20060829notice_of_application_order_no_30119.pdf

Office ofthe Secretary
Service Date
August 29, 2006
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF SPIRIT LAKE EAST WATER COMPANY
FOR AUTHORITY TO INCREASE ITS
RATES AND CHARGES FOR WATER
SERVICE IN THE STATE OF IDAHO
CASE NO. SPL-06-
NOTICE OF APPLICATION
ORDER NO. 30119
YOU ARE HEREBY NOTIFIED that on August 14, 2006, Spirit Lake East Water
Company filed an Application requesting authority to increase its rates and charges for water
service. The Company requested approval to increase its rates from $12 to $24 for the first 9 000
gallons of water usage, and from $.10 to $.20 for every 100 gallons of water used by a customer
over 9 000 gallons per month. In addition, the Company asked approval for an increase in the
connection fee for new service from $1 200 to $2 500. The Company proposed an effective date
of September 14 2006 for the new rates.
YOU ARE FURTHER NOTIFIED that Spirit Lake has been providing water service
for nearly 23 years and currently provides service to 280 customers in Kootenai and Bonner
Counties, Idaho. The Application states that the Company s rates for consumption have not
changed since initially approved by the Commission in November 1983. In June 2004, the
Commission approved an increase in the Company s connection fee from $650 to $1 200. The
Company states that the $2 500 connection fee it now proposes is the actual cost it incurs in
connecting a new customer to the water system. The Company is requesting the new service
connection fee to cover the amount actually paid to outside contractors who perform the
connection work. The Company requested its Application be processed by Modified Procedure.
After Staff completes its initial investigation of the Company s Application, Staff will make a
recommendation regarding the procedure to complete the Commission s review of the
Application.
YOU ARE FURTHER NOTIFIED that the Company has filed certain exhibits and
workpapers. These documents are on file with the Commission Secretary at the Commission
office, 472 West Washington Street, Boise, Idaho, where they may be reviewed as a matter of
NOTICE OF APPLICATION
ORDER NO. 30119
public record during regular business hours. Interested persons may also view Spirit Lake
Application at the Commission s website www.puc.idaho.gov under the "File Room" icon.
YOU ARE FURTHER NOTIFIED that the following persons are designated as Spirit
Lake s representatives in this matter:
John R. Hammond, Jr.
Batt & Fisher, LLP
101 S. Capitol Boulevard, Suite 500
PO Box 1308
Boise, Idaho 83701
E-mail: irh~battfisher.com
Robert 1. Boyle
15807 E. Indiana Avenue
Spokane, Washington, 99216-1814
E-mail: admin~hansonind.com
All communications with reference to this Application should be served upon the
above named representatives of Spirit Lake.
YOU ARE FURTHER NOTIFIED that Spirit Lake s revenue requirement, and every
component of it, both rate base and expense, are at issue. The Commission may grant, deny, or
modify the revenue requirement requested and may find a revenue requirement different from
that proposed by any party is just, fair and reasonable. IDAP A 31.01.01.124.01.
YOU ARE FURTHER NOTIFIED that the rates and charges of all Idaho retail
customers, both recurring and non-recurring, including those of any special contract customers
are at issue, and every component of every existing and proposed rate and charge is at issue. The
Commission may approve, reject or modify the rates and charges proposed and may find that
rates and charges different from those proposed by any party are just, fair and reasonable.
IDAPA 31.01.01.124.02.
YOU ARE FURTHER NOTIFIED that the Commission may approve, reject or
modify existing or proposed relationships between and among rates and charges within, between
or among customer classes or rate groupings and may approve, reject or modify existing or
proposed relationships among and between customer classes or rate groupings.IDAPA
31.01.01.124.02.
YOU ARE FURTHER NOTIFIED that the Commission may abolish, reduce or
create rate blocks or categories of rates and charges , abolish, create or reduce components of
rates and charges , abolish, reduce or create customer classes or rate groupings, and abolish
reduce or create absolute or relative differences among and between existing classes or rate
groupings of customers. IDAPA 31.01.01.124.02.
NOTICE OF APPLICATION
ORDER NO. 30119
YOU ARE FURTHER NOTIFIED that the tariffs, practices, rules and regulations
serVice, instrumentalities, equipment, facilities , classifications, and customer relations of the
utility are at issue, and the Commission may address any of them in its order.IDAPA
31.01.01.124.02.
YOU ARE FURTHER NOTIFIED that the Commission Staff shall conduct an audit
of the Company s Application, workpapers and all documents and files relevant to this matter.
Following such audit, the Staff shall present to the Commission its findings and
recommendations. After reviewing the Staffs audit and recommendations, the Commission will
issue an Order regarding the further processing of this rate case.
YOU ARE FURTHER NOTIFIED that the Commission has jurisdiction over this
matter pursuant to Title 61 of the Idaho Code, and specifically Idaho Code 99 61-502, 61-622
and 61-623.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission s Rules of Procedure, 31.01.01.000 et seq.
SUSPENSION OF PROPOSED EFFECTIVE DATE
Due to the complexities of this case and other constraints on the Commission s time
the Commission finds that it cannot resolve Spirit Lake s requested rate increase before the
proposed effective date of September 14, 2006. Pursuant to Idaho Code 99 61-622 and 61-623
the Commission hereby suspends the proposed rates for a period of thirty (30) days plus five (5)
months from September 14, 2006, or until such time as the Commission enters an Order
accepting, rejecting or modifying the request in this matter.
ORDER
IT IS HEREBY ORDERED that the proposed schedules of rates and charges
submitted by Spirit Lake in this matter are suspended for a period of thirty (30) days plus five (5)
months from September 14, 2006, or until such time as the Commission enters an Order
accepting, rejecting or modifying the request in this matter.
NOTICE OF APPLICATION
ORDER NO. 30119
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this ;Z?
day of August 2006.
MARSHA H. SMITH, COMMISSIONER
ATTEST:
~l\)Je D. Jewell
Commission Secretary
bls/O:SPL-O6-01 ws
NOTICE OF APPLICATION
ORDER NO. 30119