20080627Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER REDFORD
CO MMISSI 0 NER SMITH
CO MMISSI 0 NER KEMPTON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:SCOTT WOODBURY
DEPUTY ATTORNEY GENERAL
DATE:JUNE 25, 2008
SUBJECT:CASE NO. UWI-08-02 (United Water)
SALE OF COVENTRY PLACE, M&M MOUNTAIN VIEW ACRES
AND BELMONT HEIGHTS NON-CONTIGUOUS WATER SYSTEMS TO
CITY OF NAMP A
On June 19, 2008 , United Water Idaho Inc. (United Water; Company) filed a Certificate
Amendment Application and a May 27, 2008 Agreement for Purchase and Sale (Agreement) between
the Company and the City of Nampa with the Idaho Public Utilities Commission (Commission). The
subject matter of the Agreement is the sale by United Water to the City of the non-contiguous water
systems presently serving Coventry Place, M&M Mountain View Acres, and Belmont Heights
subdivisions (collectively the Subdivisions) in Canyon County, Idaho. Reference Case No. UWI-
99-, Order No. 27976 (Coventry Place); Case No. UWI-00-, Order No. 28418 (M&M Mountain
View Acres); and Case No. UWI-OI-, Order No. 28885 (Belmont Heights). Also subject to the
sale are two additional subdivisions, Lexington Meadows and Brittania Heights which were added to
the Belmont system (Order Nos. 29941 and 30352) and the Nampa Charter School which was added to
the Coventry system (Order No. 29141).
Pursuant to Agreement, the purchase price is $245 000. The City of Nampa has agreed to
assume the Company s outstanding obligations under the Non-Contiguous Agreements and Mainline
Extension Agreements with other third parties and to hold United Water harmless from further
obligations thereunder.
United Water contends that the acquisition of the non-contiguous systems by the City of
Nampa is consistent with the public convenience and necessity because the customers will obtain water
service from a dependable municipal supplier (Nampa) and interconnection of the Belmont water
DECISION MEMORANDUM
system with the City of Nampa s water system will solve an existing water quality issue in Belmont
Heights involving elevated levels of uranium in the water.
United Water recommends proposed general entries to account for the sale proceeds. The
Company recommends that the proceeds be distributed and accounted for in the same manner as sale
proceeds were recently treated in the sale of the Danskin-Saddle Ridge subdivisions to the City of
Kuna. Case No. UWI-07-, Order No. 30481.
United Water requests a Commission Order
Improving the modification of United Water s Certificate of Public Convenience
and Necessity No. 143 by eliminating the Subdivisions therefrom;
Confirming that after the date of closing of the purchase and sale transaction
United Water will have no further obligation to provide domestic water service
to the Subdivisions;
Confirming that following the assumption by Nampa of the Non-Contiguous
Agreements and the Mainline Extension Agreements, United Water will have no
further obligations thereunder;
Approving the Company s accounting proposal.
The Company s Application in this case includes a map of the non-contiguous water
systems , a copy of the Agreement for Purchase and Sale between the Company and the City ofNampa
and the supporting direct testimony of Gregory P. Wyatt, Vice-President and General Manager of
United Water Idaho.
COMMISSION DECISION
United Water has filed an Application with the Commission regarding the proposed sale of
the Coventry Place, M&M Mountain View Acres, and Belmont Heights non-contiguous water systems
to the City ofNampa. The Company and Staff recommend that the Application be processed pursuant
to Modified Procedure, i., by written submission rather than by hearing. Reference Commission
Rules of Procedure, IDAP A 31.01.01.201-204. Does the Commission agree with the recommended
procedure?~o=
Scott Woodbury
Deputy Attorney General
DECISION MEMORANDUM