20060828_1649.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEG AL
FROM:WELDON STUTZMAN
DATE:AUGUST 21, 2006
SUBJECT:CASE NO. SPL-06-
SPIRIT LAKE EAST WATER COMP ANY'S APPLICA TION TO
INCREASE RATES
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
200 to $2 500. The Company proposed an effective date of September 14 2006 for the new
rates.
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
by processed by Modified Procedure.
Because it is not possible for Staff to complete the necessary audit and review of the
Company s Application prior to the proposed effective date for new rates, Staff recommends the
DECISION MEMORANDUM
Commission suspend the Company s proposed effective date, and that a notice of the Company
Application be issued. Once Staff has completed its initial investigation of the Company
Application, Staff will make a recommendation regarding the procedure to complete the
Commission s review of the Application.
COMMISSION DECISION
Should the Commission suspend the proposed effective date of September 14, 2006
for new rates for Spirit Lake, and issue a Notice of Application including a deadline for
intervention of September 15 , 20067
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Weldon B. Stutzman
bls/M:SPL-O6-01 ws
DECISION MEMORANDUM