20041014Final Order No 29610.pdf

Office of the Secretary
Service Date
October 14 2004
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
EAGLE WATER COMPANY, INC. TO AMENDITS CERTIFICATE OF PUBLIC
CONVENIENCE AND NECESSITY NO. 278.
CASE NO. EAG-04-
ORDER NO. 29610
On May 21 , 2004, Eagle Water Company, Inc. (Eagle Water) filed an Application
with the Idaho Public Utilities Commission (Commission) requesting authorization to amend its
Certificate of Public Convenience and Necessity No. 278 by extending the boundary of its
authorized service area. This proposed expansion is located in Ada County just east of Old
Highway 55/Horseshoe Bend Road and immediately south of the Farmers Union Canal. Both
Eagle Water and United Water Idaho Inc. (United) have the capability to serve the five parcels in
question that are generally referred to as the two Troutner properties, the two McKay properties
and the Dry Creek Cemetery. Exhibit 101. After reviewing the record and the provisions of the
Settlement Stipulation filed September 30, 2004, the Commission accepts the Stipulation as a
fair, just and reasonable allocation of the service area encompassed by the five parcels between
the two Companies.
PROCEDURAL BACKGROUND
On June 8, 2004, the Commission issued a Notice of Application, Modified
Procedure and Comment Deadline in this case. Order No. 29519. The Commission Staff filed
comments, to which United Water and Eagle Water replied. To better address the issues raised
in these comments, the Commission scheduled a prehearing conference to take evidence and
determine what, if any, additional procedure was necessary. Order No. 29560. United Water
Idaho Inc., the City of Eagle, and William and Ellene Parr requested intervenor status, which was
granted by the Commission in Order Nos. 29560, 29592 and 29593 , respectively. On September
, 2004, the Commission held a prehearing conference and took argument and testimony on: 1)
the issues the parties feel need to be addressed by the Commission, 2) whether it is necessary to
commence a proceeding to allocate service area, 3) the nature of cost data required for the
Commission to make an informed decision, 4) the ability of both parties to provide service of the
quality expected by customers, and 5) an appropriate schedule to process this case.
ORDER NO. 29610
To make a more informed decision regarding allocation of service territory for the
Application s five parcels, the Commission took testimony from Gregory Wyatt, the vice
president and general manager of United Water Idaho Inc.; Robert DeShazo, Jr., president of
Eagle Water Company; and Rick Sterling, Staff engineer. Based upon the testimony presented
the Commission preliminarily found that Eagle Water should serve the Dry Creek Cemetery. Tr.
at 80. As to the remaining four properties, the Commission requested that United and Eagle
Water provide detailed cost estimates, easement arrangements, and estimated time needed to
serve the two Troutner parcels and the two McKay parcels. Id.
THE SETTLEMENT STIPULATION
Following the evidentiary hearing held on September 22, 2004, Eagle Water and
United worked together to reach a mutually agreeable service territory allocation of the five
properties in question and filed a Settlement Stipulation on September 30, 2004. Based on those
discussions, United and Eagle Water agreed that a reasonable resolution of this matter is for
Eagle Water to provide service to the Troutner properties and the Dry Creek Cemetery and for
United to provide service to the McKay properties. See Hearing Exhibit 101. Eagle Water and
United requested that the Commission enter its Order approving this Stipulation and thereafter
Eagle Water and United will file amended certificates of public convenience and necessity
reflecting the additions of these service areas.
COMMISSION FINDINGS AND DISCUSSION
Pursuant to Commission Rule 274 we shall decide whether to accept the Stipulation
based on the record currently before us. IDAP A 31.01.01.274. The record is substantial and all
parties that materially participated in this docket have either signed this Agreement or did not
actively oppose it. Accordingly, we find further proceedings are not necessary for us to
determine whether we should accept this Agreement.
As set out in the record, both United and Eagle Water have the ability to serve the
five parcels at issue in this Application. Although we are concerned about quality of service
complaints from Eagle Water customers, we find that the majority of complaints received by the
Commission this summer pertained to system damage largely outside Eagle Water s control, that
has since been repaired. The Commission appreciates the swift attention devoted by United and
Eagle Water to resolving this matter and believes that the Stipulation will serve customers well.
ORDER NO. 29610
Thus, we approve the Settlement Stipulation entered into by United and Eagle Water as a fair
just and reasonable resolution of the service territory allocation requested by this Application.
We understand that the parties are working with William and Ellene Parr to
determine if and how water service can be provided to their property. The Commission asks that
the parties keep us informed as to the status of the Parrs' request for service. Finally, we open a
new docket in Case No. GNR- W -04-1 to consider allocation of the uncertificated service
territory in the Eagle area. The Commission directs Staff to establish workshops to work through
the requisite issues of such an undertaking. Tr. at 17-20-21.
ORDER
IT IS HEREBY ORDERED that the proposed Stipulation is just, fair and reasonable
in the public interest, and in accordance with the law and regulatory policy of this State.
Accordingly, we accept the Stipulation as proposed by Eagle Water Company and United Water
Idaho Inc.
IT IS FURTHER ORDERED that Eagle Water Company and United Water Idaho
Inc. comply with all terms contained in the Stipulation. Each utility shall file a revised service
territory description reflecting the additional service area set forth in the Stipulation within thirty
(30) days of the service date of this Order.
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.
ORDER NO. 29610
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho, this / If
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day of October 2004.
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MARSHA H. SMITH, COMMISSIONER
IS S. HANSEN, COMMISSIONER
ATTEST:
~LU Ie D. Jewell
Commission Secretary
O:EAGW0402 In3
ORDER NO. 29610