Case No. TGW-W-04-01, Order No. 29933

December 21, 2005

Contact: Gene Fadness (208) 334-0339

Web site:


Transfer of Terra Grande to United Water proposed


The Idaho Public Utilities Commission is seeking public comment on a stipulated settlement that would allow United Water Idaho, Inc. to take over operation of Boise’s Terra Grande water distribution system. Terra Grande’s approximate 117 residential customers live south of Overland Road, east of Milwaukee Street and north of Targee Street.


Terra Grande, United Water and staff from the commission reached the proposed settlement, which still must be approved by the commission after a public comment period that continues through Jan. 13.


In February 2004, United Water and Terra Grande filed a joint application asking the commission to approve the sale of the company to United Water for $47,000. However, commission staff recommended United Water be allowed to take over the system for no price because of the amount of capital United Water would need to invest after the purchase. Terra Grande withdrew its application.


In January of 2005, the Department of Environmental Quality notified Terra Grande that three of its wells were contaminated with Trichloroethylene (TCE), a hazardous chemical. As a result, there was an emergency interconnection between Terra Grande’s distribution system and United Water’s water supply. The commission approved interim rates for Terra Grande based on the interconnection to United Water. Terra Grande was ordered to develop a permanent service arrangement plan and submit it to the commission before approval of final rates.


In August 2005, 61 Terra Grande customers submitted a petition to the commission asking that Terra Grande be required to install individual water meters.


Subsequently, parties from commission staff, Terra Grande and United Water entered into discussions whereby all parties agreed it is in the public interest to transfer Terra Grande’s system to United Water, which would then take over operation of the system, install individual meters and make other necessary improvements.


Those wishing to submit comments must do so by Jan. 13. Comments are accepted via e-mail by accessing the commission’s homepage at and clicking on "Comments & Questions." Fill in the case number (TGW-W-04-01) and enter your comments. Comments can also be mailed to P.O. Box 83720, Boise, ID 83720-0074 or faxed to (208) 334-3762.


A full text of the commission’s order, along with other documents related to this case, are available on the commission’s Web site. Click on “File Room” and then on “Water Cases” and scroll down to the above case number.