141222_UWIBrianWater.pdf

Case No. UWI-W-14-01, Order No. 33195
Contact: Gene Fadness [phone], 890-2712
www.puc.idaho.gov

Commission OKs United Water Idaho application
to take over Brian Water’s domestic water system

BOISE (Dec. 22, 2014) – Residents of the Brian Subdivision just east of Boise will soon be
customers of United Water Idaho.

The current water system is owned by the not-for-profit association of homeowners, the Brian
Subdivision Water Users Association, whose board sought the connection to United Water
when it determined that other alternatives to resolve issues with high nitrate levels would not
be approved by the Idaho Department of Environmental Quality.

Brian Water serves 46 customers along Warm Springs Avenue near the intersection of U.S.
Highway 21 just east of the Boise city limits. United Water Idaho provides service to about
85,000 customers in the Boise metropolitan area.

IDEQ disapproved the Brian Water system in 2011 because nitrate levels exceeded the
maximum allowable contaminant level.

“Our board has worked long and hard to identify appropriate methods to eliminate nitrate
contamination from our water and has concluded the only reliable and cost-effective way is to
connect to United Water’s distribution system,” the Brian Water board said in a statement to
the commission.

The estimated $1.35 million project will include extending United Water pipelines and replacing
existing meters and service lines for the 46 homes. The commission approved a payment
method proposed by both Brian Water and United Water that has Brian Water customers
paying for 10 percent of the main pipeline costs ($120,000) and all of the costs for service line
and meter replacement ($125,000). Brian Water customers will pay a surcharge of about $125
every two months for 10 years. Customers may choose at any time to pay the surcharge with a
one-time payment.

Ninety percent of the pipeline extension costs plus Allowance for Funds Using During
Construction (AFUDC) and a return on investment would be deferred for proposed recovery in
rates from all United Water customers until the company’s next general rate case. Commission
staff estimates that once the project is included in base rates, United Water customers would
see about a $2.16 per year increase in rates.

The commission said it recognizes the financial burden the transaction will place on Brian Water
customers and asked United Water to provide the commission with reports detailing any
arrearages and the status of payments plans that may exist for customers.

United Water will extend the water main from the south side of the Boise River and New York
Canal (the Highway 21 River Crossing). That option was preferable to alternatives, which
included extending the main down Warm Springs Avenue. The preferred alternative adds a
direct water supply connection to the Barber Valley’s highest growth area and reduces stress on
the Federal Way pipeline, eliminating the need for a new booster station and auxiliary power
generator. Further, this option improves service and reliability to 7,000 Barber Valley
customers.

United Water will soon begin to bore under the New York Canal to allow sufficient time before
the spring irrigation season and, depending on the success of that effort, hopes to have the
project completed by mid-2015.

IDEQ and the Boise Fire Department submitted comments in favor of the application. IDEQ
noted that excessive nitrate levels pose serious health risks. In infants, nitrates can cause
methemoglobinemia or “baby blue syndrome.” In the recent past, Brian Water has had to
routinely notify its customers not to drink the water or use it to make baby formula.

The Boise Fire Department noted the subdivision currently lacks fire hydrants, placing residents
and their property in jeopardy. United Water will install four hydrants in the subdivision.

The commission’s final order, along with other documents related to this case, is available on
the commission’s Website at www.puc.idaho.gov. Click on “Open Cases” under the “Water”
heading and scroll down to Case No. UWI-W-14-01.

Interested parties may petition the commission for reconsideration by no later than Jan. 7,
2015. Petitions for reconsideration must set forth specifically why the petitioner contends that
the order is unreasonable, unlawful or erroneous. Petitions should include a statement of the
nature and quantity of evidence the petitioner will offer if reconsideration is granted.

Petitions can be delivered to the commission at 472 W. Washington St. in Boise, mailed to P.O.
Box 83720, Boise, ID, 83720-0074, or faxed to 208-334-3762.

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