20150924final_order_no_33384.pdf

Office of the Secretary
Service Date
September 24,2015
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF COUNTRY CLUB HILLS UTILITIES,)CASE NO.CCH-W-15-Ol
INC.FOR CANCELLATION OF ITS )
CERTIFICATE OF PUBLIC )
CONVENIENCE AND NECESSITY )ORDER NO.33384
_______________________________________________________________________________
)
On March 16,2015,the Commission received a request from Country Club Hills
Utilities,Inc.(“CCHU”or “Company”)to cancel its Certificate of Public Convenience and
Necessity (“CPCN”)No.312.
On July 27,2015,the Commission issued a Notice of Application and Modified
Procedure with a 21-day comment period.Commission Staff was the only party to submit
comments regarding CCHU’s Application.
CCHU applied for,and was ultimately granted,a CPCN from the Commission in
Case No.CCH-W-89-01.On February 23,1990,CPCN No.312 was issued by the Commission
to CCHU.See Order No.22982.Commission records indicate that CCHU’s owner,Mr.
Michael Groth,attempted to sell the Company beginning in 2005.Thereafter,CCHU apprised
Staff of ongoing efforts and negotiations to sell the CCHU water system.
A customer contacted Staff in February 2014,and revealed that there were a number
of customers concerned about the need to find a new owner/operator for the Company.The
customer indicated that the homeowners’association did not have the means or ability to run the
system.Effective March 2,2015,CCHU sold the land and all water production and distribution
equipment to Taylor Mountain Water and Sewer District (“TMWSD”).
According to the Application,TMWSD was organized by a vote of customers of
Country Club Hills Utilities held on August 26,2014.On March 16,2015,the Commission
received a copy of the sale agreement between CCHU and TMWSD.
The formation of TMWSD facilitated a loan to cover the cost of building a sewer
pipeline to connect the sewer system to the Ammon Bonneville Sewer District and bring the
system into compliance with Idaho Department of Environmental Quality (“IDEQ”)wastewater
standards.According to a letter from IDEQ to CCHU,dated November 20,2014,the total loan
project cost is expected to be approximately $1 million.The transfer of the water and sewer
ORDER NO.33384 1
systems also provides a solution to the former owner’s reluctance to invest time and money into
the improvements required.due to his age and personal health.
STAFF COMMENTS
Staff reviewed CCHU’s request and recommended cancellation of the Company’s
CPCN No.312.Staff stated that TMWSD is the sole water service provider in the area.Staff
believes that TMWSD’s purchase of the CCHU water system is in the public interest.TMWSD
purchased the land and operating plant on March 2,2015,and immediately began operating the
utility on a day-to-day basis.Staff remarked that the primary purpose of the transaction was the
continued operation of the sewer system.Staff noted that the loan and cost of debt service will
be the responsibility of sewer customers.Staff believes that the sale transaction will not lead to
an increase in rates for water service.
Staffs research confirmed that TMWSD is organized pursuant to Chapter 32,of Title
42,Idaho Code,and is not subject to regulation by the Commission.According to Staff,
TMWSD has the ability to tax and enforce collection of amounts due for services provided.
Staff believes TMWSD has the financial capacity to operate and maintain the water system.
COMMISSION FINDINGS AND DECISION
The Idaho Public Utilities Commission has jurisdiction over CCHU,a water utility,
and the issues presented in Case No.CCH-W-l5-0l pursuant to Idaho Code.Title 61,
specifically including but not limited to Idaho Code §61-104,61-125,61-129,and 61-526,as
well as the Commission’s Rules of Procedure,IDAPA 31.01.01.000 etseq.
The Commission has reviewed CCHU’s Application and Staff’s comments and
recommendations.The Commission finds that the transfer of the CCHU water system to
TMWSD is in the public interest.The transfer of the CCHU water system to TMWSD will
ensure that CCHU’s former customers will continue to receive affordable and reliable water
service into the foreseeable future.
The Commission finds that TMWSD,a non-profit cooperative formed by former
CC}-IU customers in order to facilitate water and sewer service,does not qualify as a “water
corporation”as that term is defined by Idaho Code §61-104,61-125.Therefore,TMWSD is
not a public utility subject to the Commission’s jurisdiction.See Idaho Code §61-129.
Accordingly,the Commission acknowledges the sale of CCHU’s water system to
TMWSD and approves CCHU’s Application for cancellation of its Certificate of Public
ORDERNO.33384 2
Convenience and Necessity.CCHU’s prior statutory obligation to provide water service in Idaho
is terminated.
ORDER
IT IS HEREBY ORDERED that the Application of Country Club Hills Utilities,Inc.
to cancel Certificate of Public Convenience and Necessity No.312 is granted.
THIS IS A FINAL ORDER.Any person interested in this Order (or in issues finally
decided by this Order)or in interlocutory Orders previously issued in this Case No.CCH-W-15-
01 may petition for reconsideration within twenty-one (21)days of the service date of this Order
with regard to any matter decided in this Order or in interlocutory Orders previously issued in
this case.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.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of September 2015.
PAUL KJELL N PRESIDENT
MARSHA H.SMITH,COMMISSIONER
KRI [NE RAPER,COMI’’llSSIONER
ATTEST:
an D.Jeweli!
Commission Secretary
O:CCH-W-1 5-O1_np2
‘jrjrj-c i’j.j