20250923Final_Order_No_36764.pdf

Office of the Secretary
Service Date
September 23,2025
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF VEOLIA WATER ) CASE NOS. VEO-W-25-03
IDAHO,INC.AND CAPITOL WATER ) CAP-W-25-01
CORPORATION'S JOINT APPLICATION )
FOR AMENDMENT OF VEOLIA WATER )
IDAHO,INC.'S CERTIFICATE OF PUBLIC ) ORDER NO. 36764
CONVENIENCE AND NECESSITY )
On July 30, 2025, Veolia Water Idaho, Inc. ("Veolia") and Capitol Water Corporation
("Capitol") (collectively "Companies") applied to the Idaho Public Utilities Commission
("Commission") requesting approval of the transfer of a portion of property within Capitol's
certificated service territory to Veolia.
On August 22, 2025, the Commission issued a Notice of Application and Notice of
Modified Procedure, establishing public comment and Company reply comment deadlines. Order
No. 36737. Staff filed the only comments.
Based on our review of the record,the Commission now issues this Final Order approving
the Application and directing the Companies to take further action as described below.
THE APPLICATION
The Companies requested that the Commission approve the transfer of the property located
at 6625 W. Ustick Road in Boise, ID ("Property") from Capitol's service territory to Veolia's
service territory. Application at 1. The Companies represented that the developer of the Property
requested that Capitol provide water service to the Property. Id. at 2. Capitol stated that costly
upgrades would be needed to provide the required fire-flow rate of 950 gallons per minute or
greater to the Property. Id. Veolia represented that its system could readily provide the required
fire-flow rate. Id. The Companies and the developer believed it would be in the public interest to
transfer the right to serve customers at the Property to Veolia, and that the customers within the
Property would receive adequate service from Veolia if the transfer was approved. Id. at 3.
ORDER NO. 36764 1

STAFF COMMENTS
Staff recommended 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
Application, from Capitol's service territory to Veolia. Staff Comments at 4. Staff further
recommended that the Commission order Veolia to submit an amended Certificate of Public
Convenience and Necessity ("CPCN")No. 143 to include the Property (identified in Exhibit 1 of
the Application), and order Capitol to submit an amended CPCN No. 239 reflecting the removal
of the Property, through a compliance filing.Id.
Staff reviewed the Application and agreed that it would be in the public interest to allow
Capitol to transfer the proposed service territory—currently within Capitol's certificated area—to
Veolia's service territory. Id. at 2. Staff based its analysis on several criteria: (1) whether Veolia
could provide adequate service and meet the City of Boise's fire-flow requirements for the
Property; (2) whether all buildings and potential customer sites were fully separated within the
Property; (3) whether both Companies and the developer agreed to the transfer; and (4) whether
the legal description matched the territory shown on the accompanying map. Id. at 2-3.
Staff believed that Capitol was unable to meet the City's fire-flow requirements for the
proposed development without incurring significant cost and delay,whereas Veolia,whose system
is adjacent to the area, could meet the requirements in a timely and cost-effective manner.Id. at 3.
Staff also believed that Veolia's system had available capacity to serve up to 12,600 more
customers without infrastructure improvements, and the proposed development would add only
ten customers.Id.
Staff stated that the structures within the proposed service territory were separate from
those that would remain in Capitol's territory, ensuring what Staff believed were clear service
boundaries. Id. Staff agreed with the applicants' position that the proposed transfer was the most
appropriate and mutually beneficial solution, and no other customers would be affected. Id. at 4.
Finally, Staff stated that the legal description and map in Exhibit 1 of the Application
accurately identified the area to be transferred, which aligned with parcel No. R0387280110—
Lots 6, 7, and 8 of Block 2 in the Jay Amyx Subdivision No. 4—totaling approximately 0.6 acres.
Id.
ORDER NO. 36764 2

COMMISSION FINDINGS AND DECISION
The Commission has jurisdiction over the Companies and the issues presented in this case
pursuant to Idaho Code, Title 61, specifically Idaho Code §§ 61-104, 61-125, 61-129, and 61-526.
Having reviewed the record,the Commission finds it fair,just,reasonable,and in the public
interest to approve the Companies' request to transfer the Property from Capitol's CPCN No. 239
to Veolia's CPCN No. 143. The Companies agreed to transfer this portion of Capitol's service
territory to Veolia and, considering Veolia's ability to meet the required fire-flow rate. Likewise,
we find it is in the interest of the customers to transfer service.
To ensure the Companies' CPCNs continue to accurately reflect their respective
certificated areas,we direct each Company to submit a compliance filing amending their respective
CPCN's to memorialize the approved transaction. Therse updates shall be filed with the
Commission within 15 days of the service date of this Order as a compliance filing.
ORDER
IT IS HEREBY ORDERED that the Companies' request to transfer the Property from
Capitol's service territory to Veolia's service territory, is approved.
IT IS FURTHER ORDERED that Capitol submit a compliance filing amending CPCN No.
239 to remove the Property from Capitol's service territory within 15 days of the service date upon
this Order.
IT IS FURTHER ORDERED that Veolia submit a compliance filing amending CPCN No.
143 to add the Property to Veolia's service territory within 15 days of the service date upon this
Order.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one(21) days of the service date of 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. See Idaho Code § 61-626.
ORDER NO. 36764 3

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 23rd day of
September, 2025.
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64HN R. HAMMOND JR., COMMISSIONER
DAYN HARDI , COMMISSIONER
ATTEST
La Calderon Robles
Interim Commission Secretary
I:\Legal\WATER\CAP W2501_V EO W2503\orders\final_em.doex
ORDER NO. 36764 4