20040901Notice of Application Order No 29575.pdf

Office of the Secretary
Service Date
September 1, 2004
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
RESORT WATER CO., INC. FOR THE
ISSUANCE OF A CERTIFICATE OF PUBLIC
CO NVENIEN CE AND NECESSITY, FOR
APPROVAL OF RATES AND CHARGES FOR
WATER SERVICE AND FOR APPROVAL OF
RULES AND REGULATIONS GOVERNING
THE RENDERING OF WATER SERVICE.
CASE NO. RES-O4-
NOTICE OF APPLICATION
ORDER NO. 29575
On August 13, 2004, Resort Water Co., Inc. (Resort Water; Company) filed an
Application requesting that the Commission issue it a Certificate of Public Convenience and
Necessity. Idaho Code ~ 61-526; IDAPA 31.01.01.111. The Company also requested that the
Commission approve an increase in existing rates and charges for water service and approve the
Company s rules and regulations governing the rendering of water service.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that according to the Application Resort Water
provides domestic water service to customers in Bonner County, Idaho, primarily located within
the Schweitzer Mountain Resort Planned Unit Development. Resort Water currently serves 287
residential units, or equivalent residential units (ERU), which include 11 condominium
associations billed as a single customer, as well as 6 commercial customers representing
approximately 91 ERU's. Resort Water s current monthly rate is a flat rate of$33.00 per ERU.
YOU ARE FURTHER NOTIFIED that according to Resort Water s Application the
Company requests to increase the monthly flat rate from $33.00 per ERU to $61.96 per ERU.
See Exhibit D of the Application. The Application states that the Company seeks the additional
revenues to recover increased expenses and costs associated with plant additions, and to produce
a fair rate ofretum.
YOU ARE FURTHER NOTIFIED that the Company s Application in Case No.
RES-04-, may be viewed online at www.puc.state.id.by clicking on "File Room" and
Water Cases " or it can be viewed during regular business hours at the offices of the Idaho
Public Utilities Commission, 472 West Washington Street, Boise, Idaho.
NOTICE OF APPLICATION
ORDER NO. 29575
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission s jurisdiction under Title 61 of the Idaho Code and that the
Commission may enter any final Order consistent with its authority under Title 61.
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 et seq.
DISCUSSION
Resort Water is operating as a water corporation that provides domestic water service
to customers in Bonner County, Idaho, and is a public utility as defined by Idaho Law. Idaho
Code ~~ 61-124, 61-125 , 61-129.
Resort Water has submitted a proposed schedule of rates and charges for water
service to become effective on and after September 13 , 2004. We find the Application is of
sufficient importance and complexity to require the Commission investigation into the
reasonableness of the proposed rates and charges. The Commission is unable to consider the
proposed rate increase before September 13 , 2004, and therefore finds it reasonable to suspend
the rate increase for a period of five (5) months. This will provide time for the Staff to audit the
Company s financial books and inspect the Company s physical plant.
CONCLUSIONS OF LAW
The Idaho Public Utilities Commission has jurisdiction over Resort Water Co., Inc.
its Application for a Certificate of Public Convenience and Necessity, its Application for an
increase in rates and charges, and the issues involved in this case by virtue of Title 61 , Idaho
Code and the Commission s Rules of Procedure, IDAPA 31.01.01.000 et seq.
The Commission has the authority under Idaho Code ~ 61-622 to suspend the rates
and charges that are the subject of the Application for a period of thirty (30) days plus five (5)
months, or less if the Commission acts sooner, from the proposed effective date of September 13
2004.
It is necessary to suspend the rates proposed in the Application for a period of five
(5) months, or less if the Commission acts sooner, from the effective date of September 13, 2004
to permit the Commission Staff to audit the Commission s financial records and inspect the
Company s physical plant, to provide sufficient time to calendar further procedure, to receive
customer and Staff comments and to consider and determine the issues presented in this
Application.
NOTICE OF APPLICATION
ORDER NO. 29575
ORDER
IT IS HERBY ORDERED that the proposed schedule of rates and charges for water
service in Case No. RES-04-1 should be, and hereby is, suspended for a period of five (5)
months from September 13, 2004, or until such earlier time as the Commission may issue an
Order accepting, rejecting, or modifYing the Application in this case. No change in the existing
rates and charges is permitted without prior Commission approval.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this J ~-r
day of August 2004.
PAU
MARSHA H. SMITH, COMMISSIONER
ATTEST:
D. Jewell
mission Secretary
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NOTICE OF APPLICATION
ORDER NO. 29575