20051220notice_of_stipulation_order_no_29933.pdf

Office of the Secretary
Service Date
December 21, 2005
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE INVESTIGATION
OF TERRA GRANDE WATER AND THE
ISSUANCE OF RELATED CERTIFICATE
OF PUBLIC CONVENIENCE AND NECESSITY NO. 429.
CASE NO. TGW-O4-
NOTICE OF STIPULATION
NOTICE OF COMMENT
DEADLINE
ORDER NO. 29933
YOU ARE HEREBY NOTIFIED that Terra Grande Water Inc. (Terra Grande),
United Water Idaho Inc. (United Water), and the Staff of the Idaho Public Utilities Commission
(Staff) have reached agreement regarding a Stipulation by which United Water will take over the
operation of Terra Grande s water distribution system. Staff has agreed to certain cost recovery
and accounting treatment for the investment by United Water to take over the system, including
the installation of individual meters. Terra Grande and United Water have agreed to terms for
the transfer of the system to United Water. In this Notice the Commission establishes a review
period and written comment deadline concerning the Stipulation.
BACKGROUND
On February 19, 2004, in Case No. UWI-04-, United Water and Terra Grande
filed a joint Application with the Commission for an Order approving the purchase by United
Water of Terra Grande s water system. Originally the agreed upon purchase price for the system
was $47 000. However, on April 2, 2004, Staff filed comments recommending the purchase
price should be reduced to $0.00 because after United Water s acquisition of the system more
capital than initially anticipated would have to be invested. Staff Comments at 6-7 (Case No.
TGW-04-1). Staff also stated that if Terra Grande would not agree to transfer the system to
United Water for no value then it should be brought within the jurisdiction of the Commission.
Id United Water, in turn, offered an Amendment to the Purchase and Sale Agreement reflecting
a $0.00 price. Reply Comments at 2-3. At that time Terra Grande determined it was not in its
NOTICE OF STIPULATION
NOTICE OF COMMENT DEADLINE
ORDER NO. 29933
best interest to proceed with the purchase and sale transaction, therefore the Application was
withdrawn.
On June 8 2004, the Commission issued Order No. 29512 in Case No. TGW-04-
issuing Terra Grande a Certificate of Public Convenience and Necessity and opening an
investigation to establish: (1) whether the existing rates for water service charged by Terra
Grande are just and reasonable Idaho Code ~ 61-301; and (2) whether Terra Grande furnishes
provides, and maintains service, instrumentalities, equipment and facilities that promote the
safety and health of its patrons, employees and the public and is in all respects adequate
efficient, just and reasonable. Idaho Code ~ 61-302.
On January 21 and January 24 2005, the Commission was notified by Terra Grande
and by the Idaho Department of Environmental Quality (DEQ) that the three water supply wells
of Terra Grande were contaminated with Trichloroethylene (TCE), a hazardous chemical, and
thus were unusable.As a result, an emergency interconnection between Terra Grande
distribution system and United Water s supply system was completed. The Commission issued
Order No. 29735 in Case No. TGW-05-1 that approved interim rates for Terra Grande based
upon the interconnection with United Water. Terra Grande was also ordered to develop a
permanent service arrangement plan and submit it to the Commission for approval prior the
establishment of permanent rates.
On August 12 2005, a petition signed by approximately 61 Terra Grande customers
was filed with the Commission requesting that it require Terra Grande to install individual water
meters.
Commission Staff, Terra Grande, and United Water subsequently entered into
discussions whereby the parties have agreed that it is in the public interest to enter into the
Stipulation to effectuate the transfer of Terra Grande s water distribution system to United Water
which would take over the operation of the water system, install meters and other necessary and
prudent improvements, and incorporate Terra Grande s customers into its service area.
I Although all parties have reached agreement on the Stipulation, Terra Grande is awaiting documentation from the
Trustee, who previously held title to the Terra Grande system prior to the time when Terra Grande became a public
utility. According to the trust document, once Terra Grande became a regulated public utility, i.e., when its
Certificate of Public Convenience and Necessity was issued, title was to transfer from the trust to Ms. Childs. This
documentation should be forthcoming, and in any event it was deemed prudent to request that a public comment
period commence on the parties' Stipulation.
NOTICE OF STIPULATION
NOTICE OF COMMENT DEADLINE
ORDER NO. 29933
NOTICE OF COMMENT DEADLINE
YOU ARE HEREBY NOTIFIED that the Commission has reviewed the Stipulation
in Case No. TGW-04-1 and finds it reasonable to require written comments concerning the
Stipulation to be filed with the Commission no later than January 13, 2006. Written comments
concerning this Stipulation should be mailed to the Commission and to Terra Grande and United
Water at the addresses reflected below.
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
For United Water:
Street Address For Express Mail:
472 W. Washington Street
Boise, ID 83702-5983
Dean J. Miller
McDevitt & Miller, LLP
420 W. Bannock Street
Boise, ID 83702
E-mail: ioeCfi)mcdevitt-miller.com
For Terra Grande:
John R. Hammond, Jr.
Batt & Fisher, LLP
u.S. Bank Building
101 S. Capital Blvd, Suite 500
Boise, ID 83702
E-mail: irhCfi)battfisher.com
These comments should contain the case caption and case number shown on the first page of this
document. Persons desiring to submit comments via e-mail may do so by accessing the
Commission s home page located at www.puc.idaho.gov.Click the "Comments and Questions
icon, and complete the comment form, using the case number as it appears on the front of this
document. These comments must also be sent to Terra Grande and United Water at the e-mail
addresses listed above.
YOU ARE FURTHER NOTIFIED that the Stipulation can be viewed online at
www.puc.idaho.gov by clicking on "File Room" and "Water Cases " or it can be viewed during
regular business hours at the Idaho Public Utilities Commission, 472 West Washington Street
Boise, Idaho.
YOU ARE FURTHER NOTIFIED that the Idaho Public Utilities Commission has
jurisdiction over Terra Grande, United Water, and the issues involved in this case by virtue of
NOTICE OF STIPULATION
NOTICE OF COMMENT DEADLINE
ORDER NO. 29933
Title 61 of the Idaho Code and the Commission s Rules of Procedure, IDAPA 31.01.01.000
seq.
ORDER
IT IS HEREBY ORDERED that a review and comment period be established for the
Stipulation between Commission Staff, Terra Grande, and United Water. Persons interested in
submitting written comments regarding this Stipulation should do so no later than January 13
2006.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this :;.J
day of December 2005.
PAUL
~-A- jJ
~'-
MARSHA H. SMITH, COMMISSIONER
IS S. HANSEN, COMMISSIONER
ATTEST:
Je D. Jewell
Commission Secretary
O:TGW - W-O4-0 1- dw2 _Stipulation
NOTICE OF STIPULATION
NOTICE OF COMMENT DEADLINE
ORDER NO. 29933