20230629VEO to Staff 1-2_4-8.PDF

VEOLIA WATER IDAHO, INC.’S RESPONSES TO FIRST 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]

Attorneys for Veolia Water Idaho, Inc.

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF VEOLIA WATER IDAHO, INC. FOR
APPROVAL OF WATER MAIN
INSTALLATION AGREEMENT

Case No. VEO-W-23-02

VEOLIA WATER IDAHO, INC.’S
RESPONSES TO FIRST PRODUCTION
REQUEST OF THE COMMISSION STAFF

Veolia Water Idaho, Inc. (“Veolia” or “Company”) in response to the First Production
Request of the Commission Staff to Veolia Water Idaho, Inc. dated June 15, 2023, submits the
following responses. Confidential documents are provided under separate cover.
DATED June 29, 2023.
GIVENS PURSLEY LLP
By
Preston N. Carter
Attorneys for Veolia Water Idaho, Inc.
RECEIVED
Thursday, June 29, 2023 4:11:21 PM
IDAHO PUBLIC
UTILITIES COMMISSION
VEOLIA WATER IDAHO, INC.’S RESPONSES TO FIRST PRODUCTION
REQUEST OF THE COMMISSION STAFF PAGE 2 OF 2
CERTIFICATE OF SERVICE
I hereby certify that on June 29, 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

U.S. Mail, postage prepaid
Express Mail
Hand Delivery
Facsimile
Email [e-mail]

_________________________________________
Preston N. Carter
VEO-W-23-02
IPUC Staff PR No. 1
Page 1 of 1
VEOLIA WATER IDAHO, INC.
CASE VEO-W-23-02
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: C. Cooper
REQUEST NO. 1:
Please provide the estimated cost for construction of the Company’s portion of the
interconnection line.
RESPONSE NO. 1:
The estimated construction cost for the Company’s portion of the interconnection line
and appurtenances is $20,000 to $25,000. The majority of the interconnect costs will be paid by
the City of Meridian, and the individual property owner has contributed most of the pipeline that
Veolia will make use of for the interconnect.
VEO-W-23-02
IPUC Staff PR No. 2
Page 1 of 1
VEOLIA WATER IDAHO, INC.
CASE VEO-W-23-02
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: C. Cooper
REQUEST NO. 2:
Please explain how this interconnection is the least cost solution to provide additional
reliability to the Company’s system. In the explanation, please provide a net present cost-benefit
comparison to the next least cost solution over a 20-year life cycle.
RESPONSE NO. 2:
The Company meets all requirements set forth by the Idaho Department of
Environmental Quality for source of supply standby capacity and pumping redundancy.
Emergency interconnects go beyond the requirement to provide standby capacity and pumping
redundancy. No other options for this kind of reliability are available other than interconnections
with neighboring systems. No cost-benefit comparison was completed, but the Company
believes this is a very low cost emergency interconnect with the associated benefits that it
provides.
VEO-W-23-02
IPUC Staff PR No. 4
Page 1 of 1
VEOLIA WATER IDAHO, INC.
CASE VEO-W-23-02
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: C. Cooper
REQUEST NO. 4:
Please provide the water quality standards that City of Meridian and the Company are
each required to meet. Please provide the most recent water quality results of the two systems.
RESPONSE NO. 4:
Both drinking water systems are required to meet all EPA and IDEQ Primary and
Secondary drinking water standards. The 2022 Consumer Confidence Report (CCR) for the
Veolia system is attached, and the 2021 CCR for the City of Meridian water system can be
accessed at this link: https://meridiancity.org/public-works/water/quality-reports/2021-water-
report/water-quality/
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VEO-W-23-02
IPUC Staff PR No. 5
Page 1 of 1
VEOLIA WATER IDAHO, INC.
CASE VEO-W-23-02
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: C. Cooper
REQUEST NO. 5:
Please provide the current rate the Company would pay City of Meridian if the Company
received water at the interconnection.
RESPONSE NO. 5:
The Company would pay Meridian’s current volumetric rate of $1.94 per 1,000 gallons.
VEO-W-23-02
IPUC Staff PR No. 6
Page 1 of 1
VEOLIA WATER IDAHO, INC.
CASE VEO-W-23-02
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: C. Cooper
REQUEST NO. 6:
Please elaborate on the term “Emergency Event” as discussed in Page 7, Section 2.1 in
the Agreement including the following:
a. Please provide the threshold level of water pressure below which the pressure will
be considered inadequate and invoke the stated “Emergency Event” in the
Agreement.
b. Please describe what is meant by “adequate water quality” as stated in the
agreement (Page 7, Section 2.1), and elaborate on what conditions could make the
water quality inadequate.
RESPONSE NO. 6:
a.The agreement leaves judgment to the providing system’s operators as to whether their
system can provide the requested water. At this time, Veolia would plan to request water
from Meridian if pressures dropped below 20 psi and needed the emergency interconnect
to bring them above 20 psi. This is the Idaho Department of Environmental Quality
established pressure below which customer notifications must be made.
b.Adequate water quality would be water quality that meets EPA and IDEQ requirements.
If, for example, one of the water systems had an impact to a well from a chemical such as
tetrachloroethene and could not use that well temporarily, that water system could request
use of the emergency interconnect.
VEO-W-23-02
IPUC Staff PR No. 7
Page 1 of 1
VEOLIA WATER IDAHO, INC.
CASE VEO-W-23-02
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: J. Cary
REQUEST NO. 7:
Please explain how Veolia will account for the revenues earned when selling water to the
City of Meridian during an “Emergency Event.”
RESPONSE NO. 7:
Revenues earned for water sold via the interconnection with City of Meridian will be
recorded to Veolia’s general ledger revenue account 401155466 - Sales for Resale priced at
Veolia’s current tariff rate at time of sale for water consumption.
VEO-W-23-02
IPUC Staff PR No. 8
Page 1 of 1
VEOLIA WATER IDAHO, INC.
CASE VEO-W-23-02
FIRST PRODUCTION REQUEST OF THE COMMISSION STAFF
Preparer/Sponsoring Witness: J. Cary
REQUEST NO. 8:
Please explain how the Company will handle stranded assets if either party breaches the
Agreement?
RESPONSE NO. 8:
If there is a breach of the agreement that is not cured; and if the breach results in a
termination of the Agreement in a manner that cannot be resolved by an amendment or revision
to the Agreement before the relevant assets are fully depreciated; then an option to handle the
stranded assets would be that Veolia would record an impairment for those assets net of any
assets that can be removed and repurposed. The impairment will be recorded as an expense to
General Ledger account 71225426 - Impairment Other. The specific assets impaired will be
removed from plant in service. The assets which can be removed and repurposed will remain in
plant in service.