Web site: www.puc.idaho.gov
United Water assumes Terra Grande territory
The
Idaho Public Utilities Commission has approved a stipulated agreement that
allows United Water Idaho Inc., to take over operation of the Terra Grande
water system, which serves about 117 households in southwest Boise.
The
commission approved the transfer at no cost to United Water because of the
number of improvements United Water will make to the system including
installation of individual meters, replacement of aging mainlines and the
installation of fire hydrants. Small water-users should notice a slight decrease
to their bi-monthly bills as a result of the transfer, with no change to
average users and a slight increase to larger users to reflect their actual
consumption.
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. At that time, Terra Grande withdrew its offer.
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. 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.
“The
contaminated water supply system, the antiquated distribution network and the
lack of individual meters combined with Terra Grande’s lack of financial
ability to resolve these problems in a timely manner results in substandard
service to Terra Grande customers,” the commission said. “United Water has the
ability to make immediate system improvements at a cost that is reasonable.”
Terra
Grande’s territory included an area south of Overland Road, east of Milwaukee
Street and north of Targee Street.