20090224final_order_no_30731.pdf

Office of the Secretary
Service Date
February 24, 2009
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF BAR CIRCLE "S" WATER COMPANY
TO AMEND ITS CERTIFICATE OF
CONVENIENCE AND NECESSITY ORDER NO. 30731
CASE NO. BCS-08-
On November 21 , 2008, Bar Circle "S" Water Company (Bar Circle "; Company)
filed an Application with the Idaho Public Utilities Commission (Commission) requesting
authority to amend its Certificate of Convenience and Necessity No. 296 to include a new
subdivision, Double T Estates, in Kootenai County, Idaho. Idaho Code 9 61-526; IDAPA
31.01.01.112. The subdivision will contain 47 five-acre residential home sites and will
developed in two phases. Phase 1 consists of 16 lots; Phase 2 consists of 31 lots.
Bar Circle "S" Water Company provides water service to the Bar Circle "S" Ranch
subdivision located on the Rathdrum Prairie in Kootenai County, Idaho, approximately seven
miles north of the City of Coeur d' Alene. The Company currently serves approximately 156
residential customers and one commercial customer. Residential customers are typically located
on five-acre lots. The Company has three existing wells, one 16-inch well and two 6-inch wells.
One of the 6-inch wells is not in service and cannot be rehabilitated.
The new subdivision, Double T Estates, is located on approximately 237 acres in a
portion of the West Yz of Section 14, Township 52 North, Range 4 West of the Boise Meridian
(WYz S14, T52N, R4W BM) in Kootenai County, Idaho. The subdivision is located
approximately 1 300 lineal feet from the existing Bar Circle "S" service area at the Ohio Match
Road and Ramsey Road intersection. A vicinity map is attached to the Company s Application
and shows the location of the existing service area and the proposed new subdivision. Also
attached is a copy of the proposed plat map of the new subdivision. A final approved plat map
complete with detail of the location of all water system installations will be provided to the
Commission when completed.
The Company contends that there is adequate capacity on the Company s existing
system to serve Double T Estates subdivision without the need for construction of an additional
source of supply or reservoir facilities. Construction costs of the water distribution system
ORDER NO. 30731
including mains, valves, fire hydrants, customer service line taps, meter boxes, meter bases and
the line extension required to interconnect to the existing water system will be paid by the
subdivision developer and contributed to Bar Circle "S" Water Company. The only cost to be
borne by the Company will be the cost of meters at the time a property is developed and service
is requested. The company contends that the addition of the Double T Estates service area to the
existing system will have no adverse effect on the Company s existing customers.
On December 2 2008, the Commission issued a Notice of Application and Modified
Procedure. The deadline for filing comments was January 15 , 2009. Comments were filed by
one of the Company s customers and Commission Staff. The customer addresses the Company
winter billing practice and not the proposed expansion of its certificate. On January 26, 2009
the Company filed reply comments.
Expressing concerns as to the Company s ability to provide water to Phase 2 of
Double T Estates (i., the proposed service area is not covered by the current water permit) and
as to whether the Idaho Department of Environmental Quality (DEQ) will require a backup well
or additional water source for the Double T Estates system, Staff recommends that at this time
the Commission approve only Phase 1.
Staff recommends that all extension costs related to Phase 1 be recorded on Bar
Circle "S" books as a contribution in aid of construction (CIAC). Staff notes that the Water
Main Extension Agreement between the Company and Double T Estates (a development also
owned by Robert N. Turnipseed, owner of Bar Circle ") requires
In the event that any governmentally mandated improvements to the Bar
Circle "S" system are required for system reliability or quality of service
during the period of development of Double T Estates, Bar Circle "S" and
Double T Estates will share the costs of such improvements based upon the
number of building lots within Bar Circle "S" current service area (215 lots)
and Double T Estates (47 lots), a ratio of 82% Bar Circle "S" to 18% Double
T Estates.
Staff believes that it is premature to allocate such costs between the Company and the developer
and recommends a Company filing related to the recovery of such costs.
Bar Circle "S" in reply requests Commission Certificate approval of both phases of
Double T Estates. The Commission, the Company states, should not concern itself with the
requirements of DEQ, a separate State agency, or condition a Certificate expansion upon
ORDER NO. 30731
satisfaction of DEQ rules and regulations. The Company notes that it has acquired a well
drilling permit for a 10- to 12-inch well to replace the 6-inch well that is not serviceable. The
new well, the Company contends, will be in operation prior to completion of Phase 2 and will
increase system reliability providing a suitable backup to the Company s current primary well.
Commission Findings
The Commission has reviewed the filings of record in Case No. BCS-08-
including the comments and recommendations of Commission Staff and the Company s reply.
We continue to find it reasonable to process the Company s Application pursuant to Modified
Procedure, i., by written submission rather than by hearing. Reference IDAP A 31.01.01.204.
Bar Circle "S" Water Company requests Commission authority to amend its
Certificate of Public Convenience and Necessity No. 296 to expand its certificated service
territory in Kootenai County, Idaho, to provide service to the proposed Double T Estates
subdivision. We find that the Company s filing satisfies the Commission Certificate
requirement as set forth in IDAPA 31.01.01.112. We find the Company s argument regarding
DEQ requirements to be persuasive. Based on the filings of record, the Company
representations and Staff's investigation , the Commission finds that the Company now has the
capability to provide adequate water service to Phase 1 and will soon have the capability to
provide adequate water service to Phase 2 of Double T Estates subdivision. We further find that
the future public interest will be served by issuance of an amended Certificate of Public
Convenience and Necessity for Bar Circle "S" for the requested area. We therefore find it
reasonable to approve Bar Circle "S" Water s requested expansion of its certificated area.
Pursuant to terms of the Water Main Extension Agreement, the developer of Double
T Estates Subdivision agrees to pay Bar Circle "S" for the cost of construction of the water main
extension and related water system improvements to provide service to the Double T Estates
subdivision. The developer s contribution of Double T Estates ' main line and service
improvements is to be recorded on the Company s books as a contribution in aid of construction.
We reserve judgment regarding the allocation ratio of other costs between Bar Circle "S" and
Double T Estates pending application by the Company for recovery of such costs and a
determination by the Commission as to the prudence of the Company s investment and
assessment of the related benefits accruing to Bar Circle "
ORDER NO. 30731
CONCLUSIONS OF LAW
The Commission has jurisdiction over Bar Circle "S" Water Company, a water utility,
and its Application in Case No. BCS-08-, pursuant to the authority and power granted it
under Title 61 of the Idaho Code and the Commission s Rules of Procedure IDAPA
31.01.01.000 et seq.
ORDER
In consideration of the foregoing and as more particularly described and qualified
above, IT IS HEREBY ORDERED that the Certificate of Public Convenience and Necessity No.
296 of Bar Circle "S" Water Company, Inc. be amended to reflect the addition of the Double T
Estates subdivision located in the West Yz of Section 14, Township 52 North, Range 4 West of
the Boise Meridian (WYz S14, T52N, R4W, BM) in Kootenai County, Idaho. Bar Circle "S" is
directed to prepare and file an amended Certificate for Commission approval.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order. Within seven (7)
days after any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See Idaho Code 9 61-626.
ORDER NO. 30731
DONE by Order ofthe Idaho Public Utilities Commission at Boise, Idaho this 'If-A
day of February 2009.
ATTEST:
~6).
D. Jewell
ISSlOn Secretary
bls/O:BCS-08-01 sw
ORDER NO. 30731
MARSHA H. SMITH, COMMISSIONER