28376.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION OF THE STONERIDGE WATER SYSTEM FOR APPROVAL OF A RECONNECTION FEE AND HOOK-UP CHARGE TARIFF. )
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CASE NO. SWS-W-00-01

ORDER NO. 28376

On November 16, 1999, the Commission issued Certificate of Public Convenience and Necessity No. 365 to Mr. Keith Garner dba Stoneridge Water System (Stoneridge; Company). Reference Order No. 28206, Case No. GNR-W-98-01. In its Order the Commission also approved a schedule of rates and directed the Company to file related tariff sheets. On December 1, 1999, the Company filed its tariffs. Included within the Company’s tariff filing was a tariff sheet for non-recurring charges, specifically reconnect fees and a hook-up charge. Since the non-recurring charges were not charges submitted, considered or approved by the Commission in Case No. GNR-W-98-01, Commission action was withheld pending further investigation and review. Reference Idaho Code 61-503; 61-501. This Order approves a hook-up charge of $925 and the following reconnection fees—$14 during office hours; $28 after hours.
Stoneridge Proposal
Pursuant to a tariff sheet submitted by the Company in December of 1999, Stoneridge requests approval of the following non-recurring charges:
Reconnection fees

Hook-up charge $14 during office hours
$28 after office hours
$2,000
Staff Analysis and Recommendations
Reconnection Fees
Pursuant to its filed Report in this case, Staff supports the Company proposed reconnection fees. Staff believes that they are reasonable and comparable to that charged by other small water companies.

Hook-up charge
Staff finds the Company proposed hook-up charge of $2,000 to be significantly higher than that charged by other regulated water companies. As represented by Staff, the average hook-up charge is approximately $500, with a range of roughly $250 to $845.
Pursuant to Staff request, the Company submitted documentation of the labor and material costs used as the basis for the proposed hook-up charge. Staff contends that the Company submitted material and labor expenses appear significantly higher than usual for new connections. The breakdown of expense, Staff notes, includes significant landscape repair expense. Based on its analysis, Staff concluded that the proposed $2,000 hook-up fee was for existing service lines, not new service connections. Staff requested that a second hook-up fee estimate be developed by the Company for new service connections. The Company replied that the proposed $2,000 hook-up fee represents its actual cost and that it is comparable to local municipalities in their area (e.g., Priest River and Sandpoint). The Company declined to provide additional cost information.
In the absence of a Company provided cost estimate for new service connections, Staff developed a proposed fee.
Company
Estimate Company basis for estimate Staff
Estimate Staff basis for estimate Water Meter, setting, box & piping $ 550.00 Estimated materials expenses only $192.02 Est. 1-inch meter associated fittings per Company info. Backhoe delivery $ 100.00 Third party rental; in-house back- hoe reportedly in disrepair $ Ø Assuming no rental required Excavation & installation expense $ 850.00 Backhoe w/operator; install
piping, setting, box, etc. from main line; 10 hrs @ $85/hr $220.00 Est. 2 hrs for backhoe operation & 2 hrs for meter installation Utility and water line locate $ 100.00 Contact utilities; locating lines difficult-installed 20 yrs ago; PVC lines; 4 hrs @ $25/hr $ 25.00 Est. 1 hr for line locate Excavation backfill & landscape repair $ 400.00 Backfill excavation, clean-up and repair/replace damaged land- scape; 8 hrs @ $25/hr $ 85.00 Est. 1 hr for backfill & clean- up; No repair/replace of landscape; new customer connections only Landscape supplies $ 50.00 Expense range for landscape
$ 500.00 supplies (e.g., grass shrubs, trees) $ Ø No repair/replace of land-
$ Ø scape; new customer connec- tions only Total (low est.)
Total (high est.) $2,050.00
$2,500.00 $522.02
Staff estimates that a reasonable hook-up fee for new service connections by Stoneridge is approximately $522. Staff contends that this is in line with the 1997 United Water Idaho (UWI) estimate of $525 for new service connections, UWI estimates of $700 to $750 to install meters on existing lines (Case No. UWI-W-99-02), and the range of hook-up fees charged by other small water companies. Staff proposes an effective date of April 14, 2000, to coincide with the beginning of the construction season.

COMMISSION FINDINGS
The Commission has reviewed and considered the filings of record in Case No. SWSW00-01 including the Company’s proposed tariff and Commission Staff’s filed analysis and recommendations. In calculating a reasonable hook-up charge the Commission considered the Company and Staff estimates set forth in the schedule above and finds the following price components to be reasonable:
Water meter, setting, box & piping
Backhoe delivery
Excavation and installation expense
Utilitize and water line locate
Excavation backfill & landscape repair
Landscape supplies $200.00
$100.00
$440.00
$100.00
$ 85.00
$ Ø

$925.00
We note that this Commission does not regulate municipal-owned water systems and does not use municipal charges and fees as a basis for determining reasonableness. Based on the established record, we find Reconnection Fees of $14 during office hours and $28 after hours and a Hook-Up Charge of $925 to be fair and reasonable for Stoneridge. Furthermore, we find it reasonable that the approved fees and charges be authorized for an effective date of April 25, 2000.

CONCLUSIONS OF LAW
The Idaho Public Utilities Commission has jurisdiction and authority over Keith Garner dba Stoneridge Water System, a water utility, and the issues raised in this Application, pursuant to Title 61 of the Idaho Code and the Commission’s Rules of Procedure, IDAPA 31.01.01.000 et seq.

O R D E R
In consideration of the foregoing and as more particularly described above, IT IS HEREBY ORDERED and the Commission does hereby approve and establish the Reconnection Fees and Hook-Up Charge for Stoneridge, as set out above. Mr. Keith Garner is required to file tariff sheets consistent with this Order.
IT IS FURTHER ORDERED and the Company is required to inform its customers of the Commission approved rates and charges.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for reconsideration within twenty-one (21) days of the service date of this Order. Within seven (7) days after any person has petitioned for reconsideration, any other person may cross-petition for reconsideration. See Idaho Code § 61-626.

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this _______ day of May 2000.

DENNIS S. HANSEN, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

PAUL KJELLANDER, COMMISSIONER

ATTEST:

Myrna J. Walters
Commission Secretary

vld/O:SWS-W-00-01_sw

ORDER NO. 28376 1

Office of the Secretary
Service Date
May 11, 2000