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Home My WebLink About20160602notice_of_application_order_no_33531.pdfOffice of theSecretary Service Date June 2,2016 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION )CASE NO.MNV-W-16-O1 OF MORNING VIEW WATER COMPANY ) FOR AUTHORITY TO INCREASE ITS )NOTICE OF APPLICATION RATES AND CHARGES FOR WATER ) SERVICE IN IDAHO )NOTICE OF )MODIFIED PROCEDURE ) )NOTICE OF SCHEDULE ) _____________________________ )ORDER NO.33531 On May 2,2016,Morning View Water Company (“Morning View”or “Company”) filed an Application with the Commission to increase its rates and charges for water service.The Company proposed a June 1,2016 effective date.On May 16,2016,Morning View filed an amendment to its Application. NOTICE OF APPLICATION YOU ARE HEREBY NOTIFIED that Morning View states that it is a corporation duly qualified to do business in Idaho and that it provides water service to 107 residential customers in or about the City of Rigby in Jefferson County,Idaho. YOU ARE FURTHER NOTIFIED that in the amendment to its Application,Morning View requested Commission authorization to institute a 100%increase for customers who live on one acre and ½acre lots.Morning View requested a 50%increase for customers renting in the mobile home park. YOU ARE FURTHER NOTIFIED that Morning View claims that the Company’s proposed increase would result in the following monthly flat rates for water service: $98.96/month —customers with 1 acre lots;$81 .88/month —customers with half acre lots;and $48.6 1/month —mobile home customers. YOU ARE FURTHER NOTIFIED that the Company states that an increase in revenues is warranted due to certain major investments in new plant,including the construction of a new well house and new water mains,increasing the value of the Company’s total plant-in service to $630,322.See Exh.No.1,Schedule A. NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE NOTICE OF SCHEDULE ORDER NO.33531 1 YOU ARE FURTHER NOTIFIED that Morning View states that its rates for water service have not been adjusted for several years. YOU ARE FURTHER NOTIFIED that Morning View proposes a test year ending December 31,2015. YOU ARE FURTHER NOTIFIED that Morning View attached the following exhibits to its Application:Exhibit No.1,Schedule A,Plant in Service;Exhibit No.1,Schedule B,Accumulated Depreciation;Exhibit No.1,Schedule C,Rate Base Summary;Exhibit No.2, Schedule A,Revenues;Exhibit No.2,Schedule B,Expenses;Exhibit No.2,Schedule C,Income Statement;Exhibit No.3,Cost of Capital and Rate of Return;Exhibit No.4,Revenue Requirement.The Company states that it will submit Exhibit Nos.5 through 10 “at a future date.” YOU ARE FURTHER NOTIFIED that Morning View also included two copies of its monthly schedule of water use for each customer on the system.The Company declared that it will include the following at a later date:monthly schedule of water pumped from each of the Company’s wells;schedule showing each of the Company’s wells,the size of the motor, pumping capacity in gallons per minute (GPM),depth of the well and depth to water aquifer;and schedule showing each of the Company’s reservoirs showing the type of construction,means of system pressurization and capacity. YOU ARE FURTHER NOTIFIED that,according to Morning View,its workpapers, Exhibit Nos.1 through 4,disclose the Company’s actual revenues and expenses,as well as the known changes to its test year financial data.In Exhibit No.4 to its Application,the Company proposes a rate of return of 7.41%. YOU ARE FURTHER NOTIFIED that Commission Staff assisted the Company in the preparation of a Customer Notice that would comply with the Commission’s minimum requirements.The Company stated that it would issue a similar notice in the local newspaper, the Jefferson Star. YOU ARE FURTHER NOTIFIED that the Commission may approve,reject or modify the rates and charges proposed and may find that rates and charges different from those proposed by any party are just,fair and reasonable.IDAPA 31.01.01.124.02. NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE NOTICE OF SCHEDULE ORDERNO.33531 2 YOU ARE FURTHER NOTIFIED that the Commission may approve,reject or modify existing or proposed relationships between and among rates and charges within,between or among customer classes or rate groupings and may approve,reject or modify existing or proposed relationships among and between customer classes or rate groupings.IDAPA 31.01.01.124.02. YOU ARE FURTHER NOTIFIED that the tariffs,practices,rules and regulations, service,instrumentalities,equipment,facilities,classifications,and customer relations of the utility are at issue and the Commission may address any of them in its order.IDAPA 31.01.01.124.02. YOU ARE FURTHER NOTIFIED that the Commission Staff has undertaken an audit and investigation of the Company’s Application,workpapers and all documents and files relevant to this matter. YOU ARE FURTHER NOTIFIED that the Commission has jurisdiction over Morning View,its filing and the issues pertaining to this case pursuant to Title 61 of the Idaho Code and specifically Idaho Code §61-502 and 61-622. YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted pursuant to the Commission’s Rules of Procedure,IDAPA 31.01.01.000 ci’seq. SUSPENSION OF PROPOSED EFFECTIVE DATE Due to the proposed increases to the rate schedules,and the substantial tariff change submitted on May 16,2016,the Commission finds that it cannot adequately review Morning View’s requested tariff changes before the proposed effective date.Because of the amended Application filed May 16,2016,we find that the proposed effective date for the proposed rate increases is June 16,2016,per Idaho Code §6 1-307 and 6 1-622(4).Pursuant to Idaho Code § 6 1-622,the Commission hereby suspends the proposed changes for a period of thirty (30)days and five (5)months or until such time as the Commission enters an Order accepting,rejecting or modifying the proposed rate increases in this matter. NOTICE OF MODIFIED PROCEDURE YOU ARE FURTHER NOTIFIED that the Commission has reviewed the Company’s filing in Case No.MNV-W-16-01 and finds that the public interest may not require a formal hearing in this matter and will proceed under Modified Procedure pursuant to Rules 201 through NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE NOTICE OF SCHEDULE ORDER NO.33531 3 204 of the Idaho Public Utilities Commission’s Rules of Procedure,IDAPA 31.01.01.201 through .204.The Commission notes that Modified Procedure and written comments have proven to be an effective means for obtaining public input and participation. YOU ARE FURTHER NOTIFIED that any person desiring to state a position concerning Morning View’s request to increase its rates and charges may file a written comment in support or opposition with the Commission no later than August 19,2016.The comment must contain a statement of reasons supporting the comment.Persons desiring a hearing must specifically request a hearing in their written comments.Written comments concerning this filing should be mailed to the Commission and Morning View at the addresses reflected below: Commission Secretary Nolan Gneiting,Owner Idtho Public Utilities Commission Morning View Water Company P0 Box 83720 3996 E.200 N. Boise,ID 83 720-0074 P.O.Box 598 Rigby,ID 83442 Street Address for Express Mail:E-mail: 472 W.Washington Street Boise,ID 83702-5918 These comments should contain the case caption and case number shown on the first page of this document.Persons desiring to submit comments via e-mail may do so by accessing the Commission’s home page located at yy puc.ijgcy.Click the “Case Comment or Question Form”under the “Consumers”tab,and complete the comment form using the case number as it appears on the front of this document.These comments must also be sent to Morning View at the e-mail address listed above. YOU ARE FURTHER NOTIFIED that the Application,amendment,and exhibits have been filed with the Commission and are available for public inspection during regular business hours at the Commission offices.The documents are also available on the Commission’s web site at www.puc.idaho.gov.Click on the “File Room”tab at the top of the page,scroll down to “Open Water Cases,”then click on the case number shown on the front of this document. YOU ARE FURTHER NOTIFIED that if no written comments or protests are received within the time limit set,the Commission will consider this matter on its merits and enter its Order without a formal hearing.If written comments are received within the time limit NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE NOTICE OF SCHEDULE ORDERNO.33531 4 set,the Commission will consider them and,in its discretion,may set the same for formal hearing. NOTICE OF SCHEDULE YOU ARE FURTHER NOTIFIED that the Commission has established the following schedule for the submission of written comments in this case: Staff public workshop to dispense information —July 12,2016 Deadline for interested persons to file written comments —August 19,2016 Deadline for the Company to file a written reply —September 2,2016 A public hearing on the amended Application will be scheduled at a later date. ORDER IT IS HEREBY ORDERED that the amended Application of Morning View Water Company for authority to increase its rates and charges for water service shall be suspended for a period of 30 days plus 5 months pursuant to the Commission’s authority under Idaho Code §61- 622(4). IT IS FURTIIER ORDERED that the Application of Morning View Water Company shall be processed through Modified Procedure,IDAPA 3 1.01.01.201-204.Persons interested in submitting written comments in this matter must do so no later than August 19,2016.If the Company elects to file a written reply to comments in this matter,it must do so no later than September 2,2016. NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE NOTICE OF SCHEDULE ORDERNO.33531 5 DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this day of June 2016. ATTEST: KRITINE RAPR,COMMISSIONER /1M’ J’ewe11 a &mmission Secretary O:MNV-W-16-Olnp NOTICE OF APPLICATION NOTICE OF MODIFIED PROCEDURE NOTICE OF SCHEDULE ORDERNO.33531 PAUL PRESIDENT ANDERSON,COMMISSIONER 6