20130409final_order_no_32784.pdf

Office of the Secretary
Service Date
April 9,2013
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF BRIAN WATER CORPORATION FOR )CASE NO.BRN-W-12-02
AUTHORITY TO INCREASE ITS RATES )
AND CHARGES FOR WATER SERVICE )ORDER NO.32784
_________________________________________________________________________________
)
On December 7,2012,Brian Water Corporation (“Brian Water”or “Company”)filed
an Application (Letter)requesting authority to institute a temporary surcharge.
TRANSFER OF OWNERSHIP
On February 7,2013,the Commission received a copy of a transfer agreement and
quit claim deed conveying ownership of the Company from the grantor,Mr.Tony Bowar,to the
Brian Subdivision Water Users Association (“BSWUA”).On March 26,2013,the Commission
received a letter from Richard Juengling,Registered Agent for BSWUA,acknowledging the
transfer of ownership and asserting that the BSWUA “is a not-for-profit corporation established
solely for the purpose of operating the water system.”BSWUA states that the “homeowners in
the subdivision came together as an organization to find solutions to the water contamination
issue”presented some time ago by IDEQ to Mr.Bowar.BSWUA believed that “the only way
for us to move forward was to acquire the system.”BSWTJA requested that the Commission
cancel Brian Water’s existing CPCN.
STAFF RECOMMENDATION
Staff evaluated the transfer agreement and related documents.Staff also spoke with
Mr.Juengling regarding the purchase and verified that full legal and operational control of the
water system has been assumed by BSWUA.BSWUA is a not-for-profit corporation registered
with the Idaho Secretary of State and organized solely for the delivery of water service to the
homeowners “at cost.”Thus,pursuant to Idaho Code §6 1-104,Staff believes that the BSWUA
does not qualify as a public utility subject to the Commission’s jurisdiction.Staff recommended
that the Commission terminate Brian Water’s pending Application and cancel the Company’s
existing CPCN.
ORDER NO.32784 1
FINDINGS OF FACT AND CONCLUSIONS OF LAW
The Idaho Public Utilities Commission has jurisdiction over Brian Water,a water
utility,and the issues presented in Case No.BRN-W-12-02 pursuant to Idaho Code,Title 61,and
the Commission’s Rules of Procedure,IDAPA 31.01.01.000 et seq.
COMMISSION FINDINGS AND DECISION
The Commission has reviewed the record in this proceeding,including documents
relating to the transfer of ownership,and finds that Brian Water’s pending Application is no
longer valid.The Commission finds that a legal transfer of the Brian Water’s water system has
been duly conveyed to the BSWUA,a not-for-profit corporation exclusively owned and operated
by property owners residing in the Brian subdivision development.The Commission finds that
the BSWUA falls outside of the Commission’s jurisdiction and is not subject to regulation.See
Idaho Code §sS 61-104 and 61-125.Accordingly,Brian Water’s pending Application,BRN-W
12-02,shall be dismissed and the Company’s existing Certificate of Public Convenience and
Necessity (“CPCN”)is cancelled.
ORDER
IT IS HEREBY ORDERED that the Application of Brian Water Corporation,BRN
W-12-02,requesting authority to institute a temporary surcharge is dismissed.
IT IS FURTHER ORDERED that the Company’s existing CPCN is cancelled.
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 §6 1-626.
ORDER NO.32784 2
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
PAUL KJELLANJ,PRESIDENT
MACK A.REDFORD,COMMISSIONER
I
MARShA H.SMITH,COMMISSIONER
D.Jewell j
CO’mmission Secretary
O:BRN-W-12-02 np
day of April 2013.
ATTEST:
ORDER NO.32784 3