HomeMy WebLinkAbout20170609Decision Memo.pdfDECISION MEMORANDUM
TO:COMMIS SIONER KJELLAIIDER
COMMISSIONER RAPER
COMMIS SIONER AI\DERSON
COMNIISSION SECRETARY
COMMISSION STAFF
FROM:BRAI\DON KARPEN
DEPUTY ATTORNEY GENERAL
DATE: JIINE 8,2017
STIBJECT:IN TIIE MATTER OF TIIE APPLICATION OF FALLS WATER
COMPANY, INC. FOR AUTIIORIZATION TO BUILD A NEW WATER
souRCE, AND ACCESS TO THE SPECIAL PLAIIT RESERYE
ACCOUNT; CASE NO. FLS-W-17-01
On February 10,201.7, Falls Water Company, Inc. filed an Application requesting
that the Commission advise the Company on a request to construct an additional well, well
house, pumping equipment, and confrols, and accept those expenses as rate base in a future rate
case. The Company further requested access to a "special plant reserve fund" created by
Commission Order n 2012.
On March 9,2017, notice of the Application was issued, including notice that
"Commission Staff will recommend further procedure and scheduling based on further
investigation and assessment of the Company's filing." Notice at 2. Staffhas now adequately
evaluated and investigated the Company's filing and now requests that the Commission order
that this case be processed by Modified Procedure and that comment deadlines be set.
BACKGROUI[D
The Company's current rates took effect on October 16, 2012. As part of that rate
case, the Commission required the Company to establish a special plant reserye fund to finance
infrastructure projects as approved by the Commission. Order No. 32663 at ll. The
Commission further stated that it "strongly encourages the Company to consult with Commission
Staff before it begins any such projects." Id. (emphasis in original).
The Company has sought permission to construct a new well and associated plant. It
stated that it needs the new well to comply with Idaho Department of Environmental Quality
water pressure requirements. The Company has estimated a total project cost of $647,215. The
DECISION MEMORANDUM
Company requested that this Application be processed by Modified Procedure, but did not
request any kind of effective date.
STAFF RECOMMENDATION
After investigating the Company's Application and request, Staff has concluded that
the Company's proposal to process this case by Modified Procedure is appropriate and requests
that the Commission order the same. Further, Staff is requesting that the Commission set a July
ll,20l7 comment deadline, and a July 18,2017 reply deadline.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Modified Procedure with a July ll,
2017 conwrent deadline, and a July 18, 2017 reply deadline?
General
M:FLS-W-17-01 bk2
2DECISION MEMORANDUM