20180302Decision Memo.pdf

DECISION MEMORANDUM
TO COMMISSIONER KIELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
FROM:BRANDON KARPEN
DEPUTY ATTORNEY GENERAL
DATE: FEBRUARY 27,2018
SUBJECT: IN THE MATTER OF THE APPLICATION OF NORTHWEST
NATURAL WATER COMPANY, LLC TO ACQUIRE FALLS WATER
COMPANY; CASE NO. FLS-W-18-01
On February 21,2018, Northwest Natural Water Company, LLC, filed an Application
requesting that the Commission approve their proposed acquisition of Falls Water Company.
BACKGROUND
Northwest Natural Water is a wholly-owned subsidiary of Northwest Natural Gas
Company, a publically-traded gas company located in Portland, Oregon. Application at 2. The
gas company serves approximately 730,000 customers in western Oregon and Washington.ld.
Falls Water is a privately held Idaho water company serving approximately 5,500
customers near Idaho Falls, Idaho. Id. at 2-3. Falls Water holds Certificate of Public
Convenience and Necessity No. 236. /d.
THE APPLICATION
Northwest Natural states that, if approved by the Commission, Falls Water would
continue to operate in its current corporate form. 1d. This includes no changes in Falls' CPCN,
employees, customers base, or service area. Id. Further, Northwest Natural states that Falls'
current owner will remain president of the water company for at least one year, and manage the
water company through the transition period. Id.
Northwest further reports that the transaction will not cause an increase in rates. 1d.
The Company claims that the current Falls Water staff will all remain in place, and that the
company will continue to "have the business experience, financial ability, and water system
expertise to continue to operate and maintain Falls Water's system." Id. at 4. Notably, Northwest
DECISION MEMORANDUM I
does state that it plans to make capital improvements in the future, including construction of well
facilities, and possibly storage facilities. 1d.
The Company requests that this Application be processed by modified procedure,
and that the Commission issue a final order in this matter by May 1, 2018. Id. at 6.
STAFF RECOMMENDATION
Staff concurs in the Company's proposal to process this case by modified procedure.
Staff further recommends that the Commission set a 21-day intervention deadline and that once
the deadline has passed, that the parties convene an informal conference to determine and
recommend a comment schedule.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application, set a deadline for
intervention, and direct the parties to convene an informal conference to develop a settlement
schedule?
ttorney
I:U-C8aIWATERU;LS-W- I 8-01\Memos\l-tsWl 80 l_bk Ldoc
2DECISION MEMORANDUM