20040621Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
CO MMISSI 0 NER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:SCOTT WOODBURY
DATE:JUNE 9, 2004
RE:CASE NO. UWI-04-2 (United Water)
AGREEMENT FOR PURCHASE/SALE-TERRA GRANDE
MOTION TO CLOSE CASE DOCKET
On February 19, 2004, United Water Idaho, Inc. (United Water; Company) and
Barbara V. Child dba Terra Grande filed a Joint Application with the Idaho Public Utilities
Commission (Commission) for an Order approving the purchase by United Water of water
service properties owned by Barbara V. Child. As reflected in related Order No. 29512, Case
No. TGW-04-, as part of United Water s due diligence investigation the Company reached
the conclusion that the Terra Grande water system required more capital investment than
anticipated. United Water sought to amend the Purchase/Sale Agreement seeking to eliminate
the $47 000 purchase price. Terra Grande Water found the Company-proposed amendment
unacceptable. United Water elected to rescind the Agreement. Mutually agreeable terms of
rescission have yet to be negotiated. It appearing that there no longer existed a willing Seller and
Purchaser of the Terra Grande Water system, the Commission in Case No. TGW-04-
initiated an investigation, issued Certificate of Public Convenience and Necessity No. 429 to
Barbara V. Child dba Terra Grande Water and undertook regulation of Terra Grande Water.
On June 4, 2004, United Water filed a Motion to Close in Case No. UWI-04-
The Company states that United Water has been informed that Ms. Child intends to continue to
operate and manage the Terra Grande water system.
DECISION MEMORANDUM
COMMISSION DECISION
United Water requests that the Commission enter an Order "determining that the
Company has no further duty of performance under the Agreement" and closing the case.
Staff is informed that Terra Grande has no objection to closing the docket in Case
No. UWI-04-2. Staffs attorney suggests that it is unnecessary and would be unwise of the
Commission to enter an Order regarding the Company s duty of performance under the
Purchase/Sale Agreement. The Company s rights and obligations under the Purchase/Sale
Agreement are a matter of contract. Any opinion of the Commission regarding the Company
duty of performance would be gratuitous and without legal significance or consequence. Staff
recommends only that the Commission declare all proceedings in Case No. UWI-04-2 to be at
an end and close the case docket. Does the Commission agree with Staffs recommendation?
Scott Woodbury
Vld/M:UWIWO402 sw3
DECISION MEMORANDUM