20070620Reply comments.pdf

" ,
Morning View Water Co., Inc.
An Idaho PUC Regulated Company
3996 E. 200 North
O. Box 598
BUgby, Idaho 83442
'? \J \,,\1
\ J
, \,
C:C
Fax: [phone]Office: 208-745-0029
June 18, 2007
Scott Woodbury
Deputy Attorney General
Idaho Public Utilities Commission
O. Box 83720
Boise, Idaho 83720-0074
((e.f j Co~e..JS
MNV....W-Ob-
At this time we would ask that you work with us on some of the points made in your
statement before you make a final decision regarding our rate increase.
Point #2: $600 in 2006 for Profession Fees. You felt this expenditure should have
been paid by Landco. I am not sure why you would not allow this. The
fees paid to Perry Bookkeeping and CPA's were for Morning View Water
Co.. All bills to Ideal Answering Service are an even 3 way split, unless a
power or water outage occurred. In these instances the excess calls are to
the Water Co, and therefore the responsibility ofthe Water Co.
An expense for $400 that belonged to Landco. Could you expand a little
for me so that I might look that up for our records?
Permits & Licenses.
You allowed $250.00. Without time to go back to see what you felt was
the responsibility of Landco. I can bring up Idaho Rural Water at $230.
District 7 Health Department at $50., Annual Regulatory Fee 118.
ESPA $61.48. Which of these is considered as legitimate fees, and which
can we discontinue?
Point #4:
Point #6:
Point # 7:Premium payment in the amount of $500.00 for vehicles owned and
operated by Landco Building. You are correct that the vehicle is owned
by Landco Building. It seems a little out of line for us to purchase a
vehicle for Morning View Water Co. even though the company does
require the use of a vehicle. We do understand that we would be
allowed a mileage rate. We have not asked that we be reimbursed for
mileage used for the company. It should be noted that there is more than
getting a water sample once a month, and that the short trips back and
forth to the well and services, do create wear and tear on a vehicle besides
gasoline. Do we have to keep records for all of the % mile trips and 1.
Point #8:
mile trips to have some consideration on this point. Do understand we do
not ask or expect the Water Company to pay for the total insurance on the
vehicle.
Rent expenses of $950 was granted in 2002. We did not explicitly ask for
a raise in the rent, although we would like to point out, if the companies
were required to split because of liabilities to one another the rent would
increase considerably.
It was also noted in your analysis that the one full time employee does all of the
accounting. The full time (30 hours weekly) employee is a bookkeeper. All final reports
to the IPUC has been done by Perry Bookkeeping. Before the present full time employee
Perry Bookkeeping also did all of the employee tax reports. This was requested by the
IPUC in 2002.
In your own reports you show that in 2005 revenue amounted to 35,422.
You show expenditures as 36.823.This is a loss of 1 401.36
2006 revenue
2006 expenditures
256.
37.772.
515.This is a loss of
As I understand your calculations you felt that you had allowed enough in your increase
to pay for 2007 income taxes, but that you would not allow any concern for expenses due
from years past. Please note that we feel this is unfair practice on the part of the IPUC.
Weare very concerned regarding the Staff recommendations. Morning View Water has
been working at a loss. We have been notified of an electrical rate increase that in our
case could be substantial. Our records show that last year our electrical was $7 441.00 as
noted in our report. We see an increase in costs in every aspect of our operations. We do
not feel that the 8.27% increase is a fair estimation, we feel that the IPUC let us run at a
loss and refuse to help us to recoup the funds, and then to further insist that we reimburse
a contingency fund. Where we understand that the contingency fund is set aside for
equipment and emergency funding, we felt that in order to keep customers with water we
would have to use those funds to pay the bills.
Weare in a real financial situation at this point it time. If the Commission can not see its
way clear to let this company pay it's past and current liabilities then, as you expect, we
will have to cut costs. As you can see from our reports and your own audits, if this
company trims anymore costs the customers can count of more outages. At this point
time I can not see where I can cut costs without it affecting the customer.
Currently we have a electrical bill of$I 178.38 due for the month of May. Heavy water
usage will come in July, August, and September. This power bill could reach over
000 monthly, in which case we will not have the fund to pay Rocky Mountain Power
we hope that service does not have to be curtailed for lack of funding.
Therefore we request that you reconsider your Staff Recommendations for the purpose of
providing adequate services to our patrons.
Th~ ;tu,
-Lf /JA
/ -/ ~
FI"
~~
Nolan Gneiting
President
Morning View Water Co., Inc.
Cc/file
Faxed 6/18/2007
Paper to follow by US Postal Service