PUC's Authority Affirmed in Extension

Abstract

Both United Water Idaho Inc. and Eagle Water Company Inc. (EWC) filed applications with the Public Utilities Commission (PUC) for an amended certificate of public convenience and necessity to expand their area of service into the Eagle area. Because the service areas sought by both overlapped, the PUC consolidated the two cases for hearing. The PUC then authorized each water company to service certain identified areas, but it left certain areas uncertificated as a “buffer zone.” After both utilities sought reconsideration, the PUC withdrew one area from EWC's service area and also said neither company could extend its facilities into the uncertificated buffer areas without prior application and authorization from the PUC. On appeal, EWC argued the PUC lacked the authority to require prior PUC approval before EWC could extend facilities into uncertificated buffer areas. The court said the PUC found public convenience and necessity did not require that the buffer areas be certificated and did not allow extension of facilities into the buffer area without prior approval. When public convenience and necessity do not require the extension of services into a particular area, the court said, state law gives the PUC the power on its own motion to prescribe terms and conditions the PUC considers just and reasonable. The PUC decision was affirmed.