20040907Press Release.pdf

IDAHO PUBLIC UTILITIES COMMISSION
Case No. RES-04-, Order No. 29575
September 7, 2004
Contact: Gene Fadness [phone]
Website: www.puc.state.id.
Commission suspends Resort Water application
Boise - The Idaho Public Utilities Commission is suspending a request by a Bonner County
water company to increase its water rates.
Resort Water Company provides domestic water service to 1 '1 condominium associations and six
commercial customers within Schweitzer Mountain Resort, which is owned by Harbor Mountain
Utility Company.
Customers are billed based on Harbor Mountain s calculation of equivalent residential units, or
BRUs. A flat fee of$33 per month is charged for each BRU. According to Harbor Mountain
there are 287 residential BRUs and 91 commercial ERUs. Harbor Mountain proposes to increase
the flat monthly fee for each ERU to $61.96.
Harbor Mountain sought a Sept. 13 effective date for the increased rate. The commission said the
application s "importance and complexity" requires an investigation into the reasonableness of
the proposed rates. The commission is suspending the proposed increase for up to five months to
allow time for commission staff to audit the company s books and inspect its physical plant.
Harbor Mountain claims the increase is warranted to recover increased expenses associated with
plant additions and to produce a fair rate of return. The company is seeking an 11 percent return
on equity. The company asserts it is currently operating at a loss. In 1999, Schweitzer Mountain
Resort, including the domestic water system, was purchased by Harbor Properties, Inc. and
Mission Group in a federal bankruptcy proceeding.
In its application, the company describes some unique circumstances for the operation of the
water system given its stand-alone, mountain location and harsh winter climate. Its dwelling
units are occupied only in the winter months and the resort nature of its small units mean that
they house many more individuals than a normal residence.
Documents related to the cases can be accessed on the commission s Web site at
www.puc.state.id.. Click on "File Room " then on "Water Cases " and scroll down to Case No.
RES- W -04-