20150512notice_of_application_order_no_33300.pdf

Office of the Secretary
Service Date
May 12,2015
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE JOINT )CASE NO.UWI-W-15-02
APPLICATION OF UNITED WATER IDAHO )
INC.AND THE CITY OF BOISE,IDAHO )NOTICE OF APPLICATION
FOR APPROVAL OF AN AGREEMENT FOR )
REPLACEMENT AND OPERATION OF )NOTICE OF
FIRE HYDRANTS AND RELATED RATE )MODIFIED PROCEDURE
MAKING TREATMENT )
_________________________________
)ORDER NO.33300
On April 10,2015,United Water Idaho,Inc.(“United Water”)and the City of Boise,
Idaho (“Boise”or the “City”)filed a joint Application seeking Commission approval of an
agreement between the parties to transfer responsibility for operation,maintenance,and
replacement of fire hydrants within Boise’s municipal boundaries from Boise to United Water.
United Water also seeks approval of related non-standard ratemaking treatment to recover the
increased costs associated with the transfer.The parties further request that their joint
Application be processed under Modified Procedure,Rules 202-204 (IDAPA 31.01.01.202-
.204).
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the parties represent that Boise currently owns
and maintains more than 6,700 fire hydrants in Boise’s city limits.In July 2014,the parties
entered into the agreement to transfer ownership and operation of the hydrants to United Water.
The agreement calls for Boise to provide an annual report to United Water of hydrants ending
their 40-year life cycle,and that need replacing.United Water will then replace and maintain the
new hydrants.The parties estimate that approximately 168 hydrants will be replaced each year
over the next 40 years.
YOU ARE FURTHER NOTIFIED that the parties claim that the agreement is
“generally to provide operations consistent with other communities in the state;to create equity
among taxpayers and ratepayers;to make available capital funding for fire protection
infrastructure and other essential services;to conform with the intent of the franchise agreement;
and to vest ownership of the hydrants with the entity that owns the infrastructure connected to
the hydrants with the experience and expertise to maintain them.”Application at ¶9.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDERNO.33300 1
YOU ARE FURTHER NOTIFIED that United Water further requests assurance from
the Commission that the costs associated with the transfer will be fully included in rate base (not
using the traditional 13-month average),and recovered in any subsequent general rate
proceedings over the life of the agreement.United Water estimates that “the annual revenue
requirement associated with the initial capital investment [will be]approximately $765,000.”
Application at ¶7.According to United Water,this initial cost will increase annual rates by
approximately $1.45 per customer.Id.at ¶12.
YOU ARE FURTHER NOTIFIED that each party has reserved the right to declare
the agreement “null and void”should the Commission not approve of the agreement,including
the specific accounting treatment requested by United Water.Agreement at §2.
YOU ARE FURTHER NOTIFIED that the joint Application,prefiled testimonies
and exhibits have been filed with the Commission and are available for public inspection during
regular business hours at the Commission offices.The Application and testimonies are also
available on the Commission’s web site at 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 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 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 any person desiring to state a position on this
Application may file a written comment in support or opposition with the Commission by July
23,2015.The comment must contain a statement of reasons supporting the comment.Persons
desiring a hearing must specifically request a hearing in their written comments.Written
comments concerning this case shall be mailed to the Commission and the Applicants at the
addresses reflected below:
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33300 2
Commission Secretary Dean J.Miller
Idaho Public Utilities Commission McDevitt &Miller.LLP
P0 Box 83720 Attorneyfor United Water Idaho Inc.
Boise,ID 83 720-0074 420 W Bannock St
P0 Box 2564-83701
Street Address for Express Mail:Boise,ID 83702
E-Mail:joerncdcvitt-mil1er.corn
472 W.Washington Street
Boise,ID 83702-59 18 Douglas K.Strickling
Boise City Attorney’s Office
150 N Capitol Blvd
P0 Box 500-83701
Boise,ID 83702
E-mail:dstrickling(cityofboise.org
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 wvw.puc.idaho.gov.Click the “Case Comment or Question
Form”under the “Consumers”tab,and complete the form using the case number as it appears on
the front of this document.These comments must also be sent to the Company at the e-mail
addresses listed above.
YOU ARE FURTHER NOTIFIED that the City and United Water may file reply
comments,if necessary,no later than August 13,2015.
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.
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,and specifically
Idaho Code §61-502 and 61-503.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 ci seq.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33300 3
ORDER
IT IS HEREBY ORDERED that the joint Application be processed under Modified
Procedure,IDAPA 31.01.O1.201-.204.Persons interested in submitting written comments in this
matter must do so no later than July 23,2015.The applicants may file reply comments (if
necessary)no later than August 13,2015.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of May 2015.
ATTEST:
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33300
PAELAN
MACK A.REDFORD,OM IS STONER
4tkQ A1A
KR INE RAPER,COMMISSIONER
O:UWI-W-I 5-O2bk
4