20040802Final Order No 29556.pdf

Office of the Secretary
Service Date
August 2 2004
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
DIAMOND BAR EST A TES WATER COMPANY
TO AMEND CERTIFICATE OF PUBLIC
CONVENIENCE AND NECESSITY NO. 413
(BOEKEL ESTATES SUBDIVISION).
CASE NO. DIA-O4-
ORDER NO. 29556
On June 7, 2004, Diamond Bar Estates Water Company, a water utility in Kootenai
County, Idaho, filed an Application with the Idaho Public Utilities Commission (Commission) to
amend its Certificate of Public Convenience and Necessity No. 413 and to extend its certificated
service territory to provide domestic and irrigation water service to Boekel Estates Subdivision
(Boekel Estates). Reference IDAPA 31.01.01.112; Idaho Code ~ 61-526. Boekel Estates
consists of approximately 70 acres of land in the SE !f4 of Section 33, Township 52 North, Range
4 West, Boise-Meridian, Kootenai County, Idaho, that will be platted as 14 five-acre lots.
part of the Application Diamond Bar submitted a June 2, 2004 Water Main Extension
Agreement (Agreement) between Diamond Bar and Walter and Grace Singer, the developers of
Boeke! Estates. On July 23 , 2004, the Company submitted a revised Water Main Extension
Agreement (Revised Agreement), an agreement that was also executed on July 23 2004.
On June 23 , 2004, the Commission issued a Notice of Application and Modified
Procedure in Case No. DIA-04-1. The deadline for filing written comments was July 23
2004. The Commission Staff was the only party to file comments. Staffs Comments can be
summarized as follows:
Certificated Area Expansion
Staff believes the Company has an adequate source of water supply to provide
service to Boekel Estates in a safe and reliable manner. Staff believes also that the extension of
Diamond Bar facilities to serve Boekel Estates is consistent with the public convenience and
necessity. Staff recommends that the Company s request for certificated area expansion be
granted.
Water Main Extension Agreement
On July 23, 2004, Diamond Bar submitted a revised Water Main Extension
Agreement (Revised Agreement), which by its terms expressly revoked the prior executed
ORDER NO. 29556
June 2, 2004, Agreement. The Commission notes that Staff in its filed Comments recommended
that the earlier Agreement be rejected in its entirety. Staff informs this Commission that it has
reviewed the Revised Agreement and finds its terms to be reasonable. The Revised Agreement
reflects the contribution by the developer of Boekel Estates of main line and service line
improvements and a recitation that the Commission s Customer Relations Rules and Diamond
Bar s filed tariffs and rules apply to the expanded service territory.
As reflected in Staff s Comments, the extension of water service to Boekel Estates
will require excavation, installation of mains, fire hydrants, services, meter boxes; grading;
backfill; compaction; inspection; and testing. The estimated cost for this project, as set forth in
the Revised Agreement, is $129 323, all of which will be paid by the developer.Staff
recommends that the transaction be recorded as a Contribution In Aid of Construction (CIAC) on
Diamond Bar s books.
Meter Installation Fee
Although not proposed in the Revised Agreement, Staff recommends that a $200
meter installation fee tariff be authorized. Diamond Bar is requesting to serve an expanded area
that could allow for an additional 14 regulated customers.All backbone and main line
improvements for service to Boekel Estates will be contributed to the Company by the
developer. There are, however, no tariff provisions in place for recovering the costs of meter
installation from the additional Boekel Estates customers. The Company, pursuant to production
request, provides an estimated cost of $200 to install a water meter.Staff believes the
Company s cost estimate is reasonable and is within the range of other regulated water system
hook-up fees in the area.
COMMISSION FINDINGS
The Commission has reviewed the filings of record in Case No. DIA-04-
including the comments and recommendations of the Commission Staff and the Revised
Agreement. 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.
Diamond Bar Water has requested authorization to amend and revise its Certificate of
Public Convenience and Necessity No. 413 to include the Boekel Estates Subdivision. As noted
above, the Company on July 23 , 2004, submitted a revised Water Main Extension Agreement.
ORDER NO. 29556
are advised by Commission Staff that the Revised Agreement was submitted pursuant to
Staff discussions with the Company and the developer. We find that the Company s filing (as
amended) satisfies the Commission Certificate requirements as set forth in IDAP A
31.01.01.112. Based on the filings of record, the Company s representations and Staffs
investigation, the Commission finds that the Company has the capability to provide adequate
water service to Boekel Estates. We further find that the future public interest will be served by
issuance of an amended Certificate of Public Convenience and Necessity to Diamond Bar Water
for the requested area.We therefore find it reasonable to approve Diamond Bar Water
requested expansion of its certificated area.
Pursuant to terms of the revised Water Main Extension Agreement, the developer of
Boekel Estates Subdivision agrees to pay Diamond Bar Water Company for the costs of
construction of the water main extension and related water system improvements to service
Boekel Estates. The estimated cost of extending service to Boekel Estates is $129 323. The
contribution by the developer of Boekel Estates Subdivision of main line and service line
improvements is to be recorded on the Company s books as a Contribution In Aid of
Construction.
The Commission also finds it reasonable to approve a tariffed meter installation
charge of $200 to recover the costs of meter installation from the customers of Boekel Estates
and to provide a meter cost recovery mechanism for customers of other future certificated
expansIon areas. The Commission finds the $200 fee to be a fair and reasonable charge.
CONCLUSIONS OF LAW
The Commission has jurisdiction over Diamond Bar Water Company, a water utility,
and its Application in Case No. DIA-04-, pursuant to the authority and power granted under
Title 61 of the Idaho Code and the Commission s Rules of Procedure, IDAP A 31.01.01.000
seq.
ORDER
In consideration of the foregoing and as more particularly described above, IT
HEREBY ORDERED that the Certificate of Public Convenience and Necessity No. 413 of
Diamond Bar Water Company be amended to reflect the addition of Boekel Estates Subdivision
located in the Southeast Quarter of Section 33 Township 52 North Range 4 West, Boise-
ORDER NO. 29556
Meridian, Kootenai County, Idaho. Diamond Bar is directed to prepare and file an amended
Certificate for Commission approval.
IT IS FURTHER ORDERED and the Commission does hereby approve a $200
meter installation charge. Diamond Bar is directed to prepare and file a conforming tariff sheet.
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 ~ 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this .30~
day of July 2004.
ARSHA H. SMITH, COMMISSIONER
Out of the Office on this Date
DENNIS S. HANSEN, COMMISSIONER
ATTEST:
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Commission Secretary
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ORDER NO. 29556