20051220_1416.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:CECELIA A. GASSNER
DATE:DECEMBER 15, 2005
SUBJECT:UNITED WATER'S APPLICATION TO AMEND CERTIFICATE - CASE
NO. UWI-05-
On October 21 2005 , United Water Idaho Inc. ("United Water ) filed an Application
seeking to amend and revise its Certificate of Public Convenience and Necessity in order to
expand its service territory. On November 8 , 2005 , the Commission issued Order No. 29908 to
proceed with the matter by Modified Procedure.
THE APPLICATION
According to the Application, United Water seeks to expand the provision of its
water services to seven discrete parcels of land. A map depicting United Water s current
certificated boundary and United Water s proposed certificated boundary is attached to the
Company s Application as Exhibit A. Two of these parcels are located at: (I) Hidden
Springs/Cartwright Ranch, Ada County (as described in further detail in Exhibit H to the
Application); and (2) the Lexington Meadows subdivision at McDermott Road and Overland
Road, Canyon County (as described in further detail in Exhibit N to the Application).
The Company states that none of the areas they are proposing to serve are within the
authorized territory of any other public utility water corporation under the jurisdiction of the
Commission. The Application states that there are no known public utilities, persons, or
corporations with whom the expansion is likely to compete, and the requested expansion would
not interfere with the operation of any other water utility. United Water proposes to provide
service pursuant to its Tariff No., General Metered Service, and in all respects will provide
service pursuant to its Rules and Regulations as approved by the Commission.
DECISION MEMORANDUM
COMMENTS
A comment and a protest were submitted. On December 1 2005 , the City ofNampa
submitted a comment stating its position that private water systems not be allowed in Nampa
impact area as such systems may create problems when such systems are annexed.
On December 1 , 2005, the City of Meridian filed a protest against the Application
stating that such changes in the Company s certificated boundary would result in interference
with the water distribution and delivery system currently under construction by Meridian and
that public convenience and necessity do not require the construction of a duplicate distribution
and delivery system by the Company. Meridian requested that a hearing be held in this matter.
In its filing, Meridian did not specify which parcels of land it protested.
Staff filed comments on this matter on December 6, 2005, outlining its analysis of
the Application and potential effect of the requested expansion. The Hidden Springs/Cartwright
Ranch expansion would take in the Cartwright Ranch property, which is adjacent to United
Water s existing service territory encompassing the Hidden Springs planned community (as
described in further detail in Exhibit H to the Application). The developers of Hidden Springs
anticipate building between 1 350 and 1 450 new homes on the Cartwright Ranch property, and
have submitted a request to United Water for extension of water service into the area. Water
service facilities will be extended into the area pursuant to United Water s Rules and Regulations
governing extensions. These line extension rules require a contribution by the developer of the
full cost of the on-site and off-site facilities necessary to provide service. The rules also include
provisions to charge the developer for special facilities (such as booster pumps and storage
reservoirs) should they be necessary. Because ofthe developer contribution provisions under the
Company s line extension rules, Staff believes that all other existing ratepayers are not harmed.
Thus, Staff recommends approval of expansion of the Company s certificate to serve this area.
The Lexington Meadows subdivision expansion is west of McDermott Road and
south of Overland Road in Canyon County, Idaho (as described in further detail in Exhibit N to
the Application). It is adjacent to United Water s existing non-contiguous Belmont Heights
service area. The proposed expansion would encompass only the boundaries of the Lexington
Meadows subdivision, which consists of 26 building sites. Water service facilities will be
extended into the area pursuant to United Water s standard Water Main Extension Agreement.
DECISION MEMORANDUM
The Lexington Meadows expansion area lies within the City of Nampa Area of
Impact as shown on Attachment D to comments prepared by Staff. However, the nearest Nampa
municipal water facilities are located along Happy Valley Road, approximately Yz miles west of
the proposed Lexington Meadows subdivision. The City of Nampa appears unlikely to extend
water service to this area for several years in the future; therefore, Staff recommends that United
Water be permitted to extend service to this area.
Staff recommends that United Water be granted approval to expand its certificated
area to include these two areas. Staff further recommends that the Commission direct the
Company to prepare and file an Amended Certificate No. 143 to include those expansion areas
approved by the Commission.
ADDITIONAL PLEADINGS
On December 7, 2005 , the Company filed a Motion to Approve Uncontested
Expansions, requesting the Commission s approval of the Application as to five of the parcels set
forth therein. On December 14, 2005, Meridian filed a Response to Motion to Approve, stating
that only the Hidden Springs/Cartwright Ranch and the Lexington Meadows subdivision areas
are not contested and that it believes that the Application should be approved as to these two
areas. The response further states that the parties are negotiating as to the other parcels. It is
Staff s understanding that the Company and Meridian have entered into discussions regarding
the other parcels of land set forth in the Application and they anticipate reaching a settlement by
approximately the middle of January.
CO MMISSI ON D ECISI 0 N
Does the Commission desire to approve United Water s Application to Amend and
Revise Certificate of Convenience and Necessity No. 143 as to the Hidden Springs/Cartwright
Ranch and the Lexington Meadows Subdivision?
Cecelia A. G . sner
M:UWIWO504 cg2
DECISION MEMORANDUM