20210708Comments.pdf

DAYN HARDIE (ISB No. 9917)
MATT HUNTER (ISB No. 10665)
DEPUTY ATTORNEYS GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
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Street Address for Express Mail:
1 I331 W CHINDEN BLVD, BLDG 8, SUITE 2OI-A
BOISE, TD 83714
Attorneys for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF SUEZ WATER
IDAHO'S APPLICATION FOR AMENDMENT
OF ITS CERTIFICATE OF PUBLIC
CONVENIENCE AND NECESSITY
CASE NO. SUZ.W-2I-02
COMMENTS OF THE
COMMISSION STAFF
STAFF OF the ldaho Public Utilities Commission, by and through its attorneys of
record, Dayn Hardie and Matt Hunter, Deputy Attorneys General, submit the following
comments.
BACKGROUND
On April 2,202l,SUEZ Water Idaho Inc. ("SUEZ" or "Company") applied to amend its
certificated service territory to remove an area in unincorporated Ada County.
The 520-acre area was added to SUEZ's Certificate of Public Convenience and Necessity
("CPCN") No. 143, as amended in2007, in anticipation of a 700-plus residential housing
subdivision described as the Trailhead Community being built on it. See Case No. UWI-W-06-04,
Order No. 30367. SUEZ states that the Trailhead Community was never developed. SUEZ asserts
that the "entire area is undeveloped and unserved, and SUEZ has not received any formal request
for extension of service from, or committed to serve, any property owner in the area." Application
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ISTAFF COMMENTS ruLY 8,2021
at 3. SUEZ also states that it is "not aware of any development applications pending before Ada
County or the City of Eagle affecting this area." Id.
STAFF ANALYSIS
Staff reviewed the Company's Application proposing to amend its CPCN by removing
the Trailhead Community area. Staff also reviewed the Water Management Agreement
("WMA") entered between SUEZ and the City of Eagle ("City"). Staff believes that SUEZ
customers will not be harmed by amending the CPCN. Therefore, Staff recommends the
Commission approve the Company's request.
WATER MANAGEMENT AGREEMENT
As a part of the settlement between the City of Eagle and SUEZ in the District Court case
involving SUEZ's purchase of Eagle Water Company,r SUEZ and the City entered into a WMA,
effective February 9,2021. The Company notes:
A primary purpose of the WMA is to provide a mechanism and
process for the parties to cooperate in their future water planning
and area of service decisions. The WMA contains terms addressing
future service area adjustments, administrative filings with the Idaho
Department of Water Resources and with the fidaho Public Utilities
Commission], guiding principles for future intertie agreements, and
maintenance of good faith communications concerning items of
joint interest to SUEZ and the City.
Application at 4. The new WMA provides the Company and the City a mechanism to
engage in discussions involving future expansion in or around the City's service area. However,
because of the franchise agreement between the Company and the City, the City cannot serve the
520-acre area until it is removed from SUEZ's certificated service area. The City represented to
Suez that it can adequately serve customers within the 520-acre area if it is removed from the
Company's CPCN. Application at 6. The Application also states that greater cooperation
between Suez and the City will be fostered and the "removal of the subject area from SUEZ's
certificated service area would not necessarily preclude SUEZ from extending service there in
I In the District Court case, Case No. CVOl-19-03534,the City sought declaratory and other relief, asserting that it
had a contractual right of first refusal to purchase the system.
2STAFF COMMENTS ruLY 8,2021
the future if a property owner required water service and SUEZ and [the City] agreed that SUEZ
was best able to serve consistent with their WMA." Id. at 6-7 .
SUEZ has not made any investments in the Trailhead Community. With no assets in
place for the Trailhead Community, neither SUEZ nor its customers will be harmed by removing
the Trailhead Community from the Company's CPCN. Additionally, amending the CPCN will
not impair SUEZ's ability to serve existing customers or extend service to its remaining CPCN
area.
Hypothetically, revenue generated from new developments could exceed the cost to serve
the area, thus reducing the burden on the general body of customers. However, SUEZ serves no
customers in this area at this time. Additionally, Staff believes that WMA negotiated between
the City and SUEZ avoids lengthy and costly litigation.
CUSTOMER NOTICE AND PUBLIC COMMENTS
In March 2021, the Company sent a notification to each property owner within the
affected area notifuing them of the Company's Application and the Company's intent to remove
the area from its certificated service area. As of the filing date of Staff Comments, no public
comments have been received.
STAFF RECOMMENDATION
Staff recommends the Commission approve the Company's request to remove the 520-
acre area from CPCN No. 143.
*Respectfully submitted this 3 day ofJuly 2021.
Matt Hunter
Deputy Attomey General
Technical Staff: Travis Culbertson
Kathy Stockton
Rick Keller
i :umisc/comments/suzw2 I .2dhmhtncklsrk comments
JSTAFF COMMENTS ruLY 8,2021
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 8th DAY OF ruLY 2021,
SERVED THE FOREGOING COMMENTS OF TIIE COMMISSION STAFF, IN
CASE NO. SUZ.W-21-02, BY E.MAILING A COPY THEREOF, TO THE
FOLLOWING:
MICHAEL C CREAMER
PRESTON N CARTER
GIVENS PURSLEY LLP
POBOX2720
BOISE rD 83701-2720
E-MAIL: [e-mail]
prestoncarter@ givenspursley. com
MARSHALL THOMPSON
SUEZ WATER IDAHO INC
8284 W. VICTORY RD
BOISE ID 83709
E-MAIL: [e-mail]
CERTIFICATE OF SERVICE