20250116Staff Comments.pdf

RECEIVED
Thursday, January 16, 2025 12:07:33 PM
IDAHO PUBLIC
UTILITIES COMMISSION
MICHAEL DUVAL
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 11714
Street Address for Express Mail:
11331 W CHINDEN BLVD, BLDG 8, SUITE 201-A
BOISE, ID 83714
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF ROCKY MOUNTAIN UTILITY ) CASE NO. ROC-W-24-01
COMPANY, INC. TO AMEND ITS )
CERTIFICATE OF PUBLIC CONVENIENCE )
AND NECESSITY ) COMMENTS OF THE
COMMISSION STAFF
COMMISSION STAFF ("STAFF") OF the Idaho Public Utilities Commission
("Commission"), by and through its Attorney of record, Michael Duval, Deputy Attorney
General, submits the following comments.
BACKGROUND
On August 23, 2024, Rocky Mountain Utility Co., LLC d.b.a. Rocky Mountain Utility
Co., Inc.1 ("Company") applied for approval to amend its Certificate of Public Convenience and
Necessity ("CPCN"), CPCN No. 481, which would allow it to expand its service territory to
include a newly created subdivision("Application"). The Company has submitted several
attachments relevant to its request.
' The Idaho Secretary of State's website lists the Company's official name as "Rocky Mountain Utility Company,
Inc."The Company's Application states that this is the name which the Company is doing business under.
STAFF COMMENTS 1 JANUARY 16, 2025

On October 10, 2024, the Commission issued a Notice of Application and Notice of
Modified Procedure establishing comment dates. Order No. 36346.
On November 4, 2024, the Commission vacated the previously established comment
deadlines and ordered the Company amend its Application to provide a more complete
description of its requested service area within 30 days. Order No. 36380. The Company filed a
more complete description on November 22, 2024. Staff reviewed the filing and believed that it
complied with the Commission's directive in Order No. 36380.
STAFF ANALYSIS
In response to the Company's request, Staff comments address the following issues: (1)
whether the legal description and maps accurately represent the amended service territory; (2)
whether the expanded service territory encroaches upon the territories of other water utilities; (3)
whether the capacity of the water system and the means to meet water quality requirements is
sufficient to provide safe and reliable service to the expanded area; and (4) whether the water
rights are sufficient to cover the water supply needed.
Based on the analyses of these issues, Staff believes that the reliability of the water
system will be adequate to serve the expanded service territory and that the Company will have
sufficient water rights. However, in reviewing the Company's request to amend its service
territory, Staff discovered that the Company is serving customers that may not fall within either
the authorized service territory or the requested expanded service territory. Staff recommends
that the Commission approve the service territory expansion including Divisions 2 and 3 of
Pepperwood Crossing subdivision as well as the territory that includes commercial customers the
Company is currently serving.
Expanded Service Territory
The service territory in a CPCN identifies the geographic area within which a regulated
utility is obligated to serve in exchange to operate as a monopoly. Because there are no other
water systems or utilities serving the area the Company seeks to add to its certificated area, the
Commission should authorize the amended service territory of the Company's CPCN to include
the addition of Divisions 2 and 3 of the Pepperwood Crossing subdivision and the area that
includes 11 commercial customers currently served by the Company. The legal descriptions and
STAFF COMMENTS 2 JANUARY 16, 2025

maps of each division of Pepperwood Crossing subdivision and the territory that includes the 11
commercial customers are included as Attachment A and Attachment B, respectively, to these
comments.
Staff reviewed the area already included in CPCN No. 481 and the area the Company
proposes to add to its CPCN. The Company initially requested amending CPCN No. 481 by
expanding the service territory to include Division 3 of Pepperwood Crossing subdivision.
However, Staff discovered that only Division 1 of Pepperwood Crossing subdivision was
authorized in CPCN No. 481 and the Company had been serving customers in Division 2 for
several years without amending the CPCN to include it. Staff informed the Company of this and
requested that the Company be required to amend its Application to include Division 2. The
Commission directed the Company to file through Order No. 36380.
Staff also discovered that the Company is currently serving 11 commercial customers that
are outside of the Pepperwood Crossing subdivision. In Order No. 30703 granting the
Company's original CPCN, the Commission limited the Company's CPCN to the existing
improved residential and commercial areas in Division 1 Pepperwood Crossing subdivision. In
that case, it was represented that 13 commercial lots were included within the boundaries of
Division 1. However, the maps reviewed by Staff in this case indicate that the commercial
properties are outside of the Division 1 boundaries. For additional clarity, Staff recommends the
Company's CPCN be expanded to explicitly include the commercial properties currently being
served.
Staff reviewed the legal description and maps for all three divisions of Pepperwood
Crossing subdivision and the area that includes the 11 commercial customers and determined
that they accurately represent the service territory of all customers the Company is or plans to
serve.
Additionally, Staff verified that there are no other water systems that presently overlap
the service territory of the Company's water system and will likely not be impacted by any
expansion of municipal systems in the future. Staff s review included a review of wells within
one mile of the amended service territory.
Reliability Analysis
STAFF COMMENTS 3 JANUARY 16, 2025

To provide safe and reliable water to service its customers, Staff believes it is important
to determine whether the Company's water system will be able to reliably meet the needs of the
proposed expanded service territory. Staff investigated the reliability of the water system in
terms of(1) capacity, (2) water quality deficiency, and(3) water rights. Staff verified that the
water system has sufficient capacity and water rights to align with relevant rules and future water
demand.
Water System Capacity
Staff reviewed potential demand in the proposed territory and water system's capacity to
provide water to the expanded areas. Staff believes that the water system has sufficient capacity
to meet future water demand and can meet Idaho Department of Environmental Quality
("IDEQ") capacity requirements.
The Company's water system currently provides water to 108 residential and 11
commercial customers. If the Application is approved and all lots are developed, the Company
will provide water service for up to 254 customers. Staff recalculated current water demand,
adding the Company's commercial water demand. Using water demand per capita, and factors
that the Company provided, average and peak hour water demand are calculated as shown in
Table No. 1.
Table No.l: Current and Future Water Demand
Current Future
Category Total
(Division 1 and 2) (Division 3)
Total Customer Counts 119 (108+11) 135 254 (243 + l l)
Average Water Demand(gpm) 99 128 227
Peak Hour Water Demand(gpm) 347 401 748
The total capacity of operating wells is 885 gpm, which is greater than the total peak hour
water demand of 748 gpm, if the entire development is built out. However, IDEQ's rule for
public drinking water systems 501.17 requires that under normal operating conditions, if one
source is offline, the remaining source(s)must be capable of meeting"either the peak hour
demand of the [public water system] or a minimum of the maximum day demand plus
STAFF COMMENTS 4 JANUARY 16, 2025

equalization storage." IDAPA 58.01.08.501.17. With the addition of Well No. 3, which has a
capacity of 500 gpm, the Company will be able to pump a minimum of 885 gpm of water from
any two wells to cover the total peak hour water demand of 748 gpm. Therefore, the Company
can meet the demand required by the expanded service territory while complying with the IDEQ
rule for groundwater source redundancy.
Water Quality Deficiencies
Reliability of the Company's water system includes the ability to meet water quality
standards. Although compliance is primarily the jurisdiction of the IDEQ, the Commission still
ensures investments are made so water quality can be met, and the Company provides adequate
service. See Idaho Code 61-302. Through Staff s review of the latest IDEQ sanitary survey
report from April 2024, Staff did not find any major deficiencies that were not eventually
resolved. Overall, Staff believes the system is being maintained and has no critical deficiencies
in providing safe and sufficient water service.
Water Right Analysis
For the Company to provide reliable service to its customers, the Company has to secure
water rights that allows an adequate water supply. Staff reviewed the ownership,place of use,
and diversion rate of water rights. Based on the review, Staff concludes that the Company has
sufficient authorized water rights to provide water to the customers in the proposed territories to
be added to its CPCN.
Regarding water right ownership, the Company provided the quitclaim deed for the water
right ownership transfer that shows the transfer was completed on Oct. 10, 2024. The Company
can pump a total of 2.05 cubic feet per second which is the same as 920 gpm. See response to
Production Request No. 6. This amount exceeds the total peak hour water demand of 748 gpm
Staff calculated in Table No. 1. The water rights are located consistently with the approved and
proposed service territories of the Pepperwood Crossing subdivision and commercial area. Thus,
Staff verified that the Company owns the water rights sufficient to provide water to the
residential and commercial customers in the service territory as proposed.
STAFF COMMENTS 5 JANUARY 16, 2025

STAFF RECOMMENDATION
Staff recommends the Commission approve the service territory expansion for CPCN No.
481 to include Divisions 2 and 3 of Pepperwood Crossing subdivision, and the area that includes
the 11 commercial customers the Company is currently serving.
Respectfully submitted this 16th day of January 2025.
'D� Iq
Dayn Ardie for Michael Duval
Deputy Attorney General
Technical Staff. Seungjae Lee
Travis Culbertson
Jon Kruck
James Chandler
I:\Utility\UMISC\COMMENTS\ROC-W-24-01 Comments..docx
STAFF COMMENTS 6 JANUARY 16, 2025

Attachment A: Legal Description of Service Territory
Approved Service Territory, Division 1 in CPCN No 481.
A Parcel of Land Situated in Jefferson County, State of Idaho, Township 4 North, Range 38 East
of the Boise Merdian, Section 36. More Particularly Described as Follows:
Beginning at the Southeast Corner of Section 36, Township 4 North, Range 38 East, B.M.
Thence S89°26'39"W along the South line of Section 36 for a Distance of 551.14 feet to the True
Point of Beginning; Thence S89°26'39"W along the South line for a Distance of 1416.82 feet;
Thence N00°03'25"W for a Distance of 617.61 feet; Thence N87°45'18"E for a Distance of
221.93 feet to the beginning of a Curve Right, Delta = 00°58'15"Radius= 2965.41 feet Arc =
50.25'Tangent=25.12'for a Chord Distance of 50.25 feet and a Chord Bearing of
NO2°27'54"E; Thence S85°22'44"E for a Distance of 292.38 feet; Thence N89°26'58"E for a
Distance of 580.00 feet; Thence N37°04'24"E for a Distance of 609.34 feet; Thence
N89°29'16"E for a Distance of 40.71 feet; Thence N00°08'58"W for a Distance of 190.01 feet;
Thence N89°29'15"E for a Distance of 462.19 feet to the East line of Section 36; Thence
S00°08'58"E along said line for a Distance of 272.01 feet; Thence S89°29'15"W for a Distance
of 210.00 feet; Thence S00°08'58"E for a Distance of 439.32 feet; Thence N89°29'15"E for a
Distance of 210.00 feet to the East line of Section 36; Thence S00°08'58"E along said line for a
Distance of 200.00 feet; Thence S89°51'02"W for a Distance of 55 1.13 feet; Thence
S00°08'58"E for a Distance of 412.69 feet to the True Point of Beginning, Containing 31.53
Acres More or Less.
Addition of Division 2 to the Service Territory
A Parcel of Land Situated in Jefferson County, State of Idaho, Township 4 North, Range 38 East
of the Boise Meridian, Section 36. More Particularly Described as Follows:
Beginning at the Southeast Corner of Section 36, Township 4 North, Range 38 East, B.M.
Thence N00°08'58"W along the East line of Section 36 for a Distance of 1320.10 feet to the
Northeast Comer of the South Half of the Southeast Quarter(S 1/2 SE '/4); Thence S89°29'15"W
along the North line of said South Half(S 1/2) for a Distance of 462.19 feet to the True Point of
Beginning; Thence S00°08'58"E for a Distance of 190.01 feet; Thence S89°29'16"W for a
Distance of 40.71 feet; Thence S37°04'24"W for a Distance of 609.34 feet; Thence
Attachment A
Case No. ROC-W-24-01
Staff Comments
January 16, 2025

S89°26'58"W for a Distance of 580.00 feet; Thence N85°22'44"W for a Distance of 292.38 feet
to the beginning of a Curve Left, Delta=00°58'15"Radius=2965.41 feet Arc= 50.25'Tangent=
25.12' for a Chord Distance of 50.25 feet and a Chord Bearing of S02°27'54"W; Thence
S87°45'18"W for a Distance of 221.93 feet; Thence N00°03'25"W for a Distance of 704.00 feet
to the Northwest Comer of the South Half of the Southeast Quarter(S 1/2 SE'/4); Thence
N89°29'15"E along the North line of the South Half of the Southeast Quarter(S 1/2 SE '/4)fora
Distance of 1503.63 feet to the True Point of Beginning, Containing 20.80 Acres More or Less.
Addition of Division 3 to the Service Territory
A Parcel of Land Situated in Jefferson County, State of Idaho, Township 4 North, Range 38 East
of the Boise Meridian, Section 36. More Particularly Described as Follows:
Beginning at the Southeast Corner of Section 36, Township 4 North, Range 38 East, B.M.
Thence N00°08'58"W along the Bast line of Section 36 for a Distance of 1555.60 feet to the
True Point of Beginning; Thence S89°29'15"W for a Distance of 185.00 feet; Thence
S00°08'58"E for a Distance of 235.50 feet to the Northwest Corner of Lot 1, Block 5 of
Pepperwood Crossing Subdivision, Division No. 1, Jefferson County, Idaho; Thence
S89°29'15"W along the North Line of said Subdivision for a Distance of 1780.82 feet to the
Northwest Corner of Pepperwood Crossing Subdivision Division No. 2; Thence N00°03'25"W
for a Distance of 1321.62 feet to the North line of the North Half(N 1/2) of the South East Quarter
(SE '/4) of Section 36; Thence N89°31'52"E along said North Line of said North Half(N '/2) for a
Distance of 1963.67 feet to the East Line of Section 36; Thence S00°08'58"E along said East
line for a Distance of 1084.60 feet to the True Point of Beginning, Containing 58.58 Acres More
or Less.
Addition of County Line Commercial Park to the Service Territory
Lot I Block 2 COUNTY LINE COMMERCIAL PARK#1 Section 36, Township 4 North, Range
38 East of the Boise Meridian.
and
Lot 2 Block 2 COUNTY LINE COMMERCIAL PARK#1 Section 36, Township 4 North, Range
38 East of the Boise Meridian.
Attachment A
Case No. ROC-W-24-01
Staff Comments
January 16, 2025

and
Lot 3 Block 2 COUNTY LINE COMMERCIAL PARK#1 Section 36, Township 4 North, Range
38 East of the Boise Meridian.
and
Lot 4 Block 2 COUNTY LINE COMMERCIAL PARK#1 Section 36, Township 4 North, Range
38 East of the Boise Meridian.
and
Lot 1 Block 3 COUNTY LINE COMMERCIAL PARK#1 Section 36, Township 4 North, Range
38 East of the Boise Meridian.
and
Lot 2 Block 3 COUNTY LINE COMMERCIAL PARK#1 Section 36, Township 4 North, Range
38 East of the Boise Meridian.
and
Lot 3 Block 3 COUNTY LINE COMMERCIAL PARK#1 Section 36, Township 4 North, Range
38 East of the Boise Meridian.
and
Lot 4 Block 3 COUNTY LINE COMMERCIAL PARK#1 Section 36, Township 4 North, Range
38 East of the Boise Meridian.
and
Lot 6 & 7 Block 1 COUNTY LINE COMMERCIAL PARK 1 ST AMENDED Section 36,
Township 4 North, Range 38 East of the Boise Meridian.
and
Lot 8A Block 1 COUNTY LINE COMMERCIAL PARK#1 2ND AMENDED Section 36,
Township 4 North, Range 38 East of the Boise Meridian.
and
Lot 9A Block 1 COUNTY LINE COMMERCIAL PARK#1 2ND AMENDED Section 36,
Township 4 North, Range 38 East of the Boise Meridian.
Attachment A
Case No. ROC-W-24-01
Staff Comments
January 16, 2025

Attachment B: Map of Service Territory
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41
Red Line:Approved Service Territory(Division 1 Pepperwood Crossing subdivision)
Blue Line: Proposed Service Territory(Division 2 and 3 Pepperwood Crossing subdivision)
Black Line: Proposed Service Territory (Commercial customers)
Attachment B
Case No. ROC-W-24-01
Staff Comments
January 16, 2025

CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS DAY OF JANUARY 2025,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF , IN
CASE NO. ROC-W-24-01, BY E-MAILING A COPY THEREOF, TO THE
FOLLOWING:
JIM BERNARD
ROCKY MOUNTAIN UTILITY CO, INC.
2 N LANDMARK LANE STE 4
RIGBY ID 83442
E-MAIL: rockymountainutility(a�gmail.com
PA RICIA JORDA , SECRETARY
CERTIFICATE OF SERVICE