20240605Final_Order_No_36203.pdf

Office of the Secretary
Service Date
June 5,2024
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION ) CASE NO. FLS-W-24-01
OF FALLS WATER CO.,INC. FOR )
APPROVAL OF A REPLACEMENT WELL ) ORDER NO. 36203
FOR ITS MORNING VIEW SYSTEM )
On January 31, 2024, Falls Water Co., Inc. ("Company") filed an application
("Application")with the Idaho Public Utilities Commission("Commission") seeking approval for
a replacement well to serve customers within the Company's recently acquired Morning View
("MV") Water Company water system.
The Company represented that in 2020, the Company filed an application seeking the
Commission's approval for the acquisition of the assets of MV Water Company. Application at 2.
The Company stated that after acquiring MV Water Company's assets, the Company conducted a
review of system needs and contracted with Aspen Engineering, Inc. to complete a Facility Plan
for the system.Id.
The Company represented that the Facility Plan indicated that a new backup well for the
system was needed "immediately" to ensure sufficient water supply if the primary well fails. Id.
The Company stated that it believed that installing a new well and related infrastructure
(collectively,the"Project") for the MV Water Company system was reasonable,necessary, and in
the public interest. Id. at 3. The Company estimated that the total cost of the Project would be
between$300,000 and$350,000. Id. at 4.
STAFF COMMENTS
Commission Staff("Staff")reviewed the Application and focused on the claimed need for
a backup well. Staff considered the regulatory requirements for constructing a backup well, the
projected future growth of the Company's system, a cost-benefit analysis of alternatives to a
backup well, and the Company's well maintenance history. Staff also considered the need for
related infrastructure including a backup generator, variable frequency drive, and sand separator.
Finally, Staff considered the cost estimate of the project, the project timeline, and issues of water
rights.
Based on its review of the Application, exhibits, and responses to discovery requests, Staff
recommended the Commission authorize the Company to construct a backup well and related
ORDER NO. 36203 1

infrastructure for the MV water system as proposed, with the caveats that the capacity of the
proposed well be right-sized for customer's water demand and that the need and economics for a
sand separator was justified.
Staff noted that it would review the actual cost of the Project to ensure it was properly sized
to meet customer's water needs, and was implemented at a reasonable cost, when the Company
seeks recovery in a future general rate case.
COMPANY REPLY COMMENTS
The Company recognized that the prudency of the costs related to the Project would be
reviewed in a future rate-related proceeding.
COMMISSION FINDINGS AND DECISION
The Company is a water corporation and a public utility, as defined under Title 61 of the
Idaho Code, and provides water service to the public in Idaho. Idaho Code §§ 61-125, and -129.
The Commission has jurisdiction over the Company and this matter under Idaho Code §§ 61-501,
-502, -503, -507, -520, -523, and-622.
The Commission has reviewed the Application, all submitted materials, and all submitted
comments. Based on its review of the record, the Commission finds it fair,just, and reasonable to
approve the Application. As both the Company and Staff note, prudence of the Project shall be
determined in a subsequent proceeding.
ORDER
IT IS HEREBY ORDERED that the Company's Application is approved, and the
Company is authorized to undertake the Project as identified in the Application.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date upon this Order regarding any
matter decided in this Order. Within seven (7) days after any person has petitioned for
reconsideration, any other person may cross-petition for reconsideration. Idaho Code §§ 61-626
and 62-619.
ORDER NO. 36203 2

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho, this 5th day of
June 2024.
ERIC ANDERSON, PRESIDENT
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HN R. HAMMOND JR., COMMISSIONER
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EDWARD LODG , CV MISSIONER
ATTEST:
Mo a a 'os J 'e
Commission Secretary
IALega1\WATER\FLS-W-24-01_MV we11\orders\FL.SW2401_FO_cb.docx
ORDER NO. 36203 3