20031007Final Order No 29344.pdf

Office of the Secretary
Service Date
October 7, 2003
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
EAGLE WATER COMPANY, INc. TO AMEND
CERTIFICATE OF PUBLIC CONVENIENCE
AND NECESSITY NO. 278.
CASE NO. EAG-O3-
ORDER NO. 29344
On August 22, 2003, Eagle Water Company, Inc. (Eagle Water; Company) filed an
Application with the Idaho Public Utilities Commission (Commission) requesting authorization
to amend and revise its Certificate of Public Convenience and Necessity No. 278 (as amended)
by enlarging and extending its certification service area boundaries to include the Ada County
Commercial Subdivision of Petticoat Junction. Reference Idaho Code ~ 61-526; Commission
Rules of Procedure, IDAPA 31.01.01.112.Eagle Water submits that the extension of its
facilities to serve Petticoat Junction is consistent with the public convenience and necessity.
Petticoat Junction is located on the northeast corner of the intersection of State
Highway 44 and Horseshoe Bend Road, just east of the City of Eagle in Ada County. The
Petticoat Junction Subdivision is more particularly described as a re-subdivision of a parcel
land all located in Lot 21 of Brose Second Subdivision, also in the Northwest V4 of the Southwest
V4 of Section 14, Township 4 North, Range 1 East, Boise-Meridian, Ada County, Idaho.
Reference Application, Exhibit B vicinity map, and Exhibit C Plat Map.
Eagle Water represents that the developer of Petticoat Junction, Mr. Peter Cintorino
has requested that Eagle Water provide water service. A copy of the developer s request is
attached to the Company s Application. Petticoat Junction currently consists of a combination
gas station and convenience store located on the corner of State Street/State Highway 44 and
Horseshoe Bend Road. Until now, water service at Petticoat Junction has been provided by
means of a private well. Persistent water quality problems have purportedly prompted the
request for service from Eagle Water Company. Future development is expected to entail the
addition of a car wash and approximately three small offices. Eagle Water represents that it has
an adequate source of supply to serve the area.
Service to Petticoat Junction will be provided through Eagle Water s "Lakeland
Subdivision main" which runs east to west on State Street/State Highway 44. Extension of
ORDER NO. 29344
service to Petticoat Junction by Eagle Water will require excavation; installation of mains, fire
hydrants and service meter boxes; bedding; backfill, compaction; inspection; and testing. The
estimated construction cost for this project is $31 000 to $33 000, all of which will be paid by the
developer pursuant to Eagle Water s standard "Main Extension Contract" as provided for in its
tariff on file with the Commission. Eagle Water proposes to begin construction in September
2003 and complete construction in October 2003.The proposed expansion will add four
commercial customers to Eagle Water s customer base. The estimated average monthly gross
revenue per such customer is $150. The Company contends that the construction and expansion
will have no effect on its revenue requirements.
On September 5 , 2003, the Commission issued Notices of Application and Modified
Procedure in Case No. EAG-03-1. The deadline for filing comments was Thursday,
September 25 , 2003.The Commission Staff was the only party to file comments.Staff
recommends approval of Eagle Water s Application.
In its comments, Staff notes that Petticoat Junction is adjacent to and contiguous with
the existing eastern boundary of Eagle Water s certificated area. The nearest certificated area
boundary of United Water Idaho Inc. is located approximately 0.4 miles to the east. Staff notes
that immediately west of Petticoat Junction, and within Eagle Water s certificated area, a very
large commercial area is currently being developed. Although the adjacent commercial
development is very large, its normal water requirements, Staff contends, will actually be much
less than if the same area was developed as a residential subdivision. Staff notes, however, that
the fire flow requirements of the adjacent commercial development are much higher than
required for a residential area. Eagle Water, Staff states, conducted fire flow tests at several
locations in its system in the vicinity of the proposed and adjacent developments. The results
those fire flow tests show that Eagle Water is easily capable of meeting minimum fire flow
requirements.
Based on the fire flow test results, the close proximity of Petticoat Junction to the
Company s existing service territory, the absence of any low pressure complaints during the past
two years and the few customers expected in Petticoat Junction, Staff believes that the Company
has the capability to satisfactorily serve Petticoat Junction.
Staff points out that Eagle Water has been planning for several years to drill a new
well near the southeast corner of its service territory and to construct a storage reservoir near the
ORDER NO. 29344
northeast corner, but has yet to make progress on either one. Staff believes both may be
necessary in order to maintain continuing capability to provide adequate service as additional
development occurs on the east side of the Company s system.
COMMISSION FINDINGS
The Commission has reviewed the filings of record in Case No. EAG-03-
including the comments and recommendations of the Commission Staff. We continue to find
reasonable to process the Company s Application pursuant to Modified Procedure, i., by
written submission rather than by hearing. Reference ID AP A 31.0 I. 01.204.
Eagle Water Company has requested authorization to amend and revise its Certificate
of Public Convenience and Necessity No. 278 to include the Ada County Commercial
Subdivision of Petticoat Junction. We fmd that the Company s filing satisfies the Commission
Certificate requirements as set forth in IDAPA 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 Petticoat Junction. We further find that
the present and future public interest will be served by issuance of an amended Certificate of
Public Convenience and Necessity to Eagle Water for the requested area. We therefore find
reasonable to approve Eagle Water s requested expansion of its certificated area.
CONCLUSIONS OF LAW
The Commission has jurisdiction over Eagle Water Company, Inc., a water utility,
and its Application in Case No. EAG- W -03-1 pursuant to the authority and power granted under
Title 61 of the Idaho Code and the Commission s Rules of Procedure, IDAPA 31.01.01.000
seq.
ORDER
In consideration of the foregoing and as more particularly described above, IT IS
HEREBY ORDERED that the Certificate of Public Convenience and Necessity No. 278 of Eagle
Water Company, Inc. be amended to reflect the addition of Petticoat Junction Subdivision
located on the northeast corner of the intersection of State Highway 44 and Horseshoe Bend
Road, just east of the City of Eagle in Ada County. Eagle Water Company is directed to prepare
and file an amended Certificate for Commission approval.
THIS IS A FINAL ORDER. Any person interested in this Order (or in issues finally
decided by this Order) may petition for reconsideration within twenty-one (21) days of the
ORDER NO. 29344
service date of this Order with regard to any matter decided in 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 7#.
day of October 2003.
MARSHA H. SMITH, COMMISSIONER
ATTEST:
vld/O:EAGW0301 sw
ORDER NO. 29344