150602_UWIfirehydrants.pdf

Case No. UWI-W-15-02, Order No. 33300
Contact: Gene Fadness [phone], 890-2712
www.puc.idaho.gov

PUC taking comment on proposed agreement
to transfer hydrants from city to United Water

BOISE (June 2, 2015) – United Water Idaho is asking state regulators to approve an agreement
that transfers responsibility for the operation, maintenance and replacement of more than
6,700 fire hydrants from the City of Boise to United Water.

The agreement between United Water and the City of Boise proposes to replace about 168
hydrants per year over the next 40 years at a cost of about $765,000 to United Water
ratepayers, or about $1.45 per customer per year. If the Idaho Public Utilities Commission
approves the transfer, the costs, after a prudency determination by the commission, would be
recovered from customers after the company files its next rate case. (The costs are not included
in the current rate case, which United Water filed with the commission on May 21.)

The parties claim that transferring the hydrants to the utility would 1) create equity among
taxpayers and ratepayers, 2) make available capital funding for fire protection infrastructure
and 3) vest ownership of the hydrants with the entity that owns the infrastructure connected to
the hydrants and the experience and expertise to maintain them.

Each party has reserved the right to declare the agreement null and void if the commission
does not approve the agreement or the requested accounting treatment.

The commission is taking public comment on the proposed agreement through July 23.
Comments are accepted by accessing the commission’s Website at www.puc.idaho.gov and
clicking on "Case Comment Form,” under the “Consumers” heading. Fill in the case number
(UWI-W-15-02) and enter your comments. Comments can also be mailed to P.O. Box 83720,
Boise, ID 83720-0074 or faxed to [phone].
United Water’s application and accompanying testimony are available on the commission’s
Website. Click on “Open Cases” under the “Water” heading and scroll down to the case number
above.