20080703final_order_no_30595.pdf

Office of the Secretary
Service Date
July 3, 2008
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
FLOATING FEATHER PARTNERS, LLC,
CASE NO. EAG-08-
COMPLAINANT,
vs.
EAGLE WATER COMPANY ORDER NO. 30595
RESPONDENT.
On June 19, 2008, Floating Feather Partners LLC (Floating Feather) filed a
complaint with the Idaho Public Utilities Commission (Commission) regarding the capability of
Eagle Water Company to serve the Floating Feather Mobile Home Park (Mobile Home Park).
The Mobile Home Park is located at 10601 Horseshoe Bend Road (Old Highway 55) in Ada
County, Idaho and has 74 homes. The Mobile Home Park is presently under an Idaho
Department of Environmental Quality (DEQ) Consent Order dated October 10, 2007 due to
elevated levels of uranium in the Mobile Home Park's well water. Floating Feather contends
that the most effective and efficient solution to the contamination problem and for the long-term
provision of safe drinking water to the Mobile Home Park residents is connection to a municipal
water source. Floating Feather seeks another municipal water provider. The Commission in this
Order gives Eagle Water Company (Eagle Water; Company) until July 18, 2008 to remove
regulatory impediments and to provide water service to the Floating Feather Mobile Home Park.
Until the Mobile Home Park is interconnected to the Company s water system, Eagle Water is
directed to provide the residents of the Mobile Home Park with potable bottled water.
Although the Mobile Home Park lies within the certificated service area of Eagle
Water Company (Certificate No. 278), efforts to obtain service from Eagle Water have proved
unsuccessful.Floating Feather contends that Eagle Water Company is under a present
moratorium on new connections resulting from a Consent Order with DEQ regarding a lack of
required redundancy in Eagle Water s system. Floating Feather opines that Mobile Home Park
residents, many of whom are lower income, are confused and frustrated and believe they have no
viable option but to continue to use and drink the contaminated water from the well. Given the
apparent present inability of Eagle Water Company to serve the Mobile Home Park, Floating
ORDER NO. 30595
Feather requests that the Commission authorize service by United Water Idaho Inc., which has a
water main line on Horseshoe Bend Road directly adjacent to the Mobile Home Park. It is
Floating Feather s belief that United Water represents the most expedient path to safe drinking
water for its tenants. Floating Feather requests an expedited process to recertify the Mobile
Home Park into United Water s certificated area and to allow immediate connection.
Finding that exigent circumstances existed to expedite procedure in this matter, the
Commission on June 24, 2008 issued a Notice of Show Cause to Eagle Water Company and
established a July 2, 2008 hearing date. As reflected in the Commission s Notice
At the Show Cause Hearing, Eagle Water Company should be prepared to
demonstrate its capability of providing immediate water service to the
Floating Feather Mobile Home Park; or if incapable of doing so, to explain
why the Mobile Home Park should not be allowed to request service from
United Water Idaho Inc. and why such service should not be authorized by the
Commission.
The following parties entered appearances at the Show Cause hearing:
Eagle Water Company Molly O'Leary, Esq.
Commission Staff Scott Woodbury, Esq.
The City of Eagle represented by Susan Buxton, Esq., requested and was granted intervenor
status. IDAPA 31.01.01.075.
Discussion and Findings
The Commission has reviewed the filings of record in Case No. EAG-08-
including the underlying Consent Orders of the Idaho Department of Environmental Quality
(DEQ), that form a basis for Floating Feather s need for a new water source and that affect Eagle
Water s ability to make new service connections and provide immediate water service to
Floating Feather. The Consent Orders that we reviewed are the following:
Exhibit 102 - February 24, 2006 - Consent Order between Eagle Water
Company and DEQ
Exhibit 103 - July 6, 2007 - Letter from DEQ to Eagle Water Company
which is incorporated by reference into the February 24, 2006 Consent Order
Exhibit 104 - October 15, 2007 - Consent Order between Floating Feather
Mobile Home Park and DEQ
ORDER NO. 30595
review of the Floating Feather/DEQ Consent Order reveals that the Floating
Feather water system "was disapproved due to exceedences of the uranium maximum
containment level (MCL)." Exhibit 104, p. 1 ~ 3. The mitigation options available to Floating
Feather include entering into an agreement with an existing public water system for
interconnection and service. Exhibit 104, p. 2 ~ 5(c), Option iii.
Floating Feather lies within the certificated service area of Eagle Water Company.
As reflected in its June 13 letter filed with the Commission, Floating Feather initiated
discussions with Eagle Water Company in February 2008.
Eagle Water Company at hearing presented the testimony of Robert DeShazo, the
Company s president and Susan Buxton, attorney for the City of Eagle. The Company admits
that it operates under a DEQ moratorium on new service connections. Exhibit 103, p. 3 ~ A.
Mandatory modifications required by DEQ to meet the requirements of IDAP A 58.01.08 (Idaho
Rules for Public Drinking Water Systems) include
a. interconnection with an adjacent public water system to ensure a sufficient
supply of supplemental water. . . and
b. install an automatic pressure reducing/sustaining valve (PS/RV) in the
water system at Floating Feather Road. . . .
Exhibit 103 , pp. 1-2 ~A.3a &b.
By its terms, the Company s 2006 Consent Order with DEQ remains in full force and
effect until the Department acknowledges in writing that the Consent Order is terminated and
Eagle Water has fulfilled all requirements of the Consent Order. Exhibit 102, p. 5 ~ 10.
Eagle Water at hearing represents that it has negotiated the principal terms of an
intertie agreement with the City of Eagle that will satisfy the terms and conditions of the
moratorium and DEQ's redundancy and fireflow requirements. As represented, the intertie
agreement, which is only in draft form, has not been executed, requires approval by the Eagle
City Council, and requires a $4 000 per month payment by Eagle Water to the City. The
agreement will be for an initial 18-month term, subject to renewal upon request of Eagle Water
and terms agreeable to both parties.
The Company and City represent that an executed intertie agreement can be presented
to Eagle City Council for approval at its July 8, 2008 council meeting. Construction of City and
Company intertie facilities can be completed in one to two days. Construction of Company
ORDER NO. 30595
interconnect facilities with the Mobile Home Park can be completed in two to three days. The
Company expects that upon completion of interconnection to the City system Company
application to DEQ and inspection of the as-built facility by DEQ, the requirements of the
Consent Order will be satisfied and the moratorium will be lifted. The Company requests a short
period to accomplish this task.
Floating Feather has an immediate need for water. As the Mobile Home Park lies
within Eagle Water s certificated area, we find the Company has the right and obligation
provide service. The Commission s concern is that Eagle Water has been aware of Floating
Feather s need for service since February of this year and has not effected a fix to the system
deficiencies identified by DEQ in 2006 and to date has failed to extend service to Floating
Feather.
To the extent that Eagle Water Company operates under regulatory impediments to its
present service capability, we find that the Company is unable to demonstrate that it is "ready,
willing and able" to provide water service to Floating Feather. We find no excuse for the
Company s failure to address and remedy its system deficiencies in a timely manner. Floating
Feather s situation is a health issue requiring immediate and prompt action. If the Company
were ready to serve, it would not be subject to DEQ's moratorium service conditions. We expect
the Company to be proactive with service requests within its certificated area and not await
Commission direction.
Based on the Company s representations and commitments, we find it reasonable to
give the Company two weeks, until Friday, July 18, 2008 , to provide this Commission with a
written notice that the DEQ moratorium has been lifted and that water service to Floating Feather
Mobile Home Park has been initiated. The Commission expects that the Company will proceed
along parallel paths with the City and DEQ and Floating Feather to provide the Mobile Home
Park with water service. Failing timely provision of service to the Mobile Home Park, we find it
reasonable without further notice to authorize the Floating Feather Mobile Home Park to request
water service from United Water Idaho Inc. and commit to approving an application by United
Water to amend its certificate to include the Mobile Home Park area. Recognizing Eagle
Water s commitment at hearing, the Commission further finds it reasonable to require it to
provide the residents of the Floating Feather Mobile Home Park with potable bottled water from
ORDER NO. 30595
the service date of this Order until the Company is able to interconnect the Mobile Home Park to
its water system or until further order by the Commission.
CONCLUSIONS OF LAW
The Commission has jurisdiction over Eagle Water Company, a public water utility,
and the service issues raised in this case, pursuant to Idaho Code, Title 61 , and the Commission
Rules of Procedure, IDAPA 31.01.01.000 et seq.
The Commission has jurisdiction as a condition of Eagle Water Company
Certificate of Convenience and Necessity No. 278 to review the extension of service into an
unserved area within an already certificated area. Reference Cambridge Telephone Co. v. Pine
Telephone System 109 Idaho 875, 712 P.2d 576 (1985).
ORDER
In consideration of the foregoing and as more particularly described above, IT IS
HEREBY ORDERED and Eagle Water Company is directed to provide this Commission on or
prior to Friday, July 18, 2008, with written notice that it has initiated water service to the
Floating Feather Mobile Home Park.
IT IS FURTHER ORDERED and Eagle Water Company is directed to provide the
residents of the Floating Feather Mobile Home Park with potable bottled water from the service
date of this Order until the customers are interconnected to and receiving water from the
Company s water system or until further order of this Commission.
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. 30595
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this '3
t-i.
day of July 2008.
ATTEST:
~tJJe D. Jewell
mission Secretary
blslN:EAG-O8-01 sw
ORDER NO. 30595
MARSHA H. SMITH, COMMISSIONER