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Notification Requirements for the Pending Sale or Transfer of a Small
Water Company and the underlying CPCN
To transfer the underlying Certificate of Public Convenience and Necessity the
following should be included:
A letter apprising the Commission of the sale of the water system and
requesting transfer of Certificate of Convenience and Necessity No. (000) to the
buyer.
Note: In considering a sale of a Commission regulated water utility, the Owner (Seller)
should first review the Commission Order granting the Certificate of Public Convenience
and Necessity to determine if the proposed sale of the water system requires
Commission approval. Reference Idaho Code 61-529.
Indicate the buyer’s name and the name under which the water system will be
operated if different. The letter should briefly reference the remaining enclosed
support material identified below.
Content of the letter should include the following: A statement that the buyer is
familiar with the Commission’s regulatory authority, Utility Customer Relations
Rules (IDAPA 31.21.01), Customer Information Rules (IDAPA 31.21.02) and is
prepared to abide by them.
Note: these rules are available on the Commission’s Website: www.puc.idaho.gov.)
The letter should also include a statement that the buyer has the business
experience, financial ability and water system expertise to operate and maintain
the system. The letter should indicate that the buyer or designated employee is
familiar with the water system testing requirements of the Idaho Department of
Environmental Quality and has completed or will complete the requirements for
water system operator certification as required by IDAPA 58.01.08 Rule 554.
Indicate that a copy of the warranty deed (or other transfer document)
transferring title to the water system will be provided upon execution (closing)
of the transaction (or enclosed if applicable).
The letter should include an acknowledgement that the buyer is aware that the
valuation of the system by this Commission will be the basis established by the
Commission at the time the present rates were established adjusted for
additional depreciation and improvements. (It is the responsibility of the
applicants to justify any additions to the valuation.)
A statement that the buyer understands that accounting for the water system
must be in accordance with the Commission’s Uniform System of Accounts and
must be maintained on a stand-alone basis separate and apart from any other
business activities of the buyer.
Note: both seller and buyer should sign the letter.