20060607_1581.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEG AL
FROM:CECELIA A. GASSNER
DATE:JUNE 5, 2006
SUBJECT:UNITED WATER'S APPLICATION TO AMEND CERTIFICATE - CASE
NO. UWI-05-
On October 21 , 2005 , United Water Idaho Inc. ("United Water ) filed an Application
seeking to amend and revise its Certificate of Public Convenience and Necessity in order to
expand its service territory. As described in more detail below, on May 2, 2006, the Company
filed an amendment to its Application and a Stipulation between the Company and the City of
Meridian. On May 17, 2006, the Commission issued Order No. 30045 to proceed with the
matter by Modified Procedure and requested comments. No comments were received other than
those filed by the Commission Staff.
THE APPLICATION
According to the Application, United Water seeks to expand the provision of its
water services to seven discrete parcels of land. A map depicting United Water s current
certificated boundary and United Water s proposed certificated boundary is attached to the
Company s Application as Exhibit A. The seven parcels originally included in the Application
are located at:
1) Cloverdale Road, between Franklin Road and U stick Road, Ada County
(as described in further detail in Exhibit C to the Application);
2) Eagle Road and McMillan Road, Ada County (as described in further
detail in Exhibit E to the Application);
3) Hidden Springs/Cartwright Ranch, Ada County (as described in further
detail in Exhibit H to the Application);
DECISION MEMORANDUM
4) The LDS Church at Eagle Road and Lake Hazel Road, Ada County (as
described in further detail in Exhibit K to the Application);
5) The LDS Church at Linder Road and Columbia Road, Ada County (as
described in further detail in Exhibit L to the Application), adjacent to
United Water s existing non-contiguous Danskin service area;
6) The Lexington Meadows subdivision at McDermott Road and Overland
Road, Canyon County (as described in further detail in Exhibit N to the
Application); and
7) The Iron Horse subdivision at West Columbia Road and South Black Cat
Road, Ada County (as described in further detail in Exhibit R to the
Application), which subdivision extends the boundaries of United
Water s non-contiguous Danskin service area.
The Company stated that none of the areas they are proposing to serve are within the
authorized territory of any other public utility water corporation under the jurisdiction of the
Commission. 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 proposes to provide
service pursuant to its Tariff No., General Metered Service, and in all respects will provide
service pursuant to its Rules and Regulations as approved by the Commission.
ADDITIONAL FILINGS
On December 1 , 2005 , the City of Meridian filed a Protest and Request for Hearing.
Thereafter followed certain discussions between the Company and Meridian regarding the
Application. On December 7 , 2005, the Company filed a Motion to Approve Uncontested
Expansions, requesting the Commission s approval of the Application as to five of the parcels set
forth therein. On December 14 , 2005, Meridian filed a Response to Motion to Approve, stating
that only the Hidden Springs/Cartwright Ranch and the Lexington Meadows subdivision areas
are not contested and that it believes that the Application should be approved as to these two
areas. The response further stated that the parties were negotiating as to the other parcels.
December 12, 2005 , the Commission issued Order No. 29945, approving the Company
Application as to the Hidden Springs/Cartwright Ranch parcel and the Lexington Meadows
Subdivision parcel.
DECISION MEMORANDUM
The Company and the City of Meridian continued discussions regarding the other
parcels of land set forth in the Application. On May 2, 2006, the Company filed a Stipulation
pursuant to RP 274, between the Company and the City of Meridian to resolve in whose service
territory each of the above parcels will reside. The Company also filed an Amended Application
and a request for Modified Procedure. On May 4, 2006, the Company filed a Motion to Approve
the Stipulation, and on May 11 , 2006 , the Company filed a letter to clarify the Stipulation.
Through the Amended Application, the Company is also seeking the expansion of its
Certificate of Public Convenience and Necessity No. 143 to add the parcel of land in an area
denominated as "Lake Hazel/Columbia" as described in Exhibit D attached to the Stipulation.
SETTLEMENT BETWEEN COMPANY AND CITY OF MERIDIAN
United Water and the City of Meridian have entered into a Stipulation agreement
settling unresolved issues regarding the areas to be served by United Water that are in or near the
City of Meridian s area of impact. United Water filed the Stipulation and a Motion to Approve
the Stipulation. In the Stipulation, the parties agreed that the areas denominated in the
Application as Iron Horse, LDS Church at Linder, and the Cloverdale Road parcel may be
included in United Water service territory. The parties also agreed that with respect to the area
denominated as Eagle and McMillan, the boundary of this area should be redrawn so that it does
not overlap with the boundary of Meridian s area of city impact. The revised description of the
Eagle and McMillan expansion is set forth in Exhibit B attached to the Stipulation. Further
pursuant to the Stipulation, United Water has agreed to the City of Meridian providing service to
the area denominated as LDS Church at Eagle Road, thus its request for expansion into this area
is withdrawn.
Finally, United Water requests that a portion of the area previously added to its
service territory in Order No. 29785 , known as the Black Rock area, be deleted from Certificate
No. 143 such that the western boundary of United Water s certificated area is upon a North-
South line as depicted on Revised Exhibit A, attached to the Stipulation. The area is further
described in Exhibit C to the Stipulation. The parties agreed in the Stipulation that an area
denominated as "Lake Hazel/Columbia" which represents the remaining portion of the Black
Rock addition shall be included in United Water s Certificate No. 143. This area is described in
Exhibit D as attached to the Stipulation.
DECISION MEMORANDUM
ST AFF COMMENTS
Staff filed comments on this matter on December 6, 2005 and on May 31 , 2006
addressing the parcels. In its comments of December 6, 2005, Staff identified several areas it
believed were contested between United Water and the City of Meridian. Staff recommended
approval of the uncontested areas and further recommended that United Water be directed to
negotiate with the City of Meridian to resolve contested areas. The filed Stipulation represents
the fruits of those negotiations. It appears to Staff that all contested areas previously identified
have been satisfactorily resolved.
Staff believes that the Stipulation represents a reasonable compromise between
United Water and the City of Meridian; therefore, Staff recommends that the Stipulation be
approved. The Stipulation resolves all of the contested areas identified by Staff in its earlier
comments in this case and resolves any concerns Staff had held regarding the requested areas.
Staff further recommends that United Water be directed to prepare and file an Amended
Certificate No. 143 to reflect the terms ofthe Stipulation.
COMMISSION DECISION
Does the Commission desire to approve United Water s amended Application to
Amend and Revise Certificate of Convenience and Necessity No. 143?
Does the Commission desire to approve the Stipulation agreement entered into
between United Water and the City of Meridian resolving the issues of which entity will provide
water service to certain parcels?
dJrP---
Cecelia A. assner
M:UWI-O5-cg4
DECISION MEMORANDUM