessary to adjust the amount of Applicant's advance, in accordance with the terms of
this paragraph, a supplemental memorandum will be prepared setting forth the
"contributed cost of off-site mains" and shall be attached hereto and made a part hereof
lssued Per IPUC Order No._
Effective - )o(xx, xx, xxxx
lssued by SUEZ WATER IDAHO lNC.
Marshall Thompson, Vice President
8248 West Victory Road, Boise, ldaho
Case Nos. SUZ-W-20-01
PETITION AT.ID REQUEST FOR MODIFIED PROCEDURE
P(HIBITB-Page4
Sheet No. 33
Replacing all Previous Sheets
SUEZ WATER IDAHO INC.
RESIDENTIAL, MULTIPLE FAMILY HOUSING, COMMERCIAL, INDUSTRIAL, OR
MUNICIPAL DEVELOPMENT WATER MAIN EXTENSION AGREEMENT (continued)
B. WHERE THE APPLICANT HAS ASKED THE COMPANY TO PERFORM THE
EXTENSION
1. Applicant hereby applies to the Company for the said Extension of its system and
the Company agrees to construct the said Extension upon the terms and conditions
hereinafter set forth and in accordance with its Rules and Regulations.
2. Applicant shall contribute to the Company upon the execution hereof the sum of
Dollars ($ ) which amount the Company estimates to be the cost
of installing the said "on-site' Extension as described above including overhead cost to
the Company such as supervision, engineering, accounting, legal expenses and the cost
of obtaining any necessary governmental permits. Any difference between the actual
and the amount contributed shall be shown as a revision of the amount of contribution
and shall be payable within thirty (30) days of submission. The actual cost thus finally
determined shall be referred to as the "contributed cost of on-site facilities". lf it is
necessary to adjust the amount of Applicant's contribution, in accordance with the terms
of this Paragraph, a supplemental memorandum will be prepared setting forth the
"contributed cost of on-site facilities" and shall be attached hereto and made a part
hereof.
3. Applicant shall contribute to the Company upon the execution hereof the sum of
Dollars ($ ) which amount the Company estimates to be the
cost of installing the said off-site main Extension including overhead cost to the
Company such as supervision, engineering, accounting, legal expenses and the cost of
obtaining any necessary governmental permits. Any difference between the actual and
the amount contributed shall be shown as a revision of the amount contributed and shall
be payable within thirty (30) days of submission. The actual cost thus finally determined
shall be referred to as the "contributed cost of off-site mains". lf it is necessary to adjust
the amount of Applicant's advance, in accordance with the terms of this Paragraph, a
supplemental memorandum will be prepared setting forth the "contributed cost of off-site
mains" and shall be attached hereto and made a part hereof.
4. The Company will use its best efforts to commence and carry to completion as
soon as possible the installation of said Extension, having in mind however, delays which
may be occasioned by weather, acts of God or the public enemy, strikes or other matters
not within its control.
5. The amount of "contributed costs for on-site" facilities shall be retained by the
Company and booked as a contribution in aid of construction.
6. The amount of "contributed costs for off-site mains" shall be retained by the
Company and booked as a contribution in aid of construction. However, an applicant for
lssued Per IPUC Order No
Effective - xxxx, xx,2020
lssued by SUEZ WATER IDAHO lNC.
Marshall Thompson, Vice President
8248 West Victory Road, Boise, ldaho
Case Nos. SUZ-W-2OOI
PETITION AND REQUEST FOR MODIFIED PROCEDURE
D(HIBITB-Page5
Sheet No. 36
Replacing all Previous Sheets
SUEZ WATER INC.
RESIDENTIAL, MULTIPLE FAMILY HOUSING, COMMERCIAL, INDUSTRIAL, OR
MUNICIPAL DEVELOPMENT WATER MAIN EXTENSION AGREEMENT (continued)
will require its contractor to comply, via its contract with contractor, with all terms and
conditions set forth herein.
3. The Company estimates that ($ ) will be the cost of
installing the said "reilg" Extension as described above including overhead cost to the
Company such as supervision, engineering, accounting, and legal expenses. Any
difference between the actual and the amount contributed shall be shown as a revision
of the amount of contribution and shall be payable within thirty (30) days of submission.
The actual cost thus finally determined shall be referred to as the "contributed cost of on-
site facilities". lf it is necessary to adjust the amount of Applicant's contribution, in
accordance with the terms of this Paragraph, a supplemental memorandum will be
prepared setting forth the "contributed cost of on-site facilities" and shall be attached
hereto and made a part hereof.
4. The Company estimates that ($ ) will be the cost of
installing the said "gfEi[g" Extension as described above including overhead cost to the
Company such as supervision, engineering, accounting, and legal expenses. Any
difference between the actual and the amount contributed shall be shown as a revision
of the amount of contribution and shall be payable within thirty (30) days of submission.
The actual cost thus finally determined shall be referred to as the "contributed cost of off-
site facilities". lf it is necessary to adjust the amount of Applicant's contribution, in
accordance with the terms of this Paragraph, a supplemental memorandum will be
prepared setting forth the "contributed cost of off-site facilities" and shall be attached
hereto and made a part hereof.
5. The Applicant agrees to advance to the Company, simultaneously with the
execution of this Agreement, the sum of
Dollars which
represents the cost of the Company's overhead fees, and such items as inspection and
testing. Such amount shall be subject to reconciliation after all such costs are known
and the difference shall be either refunded to or collected from the Applicant.
6. The installation shall be subject to the Company's inspection, testing and acceptian@,
however, absence of such inspection or testing by the Company shall not relieve the
Applicant of any of its obligations. The Company shall require the Applicant and the
Applicant's contractor (via its contract with the Applicant) to wanant the work in accordance
with Paragraph 15 below. The Company shall further require the Applicant and the
Applicant's contractor (via its contract with the Applicant) to maintain insurance as follows:
)
lssued Per IPUC Order No.-
Effective - June 1,2018n<xx, xx,2020
lssued by SUEZ WATER IDAHO !NC.
Marshall Thompson, Vice President
8248 West Victory Road, Boise, ldaho
Caee Noe. SUZ-W-20{1
PETITION A}.ID REQUEST FOR MODIFIED PROCEDURE
P(HIBITB-Pageo
Sheet No. 43
Replacing all Previous Sheets
SUEZ WATER IDAHO INC.
RES]DENTIAL OR MULTIPLE FAMILY HOUSING
NON-CONTIGU OUS WATER SYSTEM AG REEM ENT (continued)
3. Company shall have the right to epnduct, review and eonfirm, to Company's
satisfaction, test results in connection with any and all wells, soil tests, engineering tests,
environmental surveys, plans and specifications and/or record drawings, and related
studies of the Water Facilities deemed necessary by Company to determine the
suitability, in Company's sole discretion, of the Water Facilities for expansion. Should an
applicant propose a Development requiring special facilities, upgrades, modifications or,
if the Development is deemed by the Company to be unusual or burdened with special
needs, that existing water system will be looked at independently and the terms of the
acquisition will be set forth in an amendment hereto.
[Add the following paragraph if Owner is to construct the Water Facilities:
4. lmmediately after the execution of this Agreement, Owner shall diligently
proceed to obtain all governmental approvals including, without limitation, all necessary
permits, information, and consents required by the appropriate federal, stiate, or local
governmental authorities, agencies, or officials to permit the construction, operation and
maintenance of the Water Facilities. As soon as practicable, after receipt of such
governmental approvals, Owner shall diligently proceed to construct the Water Facilities,
as described, or to be described, in the Water Facilities plans and specifications
prepared and sealed by a licensed professional engineer and reviewed and approved by
the parties hereto. The cost of obtaining all governmental approvals, the cost of such
plans and specifications, and the cost of the construction of the Water Facilities shall be
borne by Owner at Owner's sole cost and expense. At the sole discretion of Company,
inspection of the construction of the Water Facilities shall be conducted by Company.
Based on proper advice and consideration, Company may alter the performance from
strict adherence to such plans and specifications if based on job site experience, or if
adherence to such plans and specifications becomes impractical or infeasible under the
circumstances. Company shall be the sole judge as to the adequacy of the Water
Facilities. The parties hereto shall cooperate fully with each other and all other parties in
connection with each other's efforts hereunder.l
[Add the following paragraphs if Company is to construct the Water Facilities:4. Owner shall contribute to Company upon the execution hereof the sum of
#:lgilt-,'t*'..,J.Yl}"j,3l[::l'"?:[lB3l;;:ff ::,'.rb,ethe
supervision, engineering, ac@unting, legal expenses and the cost of obtaining any
necessary governmental permits. Any difference between the actual and the amount
contributed shall be shown as a revision of the amount contributed and shall be payable
within thirty (30) days of submission. The actual cost thus finally determined shall be
refened to as the "contributed cost of facilities.' lf it is necessary to adjust the amount of
Owner's contribution, in accordance with the terms of this paragraph, a supplemental
Memorandum will be prepared setting forth the "contributed cost of facilities" and shall be
attached hereto and made a part hereof. The amount of said "contributed cost for
lssued Per IPUC Order No
Effective - xxxx, n<,2020
lssued by SUEZ WATER IDAHO !NC.
Marshall Thompson, Vice President
8248 West Victory Road, Boise, ldaho
Case Nos. SUZ-W-20-01
PETITION AND REQUEST FOR MODIFIED PROCEDURE
B(HIBITB-Page7
Sheet No. 45
Replacing all Previous Sheets
SUEZ WATER IDAHO INC.
RESIDENTIAL OR MULTIPLE FAM!LY HOUSING
NON-CONTIGUOUS WATER SYSTEM AG REEM ENT (conti nued)
construction of the Water Facilities. Owner shall warrant to Company in vwiting that the
Water Facilities has been constructed in accordance with the plans and specifications
reviewed and approved by Company, and shall provide Company with as-built record
drawings of the Water Facilities. Owner shall also warrant the Water Facilities against
defects in construction for a period of one (1) year from execution of such warranty.
6. Owner shall contribute to Company upon the execution hereof the Water
Facilities as described above, and shall also contribute overhead costs to Company such
as supervision, engineering, accounting, legal expenses and the cost of obtaining any
necessary governmental permits. The actual cost of contribution shall be referred to as
the "contributed cost of facilities." The Source of Supply costs shall be referred to and be
booked as an advance in aid of construction. All other costs shall be referred to, and be
booked as, a contribution in aid of construction.
7. Upon conveyance of the Water Facilities to Company, Company shall be
solely responsible for management, maintenance and operation of the Water Facilities.
The parties agree that the Water Facilities and associated permits and licenses shall be
managed and operated by Company in a manner which is comparable to and consistent
with Company's management and operation of its other water utility facilities within the
State of ldaho. The parties further acknowledge that Company shall serve all residential
customers as a public utility, subject to the jurisdiction of the IPUC.
8. Owner shall prepare and record (prior to the sale of any lot in the Project)
perpetual restrictive covenants which include, without limitation, that the Water Facilities
is or shall be owned and operated by Company. Company shall cooperate with Owner
in the preparation of such restrictive covenants and shall have the right to approve such
restrictive covenants prior to recordation. Such approval shall not be unreasonably
withheld. Owner shall cause a notation to be made on any subdivision plat of the Project
that states that the Water Facilities is or shall be owned and operated by Company.
9. lf the Project is served by a non-potable inigation System, appropriate
backflow prevention device(s) shall be required to be installed at no cost to Company.
Owner shall prepare and record (prior to the sale of any lot in the Project) perpetual
restrictive covenants which include, without limitation, that cross-connections are
prohibited, and shall delegate to Company the right to inspect such non-potable irrigation
system, enforce such restrictive covenants, and to remove any such cross-connections.
Company shall cooperate with Owner in the preparation of such restrictive covenants
and shali have the right to approve such restrictive covenants prior to recordation. Such
approval shall not be unreasonably withheld.
10. An amount not to exceed Eight Hundred Dollars ($800.00), as more fully
describedon@LNo2attachedhereto,whichissubjecttomodificationas
Adjusted Average Residential Revenue may change with future rate activity, shall be
paid by Company to Owner as soon as practicable after each lot is connected to the
lssued Per IPUC Order No.XXXX
Effective - XXXX, Y\X,2020
lssued by SUEZ WATER IDAHO !NC.
Marshall Thompson, Vice President
8248 West Victory Road, Boise, ldaho
Case Nos. SUz-w-2G01
PETITIONAI,ID REQUEST FOR MODIFIED PROCEDURE
DfilBlTB-Page8