20210714FLS to Staff 2.pdf

Rates & Regulatory Affairs
FLS-W-21-01
Falls Water Company Application for Approval of Three Capital Projects
Data Request Response

Request No.: FLS-W-21-01 IPUC DR 2

REQUEST NO. 2: The Schiess & Associates study recommends expanding water
rights. Please explain what actions the Company is taking to obtain additional water
rights. Please include any known cost, size, or estimated acquisition dates. September
2019 Study.
Response:
Obtaining water rights is not as easily accomplished as going out and buying a piece of
real estate. As noted in the response to Request No. 1, the Company has sought the
assistance of water rights brokers to find water rights that work together in a single
transaction or in conjunction with other water rights transfers for other parties to mitigate
for water transfer model deficiencies due to the movement of the water rights.
The Company makes every effort to ensure that its water rights purchases are prudent
and cost effective. It prefers the transfers are properly mitigated so that all water
moving from point A is available for use when it is transferred to point B. The Company
does not want to pay for 100-acre feet of water at point A and only be able to use 70-
acre feet or less at point B when the transaction is complete.
The Company is still waiting for word from the brokers it uses for other water rights that
are available to move to its service area. The IDWR transfer process makes it difficult
to transfer all of a water right unless multiple water rights are used together to maximize
the transfer of the water volume in the rights.
Since the purchase of 208-acre feet of water closed on May 28, 2021, the Company has
no new leads for additional water rights. The brokers are aware of the Company’s
needs and will let us know when rights are available that may work well together to
mitigate for modeling losses.