20070309Decision memo.pdf

DECISION MEMORANDUM
TO:CO MMISSI 0 NER KJELLAND ER
COMMISSIONER SMITH
CO MMISSI 0 NER RED FO RD
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:CECELIA A. GASSNER
DATE:MARCH 7, 2007
SUBJECT:MORNING VIEW WATER COMPANY, INC.S GENERAL RATE CASE
APPLICATION, CASE NO. MNV-06-
On December 8, 2006, Morning View Water Company, Inc. filed a general rate case
Application seeking authority to increase its rates approximately 40%. The Company issued a
notice to its customers with the latest billings notifying them that it is seeking a 35% increase.
approved, a 35% increase would result in an increase in the monthly bills of customers with
acre of $7., customers with Y2 acre of $10., and customers of 1 acre of $12.50. Two
customers have filed comments.
THE APPLICATION
The Company states that a rate increase is necessary to pay for increased power
costs, taxes, salaries, repairs, maintenance and general operations costs. The Commission
approved a rate increase for the Company in 2002, and implemented a surcharge of $5.00 per
month to fund a contingency reserve account. Order No.2 9104.
STAFF RECOMMENDATION
Staff will need to work with the Company to perform an audit and inspection. Staff
recommends the Commission suspend the implementation of the proposed increase. Idaho Code
~~ 61-622 and 61-623. Staff also recommends that a notice of the Company s Application be
issued and that the matter be processed by Modified Procedure with a comment period of ninety
(90) days. Staff further recommends scheduling a date for a public workshop in early April, but
not scheduling a public hearing at this time.
DECISION MEMORANDUM
COMMISSION DECISION
Does the Commission wish to issue a notice of the Company s Application?
Does the Commission wish to suspend the implementation of the proposed rate
increase pursuant to Idaho Code ~~ 61-622 and 61-623?
How does the Commission wish to proceed with this matter?
/54--
IA A. ASSNER
M:MNV-O6-
DECISION MEMORANDUM