Deadline to intervene set in case involving proposed sale of Eagle Water Company
BOISE (Dec. 17, 2018) – (RealEstateRama) — State regulators have set a deadline for parties seeking to intervene in a case involving the proposed sale of Eagle Water Company to Suez Water Idaho.
The proposal, which requires the approval of the Idaho Public Utilities Commission, calls for a purchase price of $10 million as well as significant rate increases for the approximately 4,200 customers of Eagle Water.
The proposal includes a third entity, Wyoming-based H2O Eagle Acquisition LLC, which has entered into asset purchase agreements with both Suez and Eagle Water. Those agreements call for H2O Eagle to purchase Eagle Water and its assets, and for H2O Eagle to sell the company and assets to Suez.
If the deal is approved as proposed, these transactions would close simultaneously, and Suez would take over all ownership and operations of the water system, which is not the same as the city of Eagle’s municipal water system.
Suez has proposed that rates for Eagle Water’s current customers be increased in three phases over three years, in order to create “rate parity” with Suez’s approximately 96,000 customers in the Boise area.
Under the proposed rate adjustment period, Eagle Water customers would see an approximate monthly increase of $6.44 in the first year, and monthly increases of $9.40 in both the second and third years.
Eagle Water’s owner cited his age, “the increasing complexity of regulatory requirements, necessary and costly system upgrades” and the utility’s limited access to capital to fund those upgrades as reasons for the proposed sale.
Both Eagle Water and Suez contend that the proposal is in the public interest and will result in significant benefits to customers of both utilities by “among other things, realizing certain efficiencies in water service, water supply and operating costs.”
Parties seeking to intervene in order to present testimony and exhibits and cross-examine witnesses must do so by Dec. 28.
Later, the Commission will announce dates for public comment deadlines and customer workshops and hearings.
Written comments are being accepted. Go here to submit a comment electronically. Or go to the Commission’s web site, www.puc.idaho.gov and click on “Case Comment Form” under the “Water” heading.
Comments can also be submitted via fax to (208) 334-3762 or by mail to P.O. Box 83720, Boise, ID 83720-0074. Please be sure to include the case number, EAG-W-18-01 or SUZ-W18-02. All documents related to this case are available here. Or go to the Commission’s web site, www.puc.idaho.gov, click on “Open Cases” under the “Water” heading and scroll down to case number EAG-W-18-01 or SUZ-W-18-02.
Contact: Matt Evans
Office: (208) 334-0339
Cell: (208) 520-4763
matt.evans (at) puc.idaho (dot) gov