Water firms wanted in area
A Portland-based company created to own and operate water utilities throughout the Northwest is proposing to buy the assets of three local water companies as "a platform for potential additional acquisitions in Idaho," according to a filing with the Idaho Public Utilities Commission.
NW Natural Holdings, a publicly owned company with a value of about $1.8 billion, is proposing to purchase the Spirit Lake East and Lynnwood water companies and an unregulated company called Water Works Management, LLC.
Spirit Lake East serves 315 customers in Kootenai and Bonner counties north of Highway 54, while Lynnwood serves 18 customers north of Athol on the east side of U.S. 95.
NW Natural Holdings has two subsidiaries, including NW Natural Gas that has been in business for 160 years, and NW Natural Water.
Justin Palfreyman, president of Gem State Water Company, a wholly owned subsidiary of NW Natural Water created to operate water utilities in Idaho, said in an IPUC application that Spirit Lake East and Lynwood are both well-run systems.
"However, like many water utilities, the water systems, and Spirit Lake in particular, are in need of capital investment to support system growth and maintain system integrity," he wrote. "(NW Natural Water) has the financial strength to support these needs.
"Acquiring these assets fits squarely into NW Natural Water's continued growth in the water sector. (NW Natural Water) also believes that the acquisitions will provide a seamless transition from (Leslie Rayner), the current owner, and provide customers with a clear path forward that does not depend solely on Ms. Rayner."
Customer rates would not change as a result of the proposed transaction.
A message left with Spirit Lake East on Thursday was not returned by deadline Thursday night.
State regulators are accepting written comments on the proposed sale through June 11.
NW Natural Water received IPUC approval in July 2018 to acquire Falls Water Company, a regulated water utility with about 5,500 customers in eastern Idaho.
Under the local proposal, Rayner would be employed by NW Natural if the acquisition is approved by the IPUC.
"In that capacity, I intend to use the experience and knowledge that I have gained while working with Spirit Lake and Lynnwood Water, and their respective customers, to prevent any disruption in service," she wrote.
Rayner has been the sole shareholder of Spirit Lake East for more than 10 years. She purchased the Lynnwood assets in 2015.
The sales agreement has been designated confidential with the agreed-upon purchase price undisclosed, according to the IPUC.
Visit puc.idaho.gov to submit a comment on the proposed sale. Click on the "Case Comment Form" under the "Water" heading. Include the case number, SPL-W-19-01.
Comments can also be submitted via fax to 208-334-3762 or by mail to P.O. Box 83720, Boise, ID 83720-0074.
Matt Evans, IPUC spokesman, said it's not common for a regulated utility to change hands, but it’s not exactly rare either.
"The commission will do all it can to ensure that the transaction is in the public interest and that the applicant has the bona-fide intent and financial ability to operate and maintain the company and its assets in the public service," Evans told Hagadone News Network.
"If customers have concerns about the proposal, we want to hear from them. Customers often provide valuable information that helps as staff conducts its review and as the commissioners deliberate when it gets to that point."
The Falls Water application was filed Feb. 21 last year and was approved on July 10.
"There is a lot of work to be done (on the local proposal)," Evans said. "Staff had a lot of questions in that case, and I’m sure they will in this one."
Melissa Moore, NW Natural Water spokeswoman, said her company has acquired four water distribution utilities and "several" other deals are in the works in addition to the North Idaho proposal.