29012.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

UNITED WATER iDAHO, iNC.

Complainant,

vs.

EAGLE WATER COMPANY, INC. and
COUNTRYSIDE ESTATES LLC

Respondent.
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CASE NO. UWI-W-02-01

NOTICE OF COMPLAINT

ORDER TO SHOW CAUSE

ORDER NO. 29012

YOU ARE HEREBY NOTIFIED that on April 19, 2002, United Water Idaho Inc. (United Water; UWI) filed a Complaint against Eagle Water Company, Inc. (Eagle Water) and Countryside Estates LLC. In Case Nos. EUW-W-94-1 and EAG-W-95-1 the Commission allocated service territories between United Water and Eagle Water and left some areas uncertified to serve as “buffer zones” including “the uncertificated area south of Floating Feather Road and east of Ballantine Lane extended and generally described as the east quarter of Section 7, Township 4 North, Range 1 East, Boise-Meridian.” In defining these buffer zones, the Commission stated:
Neither utility is permitted to extend facilities into the uncertificated areas without prior application to and authorization from this Commission. Installation of facilities into such areas without prior certification and approval will be viewed as a violation of this Order subjecting the utility to imposition of statutory penalties.

Order No. 26525, p. 13.
Pursuant to Idaho Code § 61-612 (Complaint Against Utility) the Commission is vested with jurisdiction whenever it is asserted that a public utility is acting in violation of any provision of law or of any order or rule of the Commission. As represented in the verified complaint filed by United Water, Countryside Estates LLC is in the process of constructing and developing a residential subdivision known as Countryside Estates Subdivision No. 1 inside United Water’s certificated service territory. A true copy of the plat of said subdivision is attached to the Company’s complaint. Also attached is a map depicting generally the location of the subdivision inside United Water’s certificated service territory and its relation to the buffer zone.
United Water contends that Eagle Water has and is extending water main and other facilities in and through the buffer zone for the purpose of providing water service to the Countryside Subdivision inside United Water’s certificated service territory. United Water states that it has not consented, expressly or by implication, to service by Eagle Water within its service territory.
United Water contends that Eagle Water is acting in violation of the express terms of Order No. 26525 and in violation of United Water’s right to provide water service within its certificated area. Unless restrained and enjoined by the Commission, United Water contends that Eagle Water will continue to act in violation of said Order and in violation of United Water’s rights.
In its prayer for relief, United Water requests:
1. That the Commission issue an Order to Show Cause directing Eagle Water to appear and show cause, if any it has, why it should not be restrained from any further extension of water service facilities outside of its certificated service territory or provision of water service outside its service territory, and to the Countryside Subdivision and in particular, during the pendency hereof.

2. That the Commission direct that a copy of this complaint be served on Countryside Estates LLC and that Countryside Estates LLC be made a party hereto. (United Water contends that Countryside Estates “is acting in consort with Eagle Water” –Complaint Section II).

3. That the Commission, after hearing, determine and declare that Eagle Water has acted in violation of Order No. 26525 and the law of the State of Idaho and declare and determine that United Water is entitled to provide water service to Countryside Subdivision.

4. The Commission, after hearing, determine and impose appropriate sanctions for violation of Order No. 26525 and violation of United Water’s right to provide service in its service territory, including, but not limited to:

An Order awarding part or all of the uncertificated “buffer zone” to United Water;

An Order confirming that United Water is entitled to serve the Countryside Estates and that Eagle Water is not;

An Order requiring Eagle Water to reimburse United Water for any costs incurred to provide service to Countryside Estates;

An Order requiring Eagle Water to reimburse United Water for its costs, including reasonable attorney fees, incurred to defend its lawful service territory.

COMMISSION FINDINGS
The Commission has reviewed and considered the verified complaint filed in Case No. UWI-W-02-01. We have also reviewed our prior Commission Order Nos. 26337, 26338 and 26525 establishing respective certificated areas of service for United Water and Eagle Water in the Eagle area and the designated “buffer zones.” We find that the alleged facts set forth in the verified complaint established just cause for directing Eagle Water to appear and show cause, if any it has, why it should not be restrained from any further extension of water service facilities outside of its certificated service territory or provision of water service outside its service territory, and to the Countryside Estates Subdivision No. 1 in particular, during the pendency of this case.
This is a service area dispute between regulated water utilities. The Commission encourages the utilities to negotiate and reach a reasonable settlement or accommodation in this matter.
O R D E R
In consideration of the foregoing, IT IS HEREBY ORDERED and Eagle Water Company is hereby directed to appear before this COMMISSION AT THE COMMISSION’S HEARING ROOM, 472 WEST WASHINGTON, BOISE, IDAHO ON WEDNESDAY, MAY 8, 2002, COMMENCING AT 10:00 A.M. TO SHOW CAUSE, if any it has, why it should not be restrained from any further extension of water service facilities outside its certificated service territory or provision of water service outside its service territory and to the Countryside Estates Subdivision No. 1 in particular, during the pendency of this case.

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this _______ day of April 2002.

PAUL KJELLANDER, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

DENNIS S. HANSEN, COMMISSIONER

ATTEST:

Jean D. Jewell
Commission Secretary

vld/O:UWIW0201_sw

NOTICE OF COMPLAINT
ORDER TO SHOW CAUSE
ORDER NO. 29012 4

Office of the Secretary
Service Date
April 30, 2002