20050415Comments.pdf

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DONOVAN E. WALKER
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 5921
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Street Address for Express Mail:
472 W. WASHINGTON
BOISE, ID 83702-5983
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
UNITED WATER IDAHO INC. TO AMEND AND)
REVISE ITS CERTIFICATE OF PUBLIC
CONVENIENCE AND NECESSITY NO. 143.
CASE NO. UWI-O5-
COMMENTS OF THE
COMMISSION STAFF
The Staff of the Idaho Public Utilities Commission, by and through its Attorney of record
Donovan E. Walker, Deputy Attorney General, in response to Order No. 29745, the Notice of
Application and Notice of Modified Procedure in Case No. UWI-05-1 issued on April 1 , 2005
respectfully submits the following comments.
BACKGROUND
United Water Idaho Inc. filed an Application seeking to amend and revise its Certificate of
Public Convenience and Necessity in order to expand its service territory. The Application was
triggered by Black Rock LLC, an Idaho corporation, who requested that United Water provide
domestic water and fire protection service to a proposed residential subdivision located in Ada
County within an area bounded by Eagle Road, Amity Road, Lake Hazel Road, and Locust Grove
Road. Black Rock consists of 44 lots on approximately 42 buildable acres, with approximately 181
ST AFF COMMENTS APRIL 15 2005
acres of open areas. A map depicting the location of the Black Rock Development, United Water
current certificated boundary, and United Water s proposed certificated boundary was attached to
the Company s Application as Attachment A.
United Water proposes to provide service pursuant to its Tariff No.General Metered
Service, and in all respects will provide service pursuant to its Rules and Regulations as approved
by the Commission. United Water submits that the extension into this area is consistent with the
public convenience and necessity.
STAFF ANALYSIS
In its Application, United Water is seeking to expand its certificated area boundary to
encompass the Black Rock Development and much of the surrounding area. In fact, the Black Rock
Development, by itself, represents only about 10 percent of the entire area for which United Water
seeks to expand.
The Black Rock Development lies outside of the city limits of the City of Meridian, but is
immediately adjacent to Meridian s Area of Impact boundary. Attachment A is a map prepared by
Staff showing the location of Meridian s Area of Impact in relation to the proposed Black Rock
Development and to the expansion area sought by United Water. Although the Black Rock
Development lies outside of the City s Area of Impact, the strip of land immediately north of the
Black Rock Development lies within the Area of Impact.
The authority of the Commission with regard to expansion of a water utility s certificated
areas is spelled out in the Idaho Code in pertinent part, as follows:
61-526. Certificate of convenience and necessity. No... water corporation
shall henceforth begin the construction of a.. . line, plant, or system or of any
extension of such.. .line, plant, or system, without having first obtained from the
commission a certificate that the present or future public convenience and necessity
require such construction: provided, that this section shall not be construed to require
such corporation to secure such certificate for an extension within any city or county,
within which it shall have theretofore lawfully commenced operation, or for an
extension into territory whether within or without a city or county, contiguous to
its. . . line, plant, or system, and not therefore served by a public utility of like
character,.. . and provided further, that if any public utility in constructing or
extending its lines, plant, or system, shall interfere or be about to interfere with the
operation of the line, plant, or system of any other public utility already constructed
or if public convenience and necessity does not require or will require such
construction or extension, the commission on complaint of the public utility claiming
to be injuriously affected, or on the commission s own motion, may, after hearing,
STAFF COMMENTS APRIL 15 2005
make such an order and prescribe such terms and conditions for the locating or type
of the line, plant or system affected as to it may seem just and reasonable...
United Water, in its Application, correctly states that the area they are proposing to serve is
not within the authorized territory of any other public utility water corporation under the jurisdiction
of the Commission. The Application states that there are no known public utilities, persons, or
corporations with whom the expansion is likely to compete, and the requested expansion would not
interfere with the operation of any other water utility corporation under the jurisdiction of the
Commission. This too, appears correct because the requested expansion area is not currently being
served by any water utility, and because the only water utility likely to compete is the City
Meridian which is not a public utility, person, or corporation under the jurisdiction of the
Commission.
The City of Meridian s intention to provide, and, in fact, require that it be the water service
provider within its city limits and Area of Impact is apparent in an April 8, 2003 amendment to the
City s July 2002 Comprehensive Plan. The following is an excerpt from that amendment:
Urban Services Policies:
The City of Meridian desires all development within its Area of Impact to be served
with city services. Such services include sanitary sewer, water, fire, police, parks
and libraries. . .. However, it is recognized that some development may precede the
ability of the City, on its own, to extend services for such development. Upon
formal requests to the City for development that is on property not immediately
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serviceable with urban services, the City may consider said applications. ...
Expansion of the sanitary sewer and/or water systems may be at the option of either
the City of Meridian or the developer.
Developments within the Area of Impact but outside the City limits will only be
considered if the following standards and conditions are agreed to by the
developer( s):
The development is connected to City of Meridian water and sanitary
sewer systems and the extensions to and through said developments are
constructed in conformance with the City of Meridian Water and Sewer
System Master Plans in effect at the time of development;
5. All developer-initiated system expansions (approved by the City) must be
for properties which are adjacent to existing or previously approved
projects where City sewer and water services are or will be provided.
STAFF COMMENTS APRIL 15 2005
(Reference Urban Services Amendment to the July 2002 Meridian Comprehensive Plan, approved
April 8 2003).
The City of Meridian has been notified of the Application and comment deadline. It is
Staff s understanding that Meridian intends to submit comments concurrently with Staff, and that its
comments will oppose United Water s Application. It is also Staffs understanding, however, that
the City of Meridian will be unable to provide service to the Black Rock Development or adjacent
areas for several years in the near future.
If the Commission were to deny United Water s Application, it would effectively deny
water service to Black Rock for an indefinite period of time. Especially given that Black Rock is
located outside of Meridian s Area of Impact, Staff believes that the Commission should give
approval to at least serve Black Rock. In addition, however, Staff also believes that it is reasonable
and in the public interest for the Commission to approve expansion of the Company s certificated
area to include the requested areas adjacent to Black Rock that are not within Meridian s Area of
Impact. For those areas within Meridian s Area of Impact, Staff believes the Commission should
carefully weigh additional arguments expected to be put forth by the City of Meridian and United
Water regarding the ability and legal authority of each to provide service.
ST AFF RECOMMENDATION
Staff recommends that United Water be granted approval to expand its certificated area to
include all of those areas identified in its Application that are not located within the City
Meridian s Area of Impact. For those areas within the City s Area of Impact, Staff recommends
that the Commission consider the arguments of the City of Meridian and United Water.
Respectfully submitted this \5 t~day of April 2005.
L(.CLk~
Donovan E. Walker
Deputy Attorney General
Technical Staff: Rick Sterling
i :umisc/comments/uwiwO5.dwrps
STAFF COMMENTS APRIL 15, 2005
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Attachment A
Case No. UWI-05-
Staff Comments
4/15/05
CER TIFI CA TE OF SER VI CE
HEREBY CERTIFY THAT I HAVE THIS 15TH DAY OF APRIL 2005
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN
CASE NO. UWI-05-, BY MAILING A COpy THEREOF POSTAGE PREPAID
TO THE FOLLOWING:
GREGORYP. WYATT
UNITED WATER IDAHO INC
PO BOX 190420
BOISE ID 83719-0420
DEAN J MILLER ESQ
McD EVITT & MILLER LLP
PO BOX 2564
BOISE ID 83701
f!~SECRET AR
CERTIFICATE OF SERVICE