APPHRG.docx

(text box: 1)BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE JOINT APPLICA­TION OF UNITED WATER IDAHO INC., AND WARM SPRINGS MESA, INC.  FOR AN ORDER APPROVING THE SALE AND TRANSFER OF WATER SERVICE PROPERTIES BY WARM SPRINGS MESA TO UNITED WATER IDAHO
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CASE NO.  UWI-W-96-1
                    WSM-W-96-1
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
NOTICE OF SCHEDULING
NOTICE OF HEARING
YOU ARE HEREBY NOTIFIED that on March 28, 1996, United Water Idaho Inc. (UWI, United Water) and Warm Springs Mesa, Inc. (WSM, Warm Springs) collectively referred to as “Applicants,” filed an Application with the Idaho Public Utilities Commission (Commission) for an order approving the sale and transfer to United Water of Warm Springs’ water service properties located in Ada County, Idaho.  UWI also requests approval of certain related rate and ratemaking matters.
United Water is a public utility providing water service to more than 50,000 customers in Ada County, Idaho.  United Water is a regulated utility operating under Certificate of Public Convenience and Necessity No. 143 (as amended).  UWI is a subsidiary of United Water Works Inc., a Delaware corporation.  
Warm Springs is a public utility providing metered water service to approximately 300 customers in and around Warm Springs Mesa subdivision in Ada County, Idaho.  Warm Springs is a regulated utility operating under Certificate of Public Convenience and Necessity No. 264 (as amended).  
United Water, Warm Springs and J. H. Wise & Sons, Inc., an Idaho corporation (“Wise”) have negotiated and executed an Agreement for Purchase and Sale (Agreement) dated March 27, 1996 whereby Warm Springs and Wise will sell and transfer to United Water real property and water works facilities used in furnishing water service to the public in and around the Warm Springs Mesa subdivision.
The purchase price to be paid by United Water for all the land, improvements, personalty and intangible property used and useful in the furnishing of water service by Warm Springs is $550,000.  The purchase price consists of the following:
Depreciated cost of property (rate base)$340,037
Well No. 3  117,000
Land    63,000
Intangibles    29,960
TOTAL$550,000
The purchase price by terms of the Agreement may be adjusted to reflect additional depreciation in the event regulatory approval is not received within six months of the Agreement date.
United Water requests that the identified intangible sum of $29,960 be recognized by the Commission as a “reasonable acquisition adjustment.”  As reflected in the Agreement, intangible property includes without limitation, “customer lists and records, customer deposits, well logs, maintenance records, tariffs and rules and regulations governing the rendering of service and extension of service to future development, franchises, permits and certificates.”  As reflected in the accompanying testimony of United Water, the sum also includes “good will.”  
United Water proposes to provide water to Warm Springs customers at United Water’s approved tariff rates and in accordance with United Water’s rules and regulations governing the rendering of water service.  The average total bill of Warm Springs customers is not expected to be significantly different.
Although not required in the underlying Agreement, United Water proposes not to charge connection or hookup fees for new service in the Warms Springs area unless and until the Warm Springs system is interconnected to the United Water distribution system.  As reflected in the accompanying testimony there are approximately 215 undeveloped lots in the Warm Springs area.
Warm Springs states that it desires to convey its water company to United Water because it is unwilling to undertake the perceived risks of continued operations arising from increasingly stringent water quality regulations, increasingly complex utility regulation, and increasingly complex operational and technical requirements.  Because of its small size Warm Springs states that it has experienced, and in the absence of this sale, would continue to experience, difficulties in maintaining its system and in obtaining adequate financing for operations, maintenance and expansion.
United Water maintains that it possesses the technical, managerial and financial abilities to provide reliable and adequate service, and accordingly contends that the proposed transfer is in the public interest.
The Applicants requests an order of the Commission:
1.Approving the sale of Warm Springs assets to United Water;
2.Confirming the right of United Water to include in rate base and future rate proceedings the net full purchase price of the assets subject to this transaction, and to recover reasonable costs of acquisition;
3.Confirming the right of United Water to provide water service in the area now served by Warm Springs at United Water’s currently and hereafter approved tariff rates with the exception of connection fees;
4.Confirming the right of Warm Springs to abandon service, cancellation of Warm Springs’ Certificate of Convenience and Necessity and amendment of United Water’s Certificate of Convenience and Necessity; and
5.Granting such other and further relief as the Commission deems appropriate.
The Application filed in Case Nos. UWI-W-96-1 and WSM-W-96-1 is accompanied by a service area map of United Water with boundary descriptions, the United Water/Warm Springs/Wise Agreement for Purchase and Sale, and the prefiled testimony of United Water.
YOU ARE FURTHER NOTIFIED that all persons desiring to intervene in this case for the purpose of presenting testimony or cross-examining witnesses must file a Petition to Intervene with the Commission pursuant to Rules 72 and 73 of the Commission’s Rules of Procedure, IDAPA 31.01.01.000 et seq. no later than May 15, 1996.  Persons desiring to present their views without parties rights of participation and cross-examination are not required to intervene and may present their comments without prior notification to the Commission or to other parties.
YOU ARE FURTHER NOTIFIED that pursuant to agreement of the parties and the Commission the following scheduling has been adopted.
May 17, 1996
June 21, 1996
July 5, 1996
Prefile deadline—supplemental direct testimony—United Water
Prefile deadline direct testimony—Warm Springs Mesa
Prefile deadline—direct testimony—Staff/ Intervenors
Prefile deadline—rebuttal testimony—United Water/Warm Springs Mesa
YOU ARE FURTHER NOTIFIED that the prepared testimony and exhibits of the parties must conform to the requirements of Rules 266 through 267 of the Commission’s Rules of Procedure, IDAPA 31.01.01.266-267.
YOU ARE FURTHER NOTIFIED that discovery is available in Case Nos. UWI-W-96-1 and WSM-W-96-1 pursuant to the Commission’s Rules of Procedure, IDAPA 31.01.01221-234.
YOU ARE FURTHER NOTIFIED that a public hearing in Case Nos. UWI-W-96-1 and WSM-W-96-1 is scheduled to begin TUESDAY, JULY 16, 1996, COMMENCING AT 9:30 A.M. IN THE COMMISSION HEARING ROOM, 472 WEST WASHINGTON, BOISE, IDAHO [phone], and will continue if necessary on JULY 17, 1996.  PUBLIC TESTIMONY in this matter will be taken at the Commission’s hearing roomONTUESDAY EVENING JULY, 16, 1996, at 7:00 p.m.
YOU ARE FURTHER NOTIFIED that the Application in Case Nos. UWI-W-96-1 and WSM-W-96-1 can viewed at the Commission offices, 472 W. Washington, Boise, Idaho during regular business hours.
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 that 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.
YOU ARE FURTHER NOTIFIED that all hearings and prehearing conferences in this matter will be held in facilities meeting the accessibility requirements of the Americans with Disabilities Act.  Persons needing the help of a sign language interpreter or other assistance of the kind that the Commission is obligated to provide under the Americans with Disabilities Act in order to participate in or to understand the testimony and argument at a public hearing may ask the Commission to provide a sign language interpreter or other assistance at the hearing.  The request for assistance must be received at least five (5) working days before the hearing by contacting the Commission Secretary at:
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO  83720-0074
[phone]  (TELEPHONE)
[phone]  (TEXT TELEPHONE)
[phone]  (FAX)
DATED at Boise, Idaho this day of April 1996.

Myrna J. Walters
Commission Secretary
vld/N:UWI-W-96-1.sw
COMMENTS AND ANNOTATIONS
Text Box 1:
TEXT BOXES
Office of the Secretary
Service Date
April 26, 1996