20030922Comments.pdf

SCOTT WOODBURY
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE , IDAHO 83720-0074
[phone]
BAR NO. 1895
f\ECEIVEO mFILED
2003 SEP 22 Alii! :40
k! UGUC
UTILITIES CGr'1MISSlON
Street Address for Express Mail:
472 W. WASHINGTON
BOISE, IDAHO 83702-5983
Attorney for the Commission Staff
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-
COMMENTS OF THE
COMMISSION STAFF
COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its
Attorney of record, Scott Woodbury, Deputy Attorney General, and in response to the Notice of
Application, Notice of Modified Procedure and Notice of Comment/Protest Deadline issued on
September 5 , 2003, submits the following comments.
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. Petticoat Junction is located on the Northeast
Comer 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 of 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-
STAFF COMMENTS SEPTEMBER 22 , 2003
Meridian, Ada County, Idaho. Reference Application, Exhibit B vicinity map, and Exhibit C
Plat Map; Idaho Code 61-526; Commission Rules of Procedure, IDAPA 31.01.01.112.
STAFF ANALYSIS
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. Until now , water service at Petticoat Junction has been provided
by means of a private well. Apparently, persistent water quality problems have been
encountered, prompting the request for service from Eagle Water.
Petticoat Junction currently consists of a combination gas station and convenience store
located on the comer of State Street/State Highway 44 and Horseshoe Bend Road. Future
development is expected to entail the addition of a car wash and approximately three small
offices. It is Staffs understanding that fire hydrants were installed on the property when the gas
station was originally built, but that the hydrants have never been functional.
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 is
located approximately 0.4 miles to the east. Attachment A shows the location of Petticoat
Junction in relation to the service territories of both Eagle Water and United Water. Petticoat
Junction is not located in an area previously identified by the Commission as a "buffer zone.
Immediately west of Petticoat Junction, and within Eagle Water s certificated area, a very
large commercial area is currently being developed. This development will eventually include a
Home Depot store, Winco grocery store, fast food stores and several other small commercial
stores. Although the commercial development is very large, its normal water requirements will
actually be much less than if the same area was developed as a residential subdivision.
However, the fire flow requirements of the commercial development are much higher than
required for a residential area. Eagle Water conducted fire flow tests at several locations in its
system in the vicinity of the development. The results of those fire flows tests show that Eagle
Water is easily capable of meeting minimum fire flow requirements. It is Staff s understanding,
however, that a booster pump system to provide supplemental fire protection will be installed at
the Home Depot store consistent with that company s normal practice. The booster pump
system will be privately owned.
STAFF COMMENTS SEPTEMBER 22 , 2003
Eagle Water represents that it has an adequate source of supply to serve Petticoat
Junction. Although the Company in the summer of 2000 experienced some difficulty in
supplying adequate water pressure to the east side of its system, the problems were in
subdivisions north of Petticoat Junction where the elevation is considerably higher. Staff has
received two complaints of low water pressure in the same subdivisions since then, but none in
areas adjacent to Petticoat Junction. Based on the fire flow test results, the close proximity of
Petticoat Junction to the Company s existing service territory, the absence of low pressure
complaints during the past two years and the few customers expected in Petticoat Junction, Staff
believes that the Company does have the capability to satisfactorily serve Petticoat Junction.
Nevertheless, Staff wishes to point out that Eagle Water has been planning for several years to
drill a new well near the southeast comer of its service territory and to construct a storage
reservoir near the northeast comer, but has yet to make progress on either one. Staff believes
both may be necessary in order to maintain capability to provide adequate service as additional
development occurs on the east side of the Company s system.
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
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.
RECOMMENDATION
The proposed expansion is contiguous with Eagle Water s existing service territory and
would add only four new, small commercial customers. Fire flow tests demonstrate that the
Company has adequate capability to provide fire protection. Staff recommends approval of
Eagle Water s application to amend its certificate to provide service to Petticoat Junction.
STAFF COMMENTS SEPTEMBER 22, 2003
Respectively submitted this
Technical Staff:Rick Sterling
i:umisc/comments/eagwO3.1swrps
ST AFF COMMENTS
c).;).
.,.j day of September 2003.
Scott Woo ury
Deputy Attorney General
SEPTEMBER 22 , 2003
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Attachment A
Case No. EAG-03-
Staff Comments
9/22/03
CERTIFICA TE OF SERVICE
HEREBY CERTIFY THAT I HAVE THIS 22ND DAY OF SEPTEMBER 2003
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN
CASE NO. EAG-03-, BY MAILING A COpy THEREOF, POSTAGE PREPAID
TO THE FOLLOWING:
MOLLY O'LEARY
RICHARDSON & O'LEARY PLLC
PO BOX 1849
EAGLE ID 83616
Jo;tSE
CERTIFICATE OF SERVICE