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HomeMy WebLinkAbout20240315FLS to Staff 1-21.pdf FALLS WATER CO., INC.’S RESPONSES TO STAFF’S FIRST PRODUCTION REQUEST PAGE 1 OF 2 18258097.1) Preston N. Carter, ISB No. 8462 Morgan D. Goodin, ISB No. 11184 Givens Pursley LLP 601 W. Bannock St. Boise, ID 83702 Telephone: (208) 388-1200 Facsimile: (208) 388-1300 prestoncarter@givenspursley.com morgangoodin@givenspursley.com Attorneys for Falls Water Co., Inc. BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION OF FALLS WATER CO., INC. FOR APPROVAL OF A REPLACEMENT WELL FOR ITS MORNING VIEW SYSTEM Case No. FLS-W-24-01 FALLS WATER CO., INC.’S RESPONSES TO THE FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF Falls Water Co., Inc. (“Falls Water” or “Company”), in response to the First Production Request of the Commission Staff to Intermountain Gas Company dated February 26, 2024, submits the following responses. Responsive documents are available for download using the link provided in the accompanying email. DATED: March 15, 2024. By:_____________________________ Preston N. Carter Givens Pursley LLP Attorneys for Falls Water Co., Inc. RECEIVED Friday, March 15, 2024 5:35PM IDAHO PUBLIC UTILITIES COMMISSION FALLS WATER CO., INC.’S RESPONSES TO STAFF’S FIRST PRODUCTION REQUEST PAGE 2 OF 2 18258097.1) CERTIFICATE OF SERVICE I HEREBY CERTIFY THAT on March 15, 2024, I caused a true and correct copy of the foregoing to be served upon the following parties as indicated below: Monica Barrios-Sanchez Commission Secretary Idaho Public Utilities Commission P.O. Box 83720 Boise, Idaho 83720-0074 monica.barriossanchez@puc.idaho.gov Email U.S. Mail Fax Hand Delivery Preston N. Carter Rates & Regulatory Affairs FLS-W-24-01 In the Matter of the Application of Falls Water Co., Inc. For Approval of a Replacement Well for Its Morning View System Data Request Response Request No.: FLS-W-24-01 IPUC DR 1 On page 21 of the Facility Plan, it states, "Information about well #4 and its design will be included in a future document about the design of well #4." Please provide the additional information and design for Well No. 4. Response: The additional information about well #4 is the preliminary design drawing for the well. See the attached design file, FLS-W-24-01 IPUC DR 1 Attachment 1. Preparer/Sponsoring Witness: Scott Bruce, General Manager, Falls Water Co., Inc., (208) 522-1300 FLS-W-24-01 IPUC Staff PR 1 Page 1 of 1 Rates & Regulatory Affairs FLS-W-24-01 In the Matter of the Application of Falls Water Co., Inc. For Approval of a Replacement Well for Its Morning View System Data Request Response Request No.: FLS-W-24-01 IPUC DR 2 Please provide supporting workpapers for the Project cost estimates that breaks down the total cost by component and further broken down by material, labor, and overhead. Response: Please see the project cost estimate found in the Excel file FLS-W-24-01 IPUC DR 2 Attachment 1. Preparer/Responding Witness: Scott Bruce, General Manager, Falls Water Co., Inc., (208) 522-1300 FLS-W-24-01 IPUC Staff PR 2 Page 1 of 1 Rates & Regulatory Affairs FLS-W-24-01 In the Matter of the Application of Falls Water Co., Inc. For Approval of a Replacement Well for Its Morning View System Data Request Response Request No.: FLS-W-24-01 IPUC DR 3 Please explain if the Company plans to cease operating Well Nos. I and 2 once the proposed Well No. 4 becomes operational. If not, please explain why. Response: The Company will decommission Well Nos. 1 and 2 after Well 4 is operational. The existing water rights will be used for the diversion rate of Well 4 and they are sufficient for use by Well 3 and Well 4. Preparer/Responding Witness: Scott Bruce, General Manager, Falls Water Co., Inc. (208) 522-1300 FLS-W-24-01 IPUC Staff PR 3 Page 1 of 1 Rates & Regulatory Affairs FLS-W-24-01 In the Matter of the Application of Falls Water Co., Inc. For Approval of a Replacement Well for Its Morning View System Data Request Response Request No.: FLS-W-24-01 IPUC DR 4 Please explain if the Company will operate Well Nos. 3 and 4 simultaneously or if Well No. 4 will only serve as a back up to Well No. 3. Response: The Company will use the SCADA system to use both Wells 3 and 4 in normal operation. The SCADA system will be set up to alternate the run time on the two wells to ensure that the wells are operational. In using the wells in this manner, the wells have time to rest and receive regular maintenance. In the event demand is great enough to require production from both wells, they will be available to cover the demand. Preparer/Responding Witness: Scott Bruce, General Manager, Falls Water Co., Inc. (208) 522-1300 FLS-W-24-01 IPUC Staff PR 4 Page 1 of 1 Rates & Regulatory Affairs FLS-W-24-01 In the Matter of the Application of Falls Water Co., Inc. For Approval of a Replacement Well for Its Morning View System Data Request Response Request No.: FLS-W-24-01 IPUC DR 5 Please provide the estimated maximum water pumping capacity and annual water production (in gallons) from the proposed Well No. 4. Response: The Company’s response is provided by J. Ryan Loftus, P.E., Aspen Engineering, Inc.: Well No. 4 requires a pumping capacity of 550 to 600 gallons per minute and is expected to produce approximately half of the annual water production for Morning View equaling 23.8 million gallons per year. (Morning View currently requires 48 million gallons per year.) Preparer/Responding Witness: Scott Bruce, General Manager, Falls Water Co., Inc. (208) 522-1300 FLS-W-24-01 IPUC Staff PR 5 Page 1 of 1 Rates & Regulatory Affairs FLS-W-24-01 In the Matter of the Application of Falls Water Co., Inc. For Approval of a Replacement Well for Its Morning View System Data Request Response Request No.: FLS-W-24-01 IPUC DR 6 Please explain how the Company plans to fund this capital investment. Response: The Company will receive an equity infusion from its parent companies to fund this project. Preparer/Responding Witness: Scott Bruce, General Manager, Falls Water Co., Inc. (208) 522-1300 FLS-W-24-01 IPUC Staff PR 6 Page 1 of 1 Rates & Regulatory Affairs FLS-W-24-01 In the Matter of the Application of Falls Water Co., Inc. For Approval of a Replacement Well for Its Morning View System Data Request Response Request No.: FLS-W-24-01 IPUC DR 7 Please explain whether Appendix B in the Application includes all water rights of the Morning View ("MV") system. If not, please explain and provide supporting documentation of all MV water rights. Response: All Morning View water rights are listed in Appendix B in the Application. These are all water rights acquired in the purchase of the Morning View water system. Preparer/Responding Witness: Scott Bruce, General Manager, Falls Water Co., Inc. (208) 522-1300 FLS-W-24-01 IPUC Staff PR 7 Page 1 of 1 Rates & Regulatory Affairs FLS-W-24-01 In the Matter of the Application of Falls Water Co., Inc. For Approval of a Replacement Well for Its Morning View System Data Request Response Request No.: FLS-W-24-01 IPUC DR 8 Please provide the monthly metered amount of water (in terms of both Gallons and Acre Feet) pumped from each MY-system well during 2021 -2023. Please provide your response in spreadsheet format (such as Microsoft Excel) with formulas intact. Response: The Morning View well log files for 2021 – 2023 are included in the response. The files are:  FLS-W-24-01 IPUC DR 8 Attachment 1 - Morning View Well Log 2021  FLS-W-24-01 IPUC DR 8 Attachment 2 - Morning View Well Log 2022  FLS-W-24-01 IPUC DR 8 Attachment 3 - Morning View Well Log 2023 Preparer/Responding Witness: Scott Bruce, General Manager, Falls Water Co., Inc. (208) 522-1300 FLS-W-24-01 IPUC Staff PR 8 Page 1 of 1 Rates & Regulatory Affairs FLS-W-24-01 In the Matter of the Application of Falls Water Co., Inc. For Approval of a Replacement Well for Its Morning View System Data Request Response Request No.: FLS-W-24-01 IPUC DR 9 Please provide justification and available documentation showing the need for a replacement well. The documentation may include but is not limited to 3rd party analysis or reports, Idaho Department of Environmental Quality ("IDEQ") reports reflecting regulatory requirements for a replacement well, etc. Response: Please refer to Morning View Water System Facility Plan (Exhibit 1 of the Application) section ‘Water Supply and Storage Requirements’ on page 17. This section describes the key criteria outlined in the Idaho Rules for Public Drinking Water Systems to determine the timing and development of new water supply wells, storage, and emergency power generation capabilities. The current Wells 1 and 2 do not have the capacity to produce the firm pumping capacity to satisfy the maximum daily demand of 399,200 gpd for the water system. If Well 3 were to fail, the system does not have the capacity in its remaining wells to meet the estimated maximum daily demand of the system. Well 3 is the only source that can meet the water system’s need by itself, absent this project. If Well 3 were to become inoperable, the remaining wells (1 and 2) would not be able to meet anything other than average daily demand as they currently exist. Even if the existing Wells 1 and 2 were to be deepened, the deepening process reduces the diameter of the well shaft and would not allow a submersible pump of the same size or larger to be put into the well. This would essentially improve the reliability of the water source but reduce the amount of water that could be pumped. This result does not help the system meet the customer demand if Well 3 were to become inoperable. Preparer/Responding Witness: Scott Bruce, General Manager, Falls Water Co., Inc. (208) 522-1300 FLS-W-24-01 IPUC Staff PR 9 Page 1 of 1 Rates & Regulatory Affairs FLS-W-24-01 In the Matter of the Application of Falls Water Co., Inc. For Approval of a Replacement Well for Its Morning View System Data Request Response Request No.: FLS-W-24-01 IPUC DR 10 Please explain whether the Company has considered sharing the existing backup generator (for Well No. 3) with the proposed replacement Well No. 4. If not, please explain why. Response: Based upon information provided by J. Ryan Loftus, P.E., Aspen Engineering, Inc.: No. Well #4 will be located approximately 2,500 feet (“as the crow flies”) from Well #3. Following a directional path along road rights-of-way would make the path over 3,300 feet. Wire size for that length of run would require at least 1.0 AWG wire (copper) and cost about $2/foot just to buy the wire, add the conduit ($2/foot) and excavation costs ($15/foot). Assuming no cost for easements or ROW use, the wire and conduit labor installation would be $2/foot, making the wire installation cost $21/foot equaling $69,300, which is approximately $10,000 more than the new generator cost. Preparer/Responding Witness: Scott Bruce, General Manager, Falls Water Co., Inc. (208) 522-1300 FLS-W-24-01 IPUC Staff PR 10 Page 1 of 1 Rates & Regulatory Affairs FLS-W-24-01 In the Matter of the Application of Falls Water Co., Inc. For Approval of a Replacement Well for Its Morning View System Data Request Response Request No.: FLS-W-24-01 IPUC DR 11 Please provide justification and available documentation showing the need for a backup generator for Well No. 4. The documentation may include but is not limited to 3rd party analysis or reports, IDEQ reports reflecting regulatory requirements for a backup generator, etc. Response: In speaking with J. Ryan Loftus, P.E., Aspen Engineering, Inc., the need for a backup generator for Well No. 4 is needed redundancy for water production. If Well 3, which has the only back up power source for the system, were unavailable due to repairs, Well No. 4 is the only source of water production. Should the power go out for hours and Well No. 3 were not working, the customers would have no water at all. The system would lose pressure and would be under a boil advisory when power was restored and the water system was brought back online. A backup generator on each well protects the water system from possible power loss. It has been the Company’s experience that short power outages in the Morning View water system area happen three to four times per year. Backup power is needed to ensure a reliable water system for the Morning View customers. Preparer/Responding Witness: Scott Bruce, General Manager, Falls Water Co., Inc. (208) 522-1300 FLS-W-24-01 IPUC Staff PR 11 Page 1 of 1 Rates & Regulatory Affairs FLS-W-24-01 In the Matter of the Application of Falls Water Co., Inc. For Approval of a Replacement Well for Its Morning View System Data Request Response Request No.: FLS-W-24-01 IPUC DR 12 Please provide a copy of the Company's latest IDEQ sanitary survey report. Response: Morning View’s latest IDEQ sanitary survey report is included in the response. The file is: FLS-W-24-01 IPUC DR 12 Attachment 1 - ID7260063 MORNING VIEW WATER COMPANY - ID7260063 Morning View Water Company Sanitary Survey 11082021 Preparer/Responding Witness: Scott Bruce, General Manager, Falls Water Co., Inc. (208) 522-1300 FLS-W-24-01 IPUC Staff PR 12 Page 1 of 1 Rates & Regulatory Affairs FLS-W-24-01 In the Matter of the Application of Falls Water Co., Inc. For Approval of a Replacement Well for Its Morning View System Data Request Response Request No.: FLS-W-24-01 IPUC DR 13 Please explain whether the Facility Plan provided in the Application is approved by IDEQ. Response: The Company submitted the Facility Plan earlier this month (March 2024) to IDEQ for approval, and we expect a response from IDEQ in the coming weeks. The Company will supplement this response with the IDEQ’s response once we receive it. Preparer/Responding Witness: Scott Bruce, General Manager, Falls Water Co., Inc. (208) 522-1300 FLS-W-24-01 IPUC Staff PR 13 Page 1 of 1 Rates & Regulatory Affairs FLS-W-24-01 In the Matter of the Application of Falls Water Co., Inc. For Approval of a Replacement Well for Its Morning View System Data Request Response Request No.: FLS-W-24-01 IPUC DR 14 Please provide the projected load growth by customer type for the next five years. Please include all assumptions and workpapers showing the projections. Response: The Morning View water system is finite in size currently. The housing additions surrounding the water system are homes with private wells and septic tanks. The Morning View system currently has 138 connections, with the potential of 3 additional connections from 3 vacant lots in the development. The Morning View Water Company PER & Facility Plan (Attachment 1 to the Application) on page 16 under the Future Water Demands section states, “It is anticipated that the 3 additional lots will be built out by the end of the year 2026…”. The development has only residential customers. No commercial or multi-family customers are expected to connect to the system. Preparer/Responding Witness: Scott Bruce, General Manager, Falls Water Co., Inc. (208) 522-1300 FLS-W-24-01 IPUC Staff PR 14 Page 1 of 1 Rates & Regulatory Affairs FLS-W-24-01 In the Matter of the Application of Falls Water Co., Inc. For Approval of a Replacement Well for Its Morning View System Data Request Response Request No.: FLS-W-24-01 IPUC DR 15 What other feasible alternatives besides the proposed well or refurbishment of the existing wells did the Company consider? For example, did the Company consider building a storage tank as an alternative? Please explain and provide a cost-benefit analysis comparing the different feasible alternatives. Response: The Company did not consider any other feasible alternatives besides the proposed well or refurbishment of the existing wells. Please see Application, paragraphs 17-21, for a discussion of alternatives deemed not feasible. As to the example, the ‘Water Supply and Storage Requirements’ section of the Facility Plan, page 17 (Application, Exhibit 1), shows that the firm pumping capacity of the system is not met if Well No. 3 is out of service. Even if a storage tank were a feasible option, the existing wells would be insufficient to stay ahead of demand and fill the tank on maximum demand days. Preparer/Responding Witness: Scott Bruce, General Manager, Falls Water Co., Inc. (208) 522-1300 FLS-W-24-01 IPUC Staff PR 15 Page 1 of 1 Rates & Regulatory Affairs FLS-W-24-01 In the Matter of the Application of Falls Water Co., Inc. For Approval of a Replacement Well for Its Morning View System Data Request Response Request No.: FLS-W-24-01 IPUC DR 16 Please explain why the Company is not considering deepening the two existing wells (Well Nos. I and 2) as one of the alternatives to mitigate water production issues. Please provide the followings for Well Nos. 1 and 2: a. Justification and necessary documentation included but not limited to cost estimations, quotes to repair these wells, etc.; b. Justification of how the well casings do not meet current requirements; and c. Cost-benefit analysis of deepening the wells. Response: Based on information provided by J. Ryan Loftus, P.E., Aspen Engineering, Inc.: Well #1 could possibly be deepened but would require reduction to 10 inches in diameter. The well casing is 0.25 inches thick and does not meet Idaho DEQ requirements of 0.375 inches for the 12-inch diameter casing. The well was constructed with a cable tool drill rig and well straightness has not been tested/determined. The surface seal is 47 feet which is 11 feet short of the current 58’ requirement. Well #2 is only six inches in diameter and deepening would have to reduce to 4 inches which would severely limit the size of pump to a maximum diameter of 3 inches. Well #2 has a surface seal of only 18 feet which is 40 feet less than required for public drinking water wells. Preparer/Responding Witness: Scott Bruce, General Manager, Falls Water Co., Inc. (208) 522-1300 FLS-W-24-01 IPUC Staff PR 16 Page 1 of 1 Rates & Regulatory Affairs FLS-W-24-01 In the Matter of the Application of Falls Water Co., Inc. For Approval of a Replacement Well for Its Morning View System Data Request Response Request No.: FLS-W-24-01 IPUC DR 17 Please explain why the Company is not considering utilizing the existing sand separator (at Well Nos. 1 and 2) instead of updating it? Please provide the followings: a. Any evidence showing the reutilization of the existing sand separator was considered and final results of the investigation; b. Justification of any insufficiency or inadequacy/incompatibility of the existing sand separator to the proposed replacement Well No. 4; and c. Justification and necessary documentation included but not limited to cost estimations, quotes, etc. to update the sand separator. Response: Based on information provided by J. Ryan Loftus, P.E., Aspen Engineering, Inc.: The existing sand separator (at Well Nos. 1 and 2) is more than 20 years old and is sized for maximum flow of 525 gpm to remove sand from Well Nos. 1 and 2 only (which produce a combined 400 gpm) and not sized to instead be used for Well No. 4 (which will produce 600 gpm). Further, the model of the existing sand separator is no longer produced (making replacement parts very hard to obtain). Preparer/Responding Witness: Scott Bruce, General Manager, Falls Water Co., Inc. (208) 522-1300 FLS-W-24-01 IPUC Staff PR 17 Page 1 of 1 Rates & Regulatory Affairs FLS-W-24-01 In the Matter of the Application of Falls Water Co., Inc. For Approval of a Replacement Well for Its Morning View System Data Request Response Request No.: FLS-W-24-01 IPUC DR 18 Please explain whether using the existing Variable Frequency Drive ("VFD") is feasible, instead of purchasing a new one for the new well. If not, please explain why not. Please include any documentation or evidence supporting the Company's decision. Response: Based on information provided by J. Ryan Loftus, P.E., Aspen Engineering, Inc.: Using the existing VFDs is not feasible because of size. The existing drives are sized for 10 hp on Well #2 and 30 hp on Well #1. Neither of these drives have adequate capacity to control an anticipated 60 hp pump. Preparer/Responding Witness: Scott Bruce, General Manager, Falls Water Co., Inc. (208) 522-1300 FLS-W-24-01 IPUC Staff PR 18 Page 1 of 1 Rates & Regulatory Affairs FLS-W-24-01 In the Matter of the Application of Falls Water Co., Inc. For Approval of a Replacement Well for Its Morning View System Data Request Response Request No.: FLS-W-24-01 IPUC DR 19 Please provide documentation for well maintenance performed on each of the three MV wells during 2021 -2023. Response: Attached is an Excel spreadsheet (FLS-W-24-01 IPUC DR 19 Attachment 1) showing the routine work done at each wellsite owned by the Company. These tasks were performed during the years 2021 – 2023. During the years 2021 – 2023, three extra maintenance events occurred: On August 12, 2021, American Pump pulled the 30 hp pump. It was full of rocks and dirt. The pump was cleaned up onsite then reinstalled in casing. When the pump was started to test it, it still sucked up rocks and mud. It was pulled a second time. American Pump took the pump to their shop tore it apart and cleaned all rocks and mud out. They built a special screen to help keep the rocks entering the pump and mounted the screen to the pump. The pump was reinstalled and tested again. The well still produced very muddy water. The pump was run to see if the water would clear up, but the water failed to get clear. The Company’s personnel came back the next day to run the pump to see if it would clear up. The water became clearer but not good enough for drinking. On December 6, 2021, American Pump pulled pump 2 to investigate why it kept having faults showing on the ABB - VDF controls. They found a spot in the wiring insulation that had rubbed the wire insulation off and exposed the bare wire. So, they spliced about 15 feet of new wire. On June 12, 2023, American Pump lifted the well 1 pump so the water level could be measured. The water level was at 67 feet. The pump was pumping murky water. The discussion between the pump company and Tony Wise, the Company’s Operations Manager, was that the well was in not recovering like it had in the past. No measuring equipment could be put down well 2 casing to gauge the depth of the water level. Attached As FLS-W-24-01 IPUC DR 19 Attachment 2 are the American Pump invoices for the three maintenance events. FLS-W-24-01 IPUC Staff PR 19 Page 1 of 2 In preparation for the 2024 irrigation season, wells 1 and 2 were started to determine their condition. From March 11, 2024, through March 13, 2024, well 1 started and produced around 150 gpm. The water did clear up for a time, but then produced some murky water. The Company ran the pump several times with the same results. The Company increased hertz setting on the VFD to try to produce more water. The flow increased to 350 gpm and produced clear water. Tony Wise’s opinion is that the well had some time to recharge itself, but he is not sure how long the better flow and cleanness of the water will last. Well 2 was started during this same period. The pump will not generate enough rpm to produce water. The pump VFD set at 30 hertz produced 470 rpms. Increasing up to 55 hertz did not improve the rpms. This was tried several times with the same result. The pump will need to be pulled to determine the problem. Preparer/Responding Witness: Scott Bruce, General Manager, Falls Water Co., Inc. (208) 522-1300 FLS-W-24-01 IPUC Staff PR 19 Page 2 of 2 Rates & Regulatory Affairs FLS-W-24-01 In the Matter of the Application of Falls Water Co., Inc. For Approval of a Replacement Well for Its Morning View System Data Request Response Request No.: FLS-W-24-01 IPUC DR 20 Please provide the following documentation for the Project construction. a. Project Plan i. Initial project scope; ii. Proposed budget; iii. Proposed schedule; and iv. Expected completion date. b. Requests for proposals ("RFP") or request for quotes ("RFQ") i. Project requirements; ii. Specifications; and iii. All submitted bids including the bid selected by the Company. Response: The initial project scope is to drill a new well with 600 gpm to replace the existing wells 1 and 2. This will provide a firm pumping capacity to match Well 3 in the system to provide adequate production redundancy for the system. The proposed budget is provided in the response to FLS-W-24-01 IPUC DR 2. The proposed project schedule is found in the Morning View Facility Plan (Application, Exhibit 1) on page 26. It is estimated that the project will take approximately 198 days. The expected completion date is November 15, 2024. The construction design is not finalized or approved by DEQ at this time. All project requirements and specifications will be provided to the PUC staff by July 1, 2024. Bid results will be provided to the PUC staff by August 1, 2024. Preparer/Responding Witness: Scott Bruce, General Manager, Falls Water Co., Inc. (208) 522-1300 FLS-W-24-01 IPUC Staff PR 20 Page 1 of 1 Rates & Regulatory Affairs FLS-W-24-01 In the Matter of the Application of Falls Water Co., Inc. For Approval of a Replacement Well for Its Morning View System Data Request Response Request No.: FLS-W-24-01 IPUC DR 21 Please explain how the Company will ensure the construction of the Project is completed at a reasonable least cost. Response: The Company will bid out the project to get the best low-cost and qualified bid for the project. Preparer/Responding Witness: Scott Bruce, General Manager, Falls Water Co., Inc. (208) 522-1300 FLS-W-24-01 IPUC Staff PR 21 Page 1 of 1