20200806Amended Petition.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- I 300
mcc(d givenspursley. com
pnc (E qi venspurs I ey. com
Attorneys for SUEZ Water ldaho Inc
BEFORE THE IDAHO PT'BLIC UTILITIES COM]VIISSION
i.,9.;EiIV.EB
:ti* &ii$ -5 F.lt ll: 29
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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
PETITION AI\D REQUEST FOR
MODIFIED PROCEDURE
(ERRATA BEING FILED TO
INCORPORATE DCIIBIT A)
SUEZ Water Idaho Inc. ("SUEZ" or o'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 tariff, Schedule . ln support thereof, the Company respectfully shows as follows:
FACTUAL BACKGROUND
SUEZ is a water corporation within the meaning of the ldaho 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 Wergn IDAHo INC.,S PETITION Fon AuruonzATION TO ETNTATNETT COITECTION OF GROSS-UP PEYUTNTS
AssocrArED WrrH CoNrRrBUrroNS IN AID OF CoNSTRUCTIoN (Ennere BeING FILED To INCoRPoRATE ExHBIT A)
-l
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 l, 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 WerBn IDAHo INC.'s PETITIoN FoR AurHoRzATroN To EmrlrNers Cor-lscnoN OF GRoss-Up payueNm
Assocmrso Wnu ConrnIBUrIoNS IN AD OF CoNSrRUCrroN (Ennerl BrrNc Frmn To Ir.rcoRpoRArE Exnmrr A)
-2
acconnt for the taxability of the contributions. Id. at 5. SUEZ's tariff was revised accordingly
effective June l, 2018 to include a table illustrating 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 Werrn Ioago INc.'s PETITIoN FOn AurgonzATIoN To ELIMINATE CoII-EcuoN Op Gnoss-Up PAYMENTS
AssocrArED WrrH CoNTRrBUrroNs IN An Or CoNSrRUCrroN (ERRATA BErNc Frr-Bo To INconponere Exumn A)
-J
r. resp.nd i::1_.-*:.. :::ffiffiT:::',"):n,.,he
method approved rn 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 through 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 tarriffattached 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 AI\D SERVICE OF PLEADINGS
Communications and service of pleadings in this matter should be sent to the following:
Mr. Marshall Thompson
SUEZ Water Idaho lnc.
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(ii givenspursley. com
SUEZ Waren IDAHo INC.'s PertrtoN FoR AurHoRzATroN To ELnrrNArE CoLLECTToN OF GRoss-Up PeyurNrs
Assocnrpn WITH CoNTRIBUTIoNS IN AD Op CoNsrnucrroN (Ennere BsrNc Fn-rn To INCoRpoRera Exnmn A)
-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 Modified 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 tariff as proposed in Exhibits A and B hereto;
and
4. Granting such other and further relief as it appropriate in the circumstances.
Respectfully submiued this 8th day of August,2020.
SUEZ Water Idaho Inc.
ry,By:
Michael C. Creamer
Preston N. Carter
Givens Pursley LLP
Attorneys for Petittoner
SI.,EZ WATER Ioago INc.,s PETITIoN FoR AUTHoRZATION TO ET-IUTNITT COU-ECTION OF GROSS.UP PAYMENTS
AssocrATED WrrH CoNTRtsurroNS IN An Or CoNsrRUCrIoN (Ennara BemG FILED To INconponerE ExHBIT A)
-5
Case Nos. SUZ-W-20-01
PETITION AND REQUEST FOR MODIFIED
PROCEDURE
EXHIBITA
STRIKE OUT TARIFF PAGES
Case Nos. SUZ-\ /-20{1
PETMON AND REQUEST FOR MODIF]ED PR@EDURE
EGIBITA- Page 1
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. _X)O(X
Effective - Januaqf-$XXXX, XX, 2020
lssued by SUEZ WATER IDAHO lNC.
Marshall Thompson, Vice President
8248 West Victory Road, Boise, ldaho
Case Noc. St Z-t/tL2O01
PENNON AT{D REQUEST FOR MODIFIED PROCEDURE
E(HIBITA- Page2
TABLE OF CONTENTS
Title Page
Table of Contents
Schedules of Rates
Schedule Number 1 General Metered Service
Schedule Number 14 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
Discontinuance of Service
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, Residential, Multiple Family Housing,
Commercial, lndustrial, or Municipal Development
Residential or Multiple Family Housing Non-contiguous Water System
Agreement
I
Sheet Number
1
2
3
4
5
5A
6
7I
9,9A,
11
12
01
12,13,14
14
14,15
15
16
16,17
17
17,18
1€19
1819
1+ 19,20
?p.21
?p.21
+21,22
2+22,23
n23,24
223,24
&24,25
%*26
27,28,29,
30,31
32,33,34,
35,36,37,
38,39,40,41
42,43,44,
45,46,47,
48,49,50.S+
Sheet No. 2
Replacing all Previous Sheets
SUEZ WATER IDAHO !NC.
lssued Per IPUC Order No. _xxxx
Effective -+anuary+€, 2020
lssued by SUEZ WATER IDAHO lNC.
Marshall Thompson, Vice President
8248 West Victory Road, Boise, ldaho
Case Nos. SUZ-W20{1
PETITION AND REQUEST FOR MODIFIED PROCEDURE
E(HIBITA- Page 3
Sheet Ne,27
eentributien and the future tax deduetibility ef the resulting aeset, The caleulatien ef the
ing-mann€r,
Tax Gross Up Factor
Calcdation of Tax Gross Up Factor:
F=(1-(NPV/C)y(1-r)
SUEZWater ldaho krc.
1.2156Gross Up Factor =
hitial Tax
1.00
1.22
9.3073o/o
26.47o/o
0.32
Corstrrfon Cost (C)
Customer Deposit with Tax Gross UP
l,let of Tax Rate of Retum
Combined 21% Flf & SIf Rate (T) =
Calcr1ation of Net of Tax Rate of Retum and Combired Federal trcome Tax (Fl'I) and State Tax (SIT) Rate:
% of Capital Embedded WeightedStructure Cost Aw. Cost47.00o/o 4.85o/o 2.28o/o
53.00o/o 9.75o/o 5.17o/o100.00% 7.45o/o
Rate of
Retum
2.28o/o
7.O3o/o
9.31o/o
of tax depreciation
Water
of Cspital Structure
Component of Capital Structure
Fffand State Rate +
+
lssued Per IPUC Order No
Effective - June 1,2018
lssued by SUEZ WATER IDAHO lNC.
Gregory P. Wyatt, Vice President
8248 West Victory Road, Boise, ldaho
Case Nos. SUZ-W-20{1
PETITION AtlD REQUEST FOR MODIFIED PROCEDURE
E(HlBlTA- Page4
Sheet No. 27
Replacing all Previous Sheets
SUEZ WATER IDAHO !NC.
Exhibit A
INDIV!DUAL 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 contained, THE PARTIES HERETO AGREE AS
FOLLOWS:
1. The Applican(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
cpnditions 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, iReeme{atq 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". 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,ineeme4a6legal 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 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.
lssued by SUEZ WATER IDAHO INC.
lssued Per IPUC Order No. €i+eg€ry+-Wya{+MarshallThompson, Vice President
Effective - June++e€xxxx, xx, xxxx 8248 West Victory Road, Boise, ldaho
pE roN AND REeuEsr FoR,f;f'#S ;H6ffiffiI
E(HIBITA- Page 5
Sheet No. 33
Replacing all Previous Sheets
SUEZ WATE 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 ($ ) wttich amount the Company estimates to be the cost
of installing the said "on-site" Extension as described above including overhead cost tojneeme+a* legal expensesthe Company such as supervision, engi neering, accounting,
and the cost of obtaining any necessary governmental permits. Any difference between
the actualand 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".
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
!f
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, ac@unting,ineeme{a* 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 gfuilg 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 "eontributed c,osts for on-site" facilities shall be retained by the
Company and booked as a contribution in aid of construction.
O. 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 by SUEZ WATER IDAHO lNC.
lssued Per IPUC Order No._ gregeef##yattMarshall Thompson, Vice President
Effective - Jun€-+40{Sxxxx, xx,2020 8248 West Victory Road, Boise, ldaho
Caso Nos. SUZ-W-20{1
PErtroN Al.rD REQUEST FoR no",}EJ| J#rtiJ:5
Sheet No. 36
Replacing all Previous Sheets
SUEZ WATER IDAHO INC.
RESIDENTIAL, MULTIPLE FAMILY HOUSING, COMMERCIAL, !NDUSTRIAL, 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 "on-s[!g" Extension as described above including overhead cost to the
Company such as supervision, engineering, accounting, ineeme-tax;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.TheCompanyestimatesthat-($)willbethecostof
installing the said usff-sit€' Extension as described above including overhead cost to the
Company such as supervision, engineering, accounting,ineeme-tax; and legal expenses
Any ditference between the actual and the amount contributed shall be shown as a
revision of the amount of contribution and shall be payable within thirty (30) days of
submission. The actual cost thus finally determined shall be referred to as the
"contributed cost of off-site facilities". lf it is necessary to adjust the amount of
Applicant's contribution, in accordance with the terms of this Paragraph, a supplemental
memorandum will be prepared setting forth the "contributed cost of off-site facilities" and
shall be attached hereto and made a part hereof.
5. The Applicant agrees to advance to the Company, simultaneously with the
execution of this Agreement, the sum of
Dollars ($) 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 acceptiance,
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 mntract with the Applicant) to maintain insurance as follows:
lssued by SUEZ WATER IDAHO lNC.
lssued Per IPUC Order No._ eregoryWl,Aa{tMarshallThompson, Vice President
Effective- June 1, 2018xxxx,xx, 2020 S24SWestVictory Road, Boise, ldaho
pEn,oN AND REouESr r"- ;;f#S';Xf"H$ll
DfilBlTA - Page 7
Sheet No. 43
Replacing all Previous Sheets
SUEZ WATER !NC.
RESIDENTIAL OR MULTIPLE FAMILY HOUSING
NON-CONTIGUOUS WATER SYSTEM AGREEM ENT (conti nued)
3. Company shall have the right to conduct, review and confirm, 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
irermits, 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 app_roved by
the parties hereto. The cost of obtaining all governmental approvals, t[e 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
lAdd the following paragraphs if Company is to construct the Water Facilities:
4 Owner shall upon the execution hereof the sum of
Dol amount Company estimates to be the
ny
ch
cost nstalling said overhead cost to Company such as
I srpervision,engi neeri ng, accou nti ng,ineeme{ax, legal expenses and the cost of
obtaining any necessary governmental permits. Any difference between the actual and
the amount contri buted 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 facilities.' !f 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
faiiiities" and shall be attached hereto and made a part hereof. The amount of said
"contributed cost for
lssued by SUEZ WATER IDAHO lNC.
lssued Per IPUC Order No._ gregory#'l#lat+Marshall Thompson, Vice President
Effective - Jrn€F++e{€xxxx, xx,2020 8248 West Victory Road, Boise, ldaho
Case Nos. SUZ-W-20{1
PETITION AND REQUEST FOR MODIFIED PROCEDURE
D(HIBITA- Page I
Sheet No. 45
Replacing all Previous Sheets
SUEZ WATER rNc.
RESIDENTIAL OR MULTIPLE FAMILY HOUSING
NON-CONTI cU OUS WATER SYSTEM AG REEM ENT (continued)
construction of the Water Facilities. Owner shall warrant to Company in writing that theWater 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, jReeme-tatq 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. Ail 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 bemanaged 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 shill 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 bi, Company.
9. !f the Project is served by a non-potable irrigation 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 areprohibited, gnd shall delegate to Company the right to inspect such non-potable irrigation
system, enforce such restrictive covenants, and to remove any such cross-connectinns.
Company shall cooperate with Owner in the preparation of suLh restrictive covenants
and shall 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
described on Attachment No.2 attached hereto, which is subject to modification as
Adjusted^Average Residential Revenue may change with future rate activity, shall bepaid by Company to Owner as soon as practicable after each lot is connected to the
lssued by SUEZ WATER IDAHO lNC.
lssued Per IPUC Order No.XXXX e+egoryryya+tMarshall Thompson, Vice President
Effective - June++g18xxxx, xx,2020 8248 West Victory Road, Boise, ldaho
pE rloN AND REeuESr FoR f;f,JIB ;HffiXfll
B(HIBITA- Page I
Case Nos. SUZ-W-20-01
PETITION AND REQUEST FORMODIFIED
PROCEDURE
EXHIBIT B
CLEAN TARIFF PAGES
Gase Nos. SUZ-W-20{1
PETNON AI.ID REOUEST FOR MODIFIED PROCEDURE
E(HIBITB-PagB 1
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, )A,2020
lssued by SUEZ WATER IDAHO lNC.
Marshall Thompson, Vice President
8248 West Victory Road, Boise, ldaho
Case Nos. SUZ-I 120-01
PETITION AND REQUEST FOR MODIFIED PROCEDURE
E(HIBITB-Page2
Sheet No. 2
Replacing all Previous Sheets
SUEZ WATER IDAHO INC.
TABLE OF CONTENTS
Tifle Page
Table of Contents
Schedules of Rates
Schedule Number 1 General Metered Service
Schedule Number'tA 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
Discontinuance of Service
Customer's Deposits
Builder's Temporary Service
Fire Protection
Miscellaneous
Definitions - Water Service
Definitions - Water Main Extension
Water Main Extensions - Genera!
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, Residential, 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
7I
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
23,24
24,25
26
27,28,29,
30,31
32,33,34,
35,36,37,
38,39,40,41
42,43,44,
45,46,47,
48,49,50
22,23
23,24
lssued Per IPUC Order No. )O(XX
Effective -,2020
Issued by SUEZ WATER IDAHO lNC.
Marshall Thompson, Vice President
8248 West Victory Road, Boise, ldaho
Case Noe. SUZ-\,G2OO1
PETITION AT.ID REQUEST FOR MODIFIED PROCEDURE
E(HIBITB-Page3
Exhibit A
INDIVIDUAL RESIDENCE
MAIN EXTENSION AGREEMENT
C.E.A. No.
AGREEMENT between SUEZ WATER IDAHO !NC., hereinafter called
"Company", and , hereinafter called the "Applicant"
NOW, THEREFORE, in consideration of the premises and of the mutual
covenants and agreements herein contained, 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 "cpntributed 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 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 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
lssued Per IPUC Order No
Effective - xxxx, xx, xxxx
lssued by SUEZ WATER IDAHO lNC.
Marshall Thompson, Vice President
8248 West Victory Road, Boise, ldaho
Case Noe. SUZ-\,t/.2O-0l
PETITION Al.lD REQUEST FOR MODIFIED PROCEDURE
DGIBITB-Page4
Sheet No. 27
Replacing all Previous Sheets
SUEZ WATER IDAHO INC.
Sheet No. 33
Replacing all Previous Sheets
SUEZ WATER tNc.
RES!DENTIAL, 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 onstruct 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
E.tJ#i:i;h"3T:S1,il:::Sffi1lt::iil"ii:H3?'ff.i?"o
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 ambunt 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 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.
S. The amount of "contributed costs for ry!!e" 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 by SUEZ WATER IDAHO lNC.
Marshall Thompson, Vice President
8248 West Victory Road, Boise, ldaho
Case Noe. SUZ-W-20{1
PETITION AI.ID REQUEST FOR MODIF]ED PROCEDURE
E(HIB]TB-Page5
lssued Per IPUC Order No.-
Effective - xxxx, xx,2020
Sheet No. 36
Replacing all Previous Sheets
SUEZ WATER IDAHO !NG.
RESIDENTIAL, MULTIPLE FAMTLY 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 uon-site' 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 usff-site" 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 ($) which
represents the cost of the Company's overhead fees, and such items as inspection andtesting. Such amount shall be subject to reconciliation after all such costs are known
and the difference shall be either refunded to or collected from the Applicant.
6. The installation shall be subject to the Company's inspection, testing and acceptiance,
however, absence of such inspection or testing by the Company shall not relieve the
Applicant of any of its obligations. The Company shall require the Applicant and the
Applicant's contractor (via its contract with the Applicant) to warrant the work in accordance
with Paragraph 15 below. The Company shall further require the Applicant and the
Applicant's contractor (via its contract with the Applicant) to maintiain insurance as follows:
lssued Per IPUC Order No._
Effective - June 1 , 2018xxxx, xx, 2020
lssued by SUEZ WATER IDAHO !NC.
Marshall Thompson, Vice President
8248 West Victory Road, Boise, ldaho
pE roNAND REeuEsr ro*,fff'Ili ;Xffi$ll
E(HlBlTB-Page6
Sheet No. 43
Replacing all Previous Sheets
SUEZ WATER IDAH tNc.
RESIDENTIAL OR MULTIPLE FAMILY HOUSING
NON-CONTIGU OUS WATER SYSTEM AGREEM ENT (conti n ued)
3. Company shall have the right to conduct, review and confirm, 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
]rermits, information, and consents required by the appropriate federal, state, 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 app-roved by
the'parties hereto. The cost of obtaining all governmental ?pprovals, t[e coqt of such
plaris 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.
Baied 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.]
[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
#31'3li!Liiiu'""J#U'*3i[::Tg:ilBtl;;lT;:",'"i"b,ethe
supervision, engineering, accounting, legal expenses and the cost of obtaining any
necessary governmental permits. Any difference between the actual and the amount
contribut6d snatt 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 toa's 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, xx,2020
lssued by SUEZ WATER IDAHO !NC.
Marshall Thompson, Vice President
8248 West Victory Road, Boise, ldaho
Case Nos. SUZ-\rs2O{l
PETITION A}.ID REQUEST FOR MODIFIED PROCEDURE
E(HlBlTB-Page7
Sheet No. 45
Replacing all Previous Sheets
SUEZ WATER tNc.
RESIDENTIAL OR MULTIPLE FAMILY HOUSING
NON-CONTIGUOUS WATER SYSTEM AG REEM ENT (conti nued)
construction of the Water Facilities. Owner shall warrant to Company in writing that theWater Facilities has been constructed in accordance with the plans and specifi-cations
reviewed and approved by Company, and shall provide Company with as-built record
drawingg of the Water Facilities. Owner shall also warrant the Water Facilities againstdefects 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, enginee{ng, accounting, legal expenses and the cost of obtaining -any
necessary governmental permits. The actual cost of contribution shall be referred to is
the "contributed cost of facilities." The Source of Suppty costs shall be referred to and bebooked 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 bemanaged 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 Ownerin the preparation of such restrictive covenants and shall have the right to approve such
restrictive covenants prior to recordation. Such approval shall not be unreasonablywithheld. 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 bi Company.
9. lf the Project is served by a non-potable irrigation System, appropriate
backflow prevention device(s) shall be required to be installed at ho cost tb 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 areprohibited, gnd shall delegate to Company the right to inspect such non-potable irrigation
s_ystem, enforce such restrictive covenants, and to remove any such crois-connectibns.
Company shall cooperate with Owner in the preparation of such restrictive covenants
and shall have the right to approve such restrictive covenants prior to reeordation. Such
approval shall not be unreasonably withheld.
10. An amount not to exceed Eight Hundred Dollars ($800.00), as more fully
described on Attachment No.2 attached hereto, which is subject to modification as
Adjusted_Average Residential Revenue may change with future rate activity, shall bepaid 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 lNC.
Marshall Thompson, Vice President
8248 West Victory Road, Boise, ldaho
Caee Nos. SUZ-W-2G01
PETITION AND REQUEST FOR MODIFIED PROCEDURE
E(HIBITB-PageB