20030722Final Order No 29294.pdf

Office of the Secretary
Service Date
July 15 2003
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
MURRAY WATER WORKS TO INCREASE ITS)CONNECTION FEE. CASE NO. MUR-O3-
ORDER NO. 29294
On April 28 , 2003 , the Commission received a request from Murray Water Works to
increase its hookup fee from $125 to $800. The Murray Water Works system serves the original
town site of Murray located on National Forest Highway No.9 in Shoshone County, Idaho. Murray
is situated on Pritchard Creek approximately 16 miles northeast of the City of Wallace near the
Montana Border. The public system predates the Commission and serves approximately 30
residential customers. The Commission issued a Notice of Application, Modified Procedure and
Comment Deadline on May 30, 2003. Order No. 29250. Commission Staff was the only party to
file comments. After reviewing the comments and record in this case, the Commission approves the
Application as set out in greater detail below.
THE APPLICATION
Following a change in system ownership, the Commission issued Mr. and Mrs. Arlen
Lish Certificate No. 404 on September 25 2002. Order No. 29119. The new owners accepted the
tariffs that were in place at the time of the transfer of ownership. The Company has since reviewed
the tariffs relative to the operation of the system, more specifically the cost to install a new service
connection. The current connection fee is $125 for materials, and either the customer can install
their own service or pay the Company $25 per hour for the installation.
Even though the Company does not anticipate any new connections in the near future, it
requests a revision to its connection fee tariff for two reasons. First, the Company wishes to
eliminate the customer s ability to install their own service connection. The Company owns and is
responsible for the maintenance of the utility mains and services to the customers' property lines.
Consequently, the Company wants to retain control of the method of installation for mains and
services. Second, the Company reports that the cost to install new service is greater than the
connection fee presently recovers. Accordingly, the Company requests the one-time connection fee
ORDER NO. 29294
be increased from $125 and $25 per hour for installation to a flat fee of $800 for both materials and
installation.
STAFF COMMENTS
Staff s comments indicated that it is fairly common for regulated water companies to
request that only its representatives be allowed to perform maintenance or install new services on its
mains. Staff believes that the level of effort and material costs as described by the Company s cost
estimate to install new service connections are reasonable. Although the Company estimated the
total cost at $945., it is asking for only an $800 hookup fee. According to Staff, an $800 hookup
fee is within the normal range of hookup fees of other regulated water companies. In addition to
filing this tariff, the Company worked with the Consumer Assistance Staff to bring its billing
statements, disconnection notices and rules summary into compliance with Utility Customer
Relations Rules IDAPA 31.21.01.000 and Utility Customer Information Rules IDAPA
31.21.02.000.
Staff recommended approval of the Company s Application and stated that it stands ready
to assist the Company in updating the associated tariff pages as necessary to properly show the
appropriate one-time hookup fee.
COMMISSION FINDINGS
The Commission has reviewed and considered Murray s Application in Case No. MUR-
W -03-1. The Commission has also considered Staff s analysis and recommendation in this matter.
The Commission continues to find that the issues presented are suitable for processing under
Modified Procedure, i., by written submission rather than by hearing. IDAP A 31.01.01.204.
In considering the filings of record, the Commission finds Murray s Application and the
proposed changes to its hookup fee to be reasonable. Based upon the evidence in the record, the
Commission finds that the proposed hookup fee increase is cost-based and will recover the
Company s reasonable expenses to extend service to new customers. Given that other water utilities
charge comparable hookup fees, the Commission further finds the Company s proposed increase to
be fair, just and equitable. We also note that the Commission did not receive any comments
objecting to the Company s proposed fee increase. For the reasons described above, we find it
appropriate to approve Murray Water Works' Application.
ORDER NO. 29294
CONCLUSION OF LAW
The Idaho Public Utilities Commission has jurisdiction over this matter and Murray
Water Works, a water utility, pursuant to the authority and power granted under Title 61 ofthe Idaho
Code and the Commission s Rules of Procedure, IDAP A 31.01.01.000 et seq.
ORDER
IT IS HEREBY ORDERED that Murray Water Works' Application requesting to
increase its hookup fee from $125 to $800 be approved.
IT IS FURTHER ORDERED that Murray Water Works submit tariff sheets consistent
with this Order to the Commission.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days ofthe service date ofthis Order. Within seven (7) days
after any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See Idaho Code 9 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho, this /StIo.
day of July 2003.
~,.
JJ
MARSHA H. SMITH, COMMISSIONER
ATTEST:
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ORDER NO. 29294