20041230Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:DONOVAN E. WALKER
DATE:DECEMBER 29, 2004
SUBJECT:IN THE MATTER OF THE APPLICATION OF RESORT WATER CO.
INC. FOR THE ISSUANCE OF CERTIFICATE OF PUBLIC
CONVENIENCE AND NECESSITY, FOR APPROVAL OF RATES AND
CHARGES, AND FOR APPROVAL OF RULES AND REGULATIONS
GOVERNING THE RENDERING OF WATER SERVICE - CASE NO.
RES-04-
On August 13 , 2004, Resort Water filed an Application requesting the issuance of a
Certificate of Public Convenience and Necessity. The Company also requested approval of an
increase in existing rates and charges for water service and approval of the Company s rules and
regulations governing the rendering of water service. On September 1 , 2004, the Commission
issued a Notice of Application, Order No. 29575 , which suspended the Company s proposed
schedule of rates and charges for water service for a period of five months from the Company
proposed effective date of September 13, 2004.
THE APPLICATION
According to the Company s 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 six commercial customers representing approximately 91 ERU's. Resort
Water s current water rate is a monthly flat rate of $33.00 per ERU.
According to Resort Water s Application they are requesting an increase in their
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
DECISION MEMORANDUM
expenses and costs associated with plant additions, and to produce a fair rate of return. The
accompanying testimony of Tim Elsea, Director of Resort Water Company, states that Resort
Water is owned by Harbor Mountain Utility Company LLC, who in turn is part of a larger family
of companies, known as Harbor Mountain LLC. In 1999 Schweitzer Mountain Resort, including
the domestic water system, Resort Water, was purchased from the Trustee in a federal
bankruptcy proceeding.
ST AFF RECOMMENDATION
Staff recommends that this Application be processed by Modified Procedure with
comments due by January 19 2005 , and reply comments due by February 2 2005.
COMMISSION DECISION
Does the Commission wish to process this Application by Modified Procedure with
comment deadlines as recommended by Staff?
DECISION MEMORANDUM