20030926Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:SCOTT WOODBURY
DATE:SEPTEMBER 25, 2003
RE:CASE NO. EAG-03-1 (Eagle Water)
CERTIFICATE AMENDMENT-PETTICOAT JUNCTION SUBDIVISION
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 State Highway 55 , 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 'l4 of the Southwest 'l4 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; Idaho Code ~ 61-526; Commission Rules of Procedure, IDAPA 31.01.01.112.
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 comer 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
DECISION MEMORANDUM
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
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.
Eagle Water submits that the extension of its facilities to serve Petticoat Junction is
consistent with the public convenience and necessity. Eagle Water requests that its Application
be processed pursuant to Modified Procedure, i., by written submission rather than by hearing.
Reference Commission Rules of Procedure, IDAP A 31.01.01.201-204.
On September 5 , 2003 , the Commission issued Notices of Application and Modified
Procedure in Case No. EAG- W -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. This adjacent development will eventually
include a Home Depot Store, WinCo Grocery Store, fast food stores and several other small
commercial stores. Although the adjacent commercial development is very large, it's 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
DECISION MEMORANDUM
Water, Staff states, conducted fire flow tests at several locations in its system in the vicinity of
the adjacent development. The results of 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 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 continuing capability to provide adequate service as additional
development occurs on the east side of the Company s system.
Commission Decision
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. Staff recommends that the Company s Application be
approved. Does the Commission agree?
Scott Woodbury
Vld/M:EAGWO301 sw2
DECISION MEMORANDUM