20150519Comment.pdf

r’r;:
Rich Lowe V •
61 Snowplow Lane 29
Schweitzer
Sand point,ID 83864 -E
Li I IL,
Chris Hecht
Public Utilities Commission
P.O.Box 83720
Boise,ID 83720-0074
Comment on Case SCH-W-15-01 Schweitzer Basin Water Company
In 2005,Mel Bailey and Marsha Bell,the current applicants,sent a letter of comment
on Case No.RES-W-04-01 to the Public Utilities Commission.Although they did not
mention it,they were,and are,perfectly qualified to comment as they own and operate
the adjacent Schweitzer Basin Water Company (SWBC),a system that is very
similar in size,physical plant,water source,revenues,and customer base as the Resort
Water Company (RBC).
Although they state initially that they favor the increase,not surprising as each
companies rates are used to justify the other’s,the rest of the letter argues against the
RWC and its management.It now comes to pass that these same arguments apply to
their application.
One of Bailey and Bell’s comments is that “...operating expenses seem to be unusually
high...”.RWC’s operating expense in 2005 was $104,084,and had risen to $126,099 in
2014.Schweitzer Basin Water Company has a 2014 operating expense of $237,055.
As the Bailey and Bell letter states,“The number of personnel should be efficient for the
operation or the operation should be contracted out or sold.The rate payers at
Schweitzer cannot be responsible nor expected to pay for a poorly managed and
operated utility.”Some of the interested parties are trying to develop the costs involved
with the first option and first indications are that there are large savings available.
The letter complains about the passing of costs of the parent company’s development to
the ratepayers.In the SBWC’s case,the concerns are “employee housing”,equipment
tar in excess of what is needed,and some never observed to be connected with water
operations.
Both of these companies practice obscure accounting and intermingling with the
owner’s other interests,and attempts to pass along costs incurred elsewhere
to the rate payers.In the Resort’s case,it seems to be mainly snowmaking water,
development expenses,and labor allocation.In SBWC’s case,it is a Bed and Breakfast,
real estate ownership and management,and personal life style.
I greatly appreciate the effort the Public Utilities Commission expends to control these
natural monopolies,and the attention given to those of us at their mercy.