20040907Press Release.pdf

IDAHO PUBLIC UTILITIES COMMISSION
Case No. UWI-04-
September 7, 2004
Contact: Gene Fadness [phone]
Website: www.puc.state.id.
United Water proposes sale to City of N ampa
Boise - The Idaho Public Utilities Commission is taking comments on a United Water proposal
to remove a Nampa subdivision from its service territory and sell the subdivision s water system
to the City ofNampa.
United Water is proposing to sell the domestic water system for the approximate 50-lot Carriage
Hill subdivision to the City ofNampa for $375 000. About 30 of the lots are developed and
connected to the domestic water system.
The developers of Carriage Hill reached an agreement in 1998 with United Waterworks, parent
company of United Water, under which United Waterworks would loan the developers up to
$350 000 to finance a source of supply system for Carriage Hill.
Carriage Hill made paYments to United Waterworks from February 2000 through November
2001. According to United Water testimony, a softening economy slowed the sale of lots in the
subdivision. As a result, the developers were not able to make the required paYments. Further
the growth that did occur in the subdivision required the construction of a second well to meet
state Department of Environmental Quality regulations. The developers did not have the funds to
build a second well and further grow,th in the subdivision was jeopardized.
The City of Nampa later expressed an interest in buying the water system. It is the city s view
that multiple water suppliers within or near its boundaries are not in the best interest of citizens.
United Water claims the sale is in the best interest of customers because Nampa has adequate
water supply to serve the subdivision, the connection to Nampa s water system will provide the
second well as required by DEQ and the rates charged by Nampa are lower than those charged
by United Water.
None of the costs of the loan or plant construction were included in United Water base rates. The
company proposes that $36 000 of the proceeds from the sale go to United Water and the
remainder to United Waterworks.
The commission will proceed under a modified procedure that allows the case to be handled
through written public comments rather than by public hearing. Those wishing to submit
comments must do so by no later than Sept. 27.
Comments are accepted via e-mail by accessing the commission s homepage at
www.puc.state.id.and clicking on "Comments & Questions." Fill in the case number (UWI-
04-3) and enter your comments. Comments can also be mailed to P.O. Box 83720, Boise, ill
83720-0074 or faxed to [phone].
Documents related to this case, are available on the commission s Web site. Click on "File
Room" and then on "Water Cases" and scroll down to the case number.