20070220final_order_no_30252.pdf

Office of the Secretary
Service Date
February 20, 2007
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF ALLOCATING THE
UNCERTIFICATED WATER SERVICE
TERRITORY IN THE VICINITY OF EAGLE, IDAHO. CASE NO. GNR-04-
ORDER NO. 30252
Background
On October 14 2004, the Commission issued Order No. 29610 in Case No. EAG-
04-02 addressing service territory issues raised by Eagle Water Company, Inc. ("Eagle Water
The Commission s Order approved a settlement reached by Eagle Water and United Water Idaho
Inc. ("United Water ) to allocate five parcels between the two companies. In regard to William
and Ellene Parr s request for water service and the need for a comprehensive allocation of
uncertificated territory in the growing community of Eagle, the Commission wrote:
We understand that the parties are working with William and Ellene Parr to
determine if and how water service can be provided to their property. The
Commission asks that the parties keep us informed as to the status of the
Parrs' request for service. Finally, we open a new docket in Case No. GNR-
W -04-1 to consider allocation of the uncertificated service territory in the
Eagle area. The Commission directs Staff to establish workshops to work
through the requisite issues of such an undertaking. Tr. at 17-, 20-21.
Order No. 29610 at 3.
On November 19 2004, a workshop to investigate issues related to the allocation of
the uncertificated service territory in the Eagle area, including the property owned by William
and Ellene Parr, was held in Boise, Idaho. What followed was an informal stay of proceedings to
allow Eagle Water Company and United Water Idaho an opportunity to negotiate a proposed
split of the uncertificated area.
On December 30, 2004, the Commission awarded intervenor status to the City
Boise in Case No. GNR-04-01. Order No. 29671.
Stipulation and Proposed Allocation
On January 4, 2007, United Water and Eagle Water filed a Joint Motion with the
Commission requesting approval of a proposed Stipulation and division of the uncertificated
territory. See Exhibit A attached; Idaho Code ~ 61-526; IDAPA 31.01.01.112. The proposed
ORDER NO. 30252
Stipulation and division are prompted by additional requests for service and public concerns
regarding the water table and water quality in private wells in the area. The proposed division
results in an approximately equal division of the uncertificated area. In consequence, potential
customers within the area will be able to obtain service from the utility closest to their location
thus minimizing line extension charges for those potential customers.
On January 17, 2007, the Commission issued Notices of Stipulation and Modified
Procedure in Case No. GNR-04-01. The deadline for filing comments was February 9 2007.
Comments were filed by Commission Staff, the City of Boise and a number of affected property
owners.
Public Comments
All property owners support resolution of this matter. One property owner relates
that the tentative division line between Eagle Water and United Water is drawn between her two
lots. The owner, Donna Murphy of Spring Creek, Nevada, requests that both lots be within the
service territory of the same utility. The two lots are located on West State Street, Lot 5 , Block
, Randall Acres Subdivision No.9 (R7334200041) and Lot 6, Block 1 , Randall Acres
Subdivision No.9 (R7334200051). Another property owner, the Commission is informed, is
desirous of water service by June 2007 and is located on the westernmost portion of the
uncertificated area, at 10500 Shields near Horseshoe Bend Road.
City of Boise
The City of Boise strongly objects to the stipulated agreement. The City
recommends that the entire area be served by United Water. As reflected in previous
correspondence dated December 7, 2004, the entire area in question lies within Boise City s area
of impact and the City anticipates that it will be annexed into Boise City in the near future. The
City notes that it has already extended municipal sanitary sewer service into this area. Monthly
sewer bills are based on the winter water consumption from the water provider once a customer
is connected to public water. Boise City states that it has an excellent working relationship with
United Water. If Eagle Water provides water service to the area, a new franchise agreement will
need to be negotiated and additional coordination efforts will be required. Should the
Commission approve the stipulated agreement, the City requests that Eagle Water Company
ORDER NO. 30252
provide monthly water readings to Boise City at no charge for the purpose of preparing sewer
bills in the same manner that United Water provides similar information to the City.
Comments of William and Ellene Parr
Although the Parrs have not formerly intervened in this proceeding, they note that
they have been involved in the underlying subject matter from the outset. The Parrs wish to
develop their property into multiple residences. They own a private well on their property but it
possesses insufficient capacity and/or water quality to serve the intended development. Under
the proposed allocation the Parrs would receive water service from United Water. The Parrs
believe that the proposed allocation is reasonable and recommend approval of the Stipulation.
Commission Staff
Staff recommends that the proposed Stipulation and division of the uncertificated
territory be treated in a bifurcated manner. In the case of United Water, Staff believes that
United Water currently has sufficient water supply at acceptable pressures to serve its share of
the uncertificated area. United Water has two supply pipelines located east of, and immediately
adjacent to, the uncertificated area. Staff recommends that (1) the United Water proposed area
of service be approved, and (2) that United Water be directed to submit an amended Certificate
of Public Convenience and Necessity and stand ready to provide service to affected customers
requesting service as soon as reasonably possible.
In the case of Eagle Water, Staff notes that Eagle Water is subject to an Idaho
Department of Environrnental Quality (DEQ) moratorium that precludes new water hook-ups in
the service area requested. Staff recommends that the Commission defer action on the requested
expansion of Eagle Water s certificated service area and not authorize Eagle Water to serve any
new customers within the area described in the Stipulation unless and until DEQ lifts its
moratorium. Staff recommends that Eagle Water be required to make a filing with the
Commission after the moratorium is lifted demonstrating its ability to provide water service in
the proposed certificated area of service.
Staff notes that on January 19, 2007, Eagle Water submitted its final Engineering
Report to the Commission pursuant to Order Nos. 29840 (EAG-05-1) and 30213 (EAG-
05-2). The report was also submitted to DEQ on the same day, as required by DEQ's Consent
Order 1O76/16RO. The final Engineering Report shows that with minor improvements, Eagle
Water is currently capable of providing its existing customers with adequate system working
ORDER NO. 30252
pressure under accepted modeling scenarios in which one critical well is assumed to be out
service. The report, however, indicates the need for an additional water source or an increase in
booster station capacity in order to fully utilize the combined flow from two of the system
major wells. Because the report was only recently submitted, both the Commission Staff and
DEQ require more time for review to fully evaluate system adequacy. In any case, as of the date
of filing Staffs comments, DEQ has not lifted the moratorium on new connections. Staff is
informed by DEQ that the moratorium must remain in place while the report is under review.
Staff believes it is likely that DEQ will require at least some additional improvements to Eagle
Water s system before the moratorium will be lifted.
Because the uncertificated area is presently served by private wells, Staff contends it
is uncertain how many residents of the area will immediately request service. As a result, those
few residents who may request service will likely be faced with fairly substantial line extension
charges depending on their proximity to existing main lines. The one property owner requesting
service in Eagle Water s half ofthe uncertificated area is located at 10500 Shields on the extreme
western edge of the area, which coincidentally is the farthest from United Water s existing main
lines on the opposite eastern edge of the uncertificated area.Thus, Staff notes, if the
Commission chooses not to accept the Stipulation and instead orders United Water to serve the
entire uncertificated area, line extension charges for the property owner on the western edge of
the area may be so high that he cannot realistically afford to take service from United Water.
Commission Findings
The Commission has reviewed and considered the filings of record in Case No. GNR-
04-01 including the January 4, 2007 Stipulation of United Water and Eagle Water, the
proposed division of the uncertificated service area depicted in Stipulation Exhibit A and the
related comments and recommendations of Commission Staff, the City of Boise and property
owners in the affected area. The Commission is informed and is satisfied that a reasonable
attempt was made to notify all affected property owners within the uncertificated area under
consideration. Based on our review of the developed record we continue to find that the public
interest does not require a hearing to consider the issues presented in this case and that Modified
Procedure is appropriate. IDAP A 31.01.01.204.
Eagle Water Company and United Water Idaho have submitted a Stipulation and
proposed division of an uncertificated area near Eagle in Ada County. Eagle Water, we find, is
ORDER NO. 30252
presently under a moratorium established by DEQ and Consent Order and is presently unable to
serve customers located within the uncertificated area under consideration. Staff recommends
that the portion identified as service area for United Water be awarded to United Water and
recommends that the remaining area remain uncertificated until such time as Eagle Water is able
to make a filing with the Commission indicating that the moratorium has been lifted and
demonstrating that it is capable of providing service. One party providing comments owns
adjacent lots on either side of the proposed division and requests that the two lots be assigned to
the same utility. Another party requesting service owns property on the extreme western edge of
the uncertificated area, an area adjacent to the main line of Eagle Water Company. The City of
Boise noting that the entire uncertificated area lies within the City s area of impact, recommends
that the entire area be awarded to United Water.
The Commission finds it reasonable to treat the Stipulation and proposed division in a
bifurcated manner. Our decision regarding the proposed expansion of service area is based upon
a consideration of public convenience and necessity. We find that United Water has the present
capability to provide water service to the area designated for United Water service. We find
reasonable to award to United Water that portion of Stipulation Exhibit A designated as United
Water service area. We find it also reasonable to award to United Water the adjacent lot on West
State Street belonging to Donna Murphy of Spring Creek, Nevada, so that United Water is the
service provider for both lots.
As to Eagle Water Company we find that Eagle Water is presently subject to a DEQ
moratorium that prevents it from hooking up new water customers. Because Eagle Water does
not have the present capability of providing water service we find it reasonable to defer action on
the requested expansion of Eagle Water s certificated service area until after DEQ lifts its
moratorium. That being said, however, we note that in the proposed split of service territory one
customer expressing a desire for water service lies within Eagle Water s proposed area of
service. That customer lies along the westernmost portion of the uncertificated area and is
adjacent to and in close proximity to Eagle Water s existing facilities. We find it reasonable to
authorize Eagle Water Company to extend service to this lot located at 10500 Shields without
further application to this Commission. Regarding the remainder of the uncertificated area
designated in Stipulation Exhibit A for Eagle Water Company service, we find it reasonable to
require Eagle Water to make a filing and motion with the Commission in this docket after the
ORDER NO. 30252
DEQ moratorium and any other impediment to service is lifted demonstrating its ability to
provide water service in the proposed certificated area of service. The Commission will consider
the objection raised by the City of Boise at such time as Eagle Water reinitiates its request for the
remainder of the expanded service area requested.
CONCLUSIONS OF LAW
The Idaho Public Utilities Commission has jurisdiction over Eagle Water Company
and United Water Idaho Inc., water utilities, and the issues raised in Case No. GNR-04-
pursuant to the authority granted in Idaho Code, Title 61 , and the Commission s Rules of
Procedure, IDAPA 31.01.01.000 et seq.
ORDER
In consideration of the foregoing and as more particularly described above, IT IS
HEREBY ORDERED and the Commission does hereby authorize United Water Idaho Inc. to
expand its certificated service area in the manner reflected above.
IT IS FURTHER ORDERED and United Water is directed to file an amended
Certificate of Public Convenience and Necessity and service area map conforming with the
expanded certificated area of service authorized in this Order.
IT IS FURTHER ORDERED and Eagle Water Company is authorized to provide
water service without further application to the property located at 10500 Shields should a formal
request be made for service and should the Company be capable and able to provide service.
IT IS FURTHER ORDERED and the Commission defers decision on the remainder of
Eagle Water Company s request for expanded service area until such time as the Idaho DEQ'
moratorium is lifted and Eagle Water provides the Commission with notice and motion in this
case docket reinitiating its request for expanded service area.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order. Within seven (7)
days after any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See Idaho Code ~ 61-626.
ORDER NO. 30252
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this ;;2CJ 1"~
day of February 2007.
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PAUL KJEL ANDER, PRESIDENT
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ARSHA H. SMITH, COMMISSIONER
ATTEST:
6t~Je D. Jewell
Commission Secretary
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ORDER NO. 30252