20141017notice_of_application_order_no_33154.pdf

Office of the Secretary
Service Date
October 17,2014
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF UNITED WATER IDAHO)
INC.’S AND BRIAN SUBDIVISION WATER )CASE NO.UWI-W-14-O1
USERS ASSOCIATION’S APPLICATION TO )
ALLOW UNITED WATER TO TAKE OVER )NOTICE OF APPLICATION
BRIAN WATER’S DOMESTIC WATER )
SYSTEM.)NOTICE OF
)MODIFIED PROCEDURE
)
____________________________)
ORDER NO.33154
On September 29,2014,United Water Idaho Inc.(“United Water”)and Brian
Subdivision Water Users Association (“Brian Water”)applied to the Commission for an Order
authorizing United Water to connect to,and take over the operation of,Brian Water’s domestic
water system.The applicants ask the Commission to process the case by Modified Procedure.
With this Order,the Commission notifies interested persons about the Application
and invites them to comment on it until November 28,2014.
THE APPLICATION
In their Application,United Water and Brian Water explain that the Idaho
Department of Environmental Quality has required Brian Water to eliminate contaminants from
Brian Water’s domestic water system,and that the most feasible way for Brian Water to do this
is to connect its system to United Water.The applicants have entered into an agreement to
facilitate this transaction and have attached a copy of the agreement to the Application.
The applicants estimate it would cost $1,340,209 for United Water to connect to
Brian Water’s system.This amount would include $1,215,184 in pipeline costs and $125,026 in
service and meter costs.The applicants propose that Brian Water’s customers pay for 10%of
the trued-up pipeline costs and 100%of the trued-up costs for services and meters,and that
United Water’s customers pay 90%of the trued-up pipeline costs.
The applicants estimate that the construction costs allocated to Brian Water’s
customers will increase United Water’s first year per customer revenue requirement by about
$165,609.The applicants propose that Brian Water customers cover this amount by paying
NOTICE OF APPLICATOIN
NOTICE OF MODIFIED PROCEDURE
ORDERNO.33154 1
United Water an extra $124.86 on their water bill every two months for ten years or,at the
customer’s option,by making a one-time payment.The applicants propose that the Commission
approve this surcharge to Brian Water customers under the “contract standard’so the surcharge
will not change in a general rate case unless the surcharge was determined to adversely affect the
public interest.
With respect to the costs allocated to United Water’s customers,the applicants
propose that United Water would:(1)defer recovery of those costs and continue to accrue
allowance for funds used during construction until included in rates;and (2)include those costs
in the base rates it seeks in its next general rate case (including a return on the investment
amount as calculated at the end of the year and not as a thirteen-month average).
The applicants state that upon the Commission’s approval of the application,United
Water will file a conforming tariff specifying the terms of service for customers living in the
Brian Subdivision.
The applicants state that Brian Water has notified its members about the proposals
and this Application.
The applicants ultimately request that the Commission:
•approve a change to United Water’s CPCN to add Brian Subdivision;
•confirm that United Water shall serve Brian Subdivision after the closing
date of the parties’agreement;
•approve the applicants’surcharge and rate proposals;and
•confirm that United Water’s contemplated investments are prudent for
ratemaking purposes,and approve the applicants’cost-recovery and rate-
making proposals.
YOU ARE FURTHER NOTIFIED that the Application and supporting workpapers
have been filed with the Commission and are available for public inspection during regular
business hours at the Commission offices.The Application is also available on the
Commission’s web site at www.puc.idaho.gov.Click on the “File Room”tab at the top of the
page,scroll down to “Water Cases,”and then click on the case number as shown on the front of
this document.
NOTICE OF APPLICATOIN
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33154
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission’s jurisdiction under Title 61 of the Idaho Code.The Commission
may enter any final order consistent with its authority under Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission’s Rules of Procedure,IDAPA 31.01.01.000 et seq.,
including the Modified Procedure rules referenced below.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the
public interest may not require a formal hearing in this matter and will proceed under Modified
Procedure (that is,persons will present their views through written comments)pursuant to Rules
201 through 204 of the Idaho Public Utilities Commission’s Rules of Procedure,IDAPA
31.01.01.201 through .204.The Commission notes that Modified Procedure and written
comments have proven to be an effective means for obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that the Commission has not scheduled public
informational workshops in this matter.However,if customers request that Staff conduct a
workshop,or if numerous public comments are received,one or more workshops may be
scheduled.Members of the public will be notified if any workshops are to occur.
YOU ARE FURTHER NOTIFIED that persons desiring to state a position on this
Application must file a written comment in support or opposition with the Commission by
November 28,2014.The applicants must file their reply comments,if any,by December
12,2014.A comment must contain a statement of reasons supporting the comment.In addition,
persons desiring a hearing must specifically request a hearing in their written comments and
explain why they believe that Modified Procedure should not be used to process this case.
Written comments concerning this Application shall be mailed to the Commission and the
applicants at the addresses reflected below:
Commission Secretary Gregory P.Wyatt
Idaho Public Utilities Commission United Water Idaho Inc.
P.O.Box 83720 P.O.Box 190420
Boise,ID 83720-0074 Boise,Idaho 837 19-0420
NOTICE OF APPLICATOIN
NOTICE OF MODIFIED PROCEDURE
ORDERNO.33154 3
Street Address for Express Mail:Richard Juengling,President
Brian Subdivision Water Users Association
472 W.Washington Street 5855 E.Wood Place
Boise,ID 83702-59 18 Boise,Idaho 83716
Dean J.Miller,Esq.
McDevitt &Miller LLP
P.O.Box 2564
Boise,Idaho 83701
These comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission’s home page located at www.puc,idaho.gov.Click the “Utility Case Comment or
Question Form”under the “Consumers”tab,and complete the comment form using the case
number as it appears on the front of this document.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set,the Commission will consider this matter on its merits and
enter its Order without a formal hearing.If written comments are received within the time limit
set,the Commission will consider them and,in its discretion,may set the same for formal
hearing.
ORDER
IT IS HEREBY ORDERED that this case be processed under Modified Procedure.
Interested persons wishing to file comments or protests in this matter must do so by November
28,2014.The applicants must file their reply comments,if any,by December 12,2014.
NOTICE OF APPLICATOIN
NOTICE OF MODIFIED PROCEDURE
ORDERNO.33154 4
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this I
day of October 2014.
PAUL IdELLANI4ER,IESIDENT
MACK A.REDFORD,COMMISSIONER
XRSHA H.SMITH,COMMISSIONER
ATTEST:
Jean D.Jewell
Commission Secretary
O:VWI-W-14-O1 kk
NOTICE OF APPLICATOIN
NOTICE OF MODIFIED PROCEDURE
ORDERNO.33154 5