20230828FLS to Staff 84-88_91_93-94.pdf

FALLS WATER CO., INC.’S RESPONSE TO FIFTH PRODUCTION
REQUEST OF THE COMMISSION STAFF PAGE 1 OF 2
Preston N. Carter, ISB No. 8462
Morgan D. Goodin, ISB No. 11184
GIVENS PURSLEY LLP
601 West Bannock Street
P.O. Box 2720
Boise, Idaho 83701-2720
Office: [phone]
Fax: [phone]
[e-mail]
[e-mail]
[16919200_1.DOCX]

Attorneys for Falls Water Co., Inc.
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF FALLS WATER CO., INC. FOR THE
AUTHORITY TO INCREASE ITS RATES
AND CHARGES FOR WATER SERVICE
IN THE STATE OF IDAHO

Case No. FLS-W-23-01

FALLS WATER CO., INC.’S RESPONSE TO
FIFTH PRODUCTION REQUEST OF THE
COMMISSION STAFF

Falls Water Co., Inc., (“Falls Water,” “Applicant,” or “Company”) in response to the
Fifth Production Request of the Commission Staff to Falls Water Co., Inc. dated August 7, 2023,
submits the following response. Responsive documents are available for download using the link
provided in the accompanying email.
DATED August 28, 2023.

GIVENS PURSLEY LLP
By
Preston N. Carter
Attorneys for Falls Water Co., Inc.
RECEIVED
2023 AUGUST 28, 2023 4:47PM
IDAHO PUBLIC
UTILITIES COMMISSION
FALLS WATER CO., INC.’S RESPONSE TO FIFTH PRODUCTION
REQUEST OF THE COMMISSION STAFF PAGE 2 OF 2
CERTIFICATE OF SERVICE
I hereby certify that on August 28, 2023, I caused to be served a true and correct copy of
the foregoing document to the person(s) listed below by the method indicated:
Jan Noriyuki, Commission Secretary
Idaho Public Utilities Commission
11331 W. Chinden Blvd., Bldg. 8, Suite 201-A
Boise, ID 83714

[e-mail]
_________________________________________
Preston N. Carter
Rates & Regulatory Affairs
FLS-W-23-01
In the Matter of Falls Water Company's Application for Authority to Increase its Rates
and Charges for Water Service
Data Request Response
Preparer/Responding Witness:
Scott Bruce
General Manager, Falls Water Company, Inc
[phone]
Request No.: FLS-W-23-01 IPUC DR 84
In a letter provided by the Bonneville-Jefferson Ground Water ("District") to the
Company, regarding Surface Water Coalition ("SWC")'s claim that Idaho Ground Water
Appropriators ("IGWA") breached the 2015 agreement in 2021, it stated that;
"Bonneville-Jefferson and counsel for IGWA have also appealed this [Final] Order
[Regarding Compliance with Approved Mitigation Plan] to the district court. SWC has,
again, alleged a breach of the Settlement Agreement by IGWA members...for alleged
over-pumping during the 2022 irrigation season." Company's Response to Production
Request No. 36, Attachment 3 at 2. Please answer the following questions:
a. Please provide a detailed description on the status of the appeal of the Idaho
Department of Water Resources ("IDWR") Director's Final Order Regarding
Compliance with Approved Mitigation Plan; and
b. Please provide the estimated timeline that the Company will know the results of
SWC's claim that IGWA breached the 2015 agreement again in 2022.
Response:
a. The current status of the Director’s Final Order Regarding Compliance of the
Approved Mitigation Plan is that Idaho Ground Water Appropriators (“IGWA”) filed
an opening brief for Judicial Review from the Idaho Department of Water Resources
on August 15 regarding the director’s ruling on the breach of the 2015 Agreement
between the Surface Water Coalition and IGWA.
The schedule for the appeal, as well as the timeline for a decision, is within the
discretion of the District Court. It is anticipated that the Surface Water Coalition will
file a response brief, and IGWA will file a reply brief. Oral argument is scheduled for
October 30, 2023. After oral argument, the Court will issue a decision; there is no
mandatory timeline for this decision. The parties may then engage in post-decision
FLS-W-23-01
IPUC Staff DR 84
Page 1 of 2
briefing, which may result in one or more additional decisions from the Court, and
one or more parties may then appeal the Court’s decision(s).
b. The Company does not have a basis to provide an estimation regarding the timing
of a determination related to SWC’s allegation of a breach in 2022; the alleged
breach during 2021 is still in the process of being adjudicated.
FLS-W-23-01
IPUC Staff DR 84
Page 2 of 2
Rates & Regulatory Affairs
FLS-W-23-01
In the Matter of Falls Water Company's Application for Authority to Increase its Rates
and Charges for Water Service
Data Request Response
Preparer/Responding Witness:
Scott Bruce
General Manager, Falls Water Company, Inc
[phone]
Request No.: FLS-W-23-01 IPUC DR 85
In the Company's Response to Production Request No. 36 - Attachment 3, it is stated
that, "The District adjusted assessments this year to provide credit to members for these
reductions." Please explain how the District calculated any credits for Falls Water's
reduction in water production in previous years. Please provide a supporting worksheet
that breaks down the Company's total assessment and overuse charges by year,
including the total of credits received towards the overuse charges.
Response:
Prior to 2022, the Bonneville-Jefferson Groundwater District absorbed the Company’s
overproduction of water through reductions from agricultural patrons, which were able to
offset the Company’s overproduction. However, the farmers were unable to continue
this due to the drought conditions in 2021 and 2022 and therefore, the District was not
able to meet its water production cut backs in 2021 and 2022 for the 2015 SWC/IGWA
agreement. In 2022, the District took action to enforce the consequences for patrons
not meeting the mitigation plan (2015 SWC/IGWA Agreement).
Prior to 2022, the Company was not provided with details of its specific mitigation
baseline production. When the baseline was provided in 2022, the Company became
aware it had been over producing the baseline since the 2012 production year.
As shown in FLS-W-23-01 IPUC DR 85 Attachment 1, over production assessments
had never been assessed to the Company prior to the 2022 water production year.
The credits mentioned in the Company’s Response to FLS-W-23-01 IPUC DR 36 refers
to production reductions below the members’ baseline production. Since the Company
has been over producing since 2012, no credits for reduction in production were
generated by the Company.
FLS-W-23-01 IPUC DR85 Attachment 1 shows the District’s assessments to the
Company from 2018 to 2023.
FLS-W-23-01
IPUC Staff DR 85
Page 1 of 1
Rates & Regulatory Affairs
FLS-W-23-01
In the Matter of Falls Water Company's Application for Authority to Increase its Rates
and Charges for Water Service
Data Request Response
Preparer/Responding Witness:
Scott Bruce
General Manager, Falls Water Company, Inc
[phone]
Request No.: FLS-W-23-01 IPUC DR 86
Please explain the Company's reasoning for purchasing additional water rights in 2021
and 2023. Additionally, please provide a cost-benefit analysis for each water right
purchased since 2021 listed below:
a. Water Right: 25-14482;
b. Water Right: 25-14483;
c. Water Right: 25-14516; and
d. Water Right: 25-14517
Response:
The water rights purchases were primarily two purchases: Water Rights 25-14482 and
25-14483 (one combined purchase); and Water Rights 25-14516 and 25-14517
(another combined purchase).
The 2019 study (FLS-W-23-01 IPUC DR 32 Attachment 1) indicated a shortfall in water
supply to meet peak demand and recommended acquisition of water rights. The
Company makes these acquisitions to meet existing deficiencies as outlined in Section
2.3.2 Water Rights of the 2019 Drinking Water Capital Facilities Plan.
The Company needs water rights to serve current customers and will continue to
acquire rights to meet near-term future growth but also is working to reduce demand
through rate design proposals and its proposed secondary irrigation tariff. Meeting the
water supply challenges requires a multifaceted approach and the Company believes all
these actions are necessary.
The current deficiencies in supply create low pressure and low flows in areas of the
system, which unfavorably impact customers. The Company hopes to mitigate these
quality and service concerns with the additional water rights acquisitions.
The reduction of assessment of roughly $9,380 was included as a proforma adjustment
and the Company will continue to work with the Bonneville Jefferson Groundwater
FLS-W-23-01
IPUC Staff DR 86
Page 1 of 2
District to ensure the impact of the water rights acquisitions are included in future
assessments to mitigate the impacts.
Finally, the Company uses a broker to meet the water rights needs in order to acquire
them at the least cost to customers. The Company proposes to introduce increasing
block rates and secondary irrigation tariff to reduce its costs in the future.
FLS-W-23-01
IPUC Staff DR 86
Page 2 of 2
Rates & Regulatory Affairs
FLS-W-23-01
In the Matter of Falls Water Company's Application for Authority to Increase its Rates
and Charges for Water Service
Data Request Response
Preparer/Responding Witness:
Scott Bruce
General Manager, Falls Water Company, Inc
[phone]
Request No.: FLS-W-23-01 IPUC DR 87
Please provide all transactions and journal entries to the Company's ground water
mitigation deferral account in Excel format. Please included item name, brief
description, cost broken down by month and year for 2022 to date.
Response:
The detailed transaction journal entries for the Company’s groundwater mitigation
deferral are provided in FLS-W-23-01 IPUC DR 87 Attachment 1.
FLS-W-23-01
IPUC Staff DR 87
Page 1 of 1
Rates & Regulatory Affairs
FLS-W-23-01
In the Matter of Falls Water Company's Application for Authority to Increase its Rates
and Charges for Water Service
Data Request Response
Preparer/Responding Witness:
Scott Bruce
General Manager, Falls Water Company, Inc
[phone]
Request No.: FLS-W-23-01 IPUC DR 88
Please reconcile the expenses booked to the groundwater mitigation deferral account
with the Company's response to Production Request No. 36 of $105,739.61, No. 37 of
$145,718.14, and No. 38 of $153,000, and Bruce Direct Testimony at 8 of $153,300.
Response:
The deferral pertains to the assessment charged by Bonneville-Jefferson Groundwater
District to the Company for water production in excess of the average baseline
production set during the production years from 2010 to 2014 per the 2015 Agreement
between the Surface Water Coalition and the Idaho Groundwater Appropriators.
The invoice submitted in the Company’s response to FLS-W-23-01 IPUC DR 36 shows
the overproduction assessment charged to the Company is $105,739.61. This is the
amount of the deferral for the 2022 over production by the Company. In FLS-W-23-01
IPUC DR 89, the water rights purchases made in 2021 were incorporated into the
calculation of the over-production assessment. The district is revising its invoice to
adjust for the additional 84.35 acre-fee of baseline production provided by the water
rights purchase. The updated over production assessment line item on the invoice is
$99,782.67. The base assessment of $12,719.78 and the mitigation assessment of
$25,633.41 remain unchanged as shown in the response to FLS-W-23-01 IPUC DR 89.
The deferral amounts shown in the Company’s response to FLS-W-23-01 IPUC DR 38
and Bruce Direct Testimony at page 8 are all estimated amounts based on what the
Company calculated for over production based on its well production during 2022. The
estimates of $153,000 and $153,300 both should have read $153,300, as $300 was
inadvertently left off the $153,000 estimate. These estimates are no longer valid based
upon the receipt of the actual over production assessment in the district’s revised
invoice.
The $145,718.14 estimate is the adjusted estimate that used the deferral amount on the
Company’s books on December 31, 2022, of $155,098.14 and subtracting an estimated
FLS-W-23-01
IPUC Staff DR 88
Page 1 of 2
balance for purchased water right amount of $9,380 (93.8 acre-fee x $100 minimum
statutory assessment per acre foot) that would be added to the baseline production in
the future. The actual new baseline production adjusted for new water right acquisitions
is shown in the Company’s response to FLS-W-23-01 IPUC DR 92.
The actual groundwater mitigation deferral amount is the amount of $105,739.41
invoiced by Bonneville-Jefferson Groundwater District as shown in FLS-W-23-01 IPUC
DR 36 Attachment 2.
FLS-W-23-01
IPUC Staff DR 88
Page 2 of 2
Rates & Regulatory Affairs
FLS-W-23-01
In the Matter of Falls Water Company's Application for Authority to Increase its Rates
and Charges for Water Service
Data Request Response
Preparer/Responding Witness:
Scott Bruce
General Manager, Falls Water Company, Inc
[phone]
Request No.: FLS-W-23-01 IPUC DR 91
Please explain whether IDWR or the District sets the Company's baseline for the 2015
Stipulated Mitigation Plan.
Response:
The Company’s water production baseline is set by the production reported to Water
District 120. Water District 120 is a part of Idaho Department of Water Resources
(IDWR) to which all groundwater users within its area are to report the production from
their wells.
For the baseline years, Idaho Ground Water Appropriators (IGWA) chose the date
range of 2010 through 2014.
Bonneville-Jefferson Groundwater District (BJGWD) accesses the production numbers
from Water District 120 and compiles the data to give its patrons their baseline
numbers.
Patrons of BJGWD are responsible to review and update the baseline data prepared for
them by BJGWD.
The Company is having BJGWD review the baseline number to verify that the
purchased water rights have been included in the baseline.
FLS-W-23-01
IPUC Staff DR 91
Page 1 of 1
Rates & Regulatory Affairs
FLS-W-23-01
In the Matter of Falls Water Company's Application for Authority to Increase its Rates
and Charges for Water Service
Data Request Response
Preparer/Responding Witness:
Scott Bruce
General Manager, Falls Water Company, Inc
[phone]
Request No.: FLS-W-23-01 IPUC DR 93
Please provide customer growth forecasts for each meter size and by system (Falls
Water, MorningView, and Taylor Mountain) over the next 5 years. In the response,
please provide current customer count for 2023 for meter size and system.
Please include all workpapers with formulas enabled.
Response:
The projected customer count growth can be found in FLS-W-23-01 IPUC DR 93
Attachment 1. The basis for the growth forecast over the next five years is the
assumptions in the 2019 Falls Water Company Facility Planning Study (FLS-W-23-01
IPUC DR 32 Attachment 1), which identified the anticipated growth of 3% annually for
the next 20 years. As discussed in the report this projection is slightly below recent
experience of 4% growth due to geographic and other limitations.
The Company’s experience and knowledge of the development indicates growth is
primarily using 1” meters. So, the Company applied the overall 3% growth to 1-inch
meters for each of the respective systems. The Company also applied an overall
forecast to each system even though growth may impact each system differently due to
geographic constraints, but it expects the overall trend to hold.
FLS-W-23-01
IPUC Staff DR 93
Page 1 of 1
Rates & Regulatory Affairs
FLS-W-23-01
In the Matter of Falls Water Company's Application for Authority to Increase its Rates
and Charges for Water Service
Data Request Response
Preparer/Responding Witness:
Scott Bruce
General Manager, Falls Water Company, Inc
[phone]
Request No.: FLS-W-23-01 IPUC DR 94
Please provide total monthly water consumption forecasts for each meter size and
system for the next 5 years (Falls Water, Morning View, and Taylor Mountain). Please
include all workpapers with formulas enabled.
Response:
The projected customer count growth can be found in FLS-W-23-01 IPUC DR 93
Attachment 1. The basis for the growth forecast over the next five years is the
assumptions in the 2019 Falls Water Company Facility Planning Study (FLS-W-23-01
IPUC DR 32 Attachment 1), which identified the anticipated customer growth of 3%
annually for the next 20 years. The Company Facilities plan assumes forecasted usage
per customer to remain consistent with existing usage patterns. So, the Company
forecast applies usage per customer to projected customer to develop its demand
forecast.
The projected usage by meter size by system can be found at FLS-W-23-01 IPUC DR
94 Attachment 1.
FLS-W-23-01
IPUC Staff DR 94
Page 1 of 1