UWIW991.SWG.doc

SCOTT WOODBURY
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]

Street Address for Express Mail:
472 W. WASHINGTON
BOISE, IDAHO 83702-5983

Attorney for the Commission Staff

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION
OF UNITED WATER IDAHO INC.  FOR AUTHORITY TO AMEND AND REVISE CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY NO. 143. )
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CASE NO. UWIW991

COMMENTS OF THE
COMMISSION STAFF

COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its attorney of record, Scott Woodbury, Deputy Attorney General, and in response to the Notice of Application, Notice of Modified Procedure and Notice of Comment/Protest Deadline dated February 8, 1999, submits the following comments.
On January 15, 1999, United Water Idaho Inc. (UWI, Company) filed an Application (Case No. UWI-W-99-1) requesting authorization to amend its Certificate of Public Convenience and Necessity No. 143, as amended. The Company requests that its existing certificated boundary be amended to include two non-contiguous areas located in Canyon County. The first non-contiguous area is the planned Coventry Place subdivision located at Sunny Ridge Road and Ruth Lane near Nampa, Idaho. The second non-contiguous area is the planned Carriage Hill subdivision located along Midway Road and Lake Lowell Avenue near Nampa, Idaho.

In its Application, the Company states that these areas are not within the authorized territory of any other public utility water corporation under the jurisdiction of the Commission nor will its service interfere with the operations of any other water utility corporation under the jurisdiction of the Commission. The Company also provided copies of the non-contiguous agreements signed by the subdivision developers and UWI representatives. Construction of facilities will be pursuant to the Companys Rules and Regulations Governing Water Main Extensions (Rules 74 - 77) and Non-Contiguous Expansion (Rules 78 - 84).

STAFF INVESTIGATION
Staff reviewed the submitted Application, performed a field investigation, and met with UWI representatives on February 16, 1999 to review the subdivision and water system plans. The requested certificate expansion involves two non-contiguous areas. Maps showing the approximate boundaries of these subdivisions are provided in Attachment A.
The first non-contiguous area is the planned Coventry Place subdivision located to the east of Sunny Ridge Road and to the south of Ruth Lane in Nampa, Idaho. Conventry Place subdivision is currently under construction and is platted to have 53 residential lots encompassing 33.16 acres (a density of 1.59 units/acre). One house is currently under construction. The distribution system for the first phase of the subdivision and one well were recently installed under the direction of UWI personnel. A second well will be installed when the 26th lot is developed in accordance with DEQ standards. No technical data on the wells and distribution system has been provided by UWI.
The second non-contiguous area is the planned Carriage Hill subdivision located to the west of Midway Road and south of Lake Lowell Avenue in Nampa, Idaho. The subdivision will extend to the north and south of West Iowa Avenue. No wells have been installed at this time and construction of the subdivision has not been initiated. It is UWIs understanding that the subdivision will consist of 265 lots over 250 acres (a density of 1.07 units/acre), which will be built in several phases over a period of 10 years. The first phase will have 29 lots and therefore 2 supply wells will be installed per DEQ standards. No information on the water system was

provided at this time by UWI who will be providing oversight on the design and construction of the wells and distribution system. Staff was informed that a test well is currently being drilled under the direction of UWI personnel.
In the Non-Contiguous Water System Agreements for these subdivisions UWI will pay the developer up to $800 per new service connection, in accordance to the terms of the tariff, to compensate the developer for water supply costs. UWI states that no additional investment will be required for them to assume ownership and operate the system.
UWI stated that in each case the subdivision developer will install the supply wells and associated distribution system with meter settings on each lot throughout the development period (up to 10 years), with the entire cost borne by each developer. UWI is only responsible for installing the water meters, at no cost to the customers. UWI stated that no additional equipment will be required to operate the system. Staff noted that UWI does not intend to require the developers to install disinfection (e.g., chlorination) equipment on the potable water systems at this time. UWI also stated that Canyon County requires all new subdivisions to provide a separate irrigation system. In this case, the Coventry Place subdivision will utilize an existing irrigation well, and Carriage Hill will utilize canal irrigation water for customer irrigation water.
Staff noted that the Carriage Hill subdivision will surround Verdi Hills, an existing subdivision which has a homeowner association-owned water system. UWI personnel indicated that the homeowner association has contacted them regarding future interconnection with the Carriage Hill water system. UWI indicated it would address serving this area in a separate Application, if and when service is formally requested.

STAFF ANALYSIS
In reviewing the Companys Application, Staff noted that the Legal Description provided in the Application (Exhibit D) implied that UWI was requesting certification for areas outside the boundaries of each subdivision. Staff contacted UWI regarding this issue and was informed that their intent was to only request certification for the area within the platted subdivision boundaries. UWI stated that they would submit revised legal descriptions for each area.

UWI has stated that the supply wells and distribution systems will be provided by the developer of each subdivision in accordance with the Non-Contiguous Expansion tariff and no additional investment in equipment will be required. Given UWIs involvement in the design and construction of the subdivision water systems and that the Non-Contiguous Expansion tariff was specifically approved to accommodate this type of situation (i.e., new subdivisions), Staff is in general agreement with this position.
However, Staff is concerned that the Company has not required the developers to install disinfection equipment even though other Company wells have chlorination equipment. Staff notes that the intent of the Non-Contiguous Expansion tariff was to require the developer to advance all required water supply facilities. If the Company requires installation of disinfection equipment on existing Company wells and intends to install such equipment in this case, it is Staffs opinion that the developers should advance the cost of such facilities.

STAFF RECOMMENDATION
Staff recommends that UWI file revised legal descriptions designating that only the boundaries of the planned subdivisions are included in the certificated area. Staff also recommends that UWI submit new Applications to extend its certificated area to serve adjacent subdivision, both existing and proposed, if and when service is formally requested.
Staff recommends that the disinfection equipment be advanced by the developers if the Company intends to install disinfection equipment in the near future as an internal Company requirement.

DATED at Boise, Idaho, this day of March 1999.

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Scott D. Woodbury
Deputy Attorney General
Technical Staff: George Fink

SW:GF:gdk\umisc\comments\uwiw991.swg

STAFF COMMENTS 1 MARCH 3, 1999