20050218Comments.pdf

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DONOVAN E. WALKER
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 5921
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Street Address for Express Mail:
472 W. WASHINGTON
BOISE, ID 83702-5983
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
RESORT WATER CO. INC. FOR ISSUANCE OF )
A CERTIFICATE OF PUBLIC CONVENIENCE
AND NECESSITY, FOR APPROVAL OF RATES)
AND CHARGES, AND FOR APPROVAL OF
RULES AND REGULATATION GOVERNING
THE RENDERING OF WATER SERVICE.
CASE NO. RES-O4-
COMMENTS OF THE
COMMISSION STAFF
COMES NOW the Staff of the Idaho Public Utilities Commission, by and through its
Attorney of Record, Donovan E. Walker, Deputy Attorney General, and submits the following
comments in response to Order No. 29690 issued on January 19, 2005.
On August 13 , 2004, Resort Water Company (Resort; Company) filed an Application
requesting 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 and Order No. 29575 which suspended the
Company s proposed schedule of rates and charges for a period of five months from the proposed
effective date of September 13, 2004. In Order No. 29690, the Commission extended the
suspension period an additional 30 days, to March 15, 2005, and ordered the use of Modified
STAFF COMMENTS FEBRUARY 17 2005
Procedure with a public workshop on February 8 , 2005. The deadline for comments is February
, 2005, and the deadline for reply comments is March 3, 2005.
ST AFF ANALYSIS
Staff has reviewed the Company s filing, visited the Company s offices reviewed its
financial position, toured the service area, and conducted a public workshop. Based upon its
investigation, the Staff makes the following comments regarding the Application.
BACKGRO UND
Resort Water Company, Inc. is a Minnesota Corporation in good standing in the State of
Idaho with a principal business address of 500 Union Street, Ste 200, Seattle, W A 98101. The
Company operates a domestic water service for residences and businesses in and around the
Schweitzer Mountain resort near Sandpoint. It has its operations office on site at 165 Village Lane
Ste ", Sandpoint, ID 83864, which is located on Schweitzer Mountain. The Company is a
wholly owned subsidiary of Harbor Mountain Utility Company LLC. Harbor Mountain Utility
Company is part of a larger family of companies known as Harbor Mountain LLC. In 1999
Harbor Properties Inc. and Mission Group as Harbor Mountain LLC, purchased the Schweitzer
Mountain Resort, which included the domestic water system, from the bankruptcy trustee in a
federal bankruptcy proceeding. Resort Water Company was incorporated to own and operate the
purchased domestic water system as a subsidiary of the parent companies.
CERTIFICATE OF CONVENIENCE AND NECESSITY
The Applicant has offered water service to the general public since late 1999. It
operating a water system on Schweitzer Mountain that has been in existence since sometime in the
late 1960's or early 1970'
Resort filed a complete system map and a legal description of its requested and anticipated
overall service area. The Company identified adjacent water companies/cooperatives. It appears
to provide service in harmony with the adjacent water providers. Staff continues to investigate the
status of the adj acent water providers.
STAFF COMMENTS FEBRUARY 17 2005
Resort filed the appropriate financial and cost-of-service data.Therefore, Staff
recommends issuance of a Certificate of Convenience and Necessity to Resort Water Company,
Inc.
RATE BASE
The Company has stated in its prefiled testimony that $355 000 of the total purchase price
for Schweitzer Mountain Resort should be allocated to the domestic water system assets. It has
included this amount as part of its rate base calculation. Staff attempted to verify financial
information from the predecessor that would help determine what rate base amount, if any, the
previous owner may have had in the water system at the time of the bankruptcy and subsequent
transfer out of bankruptcy to the Applicant.Original accounting records are unavailable to
adequately determine the original book value to calculate rate base at the time of purchase. There
was, however, evidence suggesting that the predecessor company had made continual
improvements to the system in the form of wells and water mains. There are no surviving source
documents showing the cost incurred when these improvements were made. Additionally, there is
no evidence to determine if the improvements were contributed plant. There is anecdotal evidence
that connection fees were collected, but no evidence of when, from whom, or in what amounts.
With this limited information, Staff is unable to determine if the amount allocated by the
Company as a purchase price is more or less than the depreciated rate base less contributions of
the previous owner.
It has been a consistent policy of the Commission that rate base not include the purchase
price of a water system unless it could be reasonably shown that the customers have not
previously paid for the water system assets. In this case, the source documents and contribution
records from the predecessor company are not available. The prior company was not identified as
a regulated utility where annual reports and prior Commission files would be available. The water
system was part of a purchase from a bankruptcy estate which establishes that the total price paid
was at arms length. The allocated portion to the water system of $355 000 was based in part on an
income ratio valuation completed by SNO Engineering of Littleton, New Hampshire. Resort
Water asserts that this valuation established fair market value for the tangible assets functioning as
the water system. However, as previously stated, Staff maintains that this does not adequately
determine the appropriate book value of the system less contributions.
STAFF COMMENTS FEBRUARY 17 2005
The water system is an essential element of any business or resort operation on Schweitzer
Mountain. Without the water system, the value of any purchase of the Schweitzer Mountain
Resort would be greatly reduced. One could argue that a greater portion of the purchase price
should be allocated to the ski resort operations and condominiums also purchased at the same
time. However, some portion of the resort purchase price should be allocated to the water system.
The water system provides service to many customers in the area who are not affiliated with the
resort.If Resort Water had not decided to invest in the water system, there would have been
many customers of the system without a means to receive domestic water. Staff therefore believes
it is good public policy to allow a new water company to include as part of its rate base a portion
of its investment in the purchase of a failed wat~r company.
Nevertheless, Staff is not comfortable with blindly accepting the Company s allocation
amount for inclusion in rate base due to the previously stated concerns regarding appropriate book
value. Staff believes that the appropriate amount to be included in rate base as an acquisition
adjustment must be determined on a case by case basis. In this case, the Company actually paid
something for the water system as part of the total purchase, and there are tangible assets that
function as a water system. Therefore, the Commission is justified in finding that some portion of
the purchase price should be included as an acquisition adjustment in rate base. Staff believes that
the Company should only be entitled to recovery of the allocated purchase price if it is less than
the previous owners' net rate base. Given the lack of information regarding net rate base, the age
of the system and the fact that the system was purchased out of bankruptcy, Staff recommends the
Commission accept an acquisition adjustment to rate base in the amount of $177 500 to be
depreciated over a useful life of 50 years. Staff has discussed its position with the Company and
the Company has indicated it will accept Staff s recommendation related to the acquisition
adjustment.
If the Commission allows the Company an acquisition adjustment in the amount of
$177 500 as an addition to rate base with a 50-year useful life from the time of purchase
accummulated amortization/depreciation should also be increased in the amount of $20,413. The
annual amortization/depreciation expense for this adjustment is $3 550.
The Company has operated the water system since 1999, and has made improvements to
the system since that time. The most costly additions were for two wells and a storage tank. Since
1999, the Company has expended a total of $509 331 in capital improvements that should be
ST AFF COMMENTS FEBRUARY 17 2005
included in rate base. Attached as Attachment A is a detailed schedule of the improvements made
to the water system since 1999. Attachment A also lists the dates showing when an asset was put
into service and how much of the asset has been depreciated to date. As of August 31 , 2004, the
additions to rate base have accrued $56 369 in accumulated depreciation. The annual depreciation
expense for these assets is $12 994.
The Company has in the past collected a hook-up fee. Since 1999, the Company has
collected $128 609 in the form of hook-up fees from customers connecting to the system. This is
a deduction from rate base. Staff has determined that the hook-up fees for one of the Resort'
large condominium additions (White Pine Lodge) has not been paid to the Company. An affiliate
company of the Applicant owns this facility. In lieu of the hook-up fee, the affiliate company has
agreed to build an additional 60 000-gallon water storage facility and contribute it to Resort Water
Company. Staff has determined that the additional storage tank would contribute to the ability of
the water company to meet peak flows and have enough water capacity for firefighting.
Therefore, the addition of the storage tank to the Company is a prudent addition to plant. Because
the water storage tank would be contributed to the Company, it would not increase rate base and
would not impact rates paid. It does, however, make for a more reliable system, and therefore
Staff believes this contribution in lieu of the hook-up fee is prudent and reasonable.
The Company and Staff agree that working capital in the amount of $15 048 is reasonable
and should be included in rate base. The amount is calculated based on 45 days of annual
expenses as recommended by Staff in this case ($122 058/365 x 45).
Staff recommends that total rate base for the Company be computed as follow:
System Improvements since 1999 $509 331Working Cash $ 15 048
Acquisition Adjustment .$177.500Total $701 879
Less:
Accumulated Depreciation
Contributions to Capital
Net Rate Base
($ 76 781)
($128.609)
$496,489
STAFF COMMENTS FEBRUARY 17, 2005
RETURN ON EQUITY
The Company has requested an 11 % return on its equity. Staff believes this request is
reasonable for this particular water company, and therefore recommends that the Commission
adopt 11 % as the rate of return on the Company s equity. The Company does not recognize any
debt on its books. Staff finds the capital structure acceptable with an effective 11 % overall rate of
return on its net rate base, or a annual return of $54 614. It is necessary to gross-up this amount to
include state and federal taxes on earnings.
Although the Company pays taxes as part of a consolidated tax return with its parent
corporation, for this case Staff calculated an effective tax rate for the Company as if it paid taxes
individually. On this basis, the effective state tax rate is 7.6% and the effective federal tax rate is
15% on the first $50 000 and 25% of the balance. This yielded an over-all effective tax rate of
approximately 25.89%, and a gross-up factor of 1.35. When the gross-up factor is applied to the
return, the Company should be allowed to earn $73 729 as the pre-tax earnings requirement
($54 614 x 1.35).
ANNUAL EXPENSES
The Company asserted it has annual expenses in the amount of $122 058. Approximately
one-half of this is for gross labor cost. Staff audited the pay rate and total cost of each Company
employee. Because some employees' time is spent doing work for related sewer and cable
companies, Staff audited the method of allocating each employee s time to determine how much
time was spent doing exclusively water utility work, and how much time was spent doing work for
the other entities. The Company allocates a portion of four (4) full time employees' wages to the
water company, and one-third of the Company s seasonal employees' wages to the water
company. The total labor cost is $62,410. The other annual expenses were also audited to ensure
that the Company was only paying expenses that are directly associated with the operation of the
water utility. The Company did not include any amount transferred to its affiliates or parent as an
annual expense. Staff finds the labor allocation to be appropriate at this time for this case and
agrees that the amount of annual expenses is $122 058.
STAFF COMMENTS FEBRUARY 17 2005
RE VENUE REQUIREMENT
The Company s total revenue requirement is the sum of the following:
Grossed-up Return
$122 058
$ 16 544
$ 73.729
$212 331
Annual Expenses
Annual Depreciation
Staff is recommending that the annual revenue requirement be set at this amount and used as the
basis for determining rates.
CUSTOMERS & EQUIVALENT RESIDENTIAL UNITS
Resort Water has an unmetered water system with a mix of commercial and residential
customers. The nature of the mountain resort area results in large amounts of snow covering
meters making individual metering difficult and impractical.The usage of residential and
commercial customers vary a great deal both between classes and within each class. Few
residential customers occupy single-family homes. Most residential customers occupy some form
of multi-family condominium. The residential unit sizes vary greatly and the use per residential
unit can also be significantly different. Often small condominium units house 6-9 individuals
while large structures may house only two persons during the peak season. Given the varied
nature of the customer use, the Company s proposed billing system uses an "equivalent residential
unit" (ERU) as the means to determine monthly usage.
The ERU establishes a base-billing unit as the amount of water used by a single residential
customer. It also is meant to create equity for unmetered customers by establishing a way to
distinguish between different uses.
The Company and Staff worked together to find a methodology for assigning a weighting
determination for each customer. The easiest was residential customers. Because of the varied
nature discussed earlier and for ease of billing, all individual condominium and single-family
residential units are treated equally, each as one (1) equivalent residential unit. The weighting of
commercial and snowmaking uses are much more difficult to establish.
The Company used the following methodology to estimate water flows to commercial
units incorporated in multi-use buildings and to determine the flows associated with an equivalent
residential unit. (See Staff Production Response No.1).
ST AFF COMMENTS FEBRUARY 17 2005
Take overall water usage from a known time period when a virtual 100%
capacity of our users are present, and subtract all known water use from
metered users, i.e. Mill Building and Lakeview Lodge.
Estimate the amount of water used from the various restaurants on the
system using IDAPA 58.01.03.007.08 (Wastewater Flows from Various
Establishments in Gallons per Day).
Subtract this quantity of water from overall water usage. After subtracting
commercial usage, we should be left with residential users.
Divide (total water used - commercial use) by known residential users to
develop a gallons per day (gpd) per ERU.
Apply this gpd per ERU to each of the commercial uses to determine new
ERUs for each business.
Use historical data for Lakeview Lodge and Mill Building to determine
ERUs attributable to each of the uses.
Change the number of customers (ERU s) in the rate calculation to
determine a new calculation of rate per month per ERU.
Total ERUs change from 383.5 to 378.5 due to new commercial ERUs.
Individual commercial ERUs changed slightly as shown. (See Attachment
B for summary of results).
Staff performed a similar analysis.Staff recommends adding an additional six (6)
commercial units uncounted in the Lazier Complex in the Company s revised ERU calculation.
The result is a slight shifting of ERU s between the Company s initial Application and the
recalculated ERUs. There is no change in the overall number of ERUs for residential and
commercial customers. The Company, howev:er, did not consider water usage for snowmaking
equipment in either the Company s original Application or in its revised ERU calculations.
Staff discussed this issue with the Company and Staff believes that snowmaking can be a
significant user of the Company s water. Yet in years with adequate snowfall, there may be no
snowmaking at all. In discussions with the Company, Staff discovered snowmaking has a
maximum use of 120 gallons per minute for 12 hours and may be performed over a maximum of
eight (8) days. Using this rate and the determined average use per ERU of 236 gallons per day,
snowmaking would equate to 368 ERUs or an amount almost equal to the entire residential and
STAFF COMMENTS FEBRUARY 17 2005
commercial demand. Staff believes an assignment of this many ERUs to snowmaking would be
unreasonable. The system does not have adequate capacity to provide water to all residential and
commercial customers at system peak while at the same time provide maximum capacity for
snowmaking.
Staff proposes the following ERU ratio for snowmaking. Snowmaking water usage would
only occur during the ski season/winter months. Like the previous ERU determination, Staff
believes snowmaking is a peak demand allocation. However, for snowmaking Staff proposes an
ERU calculation based on contribution to the seasonal demand. If we assume the Company uses
an average of four (4) days of snow making over the ski season (assumed Nov. 25 to March 31 or
126 days), then snowmaking days equal to approximately 3% of the total available peak season
days. Staff believes snowmaking should then contribute approximately 3% of the total ERUs, or
12 ERUs. Therefore, Staff recommends 12 ERUs for snowmaking and a total of 395 ERUs on the
system.
RATES
Resort Water is a flat rate water system that serves a ski resort subject to a considerable
amount of snow cover. Its peak demand occurs sometime between Thanksgiving and New Years.
The system peak is contrary to most other water systems with the typical peak demand occurring
during the summer irrigation season. These three conditions (flat rates, snow cover, and holiday
peaking) create unique rate design considerations. First, there are very few meters on the system.
Second, even if there were meters, reading the meters would be nearly impossible because of the
amount of snow covering the meters during the Company s short peak season. While Staff
generally believes there are many advantages to metered rates, it does not believe meters and
metered rates provide much advantage to Resort Water. Therefore, Staff concurs with the
Company and recommends the continued use of flat rates for Resort Water.
At the current time the Company is charging $33.00 per month per ERU. This would
allow the Company an annual revenue for the total recommended 395 ERUs of $156,420. Based
upon the Staff s recommendation that the revenue requirement for the Company should be
$212 331 , the Company is currently under-earning and rates should be adjusted.
ST AFF COMMENTS FEBRUARY 17 2005
RATES & RATE DESIGN
With an overall annual revenue requirement of $212 331 and a total of 395 ERUs the
annual revenue requirement per ERU is $537.55. If every ERU provides $537.55 annually, the
Company s revenue requirement would be satisfied. The question then becomes how is the annual
revenue requirement collected, by month, by year or through some seasonally differentiated rate
structure.
The Company has proposed an equal monthly rate. The Company has further notified
Staff that it has not had a problem with seasonal disconnects or collections. Based on the
Company s experience and for ease of billing, Staff concurs and recommends a monthly flat rate
of $44.80 per month per ERU. This amount is equal to the annual revenue requirement per ERU
divided by 12 months.
As part of its review, Staff looked at two alternative rate designs: annual rates and
seasonal rates. Annual rates are the simplest; all customers must pay $537.55 per ERU annually.
Staff explored this alternative to discourage disconnection in the off-season and to sustain the
Company s financial strength by assuring collection of the annual revenue requirement. Staff
believes the impact of a single, annual rate could be mitigated by instituting a levelized payment
plan common to electric and natural gas utilities. In other words, customers could choose to pay
the annual rate or elect a payment plan of 12 equal monthly payments.
Staff believes the annual rate would eliminate under-collection due to seasonal
disconnections. The Customer must pay the annual rate, with any remaining balance due upon
disconnection. Unpaid annual bills would also be required to be paid prior to reconnection.
Contrary to energy utilities, Staff does not believe interest should either be charged or paid on
unpaid balances for a flat rate water utilities payment arrangement. Staff did not recommend this
alternative because the Company has stated on several occasions that seasonal disconnection is not
a problem.
Staff also looked at a seasonal rate. The Company s primary purpose and peak season is
around the ski season. Staff believes there is some support for a seasonal rate with higher rates for
the five (5) months of November through March and lower rates during the remaining months.
The problem with seasonal rates for Resort Water is balancing expenses and cash flow. Most of
the Company s expenses are fixed and do not vary with usage. Staff calculates that less than 4%
of the Company s expenses can be directly attributed to variable expenses. Staff is also concerned
STAFF COMMENTS FEBRUARY 17 2005
that significantly shifting rates to the ski season could cause excessively high rates. Customers
pay their annual revenue requirement over a year but have extremely high water costs during the
ski season. For example, if rates were shifted arbitrarily with 2/3 of the year representing the ski
season and 1/3 being the remainder of the year, ski season rates would be $71.65 per month. This
would be the highest monthly rate of any flat rate utility in the state.
Therefore, for ease of billing and based on the Company s request, Staff recommends a flat
rate of $44.80 per month per ERU. Staff, in Attachment C, provides a tariff sheet to reflect Staffs
recommended monthly rate.
RECONNECTION CHARGES
30 Days or Less
Seasonal disconnection can be a significant issue for water companies that serve vacation
properties. Customers are allowed to disconnect service and typically are not responsible for
service charges while disconnected. Utilities are obligated to provide service to customers that
request service within the Company s service territory. Customers in seasonal resort areas like
Resort Water may try to "game" the system and request disconnection for the off-season and
request reconnection prior to the beginning of the season. Seasonal disconnections and
reconnections can result in under-collection of revenue requirement, and adversely affect the
viability of the utility, by causing upward pressure on rates.
The Commission has addressed this issue in other water cases through two-tiered
reconnection charges, with a reconnection charge for customers disconnected for 30 days or less
and another reconnection charge for customers disconnected for more than 30 days.
Typically the reconnection charge for customers disconnected for 30 days or less is
approximately equal to the direct cost of performing the reconnection. Cost for reconnection
range from $10.00 to $35.00. The Company has requested a reconnection charge of $20. Staff
believes that a $20 reconnection charge for disconnection of 30 days duration or less is reasonable.
The Company also requested an after-hours reconnection charge of $60. Staff also
believes the after-hours charge is reasonable. Resort is somewhat remote and the Company
employees do not live within the service territory. The travel time from Sandpoint to the service
territory is approximately 30 minutes in good weather and can be twice as long in winter driving
conditions. Therefore, any after-hour reconnection will likely require a minimum of two hours to
STAFF COMMENTS FEBRUARY 17 2005
perform the activity. Assuming that any after-hour call is "overtime " Staff calculates the average
wage to be $25.91 per hour. Adding in $5 per hour for equipment and small tools results in an
average two-hour, after-hour call to cost the Company $61.83 without including an overhead
allocation. Therefore, Staff believes the requested $60 is a reasonable after-hours reconnection
charge.
Greater than 30 days
Reconnection charges for a disconnection of service for more than 30 days' duration
should be established to perform two functions: (1) to discourage seasonal disconnection and (2)
to provide a contribution to the Company s revenue requirement should a customer choose to
seasonally disconnect. Here again Resort Water is unique when compared to other water
companies. The typical use season or ski season is relatively short, being only 5 months. While
the Company has stated that it has not had a problem with seasonal disconnections in the past, a
significant change in rates and easier access to complaint resolution could lead to more seasonal
disconnections.
Staff proposes a reconnection charge for disconnections of more than 30 days' duration to
be equal to four (4) times the customer s monthly charge. Staffs proposal is based on the
assumption that customers will likely be connected for the ski season (5 months) and it typically
takes two (2) months for a customer to be disconnected for non-payment and one (1) month or less
for reconnection, leaving four (4) months remaining where a customer may have little interest in
paying. Therefore, Staff recommends a $20.00 reconnection charge for disconnections of 30 days
duration or less and a charge of $179.20 for disconnections of more than 30 days' duration. Staff
believes it is also reasonable to include the $60.00 after-hours charge for reconnections that are
requested after-hours.
LINE EXTENSION AGREEMENT
Resort Water Company is located in a high growth area of Idaho. Even though growth has
not occurred as fast as the Company initially anticipated, there is a considerable amount of growth
potential in Resort's service area.
The proposed rates for Resort Water Company are on the high-end of the spectrum for
small to mid-sized water companies. One factor providing upward pressure on rates is the level of
STAFF COMMENTS FEBRUARY 17, 2005
rate base. Staff is concerned that without an adequate line extension policy any growth on
Resort's system will provide further upward pressure on rates. Staff further believes that properly
designed line extension policies can appropriately allocate costs to the cost causers, minimize risk
to the utility, and provide a stabilizing factor to the utility s general body of customers.
The Company had initially filed two line extension agreements with its Application. Staff
has worked with the Company to incorporate its recommendations into Attachment D
Main/Service Extension Agreement." Staff believes that approval of the proposed Main/Service
Extension Agreement makes the "Multiple Family Housing Water System Agreement"
unnecessary. Staff believes there is sufficient flexibility in the proposed Main/Service Extension
Agreement to address single-family development and multifamily/commercial development.
Therefore, Staff recommends approval of the proposed Main/Service Extension Agreement as
attached and that the Commission deny the proposed Multiple Family Agreement.
HOOKUP FEES
The Company did not request a hook-up fee in its Application. Most water utilities have a
hook-up fee to cover the actual cost of the customer s service installation such as the service line
and meter. Since Resort Water is a non-metered system, and according to the Company all lots
have a service line with a shut-off stubbed onto each property, there is no direct cost to the
Company for the installation - with the exception of inspection time. Staff does not object to the
Company having no hook-up fee. However, there are other issues the Commission should
consider.
Staff believes there may be some inequity that would result without a hook-up fee. All
customers paid a hook-up fee prior to the Commission taking jurisdiction. The current hook-up
fees charged by the Company are based on the type of installation with the minimum hook-up fee
in excess of $2 000 for a single bedroom and in excess of $3 000 for three bedrooms or more.
(See Attachment E). The hook-up fees were considered contributions to the Company and
deducted from rate base in Staffs analysis of the Company. The deduction resulted in a decrease
in rate base of $128 609 and all customers going forward will pay lower rates as a result.
Staff believes the proposed Main/Service Extension Agreement should minimize the
impact of growth on Resort Water s rate base with respect to distribution and service lines. Even
with the proposed Main/Service Extension Agreement in place, growth will contribute to upward
STAFF COMMENTS FEBRUARY 17 2005
pressure on rates. Growth will increase demand on the system and at some point additional water
sources will be required. Without a hook-up fee to fund'supply development, all customers will
eventually pay the cost of additional supply through rates.
RESORT WATER CUSTOMER RULES
Staff has reviewed the customer rules submitted by Resort Water and find that they are
based on rules approved for United Water Idaho with modifications to reflect Resort's particular
situation. Staff has worked with the Company to assure consistency among previously approved
water company rules and the Commission s Customer Relations Rules. Staff recommends
approval of the rules as agreed to by the Staff and the Company and included as Attachment F.
Staff has further reviewed the various forms to be used by the Company and believes the
billing statement, initial delinquent notice summary of rates, and summary of rules to be
reasonable.
CUSTOMER COMMENTS
As of February 10 2005 , the Commission had received 18 written comments from Resort
Water customers. Twenty customers attended the public workshop held on February 8, 2005.
Staff answered questions for more than two hours.
Several Resort Water customers mentioned they do not understand the reason for such a
substantial increase in water rates. Others indicated that some increase in rates is understandable;
however, they questioned what system improvements have been made to justify the requested rate
increases. They fear customers are being asked to pay for future expansion of property owned by
Harbor Mountain or to make up for poor management decisions in the past.
One customer preferred metered rates rather than a flat monthly rate. Another customer
requested that the billing be on a yearly instead of monthly basis because the condominium
associations bill on a yearly basis.
The proposed increase in water rates comes on the heels of recent increases in the sewer
snowplowing and cable rates. Most of the properties are occupied only during the winter ski
season, so the amount of water used per unit, per year is low.
STAFF COMMENTS FEBRUARY 17 2005
STAFF RECOMMENDATIONS
Staff recommends the following:
1) Resort Water be granted a Certificate of Convenience and Necessity.
2) Resort Water s net rate base be set at $496 489.
3) Resort Water s rates include a return on equity of 11 %.
4) Resort Water s annual expenses be set at $122 058.
5) Resort Water s annual revenue requirement be set at $212 331.
6) Water usage be measured on a ERU basis, and that the current number ofERUs for the
system be set at 395.
7) The monthly rate for each ERU be set by tariff in the amount of $44.80.
8) The reconnection charge be bifurcated into two charges. One charge in the amount of
$20.00 for being disconnected for 30 days' duration or less , and another charge of
$179.20 (four times the monthly charge) for being disconnected for more than 30 days.
In addition, a charge of $60.00 be tariffed as an after-hours reconnection charge.
9) The Commission approve the proposed Line/Service Extension Agreement, and the
charges set forth in that Agreement.
10) The Commission approve the Company s Customer Rules as amended.
Respectfully submitted this 17ft,. day of February 2005.
-f'r Donovan E. Walk
Deputy Attorney General
Technical Staff: Michael Fuss
Joe Leckie
Carol Cooper
i:umisc/comments/reswO4.dwmfjI
STAFF COMMENTS FEBRUARY 17 2005
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Resort Water Company
Staff Adjustment of ERU Calculation
RES-O4-
Adjust
Initial Estimate Commercial To ERU'ERU'ERU'
of Peak Week Average Original Revised Revised
Customer Flows Annual Flows Staff
Commercial Units
Chimney Rock 40,491 40,491 20.24.25.
Mojo Coyote 276 276
Cantina 540 540
Alpenglow 276 276
Thor s Pizza! Lazier Comm 11 ,486 515
Selkirk Laundry 240 240
Lakeview 79,303 660 60.49.50.
Mill Building 13,496 347 18.19.20.
Total Commercial Usage 160 107 182 344 115.104.111.
Total Usage 600 688
Total Usaae - Total Commercial Usaae 440 581
Total Customers - Initial Est.383.
Less Original Commercial Est 115
Calc Act Act
Residential Customers - Revised ERU Calculation I 268.272.272.
quivalent Residential Use Calculation
Ave Use Per Res. Peak Wk
Ave. Use Per Res. Peak Da
Actual Rounded Actual
641 1 645 1 641234 235 234
Total Equivalent Residential Uses 384 377 383
Snow Making Equivalents
Total 384 377 395
Attachment B
Case No. RES-04-
Staff Comments
02/17/05
Tariff No.Page
I . P . U . C. No.
Canceling
Name of Utility
RESORT WATER CO., INC.(Approval Stamp)
SCHEDULE NO.
FLAT MONTHLY RATE:
Each Equivalent Residential Unit (ERU):$44.80 per month
The Company shall follow the "Rules and Regulations of the Idaho Public Utilities CommissIon
Governing Customer Relations of Natural Gas, Electric, and Water Public Utilities Under the
Jurisdiction of the Commission.
Issued 2005 Effecti ve 2005
I s sued by RESORT WATER CO., INC.
Title President
Robert J. Boyle Attachment C
Case No. RES-04-
Staff Comments
02/17/05
Main/Service Extension Agreement
Agreement between Resort Water Company, Inc. hereinafter called "Company , and
, hereinafter called the
Applicant"
WHEREAS. Applicant has necessity to expand Company s water system as follows in
accordance with the map or plan attached hereto as Attachment No.1 ~ and
AND WHEREAS, Company is willing to accept such expansion upon the telms and
conditions hereinafter set forth.
Now, Therefore, in consideration of the premises and of the mutual covenants and
agreements herein contained, THE PARTIES HERETO AGREE AS FOLLOWS:
1. The applicant( s) hereby applies to the Company for the said extension to its
system. The applicant(s) agrees to construct the extension upon the terms and
conditions hereinafter set forth in accordance with Company s Rules and
Regulations. Applicant's total direct cost for extension is estimated to be
,( )..:....
Said extension isSaid extension is described as follows and shown on
the attached sketch which is hereto made a part of this
Agreement:
2. Applicant shall contribute to the Company upon the execution hereof the sum of dollars ($ ) which amount the
Company estimates to be the real cost of overhead, plan review, inspections and
as-built drawing preparation.
he Applicant hereby agrees that it will hire only those contractors that have been
approved by the Company. The Applicant further agrees that it will require its
contractor to comply, via its contract with contractor, with all terms and
conditions set forth herein
. .
4-. The Applicant shall have its contractor warrant that the work performed in
installing the main and appurtances is free of any defect of equipment, material or
workmanship. Such shall continue for a period of two (2) years from completion
and approval of the extension or within such longer period of time as may be
prescribed by law. Pursuant to the warranty, the Applicant's contractor , under
Company supervision, shall remedy at his own expense any such failure to
conform or any such defect upon receipt of written notice from the Company
within a reasonable time after the discovery of any failure, defect or damage. In
addition, during the aforesaid warranty period, the contractor shall remedy at his
own expense, under Company supervision, any damage to real or personal
property, when that damage is the result of any such defect of equipment, material
or workmanship installed by the contractor. The warranty with respect to work
repaired or replaced hereunder will run for a period of one year fro the date of
such repair or replacement or shall run for the remainder of the original two year
period, whichever is greater. During the warranty periods as defined herein, the
contractor shall reimburse the Company for the costs of any emergency repairs
Attachment D
Case No. RES-04-
Staff Comments
02/17/05 Page 1 of7
undertaken by the company to maintain the system in good working order.
Without limiting any other provision herein contained, these warranty provisions
shall be incorporated in Applicant's contract with contractor. If contractor fails to
reimburse the Company as set forth in this Paragraph, within forty-five (45) days
of the Company s request for such reimbursement, then the Applicant hereby
agrees that it will do so.
5. The following described portion (Attachment No.2) of said expansion is for on-
site improvements within the Applicant's development and for the sole benefit of
the Applicant. The inlprovements shall be contributed at no cost to Resort Water
Company upon completion in compliance with all Company rules and
regulations. The total estinlatcd constTIlction cost is ( ) a detailed cost
estirnate is included with Attachnlent No.
6. The following described portion (Attachment No.3) of said extension is
considered off-site inlprOVClTICnts. The improvements are necessary for but are
outside the Applicant's development and provide direct benefit to parties other
than those associated with the Applicant's development. The total estinlated
construction cost is ( ) a detailed cost estilnate is included with
Attachnlcnt No.3. Said portion of extension shall be contributed at no cost to
Resort Water Conlpany upon con1.pletion in compliance with all Company rules
and regulations and shall be subi ect to refund from service and or mainline
connections that occur on or about this described portion of said extension in
accordance \vith the following:
Each additional bona fide custOlner whose service lateral is directly
connected to the extension as described in Attachment No.3 dming the ten
.QQ) year tern1. of this contract shall deposit, with the Company an amount
equal to: one-half of the actual per foot cost of the off-site extension times the
front footage of the prope11y to be served by the service lateral. The per foot
cost shall be determined by dividing the actual cost of the off-site extension
by the total serviceable footage along the extension. This deposit shall be
made prior to the installation of the service lateral necessary to provide the
service requested. The Company shall refund the monies so deposited to the
original Applicant(i) without interest within 30 days of receipt. Refunds will
not be collected nor provided after ten am years frOlTI the date of this
agreement.
The following described portion (Attachment No.4) of said expansion is
necessary for the Applicants development but because of its location, increased
size, specialized construction, and or other considerations is constructed at the
request of the Company to provide Colnpany betterment. The total estimated
Company bettennent constTIlction cost is ( ) a detailed cost estimate is
included with AttachlnentNo. 4. Said portion of the total extension cost shall be
subiect to reimbursement fronl the Company in accordance with the following:
Upon final con1.pletion in colnpliance with all Company TIlles and regulations
the Company agrees to reimburse Applicant for the incremental direct
construction cost difference between that improvelnent based on Company
Attachment D
Case No. RES-04-
Staff Comments
02/17/05 Page 2 of7
- 2-
defined minimum standards and or those improvements solely for the
Applicants development and that improvelnent provided for Colnpany
betterment as described in Attacmnent No.
~itional-bona fide custom.er "vvhose service lateraHs-directly connected-te
the extension during the ten (10) y-ear term of this contract shall-deposit, \vith-the
Company an anlount equal to: one half.ei:.the actual per foot cost of.the extension
times the-front footage of the property to be ser/ed--by--fhe service latera~
foot cost shall-be-6etermined--by-ffi-v-iding the actual cost of the extension by the
tetal serviceable footage along the extension. 'This-deposit shall-be made-prior to
the installation of-the service lateral necessary to provide-the service requested-.
interest \vithin 30 days of receipt by the Company.
6-.8.bona fide customer shall mean any person, firm, corporation, company,
association, governmental unit or owner of property as guarantor furnished water
service of a permanent nature; and the term "Extension" shall mean the mains and
appurtenances shown on attached plan.
+-.9.It is further mutually understood and agreed that the mains and appurtenances
within the limits of the streets, avenues, roads, rights of ways, or easement areas
whether or not attached to or serving customers but constructed as part of the
extension, shall be and remain the property of the Company, its successors and
assIgns.
The Company shall have the right to extend any main installed pursuant to the terms of
this Agreement in or to other land, streets, or avenues, but the Applicant( s) shall not by
reason thereofbe entitled to any refunds other than those above provided for. Project
becomes Company property only after acceptance by Company.
8-.10.The Applicant(s) will, grant
to the Company an exclusive and irrevocable easement, at no cost to the
Company, for the maintenance, operation, repair and replacement of said main
extension and appurtenances, together with the right of ingress and egress thereto
in a form satisfactory to the Company, duly executed and acknowledge in proper
form for the record.
9-.11.It is agreed by the
Applicant(s) that he/she will not build at any time hereafter on, in, or over the said
easement any structure, the construction or presence of which will endanger
render ineffective, or make difficult the access to the water lines or appurtenances
of the Company. Additionally, Applicant(s) agrees not to lay other pipes or
conduits within two (2) feet measured horizontally, from the said water pipes
except pipes crossing same at right angles in which latter case a minimum vertical
distance of six (6") inches shall be maintained between the pipes unless otherwise
required by the Idaho Department of Environmental Quality Sewer lines placed
in the easement shall conform to the separation requirements between water and
sewer lines as specified by the Idaho Department of Environmental Quality. No
excavation or blasting shall be carried on which in any way endangers the said
water pipes. Provided, however, that should the Applicant(s) wish to do so, he
may, at his own expense, provide a new location acceptable to the Company for
the water pipes and the Company will allow the move of said water pipes and
Attachment D
Case No. RES-04-
Staff Comments
02/17/05 Page 3 of7
- 3-
appurtenances to the new location. The whole cost of such moving and altering
and any expenses incident thereto, shall be borne by the Applicant(s).
-l4-.12.It is further understood and
agreed that in case of any damage by Applicant(s) or caused by neglect of
Applicant( s) to the water pipes or their appurtenances, or other injuries to the
property of the Company in connection therewith, which are caused by the acts or
neglect of the Applicant( s) the amount of such damage shall be paid to the
Company by the Applicant(s).
+1--. 1 3 .
shall be ten (10) years from the date of execution.
14. Service to all or any portion of previously described extension nlay be withheld
until all inlprovenlents are conlplete in-place to the satisfaction of ReSOli Water
Corporation.
The term of this Agreement
IN WITNESS WHEREOF, the parties hereto have caused these presents to be signed this
day of
Resort Water Company, Inc.
Title
Applicant( s)
- 4-
Attachment D
Case No. RES-04-
Staff Comments
02/17/05 Page 4 of 7
(Comment: I believe all of this can be address with the previous agreement).
11T T Tater ystem.c. ...greement
~et\veen Resort Vvater Company, Ine-.hereinafter called "Company , its
successors and assigns, and hereinafter called "vner
its successors and assigns.
WHBRE..L
...
, Ov/ner has necessity to expand Company s "..vater system as fello\vs in a-ccordanee
witlHhe map or plan attached-hereto as Attachlnent and
WHBREAS, Company is ,,-vining to accept such expansion upon the terms and conditions
hereinafter set forth.
NO\V
, ~
, in consideration of the prelTIises and-ef.the nlutual covenants and
Nner hereby applies to the Company to accept said expansion of its systeln, and ConlJ:*ffiY
agrees to accept said expansion upon the tenns and conditions hereinafter set forth-afl:d.-:i.H:
accordance ".'lith its Rules and-Regulations.
2..pplicant shall contribute to the Conlpany upon the execution hereof-the Sunl ofdeRars ($ ) \vlli€h mnount the
CO1TIpany estimates to be-the real cost of overhead-;-p1an revle'll , inspections an~a\'ving
prep arati on.
~e .J.j,.pplicant hereby agrees that it 'l/iY-hire only-those contractors that-have been approved-b-y
the Colnpany. The Applicant further agrees that it 'will require its contractor to colnply, via its
contract "vith contractor, \vith-all terms and conditions set forth herein.
4;J:he .J....pplicant shall-have its contTactor "."Ian-ant thaHhe 'vyork:-performed in installing the main
atKl appurtances is free of any defect of equiplnent, material or v/orkmansmp. SuclT-5hall
continue for a period oftv/o (2) years from cornpletion and approva1-ef-the extension or 'l/ithin
sueh-longer period of time as may be prescriOOd-by-la\v. Pursuant to the v/arranty, the
Applicant's contractor , under Company supervision, shall remedy-at-his O\Vll expense any such
failure to confonn or any such-defect upon receipt of written notice from the Company "Nithffi-a
reasonable time after the-6iscovery of any failure, defect or damage. In-addition, during the
aforesaid \varranty period,t11e contractor shall remedy-at-his expense, under CO1TIp-atty
supervision, any damage to real or personal property, v/hen-tflat...eamage is the result of any such
defect of equipnlent, material or workmanship installe4-by-the contractor. T-he "Narranty \vith
respect to \york repaired or replaee4-hereunder will ntn for a period of one year fro the-date of
50011 repair or replacement or shall run for the remaind-er-ef4he original two year period,
whiehc"/er is greater. During the warranty periods as c:lefifled-herein, the contractor shall
reimburse the Company fer-the costs of any einergency repairs undertaken by the colnpany toEl El urh herpnlmntmn 1e systenlln goo v/or(1ng or cr. TT It out Imlt1ng anyot rovlslon ereln
contained,these \varranty provisions shall-be incorporated in f...pp-1.icant's contract "Nith
contractor. If contractor fails to reimburse the Company as set fert.h in thi-s-Paragraph \vithffi
forty five (#j-days ot4he Company s request for such reimburseinent t~icant hereby
agrees that it wi lHio so.
.. 5..
Attachment D
Case No. RES-04-
Staff Comments
02/17/05 Page 5 of 7
A bona fide custonler shall mean any person, firnl, corporation, CO1llpany, association
governnlental unit or OVlner of property as guarantor furnished \vater service of-a-permanent
nature; and-the term "Extension" shall mean the mains and appurtenances ShO"vVll on attaehed
rlatr.
6dt is further mutually understood--aR:tl agreed-fuat-fue mains and appurtenances \vitlH:tHbe-linlits
ef.the streets, avenues, roads, rights of ways, or easement areas, \vli€fuer or not attached to or
serving customers but constructed as part of-the extension, shal-l-be and remain t~erty
the Company, its successors and assigns.
The Company shall-have the right to extend any main installe8. pursuant to the terms of thi-s
greelnent in or to otheF-lantl, streets, or avenues, b:H:t-4he Applicant(s) shaY not by reason
Company property only-after acceptance by Company
~licant(s) "Nill, grant to the Company an exdusive and irrevocable easenlent, at no cost
te-the Conlpany, fef-the 11laintenance, operation, repair and--replacement of-said main extension
and appurtenances, together \vith-the rigbt-efingress and egress thereto, in a form satisfactory to
the Company, dffiy executed-afl&-aeknowleage in proper fonn for the record-.
8-1t is agreed-by-the l\pplicant(s) that-helshe \vill not bffi.k:l at any time hereafter on, in, or over
the said easement any structure, the construction or presence of~anger, rendef
ineffective, or make-difficulHhe access to the "Nater lines or appurtenances of the Company.
Additionally, .L\pplicant(s) agrees not to lay other pipes or conduits .within t\"/O (2) feet Ineasured
horizontalfy,from the said water pipes except pipes crossing same at right angles in "Nhi€ft.-lattef
case a nlininlunl vertical-distance of six (6") inches-shall-be maintained-beh.veen
Se"ller lines plae-ed--ifl-the easement shall confornl to the separation requirements betv/een "vater
aHtl seVier lines as specif~epartment ofEnvironmental Quality No excavation
er-blasting shall-be canied on \vffi€.h in any \vay endangers the said V-later pipes. Provided,
ho"Never t~he Applicant(s) \""ish to do so, he may, at his OVID expense, provide a ne\v
location acceptable to the CO1llpany for the 'Nater pipes and-the Conlpany \vill-allew-the rnove of
said 'vvater pipes and appurtenances to the ne'li location. T-he-whele cost of such moving and
altering and any expenses incidem-thereto, shal-l--be-borne by-the l\.pplicant(s ).
9-dt is further understood--aR:tl agreed-that in case of any danlage by l\pplicant( s) or caused-by
IWg1ect o~icant(s) to the water pipes or their appurtenances, or other injuries to
ef..t.he Company in cO1mection there'Nith-,-wmeh are caused-by-fhe acts or neglect of the
. .
~he term of this j\greement shall be ten (10) years fronl the-date of execution.
IN \VI+NESS W~e parties hereto have caused-these presents to be si;rned this
day of
Resort 'Vater Company, Inc.
Title
- 6-
Attachment D
Case No. RES-04-
Staff Comments
02/17/05 Page 6 of 7
pplicant( s)
- 7 -
Attachment D
Case No. RES-04-
Staff Conunents
02/17/05 Page 7 of 7
~-.."~ &
"1"1""""""'" . ""~"5""Mountain Utility Company
Schweitzer Mountain, Idaho
January 2004
Page 5 of29
0 SECTION 2
DESCRIPTION OF FEES
GENERAL
All fees are due in full with the applications/agreement and prior to MUC company sign-off of the
Building Location Permit. All fees will be paid to MUG.
HOOK-UP FEES (check to be made payable to MUC)
Hook-up fees allow connection to the existing system and pay for infrastructure installation.
WATE
One bedroom $2260 $4930 $60Two bedroom $2660 $6430Three bedroom $3460 $9430Each Additional Bedroom $1860 $3430Each Additional Loft $1460 $1930
In the event that a service tap is not available, aU costs associated~h instaUinQ a tap is so~he responsib~the customer. Likewise, if owner chooses not to use exislino water or sewer ta~ all costs assoti~Qj!tap is solely the responsi~he customer. .1JJ!LMountairL.~!lliN Com any can prov~e rouljno anQinstallation. This service is billed at an hourly rate plus materials.
Cable-TV hook-ups requiring main line extension will be charged additional labor and materials cost.
INSPECTION FEE Deposit of $1200 (check to be made payable to Mountain UtilityCompany)
Upon successful completion of application requirements, the developer wiu be refunded $500.The $700 inspection fee is based upon providing an initial on-site evaluation inspectionreviewing the utility site plan. a preconstruction meeting. two interim inspections if desired,providing an inspection of the water and sewer upon completion. preparing as-built drawingsreviewing submitted storm-water management plan, and providing a fifth and final inspection of
the completed stormwater management system. These services will be provided by theMountain Utility Company or designated representative.
Factors that will reduce the deposit returned to yOUAdditional inspections required resulting from unacceptable construction or backfHl prior toinspection wHJ be charged an additional fee of $150 per inspection. No project will beapproved unless all portions of the system have been constructed according to approvedplans and specifications and are inspected and approved.
All inspections must be booked ahead of time, 5 days in advance 1 of the site evaluation, and24 hours in advance of an other inspections. If adequate notice is not given, an additionalfee of $50 will be deducted from the deposit.
ON SITE SEWER SYSTEM PERMIT $165 (check to be made payable to MUC)The Panhandle Health Department has given the MUG the authority to perform septic tankinspections. The sewer system permit pays for MUG administrative and inspection costs
associated with the septic tank installation. Attachment E
Case No. RES- W -04-
Staff Comments
02/17/05) A II -
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L'
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Resort Water Company, Inc.
Resort Water Company, Inc.
Rate Sched u
And
Rules and Regulations
Governing the Rendering of Water Service
And Water Main Extensions
Attachment F
Case No. RES-04-
Staff Comments
02/17/05 Page 1 of
Table of Contents
Title Page .. 0 0 0 0 0 0 0 0 0 0.. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0.. 0 0 0 0 0 0.. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0.00000.
Rate Schedule .. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0..000000.. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 000000000000000.'
Application for Service .. 0" 0 0 0 0 0..000000000000000..0000000000000.. 0.. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o.
Service Connection .. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 .. 0 0 0 0 0 0 0 .. 0 0 0 0 0 0 0 0 .. 0 0 0 0 .. .. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 .
Meters ..0000000000.... 0 0 0 0 0 0 0.. 0 0 0 0 0.. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0.. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Bills 000.. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 000000000000000.
Discontinuance of service .00000000000000000000000000000000000000000.000000000 0 0 0 0 0 0 0.000000000000000.
Customer s Deposits .0000000000000000000000000000000000" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0.0000000000000.0.0000.
Builder s Temporary Service 00.0000000000000000000000000000000000000000000000000 0 0 0 0 0 0 0.0.'
Fire Protection 00000000.. 0 0.... 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0.. 0 0 0 0 0.. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Miscellaneous
....
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0"" 0 0 0 0"" 0 0 0 0 0 0 0 0 0 0 0 0.. 0" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o.
Definitions 000000000000000000000000000000000000000000000000" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o.
Water Main Extensions - General ... 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0.000'
Water Main Extensions Agreement-Individual Residences/Commercial
Water Main Extensions - Residential Subdivision or
Multiple Family Housing
Development
.000000000000000000000000.
- 2-
Attachment F
Case No. RES-04-
Staff Comments
02/17/05 Page 2 of
Rate Schedule
Flat Rate Service
Availability:
To all residential , multi-family and commercial customers excluding bulk water for snow
making or bulk water sold to contractors. Each housing unit is considered to be one (1)
Equivalent Residential Unit (ERU). Commercial ERU's will be estimated using
Forecas~ Wat-ef-Oeman~s & Jones a contribution to peak week calculation
as can reasonably be determined from actual usaQe or as estimated using IDAPA
58.01.03.007.08 (Wastewater Flows from Various Establishments in Gallons per Day)
or some other method approved by the Resort Water Company. the Idaho Public
Utilities Commission and generally accepted engineering practices.
Customer Charg~
Based on the cost of providing water service, and providing a Return on Investment of
11 % the yearly bill per ERU is-$8QG-;-88...$537.55#.Billed monthly, equals $ 66.74 $
44.80+9.
Monthly Chargg $ 66.74 $ 44.80-7-9
Conditions of Contract:
The monthly charge will be prorated whenever the customer has not been a customer
for the entire billing period.
- 3-
Attaclmlent F
Case No. RES-O4-
Staff Comments
02/17/05 Page 3 of
awearing as a separate-item on eacR-eill-.
- 4-
Attachment F
Case No. RES-04-
Staff Comments
02/17/05 Page 4 of 18
Schedule No.
Miscellaneous Fees and Char~
1. Return check Charq~
wlication:
This charge is applicable to all customers where the customer s check or bank
draft is returned by the Bank for insufficient funds , closed account, or some other
appropriate reason.
Rate:
Returned Check Charge
Each Occurrence
$15.
2. Reconnection Charge when disconnected for less than 30 days
tillPlication:
This charge is applicable to all customers where water has been physically
turned off for less than 30 days at the request of the rate payer or for
nonpayment of a delinquent bill.
Rates:Each Occurrence
Reconnection charge
(during normal business hours)
Reconnection Charge
(other than normal business hours)
$40.00$20.
$60.
3. Reconnection Charge when disconnected for more than 30 days
wlication:
This charge is applicable to all customers where water has been physically
turned off for more than 30 days at the request of the rate payer or for
nonpayment of a delinquent bill.
Rates:Each Occurrence
- 5-
Attachrnent F
Case No. RJjS-04-
Staff Comrn~lJ.ts
02/17/05 Page 5 of
(during normal business hours)
Reconnection charge shall be equal to the tariffed charge for four months of
service plus a $60 after hours char~ $270.
(other than normal business hours)
4. Field Collection Trip Charqg
wlication:
This charge is applicable to all customers who pay outstanding bills for service at
the time that Company personnel arrive at the customers' premises to terminate
service.
Rates:Each Occurrence
Field Collection Trip Charge $15.
- 6-
Attachment F
Case No. RES-04-
Staff Comments
02/17/05 Page 6 of 18
Schedule No.
Bulk Water Sold to Contractors
1. Backflow Prevention Device Rental:
Wi ication :
Any contractor needing to fill a water tanker of any kind shall do so at a location
designated by the Resort Water Company and each truck shall be equipped by
an approved and inspected backflow prevention device as approved by the
Mountain Utility Company. This charge is applicable to contractors that do not
have an approved and inspected backflow prevention device.
Rates:Each Day
Backflow Prevention Device Rental:$25.
2. Bulk Water Char~
8.Q.plication:
Any contractor that needs to fill a water tanker of any kind or size.
Rates:Each Day
Bulk Water Charge:$10.
- 7 -
Attachment F
Case No. RES-04-
Staff Comments
02/17/05 Page 7 of
Schedule No. J4
Bulk Water Sold for Snowmakinq
Snowmaking Bulk Water Rate
The yearly charge
for water shall be the number of ERU's multiplied by the current Yearly Rate per
ERU as defined in Schedule 1 of these Rules and Regulations.
Interruption of Service
The Mountain Utility Company shall retain,' at its sole discretion , the right to
interrupt the water service for snowmaking for any reason and to determine the
schedule and times that snowmaking will be allowed.
In general , snow making will only be allowed when it will not affect the ability of
the Mountain Utility Company to serve potable water customers, and will
generally not be allowed during peak hours of water use.
- 8-
Attachment F
Case No. RES-04-
Staff Comments
02/17/05 Page 8 of
Schedule No.
Temporary Service for Construction Purposes
8Q.plication:
Contractors, builders, or others who wish temporary service from an aQProved service
connection shall aQPly to the Company for temporary service. This aQ.Plication may
made in writinQ.Jn...person or over the telephone.
Rate:
The requestinQ...,partv aqrees to pay for water at Y2 the aQproved flat rate. (Comment-7
+here sReaki-be a rate inc~his
- 9-
Attachment F
Case No. RES-04-
Staff Comments
02/17/05 Page 9 of
Rules and Requlations Governinq the Rendering of Service
wlication for Service
1. Water service will be provided at all existing service locations after the
prospective customer (or a properly authorized ~gent) makes application for
service and the Company approves the application. The service request may be
taken by telephone, in writing, or by personal visit to the company office. Each
service request will be prepared on a separate order form specifically designed
for this purpose.
2. On all new service applications requiring the installation of a service line and/or
meter box, or connections necessary after a customer has altered their plumbing,
service will be provided after a Utilities Agplication Packet has been completed , a
Bonner County Building Location Permit has been approved, connections to the
Company s water system have been approved by the Company, and the
plumbing has been inspected and approved by the appropriate plumbing
authority.
3. The application for new service or the connection request on existing services
will state clearly the class, scope and type of use for each service. The
application shall clearly state the number of bedrooms and bathrooms for each
residential service. Any increase in number of bedrooms or bathrooms will
require a new application.
4. Office hours are 8:00 a.m. to 4:30 p., Monday through Friday. Any request for
service after regular office hours, weekends or holidays will result in a $60.
service charge.
5. The application for service and/or connection request and these rules and
regulations constitute a contract between the customer and the Company. Each
customer agrees to be bound by this contract after the service application is
made, approved and/or service rendered., Copies of the Company s presently
approved rules and regulations are on file at the Company s office and are
available for public inspection.
Service Connection
6. Each customer shall be supplied through a separate service line.
7. The Company shall inspect all connections to its existing mains. The Applicant
shall furnish and install water service lines from the main to and including the
meter box or vault, meters and service setting. All service lines including meter
and meter box shall be property of the Company and shall be accessible to and
under its control. In instances where the existing mains do not front the property
to be served , the Applicant shall enter into the appropriate main extension
agreement as provided under Company s Rules and Regulations Governing
Main Extensions.8. All service lines from the main to the customer s building or place of consumption
shall be approved by the Company as to size , kind of pipe, and installation and
shall be installed and kept in good repair by the customer at the customer
expense. All such service lines shall be placed at least four (5) feet below the
surface of the ground.
9. No service lines shall be laid in the same trench with the sewer pipe.
- 10-
Attachment F
Case No. RES-04-
Staff Comments
02/17/05 Page 10 of
10. When a meter is located within the customer s building, a positive shutoff valve
easily accessible to the occupants shall be placed in the service line within the
building supplied with water. Such valve shall be located so that it will be
possible to drain the meter and all pipes in the building. When the meter is
located outside the customer s building, a positive shut off valve shall be located
between the customer s building and the meter.
hours and-$60.00 after re~ours.
11.AII components and materials coming in contact with drinking water must meet
ANSI/NSF 61 requirements.
12.A service connection valve has been installed near property line by Company.
Notify Company prior to the start of construction or digging. A State of Idaho
plumbing permit is required prior to the start of work.
13. For single family dwellings, one (1) inch (AWWA and NSF Approved) Poly pipe
minimum 200 PSI , shall be installed as service line to home. This pipe shall be
one piece, not spliced. Other sizes are required for multi-family dwellings.
14. Minimum depth for line is 5 feet. Sand bedding is required for entire length of
pipe.
15. Connections for each end of line: "Brass 1 inch, Pexmip Cplg Adp Pep
Compression . Available at Consolidated Supply.
16. Poly pipe to run under foundation or through a sleeved -opening in the foundation
wall. One (1) inch threaded ball valve to be used as shut off, between supply line
and homes internal plumbing.
17. Call Company to witness pressure check of line. Ensure that service valve at
property line is shut. The line is to be pressured to 125 PSI or 1250/0 of actual
water pressure, which ever is greater, for 15 minutes. Line is to remain without
leaks or pressure loss for the 15 minute interval.
18. Water line shall not be covered until all testing and inspection is completed and
approved.
19.A pressure reducer is required for all service taps. Pressure reducers are to
prevent pressures above 60 PSI. Within our water system , water pressures can
easily exceed 60 PSI. Owner is to perform an actual pressure check of the home
system. Actual water pressure should never exceed 60 PSI. A properly installed
and maintained pressure reducer will protect your investment and ensure that
your water pressure does not exceed 60 PSI.
20. The customer shall promptly repair all leaks inside the premises, in sprinkling
systems and in the customer s service line. Failure to repair leakage promptly
may result in termination of service as allowed under the IPUC's Rules and
Regulations Governing Customer Relations.
21. The Company shall, at its own expense, replace or enlarge service connections
whenever it is necessary to change the location of any service connection due to
relocation or abandonment of the Company s mains. The Company will also
furnish all work and materials that are necessary to connect to that service.
22. The use of water service by a customer shall be in accordance with the class
scope, type of use, number of bedrooms and purpose stated in the application.
A customer shall not use or allow use of water service through the service
facilities for others or for purposes other than those covered by the application.
- 11 -
Attachment F
Case No. RES-04-
Staff Comments
02/17/05 Page 11 of
To make service available for other purposes of character of use, a new
application and contract is required.
23.ln accordance with its Cross Connection Control Program, as approved by the
State Health Department, the Company shall require an appropriate backflow
prevention device be installed on any customer s service connection whenever
an actual or potential health hazard is deemed to exist. Any such required
device shall appear on the State Health Department's list of approved backflow
prevention devices and/or be approved by the Company prior to installation.
24.ln the event a backflow prevention device is required, it shall be installed
maintained and tested at the customer s expense. Failure to properly install
maintain or test the required device will result in termination of service to the
customer in accordance with Sections 3.2 and 3.3 of- with the IPUC's Customer
Relations Rules and Regulations.
25. When the premises served by the Company is also served in any manner from
another supply of water public or private, the customer must install the
appropriate backflow prevention device or maintain a physical separation
between the two systems at all times. The type of device or separation and the
installation of the device or separation shall be determined by the Company in
accordance with its Cross Connection Control Program as approved by the State
Health Department.
Meters
26. Though water is billed at a flat rate, it is strongly advised that all new water
services for single family residences or duplex units , be rendered only through
meters to allow for the location of leaks.
27.AII new water services for multi-family units consisting of three or more units and
commercial structures except water for fire fighting purposes will be rendered
only through meters.
28. Each customer shall have a separate meter.
29. All meters will be furnished by the customer and shall be donated to the property
of the Company. The Company reserves the right to establish the size and
location of meter required by each customer.
30. Meters will be maintained by the Company for ordinary wear and tear. The costs
of repair or replacement resulting from damages to the meter, meter box or
setting, caused or allowed by the customer, will be charged to the customer. The
customer will not permit anyone other than the Company to remove, inspect or
tamper with the Company s meter or other Company property located on the
customer s premises.
31. The customer shall notify the Company of any damage to the meter or of any
malfunction in the registration, as soon as the customer is aware of the problem.
32. All meters shall be set at convenient locations, accessible to the Company, and
subject to its control.
33. The final location of the meter must be approved by the Company.
34.AII meters shall conform to ANSI/NSF 61 requirements.
Bills
- 12-
Attachment F
Case No. RES-04-
Staff Comments
02/17/05 Page 12 of
35. Each customer is subject to a customer charge, the amount of which is set forth
in the Schedule of Rates.
36. Bills for water service will be rendered and are due and payable as specified in~the I PUC's Customer Relations Rules and Regulations.
37. The presentation or non-presentation of a bill shall not be held to be a waiver of
any of the rules and regulations.
Discontinuance of Service
38. When a customer wishes to terminate their water service, the Company must be
notified. This request for disconnection may be made in writing, by telephone or
a personal visit to the Company office. The customer will be responsible for
payment of all service rendered prior to the termination of water service.
39. The Company may deny or terminate water service under the provisions of-RHte-s
the Rules and Regulations Governing Customer Relations of Gas
Electric and Water Public Utilities.
The customer has the right to file an informal or formal complaint with the IPUC
concerning the denial or termination of service. If the customer files a complaint
the service will not be terminated providing the customer pays all undisputed
charges.
Service that has been disconnected for nonpayment will not be restored until the
amount due plus the applicable reconnect fee has been paid. Reconnection of
service by anyone other than the Company is strictly prohibited and may result in
an additional service charge(s).
40.ln case of a break, an emergency or other similar situations , the Company shall
have the right to temporarily discontinue the water supply in order to make
necessary repairs, connections, etc. The company shall use all reasonable and
practical measures to notify the customer in advanced of discontinuance of
service. The Company shall not be liable for any damage or inconvenience
suffered by the customer, or for any claim for interruption in service, lessening of
supply, inadequate pressure , poor quality of water, or any other cause. The
Company may restrict or regulate the quantity of water used by customers in
case of scarcity or whenever the public welfare may require it.~e Company may at any time rest-FiGt-the use of--wateF-for air condHioning--aRG
. .. .
~Comment: Are t-here an\, \vatef-to air ~s in ~ace at--tR-i&-time?)
4641.The right to discontinue service for any of the above reasons may be
exercised whenever and as often as such reasons may occur, and neither delay
nor omission on the part of the Company to enforce this rule at anyone or more
times shall be deemed a waiver of its right to enforce the same at any time, so
long as the reason continues.
Customer s Deposits
- 13-
Attachment F
Case No. RES-04-
Staff Comments
02/17/05 Page 13 of
4342.The Company reserves the right to require a deposit according to RtHe+,
Deposit and Guarantee Practices for Residential and Small Commercial
Customers, of the IPUC Customer Relations Rules and Regulations.
Reasonable deposits may be collected for customers not covered under the
IPUC's Customer Relations Rules and Regulations.
4443.The Company will refund said deposit when the customer (1) discontinues
service (and all outstanding bills are paid), or (2) establishes and maintains good
credit as defined by the I PUC's Customer Relations Rules and Regulations.
Temporary Service for Construction Purposes
4aA4.Contractors, builders, or others who wish temporary service from an
approved service connection shall apply to the Company for temporary service.
This application may be made in writing, in person or over the telephone. The
requesting party agrees to pay for water at ~ the approved flat rate.
4&A5.The application for service and/or connection request and these rules and
regulations constitute a contract between the requesting party and the Company.
Each customer agrees to be bound by this contract after the service application
is made, approved and/or service rendered. Copies of the Company s presently
approved rules and regulations are on file at the Company s office and are
available for public inspection.
Fire Protection
47A6.Water from fire hydrants or other fire fighting facilities shall be used only
for fire fighting purposes, except for water sold to contractors and pursuant to
existing Tariff Schedule No.
43A 7.All private fire service connections from the main to the property line
including all valves, shall be furnished by the customer, and approved by the
Company.
49-48.The Company reserves the right to require a meter and appropriate
backflow prevention device to be furnished and installed by the customer on any
fire service connection. The meter and required backflow prevention device shall
be inspected and approved by the Company prior to the granting of service.
Miscellaneous
WA9.The authorized employees and agents of the Company shall have the
right of access , between the hours of 9:00 a.m. and 4:30 p., Monday through
Friday, and with approval of the customer, to the premises supplied with water for
the purpose of reading meters, examining pipes and fixtures, observing manner
of using water, and for any other purpose which is proper and necessary in the
conduct of the Company s business. Such employees and agents shall carry
proper credentials evidencing their employment by the Company.
a.:t-.50.Except in case of an emergency, no one other than Company personnel
shall open or close any of the Company s curb stops or valves in any public or
private line.
52-.51.The Company reserves the right to alter or amend these Rules and
Regulations in the manner provided by law.
- 14-
Attachment F
Case No. RES-04-
Staff Comments
02/17/05 Page 14 of
52. If the customer s QIQ.Perty is vacant and the Company is not notified to terminate
service, the customer will be responsible for any damaqe to the (2fQpertv arising,
from freezinq, water damaqe, injury to the water service or any other failure.
- 15-
Attachment F
Case No. RES-04-
Staff Comments
02/17/05 Page 15 of
Definitions
53. "Company" as used herein shall mean Resort Water Company, Inc. acting
through its properly authorized officers, agents or employees, each acting within
the scope of the particular duties entrusted to them.
54. "Customer" shall be the party contracting for supply of water through a single
meter and service through each meter shall be considered, for billing purposes
as service to a separate customer.
55. Individual (s) shall mean a person or group of persons requesting a water main
extension to make water service available to an existing or proposed single
family residence (s) occupied by or to be occupied by the requesting party (ies).
56. Developer shall mean a person , firm or corporation who (1) sells two or more
lots, parcels or tracts of land to others for the purpose of constructing thereon
any type of building or (2) constructs any type of building, on land which is for
sale, lease or rent by or to another party (ies).
57. Subdivision shall mean the legal dividing of a tract of land into two or more tracts
lots or parcels.
58. Multiple family housing development shall mean any building or buildings
consisting of two or more living units.
59. Residential customer shall be designed as a building under one roof which is
owned, leased or rented by one party and occupied as a residence, or each unit
of a Condominium building where the Condominium units have the ability to be
separately owned.
60. Commercial , Industrial and Municipal customers shall be designated by the
following:
Commercial Customer shall be defined as:
a. A building containing two or more apartments or family units where the
building is owned by one entity and the units are or have the ability to be
rented or leased to tenants.
b. A building or unit in a building occupied by a retail or service business
whose primary business is not manufacturing.
c. A building or unit in a building that contains a restaurant, coffee shop, deli
or sells other packaged or non-packaged food products.
d. A business office , office complex, or office unit in a building.
e. Any building containing any combination of '
, '
, and '' above.
f. A hotel , motel , tourist court , trailer court or mobile home park.
Industrial Customer shall be defined as:
a. Any building or combination of buildings in the same compound whose
primary use is for the manufacture, fabrication , and/or assembly of any
product other than a food item.
Municipal Customer shall be defined as:
a. A publicly owned building such as a school , city hall, court house , fire
house, hospital , or other public institution.
- 16-
Attachment F
Case No. RES-04-
Staff Comments
02/17/05 Page 16 of
The purpose of the foregoing rules and regulations and definitions is to preserve , to the
maximum extent possible, the obligation and ability of the Company to furnish service.
The rules and regulations and definitions contained herein shall be construed and
applied in accordance with the spirit and intent of Title 61 of the Idaho Code.
General
61.Any individual or developer may request water service to be made available to
any lot(s) or subdivision under these rules and regulations.
62. The minimum size of water main to be installed under these rules and regulations
shall be 6-inch inside diameter.
63. The normal routing for water main extensions shall be in dedicated streets. The
Company may, but will not be required to , allow extensions under this rule in
easements or right-of-ways where final grades have not been established or
where street grades have not been brought to those established by public
authority. If extensions are made when grades have not been established and
there is a reasonable probability that existing grade will be changed , the
Company shall require the Applicant(s) to deposit the estimated cost for altering
the facilities installed. This deposit shall be made at the time of execution of the
agreement. Such alterations may be , but are not limited to, relocating, raising or
lowering of facilities. Adjustment of any difference between the amount so
deposited and the actual cost of relocating, raising or lowering facilities shall be
made within the (10) days after the Company has ascertained such actual cost.
The net deposit representing actual cost is not subject to refund. The deposit
related to the proposed relocation , raising or lowering shall be refunded when
such displacements are determined by proper authority not to be required.
64. Applicant shall provide a design prepared and stamped by a professional
engineer licensed in the State of Idaho and in conformance with Company
requirements. Company shall be the sole judge as to the adequacy of any water
main extension and appurtenances.
Water Main Extensions
65.ln instances where the individual (s) shall need to extend the water distribution
main to serve new individual residences , the individual(s) shall enter into an
agreement with the Company of the type attached hereto and marked Exhibit
The cost of the water main extension shall , as a minimum, be based on the use
of a six-inch inside diameter main.
66. Construction plans and specifications must be prepared by a professional
engineer licensed in the State of Idaho and submitted to the Company or
designated representative for review and approval. All plans shall be
construction quality, be prepared by a Professional Engineer, be to scale (1" =
100' maximum), have a north arrow, a title block, a legend , appropriate details
showing existing utilities, existing and proposed buildings, fire hydrants and flow
capacity of fire hydrants, connections, valves, backflow preventors, septic tanks
thrust blocks and any other necessary details, shall call out the make and style of
conduit, connections, valves, backflow preventors, shall clearly specify minimum
depth of utilities from existing elevation, and minimum cover, shall specify backfill
material with maximum size aggregate, compaction requirements and
Attachment F
Case No. RES- W -04-
Staff Comments
02/17/05 Page 17 of
- 17 -
compaction efforts. As a minimum , all construction requirements shall conform
with the latest edition of the ISPWC. All water main construction or extension
plans and specifications must be submitted to the DEQ for review and
approval. Construction drawings, along with electronic drawing files (must be
readable by ACAD 2002), must be submitted to Company or designated
representative for review and approval.
67.ln instances where more than one individual has requested a water main
extension, any contribution shall normally be divided in proportion to distance of
the residence from the existing water main. In unusual circumstances, other
methods of dividing the deposit may be used, provided they are acceptable to all
individuals and the Company.
68. A water main extension must extend to the extreme property lines of the building
lot to be served.
69. The applicant shall contract for the installation of the water main to the
Company s specifications. In addition , the applicant shall deposit with the
Company the applicable overhead and direct labor costs incurred by the
Company for such items as inspection , plan review, and as-built drawing
preparation. The Company shall specify the material to be supplied by the
Applicant with respect to size and type. In general, the material shall conform to
the Company s standard material specifications and applicable
AWWA/ANSI/NSF specifications. The Company may deny the right of Applicant
to provide a contractor who has a documented history of poor performance.
70. Each separate water main extension to and/or within a development shall be
subject to a separate agreement.
71. The Company with approval from the Idaho Department of Environmental Quality
shall be the sole judge as to the design of and the time of construction and/or
installation of any main extension.
- 18-
Attachment F
Case No. RES-04-
Staff Comments
02/17/05 Page 18 of
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Get a certificate of existence for RESORT WATER CO., INC.
RESORT WATER CO., INC.
500 UNION STREET, STE. 200
SEATTLE, WA 98101
Type of Business: CORPORATION , GENERAL BUSINESS
Status: GOODSTANDING, ANREPT SENT 01 Sep 2004
State of Origin: MINNESOTA
Date of 23 Nov 1998
Originationj Authorization:
Initial Registered Agent:CT CORPORATION SYSTEM
300 N 6TH ST
BOISE, ID 83701-4302
Organizational ID Filing C126400
Number:
Number of Authorized Stock
Shares:
Date of Last Annual Report: 29 Sep 2004
Amendments:
Amendment filed 23 Nov CERTIFICATE OF
1998 AUTHORITY
Annual Reports:
Report for year 2004 ANNUAL REPORT
Report for year 2003 ANNUAL REPORT
Report for year 2002 ANNUAL REPORT
Report for year 2001 ANNUAL REPORT
Report for year 2000 ANNUAL REPORT
Report for year 1999 ANNUAL REPORT
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\Vorkpaper 1
Case No. RES-04-
Staff Comments
02/17/05
1 of 1
RESORT WATER COMPANY
Calculation of Revenue Requirement
RES-04-
Ref.
Sheet Description of Revenue Factor Amount
Yearly Operating and Maintenance Expenses 122 058
Annual Depreciation Expense 544
Return on Equity ~11 % Grossed up 729
Revenue Requirement 212 331
Less Revenues with know and measurable
adjustment (395 ERUs X $33.00/month X12)156,420
Reven ue Deficiency 911
Rate on New revenue Requirement 537.44.
Workpaper 2
Case No. RES-04-
Staff Comments
02/17/05
RESORT WATER COMPANY
Description Amount
Improvements of water system from 12/8/98
Working Cash
Acquisition Adjusted Price
Total Rate Base
509 331
048
177 500
701 879
Less:
Accumulated Dep (76 781)
Contributions to Capital (128 609)
Net Rate Base 496 489
Return on Net Rate Base 11 %614
Return including allowance for taxes 729
Workpaper 3
Case No. RES-04-
Staff Comments
02/17/05
Resort Water Com pany
Income Statement and Tax Calculation
Revenue Requirement 212 331
Less O&M Expenses (122 058)
Less Depreciation (16 544)
Taxable Income 729
State taxes 7.603
Federal Taxable Income 126
15% of $000 500
25% of $126 531
635 ITotal Taxes Paid
Effective Rate of Taxes I 0.2588572291
Gross-up Factor I 1.3492676971
Workpaper 4
Case No. RES-O4-
Staff Comments
02/17/05
CERTIFICATE OF SERVICE
HEREBY CERTIFY THAT I HAVE THIS 17TH DAY OF FEBRUARY 2005
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN
CASE NO. RES-04-, BY MAILING A COpy THEREOF POSTAGE PREPAID
TO THE FOLLOWING:
DEAN J MILLER
McD EVITT & MILLER LLP
PO BOX 2564
BOISE ID 83701
TIM ELSEA PE DIRECTOR
RESORT WATER CO INC
165 VILLAGE LANE, SUITE A
SANDPOINT ID 83864
SECRET AR Y
CERTIFICATE OF SERVICE