20221216Notice_of_Application_Order_No_35627.pdf

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35627 1
Office of the Secretary
Service Date
December 16, 2022
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF FALLS WATER CO.,
INC.’S APPLICATION FOR DEFERRAL OF
CERTAIN COSTS
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CASE NO. FLS-W-22-01

NOTICE OF APPLICATION

NOTICE OF
MODIFIED PROCEDURE

ORDER NO. 35627

On October 31, 2022, Falls Water Co., Inc. (“Falls Water” or “Company”), filed an
application (“Application”) with the Idaho Public Utilities Commission (“Commission”)
requesting authorization to defer costs associated with groundwater mitigation so that Falls Water
may advocate for recovery of those costs in a future rate case.
The Commission now provides Notice of the Application, Notice of Modified Procedure,
and sets a public comment deadline and Company reply comment deadline.
BACKGROUND
The Company states that Falls Water is a regulated water company that serves
approximately 6,400 customers within its service territory near Idaho Falls, Idaho pursuant to
Certificate of Public Convenience and Necessity No. 236, and owns certain water rights, under
which Falls Water is allowed to pump groundwater from its wells to serve its customers.
Application at 1. Falls Water is located within the Bonneville-Jefferson Ground Water District
(“District”), which is a member of an entity known as the Idaho Ground Water Appropriators, Inc.
(“IGWA”). Id. at 2.
In 2016, IGWA entered into a Stipulated Mitigation Plan (“Mitigation Plan”) with an entity
known as the Surface Water Coalition. Id. The Mitigation Plan provided a framework for
administrating groundwater rights, including Falls Water’s groundwater rights, in a manner
designed to decrease conflict between water users. Id. As a result of the Mitigation Plan,
groundwater users within the District were required to decrease groundwater production by
approximately 18,000 acre-feet. Id.
Upon examining its records, the District determined that it had not met its mitigation
requirements for the years 2020 and 2021. Id. at 3. To meet the required production reductions,
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35627 2
the District required all non-irrigation systems to pump at or below their baseline pumping
volumes. Pumping over this amount would result in an assessment of $100 per acre-foot. Id.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Company represents that since 2014, Falls
Water’s customer base has grown approximately 40%. The Company states that while its water
rights portfolio is sufficiently large to meet the needs of its customers, the demand on its system
requires it to pump at volumes greater than baseline.
YOU ARE FURTHER NOTIFIED that the Company represents that in 2022, the
cumulative growth on the system, drought conditions, and the actions of other members of the
District were such that incurring mitigation fees was necessary for Falls Water to pump sufficient
water to meet customer demand.
YOU ARE FURTHER NOTIFIED that the Company represents that it expects to be
invoiced for mitigation fees in the first quarter of 2023 for pumping that occurred in 2021. The
Company indicates that the precise amount of mitigation fees is not known at this time, but the
Company expects the fees to be material in light of Falls Water’s overall operations.
YOU ARE FURTHER NOTIFIED that the Company represents that it has attempted to
manage its operations so as to minimize production and to avoid mitigation fees; it has pursued
the purchase of additional water rights; it has urged its customers to conserve water; it has explored
the possibility of leasing water rights from the water bank; and it has explored changing its rate
structure to encourage conservation. However, conservation measures have not been sufficient to
bring production below baseline levels.
YOU ARE FURTHER NOTIFIED that the Application is available for public inspection
during regular business hours at the Commission’s office. All documents are also available on the
Commission’s website at http://www.puc.idaho.gov/. Click on the “WATER” icon, select “Open
Cases,” and click on the case number as shown on the front of this document.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held pursuant
to the Commission’s jurisdiction under Title 61 of the Idaho Code.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted
pursuant to the Commission’s Rules of Procedure, IDAPA 31.01.01.000 et seq.

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35627 3
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the public
interest may not require a formal hearing in this matter, and that it will proceed under Modified
Procedure pursuant to Rules 201-204 of the Commission’s Rules of Procedure, IDAPA
31.01.01.201-.204. The Commission notes that Modified Procedure and written comments have
proven to be an effective means for obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that persons desiring to state a position on this
Application may file a written comment explaining why the person supports or opposes the
Application. Persons who would like a hearing must specifically request a hearing in their written
comments. Persons interested in filing written comments must do so by February 2, 2023.
Comments must be filed through the Commission’s website or by e-mail unless computer access
is unavailable. To comment electronically, please access the Commission’s website at
http://www.puc.idaho.gov/. Click the “Case Comment Form” and complete the form using the
case number as it appears on the front of this document. To file by e-mail, persons must e-mail the
comments to the Commission Secretary and the Company at the e-mail addresses listed below. If
computer access is unavailable, then comments may be mailed to the Commission and Company
at these addresses:
For the Idaho Public Utilities
Commission:

Commission Secretary
Idaho Public Utilities Commission
P.O. Box 83720
Boise, ID 83720-0074
[e-mail]

Street Address for Express Mail:

11331 W. Chinden Blvd.
Building 8, Suite 201-A
Boise, ID 83714

For Falls Water Co., Inc.:

Preston N. Carter
Morgan D. Goodin
Givens Pursley LLP
601 W. Bannock St.
Boise, ID 83702
[e-mail]
[e-mail]

YOU ARE FURTHER NOTIFIED that the Company must file any reply comments by
February 23, 2023.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are received
within the time limit set, the Commission will consider this matter on its merits and enter its final
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 35627 4
order without a formal hearing. If written comments are received within the time limit set, the
Commission will consider them and, in its discretion, may set the same for formal hearing.
ORDER
IT IS HEREBY ORDERED that the Company’s Application be processed by Modified
Procedure, Rules 201-204 (IDAPA 31.01.01.201-.204). Persons interested in filing written
comments must do so by February 2, 2023. The Company must file any reply comments by
February 23, 2023.
IT IS FURTHER ORDERED that parties comply with Order No. 35375, issued April 21,
2022. Generally, all pleadings should be filed with the Commission electronically and will be
deemed timely filed when received by the Commission Secretary. Rule 14.02. Service between
parties should continue to be accomplished electronically when possible. However, voluminous
discovery-related documents may be filed and served on CD-ROM or a USB flash drive.
DONE by order of the Idaho Public Utilities Commission at Boise, Idaho this 16th day of
December 2022.

ERIC ANDERSON, PRESIDENT

JOHN CHATBURN, COMMISSIONER

JOHN R. HAMMOND JR., COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary
I:\Legal\WATER\FLS-W-22-01 GW Mitigation\orders\FLSW2201_NtcAppMod_cb.docx