28816.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

in the matter of THE PROPOSED SALE OF THE HAPPY VALLEY WATER SYSTEM. )
)
)
) CASE NO. HVW-W-01-01

ORDER NO. 28816

On June 4, 2001, the Idaho Public Utilities Commission (Commission) received a letter notice requesting a transfer of the Certificate of Public Convenience and Necessity for the Happy Valley Water System. Joseph and Donna Brammer are the current certificate holders. The new owner is Brett McCarty. Reference Idaho Code § 61-526; IDAPA 31.01.01.112. The Application sets forth the general terms of purchase and includes the qualifications of Mr. McCarty for ownership and management of the community water system.
The Happy Valley Water System is a public water utility providing water service to the following described existing service territory: an approximate 1/2 square mile area located approximately 3 miles west of U S Highway 95 in Kootenai County, Idaho, on the north side of Hayden Avenue between Huetter Road and Meyers Road, said area including all of the south half of Section 17, Township 51 North, Range 1 West, Boise-Meridian. Reference Idaho Code §§ 61-124, 61-129.
The Happy Valley Water System serves 25 residential customers on lots ranging in size from five (5) to ten (10) acres each. The Brammers operate and provide water service under Certificate of Public Convenience and Necessity No. 364. Reference Case No. HVW-W-99-1, Order No. 28183 issued October 19, 1999.
Under the terms of the negotiated exchange, the system has been sold to Brett McCarty for $10,000. Mr. McCarty resides adjacent to the subdivision within which the Happy Valley Water System provides service. Mr. McCarty’s mailing address is: 10035 North Memory Lane, Rathdrum, Idaho 83858. As reflected in the letter filing, Mr. McCarty possesses the following qualifications for ownership and management of the Happy Valley Water System:
1. Nationally certified water well driller, nationally certified pump installer, by the National Ground Water Association.

2. Licensed well drilling contractor and licensed drilling rig operator in both Washington and Idaho.

3. Licensed as a Specialty Electrical Contractor, and Specialty Plumbing Contractor and a licensed journeyman specialty electrician and journeyman specialty plumber in Idaho.

4. Certified in Spokane County for water sampling of public and private water systems.

5. Published author on ground water industry related topics.

6. President of the Idaho Ground Water Association.

7. Chairman of the Construction Rules Committee of the Idaho Ground Water Association.

8. Active member of the Government Affairs Committee of the National Ground Water Association.

9. Lobbyist for ground water related issues in Washington, D.C.

10. Public speaker on ground water education, electrical codes. (Guest speaker at the 1996 National Ground Water Association’s Annual Convention in Las Vegas, and many other speaking and teaching engagements for Idaho and Washington conferences)

11. President of McCarty Drilling & Pump, Inc. (a water well drilling and pump systems contractor, and water treatment contractor).

The proposed transfer of certificate is contingent on and subject to Commission approval.
On June 18, 2001, the Commission issued Notices of Application and Modified Procedure in Case No. HVW-W-01-1. Individual notice was provided to all customers of Happy Valley Water System. The deadline for filing written comments was July 6, 2001. The Commission Staff was the only party to file comments. Staff notes that Brett and Nora McCarty have already taken possession of the water system and have initiated several improvements. The McCartys are not interconnected to the water system at this time. Their residence is, however, within the subdivision served by the water system. Staff believes that the McCarty’s are well qualified to operate the system. Staff notes that the McCartys purchased the assets of the water system but did not purchase the corporation or the corporate name. Staff recommends approval of the Application, cancellation of Certificate of Public Convenience and Necessity No. 364 and issuance of a new Certificate of Public Convenience and Necessity to a new corporation to be incorporated by Brett and Nora McCarty, i.e., Happy Valley Water System, Inc.
COMMISSION FINDINGS
The Commission has reviewed and considered the filings of record in Case No. HVW-W-01-01. Based on the established record we find that reasonable and sufficient grounds exist to cancel the existing Certificate of Public Convenience and Necessity No. 364 of Joseph and Donna Brammer dba Happy Valley Water System and to issue a new Certificate of Public Convenience and Necessity No. 390 to Happy Valley Water System, Inc., an Idaho corporation. We further find that the present and/or future public convenience and necessity requires issuance of said Certificate. Reference Idaho Code §§ 61-526, 61-528; IDAPA 31.01.01.112.
We further find that the previously established rates and charges for the Happy Valley Water System continue to be fair, just and reasonable. Reference Commission Order No. 27142.
We further find it reasonable that Happy Valley Water System, Inc. be required to adopt and implement the Commission’s Consumer Relations Rules, the Commission’s Utility Customer Information Rules, and an accounting system consistent with the information required by the Commission’s annual report for small water companies.
CONCLUSIONS OF LAW
The Idaho Public Utilities Commission has authority and jurisdiction over Happy Valley Water System, Inc., a water utility and the issues raised in Case No. HVW-W-01-01, pursuant to Title 61 of the Idaho Code and the Commission’s Rules of Procedure, IDAPA 31.01.01.ooo et seq.
O R D E R
In consideration of the foregoing and as more particularly described above, IT IS HEREBY ORDERED and the Commission does hereby cancel Certificate of Public Convenience and Necessity No. 364 previously issued to Joseph and Donna Brammer dba Happy Valley Water System.
IT IS FURTHER ORDERED and the Commission does hereby issue Certificate of Public Convenience and Necessity No. 390 to Happy Valley Water System, Inc., an Idaho corporation.
IT IS FURTHER ORDERED and the Commission does hereby direct that the rates and charges previously approved for the Happy Valley Water System continue in effect. Happy Valley Water System, Inc. is required to file tariff sheets consistent with this Order.
IT IS FURTHER ORDERED and Happy Valley Water System, Inc. is required to adopt and implement the Commission’s Consumer Relations Rules, the Commission’s Utility Customer Information Rules, and an accounting system consistent with the information required by the Commission’s annual report for small water companies.
IT IS FURTHER ORDERED and Happy Valley Water System, Inc. is required to inform its customers of the Commission’s approved rates and policies.
IT IS FURTHER ORDERED and Happy Valley Water System, Inc. is required to make written petition or application to the Commission prior to any proposed change in ownership of the Happy Valley Water System.
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.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this _______ day of September 2001.

PAUL KJELLANDER, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

DENNIS S. HANSEN, COMMISSIONER

ATTEST:

Jean D. Jewell
Commission Secretary

vld/O:HVW-W-01-01_sw

ORDER NO. 28816 1

Office of the Secretary
Service Date
August 3, 2001