981030.docx

DECISION MEMORANDUM
TO:COMMISSIONER HANSEN
COMMISSIONER NELSON
COMMISSIONER SMITH
MYRNA WALTERS
TONYA CLARK
DON HOWELL
STEPHANIE MILLER
DAVE SCHUNKE
RANDY LOBB
DAVID SCOTT
WORKING FILE
FROM:SCOTT WOODBURY
DATE:OCTOBER 30, 1998
RE:CASE NO. UWI-W-98-4
RULES & REGULATIONS GOVERNING WATER MAIN EXTENSIONS— AMENDMENT
On September 4, 1998, United Water Idaho Inc. (United Water; Company) filed an Application with the Idaho Public Utilities Commission (Commission) proposing an amendment to the Company’s Rules and Regulations Governing Water Main Extensions (ie Rules 67, 73, and 75).
The amendment to Rules 67 and 73 are intended to allow individuals and developers of subdivisions to provide materials necessary for the installation of water facilities.  While customers are currently allowed to provide labor in lieu of a cash contribution toward facility construction, the Company has historically provided all of the materials and the customer has contributed the cash.
The amendment to Rule 75 is intended to allow, in some circumstances, refunds for developers who contribute the cost of “special facilities” in the nature of sources of supply, storage or pumping.  United Water’s current rules require developers to fully contribute on-site facilities, but the rules do not specifically address developer responsibility when a subdivision triggers the need for investment in new source of supply, storage or pumping.  This amendment clarifies that ambiguity.
On October 2, 1998, the Commission in Case No. UWI-W-97-6 issued a Notice of Application and Modified Procedure.  The deadline for filing written comments was October 23, 1998.  The Commission Staff was the only party to file comments (attached).  
The line extension amendments proposed by the Company in this case are the direct result of Staff’s comments and recommendations filed in prior Case Nos. UWI-W-97-3 and GNR-W-97-3.  The Commission has issued its final Order No. 27762 in those cases approving the Settlement and Stipulation agreement between UWI and Hidden Springs Water Co., LLC and citing the reasonableness of Materials-in-Lieu of cash and refund of special facilities costs.  Staff worked with the Company to develop reasonable amendments to line extension Rules 67, 73 and 75 so that all individuals and developers are treated equitably and consistently when line extensions are requested.  Subsequent to the filing of the Rule 75 amendments the Company and Staff agreed to further additional language that allows individual case by case assessment and review of projects that fall under the amended special facilities portion of the tariff.  The proposed tariff Rule 75 is attached with agreed to changes underlined.  Therefore, Staff recommends that the proposed amendments be approved as modified.
Commission Decision
∙Does the Commission continue to find Modified Procedure appropriate in Case No. UWI-W-98-4?
∙Does the Commission find the proposed amendments to Rules 67, 73 and 75 of the Company’s Rules and Regulations governing water main extensions to be reasonable?  Does the Commission approve same?  If not, what is the Commission’s preference?

Scott Woodbury
vld/M:UWI-W-98-4.sw2