20040629Comments.pdf

LISA NORDSTROM
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
BAR NO. 5733
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 AMENDITS CERTIFICATE OF PUBLIC
CONVENIENCE AND NECESSITY NO. 278.
CASE NO. EAG-O4-
COMMENTS OF THE
COMMISSION STAFF
COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its
attorney of record, Lisa Nordstrom, Deputy Attorney General, and submits the following
comments in response to the Notice of Application, Notice of Modified Procedure, Notice of
Comment/Protest Deadline and Order No. 29519 issued on June 8, 2004.
BACKGROUND
On May 21 , 2004, Eagle Water Company, Inc. (Eagle Water; Company) 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 the area in which it is authorized to provide service. This proposed expansion is located in
Ada County just east of Old Highway 55/Horseshoe Bend Road. The proposed area to be served
contains five parcels and is contiguous to Eagle Water s main system.
According to the Company s Application, Jan G. Troutner, Dorthy McKay and the Dry
Creek Cemetery Maintenance District have requested water service to their respective properties.
STAFF COMMENTS JUNE 29, 2004
Attachment No.1 shows the locations of these parcels in relation to the service area boundaries
of Eagle Water and United Water, Idaho. Service to these properties would be provided through
Eagle Water s eight-inch main line located on the east side of Old Highway 55/Horseshoe Bend
Road. Extension of service to these parcels 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 between $15 000 and $20 000 plus
legal fees, 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. In addition to
construction costs, Eagle Water will incur legal fees in connection with this Application that
have yet to be determined.
Eagle Water proposes to begin construction in June 2004 and complete construction in
August 2004. The proposed expansion will add three to five customers to Eagle Water
customer base. The Company estimates that the monthly gross revenue per such customer is $20
to $30. According to the Application, there will be no effect on Eagle Water s revenue
requirement.
Eagle Water states it has an adequate source of supply to provide service to these
properties in a safe and reliable manner, as evidenced by a letter from James M. Rees, P.
MTC, Inc. The Company also submits that the extension of its facilities to service the Idaho
State Veterans Cemetery is consistent with the public convenience and necessity.
STAFF ANALYSIS
Of the five parcels Eagle Water is seeking to add to its certificated area, three are
residential, one will be the site of a future church, and the remaining parcel is the existing Dry
Creek Cemetery. By far, the majority of the area Eagle Water is seeking to add is the Dry Creek
Cemetery. However, it is Staffs understanding that the cemetery already irrigates its grounds
using an alternate water source, and that Eagle Water will only be providing water for potable
water and fire protection.
In Order No. 29429 issued on February 20 2004, the Commission approved the
expansion of Eagle Water s certificated area to include the Idaho State Veterans Cemetery,
which is contiguous to the Dry Creek Cemetery. Eagle Water has informed Staff that it
inadvertently omitted the Dry Creek Cemetery from its earlier Application seeking to add the
Idaho State Veterans Cemetery to its certificated area.
ST AFF COMMENTS JUNE 29 , 2004
Both Eagle Water and United Water have the capability to serve the properties. Both
utilities have a main line along the east side of Horseshoe Bend Road, fronting two of the
residential lots. In fact, United Water is currently supplying water to a residential lot at the
corner of Horseshoe Bend Road and Hill Road, which is also adjacent to one of the parcels Eagle
Water is seeking to serve in this Application. Both utilities also have main lines near the Dry
Creek Cemetery.
Given that both utilities have the capability to serve the requested parcels, Staff believes
the Commission should consider which utility it believes will provide the best service to
customers over the long term. Eagle Water has had problems in the past providing sufficient
pressure to the nearby Bonita Hills and Eagle Springs Estates Subdivisions (reference Case No.
EAG-00-, Order No. 28513). Staff believed that water pressure problems of the past had
been resolved following Eagle Water s installation of a booster station nearby. However, on
June 2 2004, Eagle Water informed Staff that the main line supplying the booster station had
been exposed by excavation activities of a nearby sand and gravel operation. As a result, the
exposed line had to be taken out of service, which in turn, has again caused very low water
pressure on the northeast side of Eagle Water s system. After a month, Eagle Water has still
been unable to relocate the main line and restore normal water pressure in the area. Staff
understands that there may be a dispute over the property easement within which the main line is
located, and that Eagle Water is having difficulty securing an easement for an alternate route.
Nevertheless, Eagle Water customers located east of Horseshoe Bend Road are again facing poor
water pressure during the hottest part of the year. Eagle Water is not able to commit to a date by
which the problem will be resolved.
Because of Eagle Water s ongoing problems in providing adequate pressure in the
vicinity, Staff believes that United Water possesses greater capability for providing the best
service. United Water can easily serve the requested properties without diminishing its ability to
continue to provide adequate service to its existing customers.
Although it is not being requested in this Application, Staff believes that further
apportionment of uncertificated areas surrounding Eagle is ripe for a decision. Areas around
Eagle are rapidly growing and it is just a matter of time before the Commission will be required
to make decisions about which company will provide service. Presumably, both utilities would
benefit by knowing in advance the reasonable extent of their service areas so that nearby
ST AFF COMMENTS JUNE 29, 2004
facilities could be planned and sized accordingly. A piecemeal approach to awarding certificated
areas may not be in the best interests of the customers of either utility.
RECOMMENDATIONS
Staff recommends denial of the Company s Application. Staff further recommends that
Eagle Water and United Water be directed to try to negotiate apportionment of uncertificated
areas in the vicinity of Eagle between the two companies and the City of Eagle. For those areas
where apportionment between Eagle Water and United Water cannot be agreed upon, Staff
recommends that either or both companies make a filing with the Commission to open a new
docket for the purpose of resolving which company shall serve contested areas in the future.
ilL
Respectfully submitted this
c:2 day of June 2004.
Lisa N ordstro
Deputy Attorney General
Technical Staff: Rick Sterling
i: umisc/ commen ts/ eagwO4. 2 Lnrps
STAFF COMMENTS JUNE 29, 2004
v--
"...
":I"
.....
":I"
fijT""
"--~:~/::~
tflj~:~A ~~$
/,
1 \\1 ~D
:~~,~~
v; l I
~; ~....
"/ 'l J I v .11 'i
!LJ ':=J
~~~.~~ -, \ )-~) '///
//.~W~O/ yyLt"~~
'-
T( 1
Z7 /,.1
~ ~
1(77
/ / / "
~~ N
~Ly l'J
~ -
""V
""'/
l,;', 1 .RJ;f/,
j,
f'? 1~~C)t)
~~~
~.b~ ~~~//#a.
~ I Li. cff*' 0 ~ '7/
~~ / ~
k/1
\ I
- ~
%~~Wd ~t%y;)///~ ~/L rzr~
~~;~~ ~~~
"J~
'( ! /~~ \/
/2X4'/
~ ~
\-- .11 "
~~ ~~ "~ ~.!..-..,;
I J
~~V/
~ ~ ~ /
/J /117///
'//
!I...."---
?.
~ tL'~//)/r/C ~//C;;
/" ~ ~ j~~ /~~ ~ ~
L' ~ ~z/
.,G
")(
/I '7V
)\
"L!-
///~,
Y7'V
'/f/ ~rAm
'ij ZLx7
~P/N/J7f.
'- /~~ ~~;/
~ I
~ !
///1/,,/ v fB .I! "II .I! 'Ii
-;
1~A~
~~
...I J ~ J
~~~~~~
V/- v w- r/jAv;p
. ,
Attachment No.
Case No. EAG-O4-
CERTIFICATE OF SERVICE
HEREBY CERTIFY THAT I HAVE THIS 29TH DAY OF JUNE 2004
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN CASE
NO. EAG-04-, BY MAILING A COpy THEREOF POSTAGE PREPAID TO THE
FOLLOWING:
MOLLY O'LEARY
RICHARDSON & O'LEARY
PO BOX 1849
EAGLE ill 83616
ROBERT DESHAZO
EAGLE WATER
PO BOX 455
EAGLE ID 83616-0455
~ ,
KOeL
SECRETARY
CERTIFICATE OF SERVICE