970829.docx

DECISION MEMORANDUM
TO:COMMISSIONER HANSEN
COMMISSIONER NELSON
COMMISSIONER SMITH
MYRNA WALTERS
TONYA CLARK
DON HOWELL
STEPHANIE MILLER
RANDY LOBB
DAVE SCHUNKE
DAVID SCOTT
WORKING FILE
FROM:SCOTT WOODBURY
DATE:August 29, 1997
RE:CASE NO. UWI-W-97-5
NORTH STATE AREA — RATE PHASE-IN
On August 12, 1997, United Water Idaho Inc.  (United Water; UWI; Company) filed an Application with the Idaho Public Utilities Commission (Commission; IPUC) requesting authority to implement Phase 2 of rates for the North State Area.  The North State Area is the general description of those customers lying within the geographic area generally bounded by Gary Lane on the West, Pierce Park on the East and State Street to the South formerly served by the City of Garden City.  This area includes Summer Hill Subdivision, Hillsboro Subdivision and those developments fronting Pierce Park on the East that were formerly served by Garden City.  The North State Area was acquired by United Water on August 12, 1996, when the Commission approved a July 20, 1995, Exchange Agreement between United Water and the City of Garden City, Idaho.  Reference Order No. 26562 and related amendment to UWI Certificate No. 143.  In its Order the Commission approved United Water’s proposal for a phase in of rates for customers in the North State Area whereby rates for customers in that area would be increased in increments to full United Water rates.  More specifically, the Commission approved the following phases:
Phase 1—Existing Garden City rates until completion of intertie with UWI distribution system.
Phase 2—85% of UWI rates, as they existed on August 12, 1996, for twelve (12) months.
Phase 3—92% of UWI rates, as they existed on August 12, 1996, for twelve (12) months.
Phase 4—transition to full UWI rates.
Order No. 26562, p. 5.
United Water is presently providing service at the rates specified in Phase 1, the existing Garden City rates.  United Water contends that it has completed the intertie between the North State Area and UWI’s domestic water distribution system and that the North State Area is now fully integrated with UWI’s system.  Accordingly, United Water states that it is entitled to implement Phase 2 of the phase-in sequence approved by the Commission.
Additionally, United Water contends that it has implemented other measures to ensure that water pressure and quality are adequate within the North State Area.  These measures include:
1.The North State Area has been included in UWI’s annual system flushing program thereby enhancing water quality within the area;
2.The North State Area has been integrated into UWI’s SCADA system  thereby enabling remote monitoring of the system in the area;
3.Water pressure in the North State Area has been stabilized by virtue of connection to UWI’s Hidden Hollow Reservoir;
4.UWI has established a customer liaison team consisting of Company personnel, customer representatives and IPUC representatives.  The customer liaison team has held regular meetings, and these will continue;
5.Construction of the Garden City booster station has been completed thereby enhancing water supply and pressure at peak demand periods;
6.UWI has provided technical assistance to Garden City to help improve water quality.
Accompanying the Company’s Application is the proposed schedule of Phase 2 rates.  Residential customers with 5/8 to 3/4 inch service lines will experience an increase in customer charges to $10.20 bi-monthly per meter and an increase in volume charge for all water used for 100 cubic feet (ccf) of $0.6877 for winter rates and $0.8594 for summer rates.  Summer rate applies to water consumed between May 1 and September 30.  United Water requests approval of the Phase 2 rates for the North State Area for a period of 12 months, and further requests that it thereafter be permitted to file tariffs to implement Phase 3 and Phase 4 by tariff advice pursuant to IPUC Rules of Procedure 134.01.  The Company requests an effective date for Phase 2 rates for the North State Area of September 5, 1997.
Commission Notices of Application and Modified Procedure in Case No. UWI-W-97-5 issued on August 15, 1997.  The deadline for filing written comments or protests was August 29,1997.  The Commission Staff was the only party to file comments (attached).  United Water has completed the interconnection with its distribution system and Staff therefore believes that the Company is entitled to move to Phase 2 of the rate phase-in as approved by the Commission in Order No. 26562.  Staff further believes that it is appropriate to implement Phases 3 and 4 by tariff advice as no action or performance is required other than the passage of time.  
Commission Decision:
●Does the Commission continue to find Modified Procedure appropriate in Case No. UWI-W-97-5?
●Should United Water be authorized to implement Phase 2 of rates for the North State Area?
●Should United Water be authorized to implement Phases 3 and 4 with a simple tariff advice filing?
●Does the Commission agree that the effective date for Phase 2 rates for the North State Area should be September 5,1997?

Scott Woodbury
cm\M:uwiw975.sw