20081017press release.htm

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Idaho Public Utilities Commission

Case No. UWI-W-08-02, Order No. 30651

October 17, 2008

Contact: Gene Fadness 208-334-0339, 890-2712

Website:
http://www.puc.idaho.govwww.puc.idaho.gov

PUC approves sale of United Water systems to City of Nampa

The Idaho Public Utilities Commission has approved an application by United Water Idaho Inc. to sell water systems serving some Nampa subdivisions to the City of Nampa’s municipal water system.

The affected subdivisions are Coventry Place, M&M Mountain View Acres and Belmont Heights. Included in the Belmont Heights territory are the Lexington Meadows and Brittania Heights subdivisions and Nampa Charter School.

The purchase price for the water systems is $245,000. United Water proposed a sharing of the sale proceeds between the company’s shareholders and ratepayers. The portion going to United Water ratepayers will be reduced from the company’s rate base when it files its next general rate case.

United Water said the sale of the water systems is in the public interest because the growth of Nampa subdivisions is resulting in the city being served by multiple water suppliers in close proximity. Further, United Water states, the City of Nampa is a dependable municipal supplier and interconnection of the Belmont system with the city will solve an existing water quality issue involving elevated levels of uranium in Belmont Heights.

All customers other than those in the M&M Mountain View subdivision will experience an increase in rates for water service of about 12 percent. The subdivisions fall outside Nampa city limits and those customers pay a higher rate than those inside the city.

The commission said it has no authority over the city’s rates, but did agree that an increase is justified because of the benefits of the sale to customers. The water quality problems in Belmont will be resolved as a result of the sale at a lower cost than would have been required had Belmont remained in United Water’s territory. Further, the commission said, customers in both Belmont and Coventry will have improved fire-protection flows and improved access to the City of Nampa and its water services administrative offices. Once the subdivisions are annexed, customer rates will be reduced.

Customers at M&M Mountain View are unmetered and billed at a flat rate by United Water. Because the City of Nampa has no unmetered customers and no rate for unmetered service, the city has informally agreed to continue charging M&M customers their current flat rate.

A full text of the commission’s order, along with other documents related to this case, is available on the commission’s Web site at
http://www.puc.idaho.gov/www.puc.idaho.gov. Click on “File Room” and then on “Water Cases” and scroll down to Case Number UWI-W-08-02.

Interested parties may petition the commission for reconsideration by no later than Oct. 28. Petitions for reconsideration must set forth specifically why the petitioner contends that the order is unreasonable, unlawful or erroneous. Petitions should include a statement of the nature and quantity of evidence the petitioner will offer if reconsideration is granted.

Petitions can be delivered to the commission at 472 W. Washington St. in Boise, mailed to P.O. Box 83720, Boise, ID, 83720-0074, or faxed to 208-334-3762.