20000707min.doc

MINUTES OF DECISION MEETING
July 7, 2000 - 1:30 p.m.

In attendance were Commissioners Dennis Hansen, Marsha H. Smith and Paul Kjellander. Commission President Dennis Hansen called the meeting to order.

The reason for the emergency decision meeting is to discuss the lack of water pressure in the Eagle Springs Estates. We have a petition before the Commission requesting action.

Commissioner Hansen asked the staff if they would respond to the Petition that was filed.

Ms. Barker was standing in for Nancy Harman. She said the first indication that there were problems in the subdivision was on Monday, July 3, when we were contacted by customers who
had concerns about water pressure and the lack of water in the Eagle Springs Estates subdivision. On July 5, 2000, the Commission received a Petition from the residents of Eagle Springs
Estates asking the Commission to take an action to remedy the situation. The petition was received from the residents of the subdivision not the homeowners association. The petitioners
requested that the following actions be taken: 1. Bring the water pressure up to satisfactory levels. 2. Stop any new construction until this is fixed. 3. Determine what plans Eagle
Water has in place to upgrade the delivery of water into Eagle Springs and what emergency plans are in place to prevent another total loss of water. The staff has proposed that the
Commission formally investigate the particular incident that gave rise to this petition as well as look at any ongoing problems as the homeowners alleged with respect to water pressure
affecting this subdivision. The question is whether the Commission would like to accept the petition as filed, and initiate a formal investigation.

Commissioner Hansen asked if Eagle Water would care to respond to the petition?

Mr.Robert DeShazo responded and said he is presently serving as President of Eagle Water Company. Mr. DeShazo explained that they had lost a well on Saturday (July 1, 2000). There is
a transformer inside, they were not sure what had happened, seemed to have overheated. He mentioned that approximately 5 weeks ago, they had an electrician from Priest Electric come
out and do a thorough examination of the pump motor itself and the controller. They found nothing wrong, so they felt it was operating. They will send it in to have an analysis done
to determine what caused it. Since it happened on a Saturday, no parts were available and people were hard to reach. He was able to get some people to help on Sunday; they got water
a truck out there, and bottled water for the customers. He said they did a reconfiguration of the existing system to try to get some water up into that area which they did do. Late
on Sunday, he was informed that the controller that they had ordered 6 weeks prior had arrived and would be there Monday for installation. They worked all day Monday, and at 6:15 pm,
the new controller went on line. It worked through the 4th, and it worked until Wednesday when it went down. The technician came out and determined that there was a circuit board inside
this computer and that there were some capacitors that had failed. The factory was called and another one was flown out. They didn't get the part until 10:30 pm, July 6, 2000. Eagle
Water worked on the pump that night and had the pump back on line. It was mentioned that Eagle Water is in the process of completing a booster
station, should be online sometime next week but would have to rent a generator because they still do not have power out there from Idaho Power. The crews are working there today, but
still had a lot of work to do.

Commissioner Hansen asked if anyone had any questions for discussion from the Commission.

Commissioner Hansen did have one question. Asked that in the past, previous to this particular problem, would they say they had unsatisfactory water pressure in that subdivision?

Mr. DeShazo replied that they have had some problems primarily because as they were building in higher elevations, they were not able to get the pressure up there. That’s why they decided
to build the booster station.

Commissioner Hansen asked if it would alleviate the problem in the future? Would it actually have a satisfactory level of water pressure? Would it be comparable to everyone else they
serve?

Mr. DeShazo replied that it is actually located close to the site. The engineer did an analysis on it and that's what he firmly believes would happen.

Commission Hansen asked if they had any plans in place that if in the future something similar to this happened, would you have a way of alleviating or addressing the problem so people
would get water?

Mr. DeShazo said that without facts, if the booster pump would have been running it would have helped tremendously. They do have another well approved located on State Street between
Monroc and Eagle Sand and Gravel. The Department of Water Resources has issued a permit, just waiting for drilling permit which has become an elaborate situation to do. Received dispute
from FEMA that this sight may be in the flood way, but had anticipated to drill a new well and would probably be on line late spring or early summer next year.

Commission Hansen asked what would have happened if there would have been a fire in that area while they were down, how would that have affected the fire hydrant?

Mr. DeShazo said they contacted the fire department to let them know they were having a problem up there. He indicated that he had been told that they had moved some tanker trucks around
in case they had to go and have additional water.

Commissioner Hansen asked if there were comments?

Commissioner Smith replied that reading the petition of the customers, it seems to go not only to this unfortunate incident that happened recently but also other long-term concerns regarding
pressure and would support staff recommendation to open an investigation. She felt that it would give the Commission and the customers some comfort if our staff did an independent analysis
to determine whether the booster station that is proposed will actually provide a long term solution to problems in this area. Whether there is adequate supply and pressure for continued
expansion
in this area. Thought those were questions that the customers deserve our attention to. She said she would support the staff's recommendation to open an investigation and look into this.

Commission Kjellander said he supports the motion that Commissioner Smith has made, but he did have a question with regards to the booster station. He asked when the actual construction
on the booster station started.

Mr. DeShazo replied that the booster station has been on line since last summer or fall, but that Idaho Power is not communicating with them. They do not have power to that site and
he has been working on power for that site since a year ago March. They have done an analysis to change the horsepower on the type of pump.

Commission Kjellander asked if they had been given an estimated time or reason why Idaho Power isn't able to provide the electricity they need?

Mr. DeShazo said they do not know. He said that Idaho Power has a separate contractor Dasco that does practically everything. Dasco is not running the wires, another crew will come out
to run 800 feet of overhead lines, supposedly they would do it Monday. That was the schedule they were told this morning.

Commissioner Smith suggested that in addition, the Commission could ask the staff to contact Idaho Power and see if they can focus their attention on this matter.

Mr. DeShazo said that Idaho Power is aware of it. There are people out there so maybe something will happen. He said he would much rather have the power than the generator because a
generator requires maintenance.

Commissioner Smith thought it would still be valuable for the Commission to request the company to focus their attention here immediately.

Commissioner Hansen asked if there were any other comments or questions? We have a motion before us to accept the petition and conduct a formal investigation, and I might ask the staff
if this motion was to pass what would be an appropriate time to conduct this investigation so that we can have a time and get back to the parties.

Beverly Barker said that the staff people assigned to the investigation would be Nancy Harmon and Rick Sterling. She thought that something could be done in 30 days. She asked Rick if
that sounded reasonable.

Rick Sterling said that the staff work could commence immediately but first should see what progress the company makes getting their booster pump installed. After it is installed he
suggested a several week period to monitor pressures in the area that is affected to ensure water pressure. He felt that there should be a period where they collect data along with
the company and evaluate whether or not that is efficient to address the problem or not. Could not give an estimate how long that would take.

Commissioner Smith asked how many weeks of data would be appropriate or necessary in order to make any kind of judgement.

Rick Sterling said that if the new booster pump comes on line, we would see the effects of that immediately. Given we are in the peak water demand, if there was an immediate problem
we would see it within the next few weeks. May need to have less intensive monitoring period after that since this is a growing subdivision. As new customers come on to the system we
would see whether or not the pressure could be maintained as growth progresses.

Commission Smith asked if it would be reasonable to expect preliminary assessment within the 30 days or maybe 5 week period?

Rick Sterling thought that would be feasible.

Commissioner Kjellander followed up on an earlier comment from Commissioner Smith that might be appropriate to contact Idaho Power to find out where they are at in regards to getting
power to that booster station. He asked that Rick pick up the charge and see what he could find out today.

Commissioner Hansen said there is a motion before the Commission, and that motion is to accept the petition and to conduct a formal investigation into this matter with a preliminary
report back to the commission within 30 days. If this investigation lasts longer, there won't be a date for the final report. Are there any questions on the motion or discussion? None.
Motion carried.

Decision Meeting was then adjourned.

Dated at Boise, Idaho, this 7th day of July 2000.

Barbara Barrows, Assistant Commission Secretary