20050509_1193.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:DONOVAN E. WALKER
DATE:MAY 5, 2005
SUBJECT:UNITED WATER'S APPLICATION TO AMEND CERTIFICATE CASE
NO. UWI-05-
On March 15, 2005, United Water Idaho Inc. filed an Application seeking to amend
and revise its Certificate of Public Convenience and Necessity in order to expand its service
territory. The Commission ordered that the Company s Application be processed by Modified
Procedure with comments due on April 22, 2005. Comments were filed by the Commission
Staff and the City of Meridian (City). United Water filed reply comments.
THE APPLICATION
According to the Application, Black Rock LLC, an Idaho corporation, has requested
that United Water provide domestic water and fire protection service to a proposed residential
subdivision, approximately 44 acres in size and located within an area bounded by Eagle Road
Amity Road, Lake Hazel Road, and Locust Grove Road, Ada County. Black Rock LLC is
prepared to execute a Water Main Extension Agreement. A map depicting the location of the
Black Rock Development, United Water s current certificated boundary, and United Water
proposed certificated boundary is attached to the Company s Application as xhibit A.
The Company states that the area they are proposing to serve is not within the
authorized territory of any other public utility water corporation under the jurisdiction of the
Commission and is covered by United Water s Rules and Regulations. The Application states
that there are no known public utilities, persons, or corporations with whom the expansion is
likely to compete, and the requested expansion would not interfere with the operation of any
other water utility. United Water proposed to provide service pursuant to its Tariff No.
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General Metered Service, and in all respects will provide service pursuant to its Rules and
Regulations as approved by the Commission.
STAFF COMMENTS
Staff filed comments on April 15, 2005. Staff recommends that the Company be
granted approval to expand its certificated area to include all of those areas identified in its
Application that are not located within the City of Meridian s Area of Impact.
Staff points out that the development requesting service, Black Rock, is only
portion of the entire area requested by United Water in its Application. Black Rock is outside
the city limits of Meridian, and is immediately adjacent to the City s Area of Impact.
Attachment A to Staffs comments shows the location of the City s Area of Impact, the Black
Rock development, and United Water s proposed expanded service territory. Staff contacted the
City of Meridian prior to the City filing its comments. Staff s understanding was that the City
would be opposing the Application, but that it would be unable to provide service to Black Rock
or adj acent areas for several years into the future.
Staff states that if the Commission were to deny the Company s Application it would
effectively deny water service to Black Rock for an indefinite period of time. Given the fact that
the development is outside the City s Area of Impact, Staff recommends that the Commission
approve the Application to, at the least, serve the Black Rock Development. Additionally, Staff
recommends that it is reasonable and in the public interest for the Commission to approve
expansion of the Company s certificated area to include the requested areas adjacent to Black
Rock that are not within the City s Area of Impact. With regard to the requested area that is
actually within the City s Area of Impact Staff recommends that the Commission carefully
weigh the expected arguments from both the City and the Company regarding the ability and the
legal authority of each to provide service.
CITY OF MERIDIAN COMMENTS
The City of Meridian filed comments on April 21 , 2005. The City requests that
United Water s Application be denied.
The City does not object to a small portion of United Water s requested area, the area
east of the line 1;4 mile west of Cloverdale Road. The City objects to the remaining requested
area because one portion is within the City s Area of Impact, and the remaining portion has been
within the City s sewer master planning area since 1993. The City states that in 1997 it
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requested that Ada County include this entire area within its Area of Impact, but was denied
because the County believed the City would not be able to provide services to the area within 20
or more years. The City goes on to say that although the rate of growth in southern Meridian has
proven that belief to be false, the City cannot at this time provide sewer service to the proposed
Black Rock development. The City also states that it intends to proceed this year with additional
sewer and water master planning in the area requested by United Water s Application. The City
states that the presence of United Water in the subject area may restrict it from extending water
and sewer service there in the future. Attached to the City s Comments are two maps: one
depicting the City s Area of Impact, and the other showing a 2003 Sewer Master Plan Update.
UNITED WATER'S REPLY COMMENTS
On April 28 , 2005 , United Water filed reply comments. The Company stated
, "
order to avoid, to the extent possible, conflict with the City, United hereby consents to a re-
definition of the expansion to eliminate that portion of the expansion area that overlaps with the
City s Area of Impact." The Company attached a map labeled Exhibit B depicting United
Water s re-defined proposed area of expansion after eliminating the area that was within the
City s Area of Impact.
recommendation.
The Company otherwise agreed with Staff s analysis and
With regard to the City s Comments, the Company states that elimination of the
portion of requested territory that falls within the Area of Impact satisfies the legitimate interests
of the City. The Company points out that the City admits that Ada County denied its request to
expand its Area of Impact into this territory, and that until that happens the City does not have
the legal ability to annex property within the area or to control patterns of growth. Citing Ada
County Code 9-2; City of Meridian 2002 Comprehensive Plan.
The Company also states that as a practical matter it will be some time into the future
before the City could actually provide service to the area, and the map accompanying the City
Comments indicates that the City does not have water distribution facilities any where near the
Black Rock development. By contrast, United Water has the capability of providing service now
and Black Rock is requesting service now, not several years into the future. The Company states
that Black Rock is proceeding diligently to obtain the necessary approvals, and has filed
applications and plans with Ada County, Ada County Highway District, and the Idaho
Department of Environmental Quality.
DECISION MEMORANDUM
COMMISSION DECISION
Does the Commission wish to approve or deny United Water s Application to amend and
revise its Certificate of Public Convenience and Necessity in order to expand its service
territory?
If the Commission approves the Application, does it wish to do so for the entire area
proposed by the Company or for some portion thereof?
DECISION MEMORANDUM