20190621Decision Memo.pdf

DECISION MEMORANDUM
TO COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:MATT HUNTER
DEPUTY ATTORNEY GENERAL
DATE: JUNE 20,2019
SUBJECT:APPLICATION OF MORNING VIEW WATER COMPANY FOR
AUTHORITY TO INCREASE ITS RATES AND CHARGES FOR WATER
SERVICE IN IDAHO, CASE NO. MNV-W.19-01
On June 5, 2079, Morning View Water Company ("Morning View" or "Company")
filed a one-page Application with the Commission requesting a rate increase. The Company
proposes a June 30,2019 effective date.
APPLICATION
In its Application, Morning View identifies three reasons it needs a rate increase. First,
the Company claims that water usage is down because many users are choosing not to water their
lawns during the summer months. Second, the Company claims that its previous rate case failed
to provide the Company with an adequate rate of retum. See Case No. MNV-W-16-01. The
Company claims it has "been operating at a negative every year since" the rate case, and that the
Company's owners have had to "subsidize the entire water system with personal retirement funds
due to the failure of the previous rate case." Third, the Company claims it is facing unanticipated
expenses, including water testing, a pipeline repair, and other "expenses not considered in the
previous rate case."
Moming View's Application does not include a proposed rate tariff. Nor does Morning
View provide a proposed rate increase.
STAFF RECOMMENDATION
Staff has reviewed the Company's Application and notes it does not comply with
Commission Procedural Rules 052-02 and l2l, 31.01 .01.052.02 and l2l. While a non-compliant
rate application may be dismissed under Procedural Rules 065 and 121.03,31.01.01.065 and
DECISION MEMORANDUM 1
121.03, Staff has worked with the Company on prior rate cases and proposes to continue working
closely with the Company in this rate case. Therefore, Staff does not propose dismissing this case,
recognizing that Morning View is a small water company. Staff is prepared to work with the
Company's representatives to obtain all records and information necessary to develop just and
reasonable rates for the Company and its customers.
Staff recommends that the Commission issue a Notice of Application under Procedural
Rule 123.02,31.01.01.123.02, and a Notice of Intervention Deadline. Staff recommends an
intervention deadline set for 21 days after the service of the Notice. Additionally, Staff
recommends that the Commission suspend Morning View's proposed effective date for its updated
rates. The Company's proposed effective date-June 30, 201g--{oes not provide sufficient time
to audit and prepare a reserve requirement rate design and an updated tariff that will be just and
reasonable. Therefore, Staff recommends that the proposed rate increase be suspended for a period
of 30 days plus five months, under ldaho Code $ 6l-622.
COMMISSION DECISION
1. Does the Commission wish to issue a Notice of Application and Intervention
Deadline that establishes an intervention deadline set for 2l days after service of the Notice?
2. Does the Commission wish to suspend Morning View's proposed effective date of
June 30,2019 for any increase in its rates for a period of 30 days plus five months, under ldaho
Code $ 6l-622?
Matt Hunter
Deputy Attorney General
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