20241218Decision Memo.pdf

DECISION MEMORANDUM
TO: COMMISSIONER ANDERSON
COMMISSIONER HAMMOND
COMMISSIONER LODGE
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM: TRAVIS CULBERTSON—COMMISSION STAFF
ADAM TRIPLETT—DEPUTY ATTORNEY GENERAL
DATE: DECEMBER 18,2024
SUBJECT: INVESTIGATION INTO DRY CREEK WATER COMPANY, LLC,
OWNER OF A WATER SUPPLY AND DISTRIBUTION SYSTEM; CASE
NO. DRY-W-24-01.
On May 24, 2024, the Commission issued Order No. 36195, which opened a formal
investigation into whether Dry Creek Water Company, LLC("Company")is operating as a public
utility subject to Commission regulation. In the same order, the Commission set public comment
and Company reply deadlines. Staff filed comments,recommending that the Commission exercise
regulatory jurisdiction over the Company.
On July 17, 2024,the Commission granted the Company the first of multiple extensions of
its reply comment deadline to engage in settlement negotiations with Staff.Order No.36268. Over
the next few months, the Company and Staff worked to resolve this case.
On September 23, 2024, Staff and the Company filed a Joint Motion for Approval of
Settlement entered into by the parties. A copy of the Settlement was attached to the motion as
Exhibit A. The Settlement outlined,if approved,the Company is to submit a compliance filing no
later than November 8, 2024.
On October 16, 2024, the Commission issued an Order noticing the Settlement and
establishing a single deadline for all interested entities to file comments. Order No. 36361.
On October 18, 2024, Staff and the Company each filed comments in support of the
Settlement. Furthermore, Staff concluded an evaluation of the Company's current rates, which
have been in effect since 2023, and believes the current rate structure and fees are fair,just, and
reasonable.
DECISION MEMORANDUM 1 DECEMBER 18, 2024

On November 1, 2024, the Commission issued an interlocutory order approving the
Settlement,without modification. The Company will begin operating as a public utility on January
1, 2025, after complying with the terms of the Settlement. Initiating formal regulation of the
Company on January 1, 2025, will provide the Company the time necessary to reorganize,revise
its contracts, and update its billing processes to serve homeowners directly as contemplated by the
Settlement. Order No. 36382.
On November 8, 2024, the Company submitted an Application for Certificate of Public
Convenience and Necessity ("CPCN") for Dry Creek Water Company, LLC, opening Case No.
DRY-W-24-02. Staff believes this filing should be treated as a compliance filing consistent with
the terms of the Settlement and final resolution occurring in this docket. The Application included
corporate documents, a tariff, legal description and map, and other necessary documents. Staff
reviewed the Company's documents, including its proposed tariff, legal description, corporate
documents, and confirmed they conform to the Settlement.
Staff reviewed the Company's Idaho Department Environmental Quality's sanitary survey,
water rights, and facility plan. Based on its review, the Company has the necessary capacity and
water rights to reliably serve its customers.
STAFF RECOMMENDATION
Staff recommends the Commission issue a CPCN to Dry Creek Water Company, LLC for
service to the attached legal description and map. Additionally, Staff recommends the
Commission approve the proposed tariff filed in Case No. DRY-W-24-02 on November 8, 2024,
as filed, with an effective date of January 1, 2025.
COMMISSION DECISION
Does the Commission wish to issue a CPCN to Dry Creek Water Company, LLC
authorizing it to serve the area included in the attached legal description and map? Does the
Commission wish to approve the proposed tariff filed by the Company on November 8,2024,with
an effective date of January 1, 2025?
Travis Culbertson
Auditor 3
1:\Uti1ity\UDMEM0S\DRYW2401—tcatdocx
' The DRY-W-24-02 Application was filed under DRY-W 24-01 December 5,2024.
DECISION MEMORANDUM 2 DECEMBER 18, 2024

Legal Description of the Property
The South 1/2 of the NE 1/4, the SE 1/4, and that portion of the SW 1/4 lying
southeasterly of Brookside Lyne in Section 25;the North 1/2, the SE 1/4, and the NE 1/4
of the SW 1/4 of Section 36; the East 1/2 of Section 35 lying east of State Highway 55,
and the East 1/2 of the SW 1/4 of Section 35 lying southeasterly of State Highway 55,
T.5N., R.1E., B,M.; and Government Lot 4 of Section 1, Government Lots I, 2, and 3 of
Section 2, TAN., R.IE., B.M.; and the "West 23 acres" of Government Lot 4 of Section
30, T.5N.,R2E., H.M., Ada County, Idaho, more particularly described as follows:
Beginning at the corner common to Sections 25, 26, 35, and 36, T.5N., R.1E.,
B.M., thence N00°06521113,25.46 feet to the apparent center of Brookside Lane;
Thence along the center of said Lane S88110'32"E,414.96 feet;
Thence N84°26'48"E, 277.62 feet;
Thence 321.30 feet along the are of a curve to the left, having a radius of 260.00
feet, a central angle of 70°48'16", and a long chord bearing N49°02'40"E, 301.24
feet;
Thence N 13'3 8`31" E, 128635 feet;
Thence 81.82 feet along the arc of a curve to the right, having a radius of 70.00
feet, a central angle of 66°58'28", and a long chard bearing N47°07'45"E, 77.25
feet;
(continues on following pages)
AFFIDAVIT OF LEGAL INTEREST Attachment
DRY-W-24-01
December 18, 2024, Decision Memo
Page 1 of 6

Thence N80°37'00"E, 181.40 feet;
Thence N69°10'10"E, 415.26 feet;
Thence N66°37'43"E, 384.36 feet;
Thence 60.97 feet along the are of a curve to the left, having a radius of 100.00
feet, a central angle of 341S6'01", and a long chord bearing N49°09'42"E, 60.03
feet;
Thence N31°41'42"E, 130.05 feet;
Thence 68,84 feet along the are of a curve to the right, leaving a radius of 80.00
feet, a central angle of 4.9°18'14", and a long chord bearing N56°20'49"E, 66.74
feet;
Thence N80°59'55"E, 314.34 feet to a point on the north-south mid-section line of
said Section 25;
Thence departing said center of Brookside Lane along said mid-section line and
the cast boundaries of Spring Creek Estates and Spring Creek Estates Subdivision
No. 3, as same are recorded in Book 26 of Plats at page 1638, and Book 78 of
Plats at page 8270, respectively, records of Ada County, Idaho, N00°31'05"E,
740.09 feet to the northeast corner of said Spring Creek Estates;
Thence continuing along said mid-section line N00°46'19"E, 546.81 feet to the
southeast corner of Lot 11, Block 3 of said Spring Creek Estates Subdivision No.
3;
Thence continuing and along the east line of said Lot N04°33'02"E, 536.09 feet to
the C-N 1116 corner;
Thence along the north line of the South 1/2 of the NE 1/4 of said Section 25,
common to the south line of said Spring Creek Estates Subdivision No. 3,
S89019'47"E, 417.16 feet to the southwest corner of Lot 4, Block 3 of Spring
Creek Estates No. 2, as same is recorded in book 36 of plats at page 3070, records
of Ada County, Idaho;
Thence continuing and along the south line of said Spring Creek Estates No. 2
888°47'29"E, 2244.49 feet to the southeast corner of said Spring Creek Estates
No. 2, common to the northeast corner of the South 1/2 of the NE 1/4 df said
Section 25;
AFFIDAVIT OF LEGAL INTEREST Attachment
DRY-W-24-01
December 18, 2024, Decision Memo
Page 2 of 6

Thence S00°2444"W, 1334.19 feet to the 1/4 corner common to said Sections 25
and 30;
Thence S00°38'53"W, 1302.17 feet to the northwest comer of Government Lot 4
of said Section 30;
Thence along the north fine of said Lot S881 15'28"E, 782.14 feet;
Thence S00°38'53"W, 1302.59 feet to a point on the south line of said lot 4;
Thence along said line N88°1TO1"W, 782.13 feet to the corner common to said
Sections 25, 30, 31, and 36;
Thence S00109'29"W, 2700,96 feet to the 1/4 comer common to said Sections 36
and 31;
Thence S00°22'41"W, 2612,62 feet to the southeast corner of said Section 36,
Thence N89020155"W, 2632.43 feet to the 1/4 corner common to said Section I
and 36;
Thence N00°02'04"W, 1317.63 feet to the C-S 1/16 corner of said Section 36;
Thence N89°06'13"W, 1319.24 feet to the SW 1/16 corner of said Section 36;
Thence N00°09'52"W, 1323,24 feet to the C-W 1/16 corner of said Section 36;
Thence N88151'46"W, 1322.34 feet to the 1/4 comer common to said Section 35
and 36;
Thence S00°17'36"E, 2657.71 feet to the corner common to said Scction 1, 2, 35,
and 36;
Thence S89°20'44"E, 1316.16 feet to the northeast corner of Government Lot 4 of
said Section 1;
Thence 800101'4.0"E, 1335.45 feet to the NW 1/16 corner of said Section 1;
Thence N89"28'42"W, 1319.47 feet to the north 1116 corner common to said
Sections l and 2;
AFFIDAVIT OF LEGAL INTEREST Attachment
DRY-W-24-01
December 18, 2024, Decision Memo
Page 3 of 6

Thence along the south line of Lots 1 and 2 of said Section 2 N89°16'39"W,
2630.92 feet to a found 5/8" iron pin marking the C-N 1/16 corner of said Section
2;
Thence along the south line of Government Lot 3 N88°12'56"W, 1335.70 feet to a
found 1/2" iron pin marking the southeast corner of Mary Glen Subdivision No. 2,
as same is recorded in Book 30 of plats at page 1880, records of Ada County,
Idaho, said point accepted as the southwest corner of said Government Lot 3;
Thence along the west line of said Lot 3 and the west line of the East 1/2 of the
SW 1/4 of said Section 35 as established by the east lines of said Maryglen
Subdivision No. 2, and Maryglen Subdivision No. 1, as same is recorded in Book
29 of Plats at page 1781, records of Ada County, Idaho, N00°14'1 l"W, 305.44 feet
to a found 1/2" iron pin;
Thence N00°09'48"W, 652.45 feet to a found 1/2" iron pin;
Thence N00°14'28"W, 2467.41 feet to a point on the southeasterly right-of-way of
State Highway 55, said point common to the most northerly comer of Lot 1, Block
2 of said Maryglen Subdivision No. 1;
Thence along said right-of-way N54128'08"E, 854.51 feet;
Thence 46.40 feet along the are of a curve to the left, having a radius of 1697.02
feet, a central angle of 1133'59", and a long chord bearing, N53°41'08"E, 46.40 feet
to a point on the west mid-section line of said Section 35;
Thence departing said right-of-way along said tine S89°30'17"E, 592,76 feet to the
center of said Section 35;
Thence along the north-south mid-section line N00121'27"W, 682.59 feet;
Thence 258.12 feet along the are of a non-tangent curve to left, having a radius of
858.60 feet, a central angle of 17°1329", and a long chord bearing N9°10'33"E,
257.15 feet;
Thence N00°33'58"E, 39.68 feet;
Thence 369.18 feet along the are of a non-tangent curve to the left, having a radius
of 1697.02 feet, a central angle of 12°27'52", and a long chord bearing
N6047'55"E, 368.45 feet;
AFFIDAVIT OF LEGAL INTEREST Attachment
DRY-W-24-01
December 18, 2024, Decision Memo
Page 4 of 6

Thence N00°33'58"E, 1324.59 feet to a point on the north line of the NE 1/4 of
said section 35, said point bears S890 19'03"E, 110.50 feet from the north 1/4
corner of said Section 35;
Thence along said north line S89°19'03"E, 2532.31 feet to the Point of Beginning,
..R ..y.
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AFFIDAVIT OF LEGAL INTFRFST Attachment
DRY-W-24-01
December 18, 2024, Decision Memo
Page 5 of 6

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Reliability of Water System
The Company's water system has enough capacity and necessary water rights to provide
reliable service to its customers. Staff analyzed the Company's Facility Plan, 2024 Idaho
Department of Environmental Quality sanitary survey, water rights, and customer complaints
over the past three years. A summary of the Company's water system is illustrated in Table No.
1.
Table No. 1: Summary of the Company's water system
System Components Description
3 active wells:
Water Source(s) Well I Pump: 3,500 GPM'
Well 2 Pump: 2,500 GPM
Well 3 Pump: 3,500 GPM
Distribution Meter Sizes 3/4-inch to 4-inch
Distribution Piping 8-inch to 16-inch PVC
Remote Data Collection and Real-time system information collection via smart radio
Metering network infrastructure
Maximum combined diversion rate of 7.84 cubic feet per
Total Water Rights/Permits second and 1764 acre-ft/year;
Usage: Municipal, irrigation, mitigation
Customer Complaints No complaints regarding reliability and water quality over the
past three years
'GPM=Gallons per Minute
Attachment
DRY-W-24-01
December 18, 2024, Decision Memo
Page I of 1