20200820SUZ 1-3 to Staff.pdf

Michael C. Creamer (ISB No. 4030)
Preston N. Carter [ISB No. 8462)
Givens Pursley LLP
601 W. Bannock St.
Boise, lD 83702
Telephone: [phone]
Facsimile: (208) 388-1 300
mcc@ eivenspursley. com
prestoncarter@ qivenspursley. com
I 524521 3 _l .docx [30. I 7 I ]
Attorneysfor SUEZ Water ldaho Inc.
BEFORE THE IDAIIO PTJBLIC UTILITIES COMMISSION
;:Iil[IVAD
lr?rl iiu0 20 PH 2: 35
- - r,rrl tfl:r - :,"(lii.Liu
, I t,. ."t li"coul'tiscqloH
IN THE MATTER OF THE PETITION OF
SUEZ WATER IDAHO, tNC. FOR
AUTHORZATION TO ELIMINATE
COLLECTION OF GROSS-UP PAYMENTS
ASSOCIATED WITH CONTRIBUTIONS IN
AID OF CONSTRUCTION
CaseNo. SUZ-W-20-01
suEZ WATER IDAHO, INC.',S
RESPONSE TO FIRST
PRODUCTION REQUEST OF THE
COMMISSION STAFF
SUEZ Water Idatro Inc. ("SUEZ" ot "Company"), it response to the First Production
Request of the Commission Staff dated August 3,2020 submits the information below.
Sunz's RrspoNse ro Fnsr PnooucrtoN ReQUEsr oF THE Couutsstott Sr,ur - I
SUEZ Water Idaho Inc.
suz-w-20-01
REQUEST NO. 1: How many developers have opted to form and operate their own small
water systems to serve their developments since the tariff change on June 1, 2018 that allowed the
Company to gross-up the amount it charges to developers to account for the taxability of
contributions in aid of construction ("CIAC")?
RESPONSE TO REQUEST NO. 1:
The response to this Production Request is sponsored by Cathy Cooper, Director of
Engineering, SUEZ Water Idaho Inc.
Based on SUEZ customer contacts described in the Direct Testimony of Cathy Cooper
and attached Exhibit 3, SUEZ has knowledge of the following.
o One development that significantly decreased its originally proposed home count
from twenty homes to three homes to be served by individual wells. This
development is identified as the first "Small Developer" on the Partial List of
Customers provided in Confidential Exhibit No. 3 to the Direct Testimony of
Cathy Cooper.
o Another developer chose to rehabilitate its existing well because the developer
determined it would be too expensive to connect to the SUEZ system with the
additional CIAC tax gross-up charges included in developer costs. This
development is not identified on the Partial List of Customers (because of timing)
provided in Confidential Exhibit No. 3 to the Direct Testimony of Cathy Cooper,
but the development includes 3l individual residences and two commercial
properties.
o Multiple individual homeowners (our latest count is 2l) have opted to drill their
own wells or rehabilitate their existing wells because they couldn't afford to hook
SUEZ,s RESPoNSE To FIRST PRoDUCTIoN REQUEST oF THE CouTTaIssIoN STATT - 2
SUEZ Water Idaho Inc.
suz-w-20-01
o
up. These include those homeowners with identified well issues on the Partial List
of Customers provided in Confidential Exhibit No. 3 to the Direct Testimony of
Cathy Cooper, and in addition a few more recent similar customer calls.
One large development that investigated constructing its own water system in lieu
of connecting to SUEZ, but then decided to connect to the City of Eagle
municipal system instead. This development is identified as the first "Large
Development" on the Partial List of Customers provided in Confidential Exhibit
No. 3 to the Direct Testimony of Cathy Cooper.
SuEz's REspoNsE To Fnsr PnooucrloN REeuEsr oF TIIE Cotrrulssrcu Srnrr - 3
SUEZ Water Idaho Inc.
suz-w-20-01
REQUEST NO. 2: How many developers have opted to receive service from a municipal
water system for their developments since the tariff change on June l, 2018 that allowed the
Company to gross-up the amount it charges to developers to account for the taxability of CIAC?
RESPONSE TO REQUEST NO.2:
The response to this Production Request is sponsored by Cathy Cooper, Director of
Engineering, SUEZ Water Idaho Inc.
SUEZ has knowledge of one large developer that it understands is planning to receive
service from a the City of Eagle water system for most of the remainder of its development. This
is the same developer identified in SUEZ's response to StaffProduction Request No. 1. A
smaller development at the edge of SUEZ's service area also opted to receive service from the
neighboring municipal water system operated by the City of Meridian. This development is not
included in the Partial List of Customers provided in Confidential Exhibit No. 3 to the Direct
Testimony of Cathy Cooper, but included a 5 acre parcel.
Sunz's REspoNsE To Fm.sr PRoDUCTToN REeuEsr oF THE CouulsstoN Srerr - 4
SUEZ Water Idaho lnc.
suz-w-20-01
REQUEST NO. 3: Please provide a copy ofthe strike-ouUunderline version ofthe current
tariffidentified as Exhibit A in the Petition.
RESPONSE TO REQUEST NO.3:
The response to this Production Request is sponsored by Jannila Cary, Director of
Finance, SUEZ Water Idalro Inc.
The requested Exhibit A has been submitted to the IPUC on August 6,2020 with SUEZ's
"Erratato Petition" to incorporate the missing Exhibit A to the original Petition. A true and
correct copy of Exhibit A as filed is also being produced with this Response.
SuEz's ItEspoNsE ro Fnsr PRoDUcTIoN RnQursr or rHe Cot IuIssIoN Srerr - 5
SLJEZ lYatcr Idaho Inc.
suz-w-20-01
Case Nos. SUZ-W-20-01
PETITION AND REQUEST FORMODIFIED
PROCEDURE
EXHIBIT A
STRIKE OUT TARIFF PAGES
SUEZ\r,Iabr ldaho !nc.
suz-t\F2Got
RESPONSE TO REOUEST NO. 3
Casc Nol. SUZ-I,[-2GO1
PETmON AtlD REOUEST FOR llODlFlED PROCEDURE
E(HIBITA-Pago I
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 DCTENSIONS
SUEZUmrts holm.
suz*sa{t
RESFo}{SE I]O REOI.,EsT NO. 3
lssued Per IPUC Order No.
--XXXXEffective - JanuaqHgrc0fi, XX, 2020
lssued by SUEZ WATER IDAHO lNu.
Marshall Thompson, Mce President
8248 West Mctory Road, Boise, ldaho
CE t{c. Sl,tr-tE1xll
PEITIPT{ AtiE REQUEST FOR l/lODlFlED PROCEUTRE
EXHIBITA-PreD2
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 - Genera!
Water Main Extensions - Connection Fees
Water Main Extensions - !ndividual 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
I
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
1819
1819
4& 19, 20
?€.21
2pi21
&21,22
z+22,23
2223,24
*23,24
*24,25
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 al! Previous Sheets
SUEZ WATER IDAHO INC.
lssued Per IPUC Order No. _rc(XX
Effective -+an++ary-lg, 2020
SUEZ trlabr tsaho lnc.
suz-w20{1
RESPONSE TO REQUEST NO. 3
lssued by SUEZ WATER IDAHO lNC.
Marshall Thompson, Vice President
8248 West Mctory Road, Boise, ldaho
Ce:c Nos. SUZ-!/\F20{1
PET]TION AND REOUEST FOR IT,ODIFIED PROCEIruRE
E)(HIBITA. PagB 3
Sheet Ne, 27
85, Applieant(s) shallprevide te the Cempany a gress up payment te eever
eentributien and the future tax deduetibility ef the resulting asset, The ealeulatien ef the
ing-manner=
Corstnrction Cost (C)
Customer Deposit wih Tax Gross Up
Net ofTax Rate of Retum
Combined 21o/oFlf & Sff Rate (T) =
lnitialTax Liabilitv
Tax Gross Up Factor
Calcuhtion of Tax Gross Up Factor:
SUEZWater Haho lnc.
F=(1-(NPV/C)y(1-n 1.2156Gross Up Factor =
1.00
1.22
9.3073Yo
26.47Yo
o.32
Calculation of Net of Tax Rate of Retum and Combined Federal lncome Tax (FlI) and State Tax (Sl'I) Rate:
% of Capital Embedded Weighted Rate of
Retum
2.28o/o
7.030h
9.31Yo100.00%7.45o/o
SUEZWater ldatp lnc-
NPV beneft of taxdepreciation (NPV)0.1062
Equity Component of Capital Structure
Doucomponent of Capital Structure
53.00%9.75o/o 5.17o/o
Sfucture Cost Aw. Cost47.O0Yo 4.85Yo 2.28o/o
( 6.9250/0 + ( 21 .00% ) ' (1 - 6.93% )))( Sff +( FtT )'(1 - StI )))
Combined Fff and Shte Rate 26.47o/o
lssued Per IPUC Order No.
Effective - June 1,2018
SUEZWabT ldaho lnc
suz-w-20-01
RESPONSE TO REQUEST NO. 3
lssued by SUEZ WATER IDAHO lNC.
Gregory P. Wyatt, Vice President
8248 West Victory Road, Boise, ldaho
Cas6 Nos. SUZ-t\r-20{1
PETITION AND REQUEST FOR MODIFIED PROCEDURE
DfiIBITA - Page 4
Sheet No. 27
Replacing all Previous Sheets
SUEZ WATER IDAHO INC.
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 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 Agreementl
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 insta!!ing the said "on'site" extension as described above including overhead cost to
the Company such as supervision, engineering, accounting, ineem€+a)b legal expenses
and the cost of obtaining any necessary govemmental 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 shal! be refened 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,jneeme{a;q legal expenses and
the cost of obtaining any necessary governmental permits. Any difference between the
actua! 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 lNC.
lssued Per IPUC Order No. Gregery P, Wyatt;MarshallThompson, Vice President
Effective - June-1-J0l8xxxx, xx, xxxx 8248 West Mctory Road, Boise, ldaho
SUEZWabT ldaho lnc. Carc Noo. SUZ-tt-20{1
Suz-l,lr-20{1 PETffiON AND REQUEST FOR trlODlFlED PROCEDURE
RESPOI.ISE TO REQUEST NO. 3 E(HIBIT A . PAgE 5
Sheet No. 33
Replacing all Previous Sheets
SUEZ WATER IDAHO INC.
RESIDENT]AL, 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
="J.U'Tii3H$lH:::Sffi1ll'ffi 1',['ii:"fi":?'l"",i?"o
the Company such as supervision, engineering, accounting,ineeme{a;q legal expenses
and the cost of obtaining any necessary govemmental permits. Any difference between
the actual and the amount contributed shall be shown as a revision of the amount of
contribution and shall be payable within thirty (30) days of submission. The actual cost
thus finally determined shall be referred to as the "contributed cost of on-site facilities". lf
it is necessary to adjust the amount of Applicant's contribution, in acco-rdance with the
terms of this Paragraph, a supplemental memorandum will be prepared setting forth the
"contributed cost of on-site facilities" and shall be attached hereto and made a part
hereof.
3. Applicant shall contribute to the Company upon the execution hereof the sum of
Dollars ($ ) 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,ineeme{a.6 legal expenses and
the cost of obtaining any necessary governmenta! 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 shal! 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.
lssued Per IPUC Order No._ g+eg€ry+-lWyafrMarshall Thompson, Vice President
Effective - Jun€++O{€xxxx, xx,2020 8248 West Mctory Road, Boise, ldaho
SUEZWbter ldaho lnc.
suz-w20{'l
RESPONSE TO REQUEST NO. 3
Gase Nos. SUZ-W-20{1
PETMON A}.ID REQUEST FOR MODIFIED PROCEDURE
DfiIBITA- PagB 6
Sheet No. 36
Replacing al! Previous Sheets
SUEZ WATER IDAHO !NC.
RESIDENTIAL, MULTIPLE FAMILY HOUSING, COMMERCIAL, INDUSTRIAL, OR
MUNICIPAL DEVELOPMENT WATER MAIN EXTENSION AGREEMENT (continued)
wil! 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!!e" Extension as described above including overhead cost to the
Company such as supervision, engineering, accounting, in€erne+ax-and legal expenses.
Any difference between the actua! 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
shal! be attached hereto and made a part hereof.
4. The Company estimates that ($ ) wi!! be the cost of
installing the said "qfulllg" Extension as described above including overhead cost to the
Company such as supervision, engineering, accounting,ineeme-tar<r and legal expenses.
Any difference between the actua! and the amount contributed shal! be shown as a
revision of the amount of contribution and shall be payable within thirty (30) days of
submission. The actua! cost thus finally determined shall be referred to as the
"contributed cost of off-site facilities". If 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
shal! 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 shal! 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 acceptance,
however, absence of such inspection or testing by the Company shal! 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 shallfurther require the Applicant and the
Applicant's contractor (via its contract with the Applicant) to maintain insurance as follows:
lssued by SUEZ WATER IDAHO lNC.
lssued Per IPUC Order No._ gregoqf#=Wye+tMarshal! Thompson, Vice President
Effective - June 1, 2018xxxx, xx,2020 8248 West Victory Road, Boise, ldaho
SUEZWbT ldaho lnc. Case Nos. SUZ-\ r-20{1
SUZ.1'\'-20.01 PETMON AI{D REQUEST FOR MODIFIED PROCEDURE
RESPONSE TO REQUEST NO. 3 EffilBlTA - Page 7
Sheet No. 43
Replacing all Previous Sheets
SUEZ WATER IDAHO INC.
RESIDENTIAL OR MULTIPLE FAMILY HOUSING
NON-CONTI G UOUS WATER SYSTEM AG REEM 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 specialfacilities, upgrades, modifications or,
if the Development is deemed by the Company to be unusua! or burdened with specia!
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, state, or loca!
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 governmenta! 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 shal! 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.]
[Add the following paragraphs if Company is to construct the Water Facilities:
4 Owner shall
Doll
contribute to
ars
Company
) which
upon the execution hereof the sum ot
arnount Company estimates to be the
cost of installing said Water Facilities including overhead cost to Company such as
supervision, engineering, accounting,ineeme{ax, !ega! 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 facilities.' lf it is necessary to adjust the
arnount 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 by SUEZ WATER IDAHO lNC.
lssued Per IPUC Order No._ ereg€ry+-+Arya$Marshall Thompson, Vice President
Effective - Jun€++O18xxxx, xx,2020 8248 West Victory Road, Boise, Idaho
SUEZWhbT ldaho lnc. Casa Nos. SUZ-W-20{1SUZ.T'\'.20.01 PET]TION AND REQUEST FOR MODIFIED PROCEDURE
RESPONSE TO REOUEST NO. 3 E(HIBIIA - PAgE 8
Sheet No. 45
Replacing all Previous Sheets
SUEZ WATER IDAHO INC.
RESIDENTIAL OR MULTIPLE FAMILY HOUSING
NON-CONTI GUOUS WATER SYSTEM AGREEM ENT (continued)
construction of the Water Facilities. Owner shall warrant to Company in writing 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 shal! 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, iReeme{arq legal expenses and the cost of
obtaining any necessary governmental permits. The actual cost of contribution shall be
refened to as the "contributed cost of facilities." The Source of Supply costs shall be
refened to and be booked as an advance in aid of construction. All other costs shall be
refened 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 shal! 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.
L 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 rernove any such cross-connections.
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.
10. An amount not to exceed Eight Hundred Dollars ($800.00), as more fully
described on Attachment No.2 attached hereto, which is subject to modification as
Adjusted Average Residential Revenue may change with future rate activity, shall be
paid by Company to Owner as soon as practicable after each lot is connected to the
lssued by SUEZ WATER IDAHO lNC.
lssued Per IPUC Order No.)O(XX e+eg€ry+={Arya$Marshal! Thompson, Vice President
Effective - June-+r2O18XXXX, XX, 2020 8248 West Mctory Road, Boise, ldaho
SUEZlrr/Sr ldaho !nc.
suz-w2041
RESPONSE TO REOUEST NO. 3
Gasc Noe. SUZ-I r-20{1
PETTTION AI.ID REQUEST FOR IIODIFIED PROCEDURE
EfiIBITA- PaeB 9
REQUEST NO. 4: Has the Company considered modifuing the water main extension
tariffand the application of allowances to address the issue of lower than potential growth due to
highupfrontmain extension costs? If so, please explain anymodifications considered andprovide
any analysis the Company has performed to evaluate the modifications.
RESPONSE TO REQUEST NO.4:
The response to this Production Request is sponsored by Cathy Cooper, Director of
Engineering,SUEZ Water Idaho Inc.
SUEZ has only considered the application of allowances for main extensions to
individual residences, where economies of scale can, in certain circumstances, make capital costs
associated with service connection disproportionately burdensome. Prior to the inclusion of a
CIAC tax gross-up to cover SUEZ's related tax obligation, developer costs under SUEZ's main
extension tariffdid not appear to be a disincentive to developer/multiple connections to SUEZ's
system, and SUEZ has not considered using allowances in this context.
SUEZ views this as a separate issue from the collection of CIAC tax gross-up charges
and it has not been considered as part of the CIAC tax modifications being sought here.
SuEz's RpspoNsn ro Fnsr PnooucrtoN Rreursr oF THE Couutsstott $1np - 6
SUEZ Water Idaho Inc.
suz-w-20-01
REQIIEST NO. 5: The water main extensions section of the tariff states individual
residential customers shall receive a $500 Free-Footage Allowance. SUEZ Tarifr Sheet 22,n63.
Please indicate all customer classes and/or developers eligible for this allowance.
RESPONSE TO REQUEST NO.5:
The response to this Production Request is sponsored by Cathy Cooper, Director of
Engineering SUEZ Water Idalro Inc.
The application of a $500 allowance formain extensions has only everbeen applied to
individual residences.
Suez's REspoNsn lo Fnsr PRoDUcrroN REeuEsr or rnn ComnsspN Surr - 7
SUEZ Water Idaho Inc.
suzw-20-01
REQUEST NO. 6: Please provide an explanation and workpapers showing how the Free-
Footage Allowance in SUEZ Tarifl Sheet 22, is calculated for water main extensions.
RESPONSE TO REQUEST NO. 6:
The response to this Production Request is sponsored by Cathy Cooper, Director of
Engineerin g, SUEZ Water Idaho lnc.
SUEZ has been unable to determine what, if any, calculations were made to develop the
$500 Free-Footage allowance for individual residential connections. The $500 allowance is
simply applied to any main extension costs for an individual residence.
Suez's RsspoNss ro Fm.sr PnooucrloN REQUEST oF THE Couulssrcu Srnrr - 8
SUEZ Water Idaho Inc.
suz-w-20-01
REQUEST NO. 7: Besides the $500 Free-Footage Allowance, please provide a list of
any other allowances gven for water main extensions and include who is eligible and how each
allowance is calculatd.
RESPONSE TO REQUEST NO.7:
The response to this Production Request is sponsored by Cathy Cooper, Director of
Engineering SUEZ Water Idaho Inc.
SUEZ offers no other allowances forwatermain extensions.
Susz's REspoNsE To Fnsr PRoDUcTIoN REeuEsr oF TrrE CoMMISSIoN Srerr - 9
SUEZWaterIdaho lnc.
suz-w-20-01
REQUEST NO. 8: Are there any customer/developer requested water main extension
project costs included in base rates? If so, please explain.
RESPONSE TO REQUEST NO.8:
The response to this Production Request is sponsored by Cathy Cooper, Director of
Engineering,SUEZ Water Idaho Inc.
The only customer/developer requested water main extension project costs included in
base rates are the $500 allowances for individual residences. SUEZ typically has only a few
requests for individual residence connection in a glven year. For example, between January
2019 ard July 2020, it has received none. No other customer/developer-requested water main
extension project costs are included in base rates.
Surz's RespoNsr ro Fnsr PnooucrroN Rnqursr or rue CoMMrssroN Srerr - l0
SUEZ Water Idaho Inc.
suz-w-20-01
REQUEST NO.9: Please provide an explanation and workpapers showing how overhead
and inspection fees are calculated for water main extensions.
RESPONSE TO REQUEST NO.9:
The response to this Production Request is sponsored by Cathy Cooper, Director of
Engineering, SUEZ Water Idaho Inc.
Once SUEZ receives the contractor's bid for the necessary main extension work, a five
percent contingorcy is added to the contractor bid price. An overhead percentage of 14.9 percent
is applied to this total cost. lnspector hours, including several hours contingency, 0r€ estimated
based on the length of the main extension, complexity of the project, and number of
services/hydrants included in the main extension.
At the end of the project, the actual costs are reconciled and the developer is refunded the
difference between the actual project costs and the charges collected prior to the project. An
example workpaper is included with this Response that shows how costs are calculated for a
developer main extension project. These numbers are taken from a recent development.
SUTz,s RESPoNSE To FR,ST PRoDUcTIoN REQUEST oF THE CoMMISSIoN STAFF - I I
SUEZ Water Idaho Inc.
suz-w-20-01
ACTTVITY DESCRIPTION EST. COST ACTTVITY %
Contingency &
Inspection TOTAL COSTS
FEET OF I2''0.0%
EA - 12" VALVES 0.0%
0.0%
760 FEET OF 8''23,289.00 34.9%1,775.91 25,064.91
1 ea 8" VALVES 1,000.00 r.5%76.26 1,076.26
0.0%
62EA - 3/4'' SERVICES 23,037.00 34.6%1,756.70 24,793.70
3 EA - I'' SERVICES 3,912.00 5.9o/o 298.31 4,2r0.3r
1 EA - 2'' SERVICES 2,860.00 4.3%2t8.09 3,078.09
0.0%
0.0%
0.0%
3 EA - Suez-BOI Fire Hydrants 12,555.00 r8.8%957.39 13,5r2.39
0.0%
0.0%
0.0%
TOTAL CONTRACTOR COST 66,653.00
PROJECT ID:
PROJECT DESCRIPTION:
and
SUEZ Water ldaho lnc.
suz-w-20-01
Total OH $ 10,427.86
Total Project Cost $ 82,163.51
Total Contactor Cost $ 66,653.00
SUEZ Inspection, Overhead, and
Contingency
CIAC Tax Cost at2l.56%o
Total Cost Paid to SUEZ
$
$
$
15,510.51
L7,714.45
33,224.97
3332.65Percent O & C
I,750.00Inspection Labor
Inspection Hours
Total Contingency & Inspection 5,082.65
Respectfully submitted this 20th day of August, 2020.
SUEZ Water Idalro Inc.
Mchael C. Creamer
Preston N. Carter
Givens Pursley LLP
Attorneys for P etitioner
Sunz's RespoNse ro Fnsr PnooucnoN Rrquesr or urs CoMMrssroN STAFF - 12
SUEZ Water ldaho Inc.
suzw-20-01
CERTIFICATE OF SERVICE
I certiff that on August 20th,2020, a true and correct copy of the Sunz's RnspoNss ro
Fnsr PRopuctroN Rreursr oF THE CotrrutssloN Srarr was served upon all parties of record in
this proceeding via electronic mail as indicated below:
Commission Staff
Jan Noriyuki, Commission Secretary
Idaho Public Utilities Commission
I l33l W. Chinden Blvd., Bldg. 8, Ste. 201-4
Boise,ID 83714
i [e-mail]. eov
Dayn Hardie, Deputy Attorney General
Idaho Public Utilities Commission
I1331 W. Chinden Blvd., Bldg. 8, Ste. 201-A
Boise, ID 83714
davn. hardi e@puc. idaho. eov
Michael C. Creamer
SuEz's RESpoNSE To FRsr PRoDUcTIoN REQuesr or rIfi CoMMISSIoN Srarr - 13
suEZ water Irtaho Inc.
suz-w-20-01
Case Nos. SUZ-W-20-01
PETITION AND REQUEST FOR MODIFIED
PROCEDURE
EXHIBITA
STRIKE OUT TARIFF PAGES
SUEZWatar ldaho lnc.
suz-t r-20{1
RESFONSE TO REQUEST NO. 3
Cass Noo. SUZ-I r-2O{1
PETITION AT.ID REQUEST FOR i/PD!FIED PROCEDURE
E(HIBITA-Paop 1
Sheet No. 1
Replacing al! 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.
-)0(XX
Effective - JenuaryJ€XXXX, XX, 2O2O
lssued by SUEZ WATER IDAHO lNC.
Marshall Thompson, Vice President
8248 West Mctory Road, Boise, ldaho
Clcc Noc. SUZ-I r-20{1
PETMON Ai.ID REQUEST FOR TrcDIFIED PROCETX'RE
DGIBIIA- Pagc 2
SUEZ lr{rbr ldaho !nc.
suz-v\t-2o{1
RESPONSE TO REOUEST NO. 3
Sheet No.2
Replacing all Previous Sheets
SUEZ WATER IDAHO INC.
TABLE OF CONTENTS
Title Page
Table of Contents
Schedules of Rates
Schedule Number 1 General Metered Service
Schedule Number 1A DEQ Fee
Schedule Number 18 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 - !ndividua! Residences
Water Main Extensions - Residential Subdivision or Multiple Family Housing
Development
Water Main Extensions - Commercial, lndustrial, or Municipal Development
Special Facilities
Non-contig uous Expansion
Water Main Extension Agreement, lndividuals, Advances, Refunds
Water Main Extension Agreement, Residential, Multiple Family Housing,
Commercial, lndustrial, or Municipa! 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
1819
1€19
1+ 19,20
2$:21
*21
&21,22
z+22,23
z?23,24
*23,24
&24,25
2+26
27,28,29,
30,31
32,33,34,
35,36,37,
38,39,40,41
42,43,44,
45,46,47,
48,49,50,5+
lssued Per IPUC Order No. _Xx)fi
Effective -fanuaty-lg, 2020
SUEZWabT ldaho lnc.
suz-w2Go1
RESPONSE TO REQUEST NO. 3
lssued by SUEZ WATER IDAHO !NC.
Marshal! Thompson, Vice President
8248 West Victory Road, Boise, ldaho
Case Nos. SUZ-W-20-O1
PETITIONA}.ID REOUEST FOR MODIFIED PROCEDURE
E(HIBITA- Page 3
Sheet Ne, 27
shall be ealeulated as the net Bresent value ef eash flewe resulting frem the texable
eentributien and the future tax deduetibility ef the resulting asset, The ealeulatien e[the
ing+af,ner=
Tax Gross Up Factor
Calculation of Tax Gross Up Factor:
SUEZ klaln lm
Gross Up Factor =F=(1-(NPV/C)y(1-T)1.2156
CorsUrction Cost (C)
Crctomer Depositwih Tax Gross Up
Net of Tax Rate of Rehm
Combined 21o/oFlf & Sl't Rate (T) =
hitialTax Liabilitu
1.00
1.22
9.3073%
26.47o/o
0.32
NPV benef t of tax depreciation (NPV)0.1062
calcuhtion of Net of Tax Rate of Retum and Combined Federal lncome Tax (FlD and State Tax (SII) Rate:
% of CapiEl Embedded Weigtiled Rate of
Retum
2.28Yo
7.03%
-J,-
SUEZWater ldaho lnc.Sfucture Cost A\o. Cost47.OOYo 4.85o/o 2.28o/oDeucom@nent of Capital Structure
Equity Component of Capital Structure 53.00%9.75o/o 5.1 70/"
100.00%7.45o/o
Combined Fl'I and State Rate 26 A70/"(+[ ?1 OOo/^ ) r 11 - 6g3o/" )l)( Sr +( FtT )'(1 - SrT )))
lssued Per IPUC Order No
Effective - June 1,2018
SUEZ$rtabr ldaho Inc.
suz-vrr-20{ll
RESPONSE TO REQUEST NO. 3
lssued by SUEZ WATER IDAHO lNC.
Gregory P. Wyatt, Vice President
8248 West Victory Road, Boise, ldaho
Gasa Noc. SUZ-l/\r-2041
PETMON AT{D REOUEST FOR MODIFIED PROCEDURE
EXHIBITA-Pagc4
Sheet No. 27
Replacing all Previous Sheets
SUEZ WATER IDAHO INC.
Exhibit A
INDIVIDUAL RES!DENCE
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 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, iReeme{arq legal expenses
and the cost of obtaining any necessary govemmenta! permits. Any difference between
the actual cost and the amount contributed, shal! 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 refened 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 gff-slle main extension including overhead cost to the
Company such as supervision, engineering, accounting,ineeme{ar lega! expenses and
the cost of obtaining any necessary governmental permits. Any difference between the
actual cost and the amount contributed shal! 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 lNC.
lssued Per IPUC Order No. Gregery P. Wyatt'Marshall Thompson, Vice President
Effective - June++O1-8xxxx, xx, xxxx 8248 West Victory Road, Boise, ldaho
SUEZ Wiler ldaho lnc. Gase Nos. SUZ-W-20{ll
SUZ.I/\'-20{1 PETMON AI.ID REOUEST FOR MODIFIED PROCEDURE
RESFONSE TO REQUEST NO. 3 E(HIBITA - Page 5
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
ffiingthesaid?,31l::?t j$="J#,l'fr isHSl;l3::Sffi llti:l',[' j?:,'fi
":?'l"",i?;'the Company such as supervision, engineering, accounting,in€eme+$G legal expenses
and the cost of obtaining any necessary govemmental 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,ineeme{a6legal 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 by SUEZ WATER IDAHO lNC.
I tssued Per IPUC Order No.- gres€qfP=f#yattMarshail Thompson, Vice President
I Effective - Junel.+O{8xxxx, xx, 2020 8248 West Mctory Road, Boise, ldaho
SUEZ tllhbr ldaho lnc. Gase Nos. SUZ-t\r-20{lSUZ-I'\F2O{I1 PETMONAT{D REQUEST FOR MODIFIED PROCEDURE
RESFOITISE TO REOUEST NO. 3 E(HIB]TA. Page 6
Sheet No. 36
Replacing all Previous Sheets
SUEZ WATER IDAHO 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 "on-s!!e" Extension as described above including overhead cost to the
Company such as supervision, engineering, accounting, in€eme+exrand 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". !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.
4. The Company estimates that ($ ) wil! be the cost of
installing the said "gff.sitg" Extension as described above including overhead cost to the
Company such as supervision, engineering, accounting,-rneeme-ta4 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 supplementa!
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 acceptance,
however, absence of such inspection or testing by the Company shal! 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 shallfurther require the Applicant and the
Apflicant's contractor (via its contract with the Applicant) to maintain insurance as follows:
lssued by SUEZ WATER IDAHO lNC.
lssued Per IPUC Order No._ ereg€ry+=f /yattMarshall Thompson, Vice President
Effective - June 1, 2018xxxx, xx, 2020 8248 West Mctory Road, Boise, ldaho
SUEZ Watsr ldaho !nc.
suz-vrr-2o{r
RESFONSE TO REOUEST NO. 3
Case Nos. SUZ-W-20{1
PETMONAND REQUEST FOR MODIFIED PROCEDURE
E(HIBITA - Page 7
RESIDENTIAL OR MULTIPLE FAMILY HOUSING
NON-CONTIGUOUS WATER SYSTEM AGREEMENT (continued)
3. Company shall have the right to conduct, review and confirm, to Company's
satisfaction, test results in connection with any and all wells, soi! 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 specialfacilities, 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 wil! 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 a!! governmental approvals including, without limitation, all necessary
permits, 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 Iicensed 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 impractica! 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
ilsuilingsaidv?:l'3lilt=,,t",,..'Jrl'JJ""1,31ffi:T8:[lBtlff:f;:",'#b,ethe
supervision, engineering, accounting,ineeme{a4 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 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 by SUEZ WATER IDAHO lNC.
lssued Per IPUC Order No._ gresory+-Wya$Marshall Thompson, Vice President
Effective - June-+20{8xxxx, xx,2020 8248 West Mctory Road, Boise, ldaho
SUEZIT&rEaho lnc.
suz-t\F20{1
RESFONSE TO REQUEST NO. 3
Case Noe. SUZ-\ r-20{1
PETMON A}.ID REQUEST FOR MODIFIED PROCEDURE
D(HIBITA- Pegp 8
Sheet No. 43
Replacing all Previous Sheets
SUEZ WATER IDAHO INC.
Sheet No. 45
Replacing all Previous Sheets
SUEZ WATER IDAHO INC.
RESIDENTIAL OR MULTIPLE FAMILY HOUSING
NON-CONTI G U OUS WATER SYSTEM AGREEM ENT (conti nued )
construction of the Water Facilities. Owner shal! warrant to Company in writing 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, ineeme{a4 legal expenses and the cost of
obtaining any necessary governmental permits. The actual cost of contribution shall be
refened to as the "contributed cost of facilities." The Source of Supply costs shall be
refened to and be booked as an advance in aid of construction. All other costs shall be
refened 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 al! residential
customers as a public utility, subject to the jurisdiction of the !PUC.
8. Owner shall prepare and record (prior to the sale of any lot in the Project)
perpetua! 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. !f 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 rernove 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
described on Attachment No.2 attached hereto, which is subject to modification as
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 by SUEZ WATER IDAHO lNC.
lssued Per IPUC Order No.XXXX eregery#lattMarshall Thompson, Vice President
Effective - Juf,ejr+01€rc(Xx, XX, 2020 8248 West Victory Road, Boise, ldaho
SUEZWbbT ldaho lnc.
suz-l,lr-2o{1
RESPONSE TO REOUEST NO. 3
Casa Nos. SUZ-l,tl20{l
PETMONAND REQUEST FOR MODIFIED PROCEDURE
EffiIBIIA- Page 9