20250910Staff Comments.pdf

ERIKA K. MELANSON
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 11560
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 VEOLIA WATER )
IDAHO, INC. AND CAPITOL WATER ) CASE NO. VEO-W-25-03/
CORPORATION'S JOINT APPLICATION ) CAP-W-25-01
FOR AMENDMENT OF VEOLIA WATER, )
IDAHO INC'S 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, Erika K. Melanson, Deputy Attorney
General, submits the following comments.
BACKGROUND
On July 30, 2025, Veolia Water Idaho, Inc. ("Veolia") and Capitol Water Corporation
("Capitol") (collectively, "Companies") filed a Joint Application for Certificate of Public
Convenience and Necessity ("CPCN") Amendments ("Application") with the Commission
requesting approval of the transfer of a portion of property within Capitol's service territory to
Veolia's service territory.
The Companies state that a developer of a property located at 6625 W. Ustick Road in
Boise ("Property")requested Capitol to provide water service to the Property where it intends to
STAFF COMMENTS 1 SEPTEMBER 10, 2025

construct townhomes that are currently located within Capitol's service territory under CPCN
No. 239. Application at 2.
The Companies assert that Capitol could not provide the necessary amount of fire flow to
meet Boise City's fire flow requirements and to provide it, would require Capitol to make costly
upgrades.Id. The Companies and the developer believe it is in the public interest for Veolia to
serve the development. Id.
The Companies request that the Commission issue an order: (1) approving addition of the
Property to Veolia's certificated service territory and confirm that Veolia is able to serve the
Property, upon transfer; approving removal of the Property from Capitol's certificated service
territory and confirming that Capitol no longer has a duty to serve the Property, upon transfer;
and(3) granting any additional relief that the Commission determines proper. Id.
STAFF ANALYSIS
Staff reviewed the Companies' Application and believes that it is in the public interest to
allow Capitol to transfer the Property to Veolia's service territory identified by the legal
description and map included in Exhibit 1 of the Application.
Staff based its review on the following criteria: (1)whether Veolia will be able to
provide the necessary service and fire flow requirements for the transferred service area; (2)
whether all buildings and potential customer sites are completely separate within the proposed
territory; (3)whether both Company's and the developer agree with the transfer; and(4) whether
the legal description of the service territory being proposed for transfer matches the map of the
territory.
Based on its review, Staff recommends the Commission:
1. Approve the Companies'request to transfer the Property outlined by the legal
description and geo-physical map included as Exhibit 1 in the Companies'
Application from Capitol's service territory to Veolia's service territory;
2. Order Veolia to amend its service territory for CPCN No. 143 to include the Property
shown in Exhibit 1 of the Application; and
3. Order Capitol to amend its service territory for CPCN No. 239 by removing the
Property shown in Exhibit 1 of the Application.
STAFF COMMENTS 2 SEPTEMBER 10, 2025

Fire Flow Requirements
According to the Application, Capitol cannot meet the City of Boise's fire flow
requirements for a development located within the proposed service territory without a large cost
to Capitol and within the timeframe considering the developer's project plan. Application at 2.
However, Veolia was able to meet the City's requirements and within the timeframe needed for
the development given that Veolia's system is adjacent to the service territory. Id. Staff believes
that the transfer of the service territory is in the public interest and is a cost-effective way to meet
fire flow service requirements for the developer.
The developer intends to construct buildings located at 6633 and 6625 West Ustick Road,
Boise, ID. Id. The townhomes at 6625 West Ustick Road require fire flow of 950 gallons per
minute ("gpm") or greater. Id. Capitol has a 4-inch distribution line, which can only supply a
fire flow of 750 gpm, while Veolia has an 8-inch water main along Ustick Road, which fronts the
Property. Id. Moreover, as stated on page 11 in the 2024 Annual Report, Veolia can serve an
additional 12,600 customers with no system improvement, while the new development within the
proposed territory will only amount to 10 total new customers, which should not impact the
reliability of Veolia's system.'
Customer Separation
Within the Property to be transferred to Veolia's service territory, there appears to be a
structure that would extend into Capitol's service territory as shown in Exhibit 1 of the
Application. Staff verified with Veolia these are actually two separate structures with two
separate owners. If the owner of the structure that remains within Capitol's service territory
requests service, it would be supplied by Capitol and not Veolia. The structure within Veolia's
proposed service territory is part of the new development.
Interested Parties' Agreement
Staff verified that Veolia, Capitol, and the developer believe that this arrangement is the
best solution for all parties involved and have agreed with the transfer of the service territory.
'2024Annual Report.pdf—
https://puc.idaho.aov/Fileroom/PublicFiles/WATERNEO/General/OA-nnual%20Report/2024Annual%20Report.pdf
STAFF COMMENTS 3 SEPTEMBER 10, 2025

See Application at 3. Staff believes the transfer only affects the developer and that no other
customers will be impacted.
Legal Description
Staff reviewed the map and the legal description of the proposed service territory to be
transferred, shown in Exhibit 1 of the Application, and confirmed that they represent the area
that the Companies will transfer. Staff verified that the requested service territory is aligned with
parcel No. R0387280110, which is Lots 6, 7, and 8 of Block 2 in the Jay Amyx Subdivision No.
4, according to Ada County's parcel map.2 The total area of the service territory is
approximately 0.6 acres.
STAFF RECOMMENDATION
Staff recommends the Commission approve the Companies' request to transfer the
Property outlined by the legal description and geo-physical map included as Exhibit 1 in the
Companies' Application from Capitol's service territory to Veolia's service territory. Staff also
recommends the Commission:
1. Order Veolia to amend its service territory for CPCN No. 143 to include the Property
shown in Exhibit 1 of the Application through a compliance filing; and
2. Order Capitol to amend its service territory for CPCN No. 239 by removing the
Property shown in Exhibit 1 of the Application through a compliance filing.
Respectfully submitted this loth day of September 2025.
Erika K. Melanson
Deputy Attorney General
Technical Staff. Seungjae Lee
I:\Utility\UMISC\COMMENTS\VEO-W-25-03 CAP-W-25-01 Comments.docx
2 Retrieved from Ada County Website on August 20,2025:
https://,gisprod.adacounty.id. o, v/arc,gis/gpps/webgppviewer/index.html?id=e03633Of64cf4O69a723fe62ff21d442
STAFF COMMENTS 4 SEPTEMBER 10, 2025

CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS IOth DAY OF SEPTEMBER 2025,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF , IN CASE
NOS. VEO-W-25-03 and CAP-W-25-01, BY E-MAILING A COPY THEREOF, TO THE
FOLLOWING:
PRESTON N CARTER BOB PRICE
MEGANN E. MEIER JIM CARSON
GIVENS PURSLEY LLP CAPITOL WATER CORPORATION
PO BOX 2720 2626 N. ELDORADO STREET
BOISE ID 83701-2720 BOISE, ID 83704
E-MAIL: prestoncarter(c)givenspursley.com E-MAIL: info 0)capitolwater.com
memAgivenspursley.com robert lwestbenchwater.com
stephaniew(c7,givenspursley.com
PATRICIA JORDAN, S CRETARY
CERTIFICATE OF SERVICE