20190816Decision Memo.pdf

DECISION MEMORANDUM
TO COMMIESIONER KJELLANDER
COMMISSIONER RAPBR
COMIUISSIONER ANDERSON
COMMISSION STCRtrTARY
COMMISSION STAF'T'
LtrCAL
FROM:MATT HUNTf,R
DEPUTY ATTORNAY GENBRAL
DATf,: AUSUST 16,2019
SUBJBCT:IN THtr MATTtrR OF T}Itr APT}LICATTOI{ OT' T''ALLS WATf,I{, CO.,
rNc. roR APPROVAL Or ACQUTSITION Op THtr A$SBTS Or THE
WATtrR BUSINISSS OT TAYLOR MOUNTAIN WATBR AND Str}YER
DISTRICT; CASE NO. FLS-1il-19-01.
On August 5, 2019, Falls Water Co., Inc. ("Falls Water" or "Company") filed an
Application seeking approval of the Company's acquisition of the assets of Taylor Mountain
Water and Sewer Districtl ("District") and amendment of Falls Water's Certificate of Publis
Convenience and Necessity ("CPCN") to include the area served by the District.
THE APPLICATION
Falls Water states that the Dislrict is a special purpose water and sewer district under
Chapter 32, Title 42 of Idaho Code, and currently serves approximately 158 residential
customers and one commercial customer. Application at l. The District serves customers in what
is commonly knonn as the Idaho Falls Country Club in Bonneville County, approximately ten
miles from the territory served by Falls Water. ld. Falls Water seeks to amend its CPCN to
include the area served by the District. Id. atg. Because the District is not a regulated utility, it
does not have a CPCN. .id. Falls Water is not requesting any changes to rates, rate structure, or
other changes in this Application, and states that any future changes will be based on prudently
incurred capital expenditures and other accepted ratemahing principles. /d.
I An afliliate of Falls Water, Cem State lnfrastructure, I"LC, is acquiring lhe assets oflthe District's sew*r lyslcm.
As the Cornmis:ion does rol have regulatory authority over sewcr systemr, Falls Water's Application covers only
the proposed acquisition of the water business assets.
IDECISION MEMORANDUM
STATF RECOMMENDATION
Staff recommends the Commission issue a Notice of Application and Notice of
Modified Procedure and set a comment deadline of October 30, 2019, and a reply comment
deadline cf November 6, 2019.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure and set a comment deadline of October 30, 2019, and a reply comment deadline of
November 6, 2019?
H
Deputy Attorney General
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2NECISION MTMORANDUM