20110309final_order_no_32201.pdf

Office of the Secretary
Service Date
March 9, 2011
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF UNITED WATER IDAHO INC. AND THE
CITY OF EAGLE FOR APPROVAL OF AN
INTERCONNECTION AGREEMENT ORDER NO. 32201
CASE NO. UWI-ll-
On January 28, 2011 , United Water Idaho Inc. and the City of Eagle, Idaho filed an
Application requesting Commission approval of an Agreement between the parties that controls
interconnection of facilities and the potential exchange of water. The two water systems
currently are connected through a pressure regulating valve and vault owned by the City that
allows water to flow only from United Water to City facilities. The existing interconnection is
governed by an Agreement between the parties executed in 1997. The new agreement provides
for facilities modifications to enable water to flow both ways between the two systems. The
Agreement provides that each party will own the facilities on its side of the interconnection. The
parties estimate that United Water s share of the cost to upgrade the system will be $14 496 and
the City of Eagle s share will be $5 499.
The interconnection of facilities will be controlled by a pressure regulating valve
thus a pressure drop will initiate the flow of water from one system to the other. The Agreement
provides that the party receiving water will notify the supplying party within four hours as to the
nature and expected duration of the emergency, and the anticipated volumes of water required.
When United Water sells supply to the City under the Agreement, the Company will receive
payment at the full tariff volumetric rate and not at a discount. Likewise, when the City sells
supply to United Water, it will receive payment at Eagle s then existing published volumetric
rate.
On February 8, 2011 , the Commission issued a Notice of Application and Notice of
Modified Procedure that established a period for the filing of written comments. The
Commission Staff filed comments on March 1 2011; no other written comments were filed.
Staff analyzed a number of issues related to the Agreement between the City of Eagle
and United Water. In particular, Staff sought assurance that customers of United Water will not
be affected with fluctuations of flow and pressure in the event water is provided to the City, that
existing customers will not subsidize City customers under the Agreement, and that the quality
ORDER NO. 32201
of water provided by the City under the Agreement will not degrade the quality of water
provided by United Water to its customers. Staff reviewed evidence on these and other issues
and recommended the Commission approve the Agreement providing for the interconnection of
United Water and the City of Eagle facilities.
The Commission finds the proposed Agreement for interconnecting United Water and
City of Eagle water facilities to be fair and reasonable. The Commission approved the existing
interconnection between United Water and City of Eagle facilities in Case No. UWI-97-
The new Agreement and new interconnection facilities will provide a source of supply to either
party during a period of pressure loss. Situations that could produce a sufficient amount of
pressure loss include fire suppression, significant pipe break, unexpected pump shutdown and
scheduled maintenance of large facilities. In such an event, United Water will provide up to
500 gallons per minute and a maximum supply of 1.44 million gallons per day to the City. The
City will provide a maximum instantaneous flow of 825 gallons per minute and a maximum
daily supply of 1.1 million gallons per day. United Water verified that its current supply system
would be able to handle the target flows and volumes under normal operating conditions.
United Water will pay approximately $14 496 of the total expected cost of $19 995 to
modify the facilities necessary to complete the interconnection. If United Water provides water
to the City under the Agreement, the City will pay the full tariff amount in effect for United
Water s supply.
Regarding water quality, the Agreement provides that "each party shall use its best
efforts to ensure that the supplies furnished hereunder shall be potable and in compliance with all
applicable federal and State of Idaho laws and regulations in effect at the time the supplies are
delivered to the other party." Although the Agreement does not require United Water to actively
monitor the quality of water delivered to it by the City, the quality of water provided by both the
City and United Water are similar in quality and comply with applicable standards. Staff
Comments, pp. 9-10.
Based on the record in this case, the Commission finds the Agreement between
United Water and the City of Eagle to be reasonable and prudent and the Commission approves
it. The Agreement helps maintain United Water s supply to customers in the event of
emergencies, and allows United Water to reasonably provide water to the City, without
degrading its own supply or water quality.
ORDER NO. 32201
ORDER
IT IS HEREBY ORDERED that the Application of United Water Idaho and the City
of Eagle for approval of their Emergency Interconnection Agreement, dated December 22 , 2010
is approved.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order. Within seven (7)
days after any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See Idaho Code 9 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
qr't
day of March 2011.
It:: -JI . KE TON RESI
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MARSHA H. SMITH, COMMISSIONER
~~~
MACK A. REDFO ,CO MISSIONER
ATTEST:
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J n D. Jew
Commission Secretary
bls/O:UWI-II-01 ws2
ORDER NO. 32201