20080902UWI Reply Comments.pdf

McDevitt & Miller LLP
Lawyers RECEfVED
ZOU SEP -2 PH 3= 32
Chas. F. McDevitt
lDAHO PUBLIC Dean J. (Joe) Miler
UTlLlTIES COMM SSlON
[phone]
[phone] (Fax)
420 W. Bannock Street
P.O. Box 2564-83701
Boise, Idaho 83702
September 2, 2008
Via Hand Delivery
Jean Jewell, Secretary
Idaho Public Utilties Commission
472 W. Washington St.
Boise, Idaho 83720
Re: Case No. UWI - W -08-02
Dear Ms. Jewell:
Enclosed for fiing in the above matter, please find the original and seven copies of United Water
Idaho Inc.'s Reply Comments. Also enclosed for filing, please find the original and seven copies of the
City of Nampa's Reply Comments.
Kindly return a fie stamped copy to me.
Very Truly Yours,
~£Dean J. Miler
DJM/hh
Enclosures
C: United Water
ORIGINAL
Dean J. Miler (lSB No. 1968)
McDEVITT & MILLER LLP
420 West Banock Street
P.O. BOX 2564-83701
Boise, Idaho 83702
Tel: [phone]
Fax: [phone]
joeØlmcdevitt-miller .com
RECEIVED
280 SEP -2 Pt1 3: 34
iDAHO PUBLIC
UTILfTIES COMMISSION
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATIER OF THE APPLICATION Case No. UWI-W-08-02
OF UNITED WATER IDAHO INC., FOR AN
AMENDMENT TO ITS CERTIFICATE OF REPLY COMMENTS
PUBLIC CONVENINCE AN NECESSITY
NO. 143 AN FOR AN ACCOUNING
ORDER.
COMES NOW the Applicant, United Water Idaho Inc., ("United Water") and
replies to the Comments of the Commission Staff ("Staff Comments") dated August 8,
2008, as follows, to wit:
Staff Comments are divided into three categories entitled "Accounting Issues,"
"Engineerng Issues" and "Rate Issues." United Water in this Reply, wil address each in
tu.
ACCOUNTING ISSUES
This section of Staff Comments contains two recommendations: (1) that the
Company fie with the Commission the final closing documents and actual joural entr
amounts (Pg. 4); and (2) that the gain on the sale be accounted for in the same maner as
approved in the recent sale of a water system to the City of Kuna, Order No. 30481.
REPLY COMMENTS - 1
United Water concurs in both recommendations. As it has done in the past, as
soon as practicable after closing, United Water wil fie with the Commission final
closing documents and actul joural entres.
The method for sharig of the gain on the sale between customers and
shareholders approved in Order No. 30481 is appropriate in ths case. As noted in Staff
Comments, this treatment splits benefits between customer and shareholders. Staff
Comments also note the benefit to customers of removing the additional liabilty of
providing safe water to Belmont Heights. (Pg. 5).
ENGINEERING ISSUES
This section of Staff Comments does not contain any specific recommendation
but observes that sale of the Belmont Heights system and subsequent interconnection to
the City of Nampa system is the least cost solution to a public health concer. United
Water concurs in ths obseration.
RATE ISSUES
Staff Comments point out that under the curent City of Nampa rate strctue,
customer outside municipal boundares are charged twice the amount as customers
within the City. This rate strctue has different implications for each of the non-
contiguous systems.
First, it does not apply to the M&M system, which is biled under United Water's
Flat Rate Tarff. The City has agreed to bil the M&M customer the same flat rate.
Second, although the rate strctue results in a higher rate compared to United
Water's rates for Belmont Heights' customers, Staff Comments conclude this is fair and
reasonable in light of the benefit of eliminating a public health concern.
REPLY COMMENTS - 2
With respect to customers of the Coventr water system, Staff Comments, while
acknowledging that the Commission does not have jursdiction over rates of
municipalities, suggest that the paries negotiate a rate stability agreement. Staff
Comments state, "Consequently, Staff recommends that these customers be allowed to
remain at existing UWI rates for a fixed perod of thee to five year or until the system is
interconneCted with or anexed into the City." (Pg. 8) (Emphasis Supplied). Thus,
according to Staff Comments, a rate stability agreement could expire when
interconnection is achieved.
Filed contemporaneously herewith are Reply Comments of the City of Nampa. In
those Comments the City makes a commitment to interconnect the Coventr water
system with the City's system within 30 days of closing. The City's commitment to
interconnect Coventr to the City's system within 30 days satisfies Staffs suggested
condition to a change in rates, that is, interconnection to the Nampa system.
Accordingly, there is not a need for the suggested rate stabilty agreement.
LETTER COMMENT OF DON LYNN
The Commission has received a letter from a Belmont Heights system customer,
Mr. Don Lyn, attached. Whle generally supportive of the proposed sale, Mr. Lyn
raises a few concers, mostly about rates and conditions of serice after the transfer.
These concers are addressed in the Reply Comments of the City of Nampa.
REPLY COMMENTS - 3
CONCLUSION
For the reasons cited herein United Water respectfully requests that the
Commission enter its Order:
1. Approving the modification of United Water's Cerificate of Public
Convenence and Necessity No. 143 by eliminating the Subdivisions
therefrom;
2. Confirming that after the date of closing of the purchase and sale
transaction, United water wil have no fuher obligation to provide
domestic water service to the Subdivisions;
3. Approving the Company's accounting proposal.
DATED this G. day of September, 2008.
Dean J. Mil er
Attorney for Applicant
REPLY COMMENTS - 4
.'
CERTIFICATE OF SERVICE
I hereby cerify that on the Mday of September, 2008, I caused to be sered,
via the methodes) indicated below, tre and correct copies of the foregoing document,
upon:
Jean Jewell, Secretar Hand Delivered ~Idaho Public Utilities Commission U.S. Mail i.
472 West Washington Street Fax ~i.
P.O. Box 83720 Fed. Express ~i.
Boise,ID 83720-0074 Email ~i.
j j ewell(ífumc. state. id. us
Scott Woodbur Hand Delivered ~Idaho Public Utilities Commission U.S. Mail i.
472 West Washington Street Fax ~i.
P.O. Box 83720 Fed. Express ~i.
Boise,ID 83720-0074 Email ~i.
Terence R. Whte, Esq Hand Delivered ~i.
WHITE PETERSON U.S. Mail M:5700 E. Franin Road., Ste 200 Fax i.
Nampa, ID 83687 Fed. Express ~i.
Email ~i.
REPLY COMMENTS - 5