20020405Final Order No 28994.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF AN APPLICATION REGARDING THE SALE OF THE STONERIDGE WATER SYSTEM (CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY nO. 365) BY KEITH GARNER AND ISSUANCE OF A NEW CERTIFICATE FOR THE SERVICE AREA TO CDS STONERIDGE ASSOCIATES—LAND, LLC AND A REQUEST FOR A RECONNECTION/STAND-BY FEE.
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CASE NO. SWS-W-01-01

ORDER NO. 28994

On December 21, 2001, the Idaho Public Utilities Commission (Commission) received an Application apprising the Commission of the sale of the Stoneridge Water System and requesting that existing Certificate of Convenience and Necessity No. 365 in the name of Keith Garner dba Stoneridge Water System be cancelled and a new certificate for the service area be issued to CDS Stoneridge Associates-Land, LLC (CDS). Reference Idaho Code § 61-526; IDAPA 31.01.01.111. The Stoneridge Water System is a public utility providing water supply to the Stoneridge golf resort community near the town of Blanchard, in Bonner County, Idaho. CDS is a Utah Limited Liability Company qualified to do business in Idaho dba Stoneridge Water Company. The Application (as amended by letter dated February 01, 2002) also requests approval of a reconnection fee of $50 or at the customer’s option, a $14 stand-by fee for each month during the period of discontinued service. No other change in rates or charges is requested.
Accompanying the Application are copies of:
A Purchase and Sale Agreement between Keith Garner and Cully W. Davis (or related assigns) dated November 8, 2000 together with an addendum dated December 22, 2000.

A Bill of Sale dated March 29, 2001.

A Special Warranty Deed dated March 29, 2001 bearing the stamp of the Bonner County Recorder indicating it was filed as Instrument No. 579483 on April 2, 2001.

An inventory of Real Property transferred in the sale.

An inventory of Personal Property transferred in the sale.

A set of Financial Statements for purchaser for October 2001.

A Certificate of Existence for CDS Stoneridge Associates-Golf, LLC from the State of Utah.

An Application for Registration of Foreign Limited Liability Company bearing the stamp of the Idaho Secretary of State.

Commission Notices of Application and Modified Procedure in Case No. SWS-W-01-1 issued on February 8, 2002. The deadline for filing written comments was March 1, 2002. All customers were provided with a copy of the Commission’s Notice. The Commission Staff was the only party to file comments.
Commission Staff notes that CDS has been operating this water system since January 1, 2001 and that CDS has retained the Stoneridge Water System employee responsible for the operation and maintenance of the system. Staff believes that CDS has demonstrated both the financial and technical ability to operate and maintain the water system. Staff recommends that CDS be directed to segregate the water system operation from the other business activities of CDS. Staff further recommends that all water system assets be separately identified and that an accounting system consistent with the Commission’s Annual Report Form be established.
As reflected in Staff’s comments, Staff researched Commission case files for the Stoneridge Water System and discovered that a reconnection charge was approved by Commission Order No. 28376 in Case No. SWS-W-00-1. That Order approved reconnection fees of $14.00 during office hours and $28.00 for after office hours. The owner, Keith Garner, was directed to file tariff sheets consistent with the Order. Mr. Garner, it appears, never filed the tariff nor did he provide the information to the buyer. Staff has discussed these disconnect/reconnect charges with the Applicant’s representative, Mr. Roger Sanders, who has agreed that the charges approved by Order No. 28376 are acceptable for the time being.
COMMISSION FINDINGS
The Commission has reviewed and considered the filings of record in Case No. SWSW01-01, including Staff’s comments and recommendations.
Based on the established record and a review of Idaho Code Title 61, we find it reasonable to approve the sale of the Stoneridge Water System to CDS. We find it reasonable to cancel Certificate of Convenience and Necessity No. 365 issued to Keith Garner and issue a new Certificate No. 395 to CDS Stoneridge Associates-Land, LLC dba Stoneridge Water Company. In so doing, we require that CDS operate the public water utility as a separate business entity, separate and distinct from all other business activities.
As a regulated water utility, CDS is required to adopt the Commission’s Utility Customer Relations Rules, Utility Customer Information Rules, and an accounting system consistent with the information required by the Commission’s Annual Report for small water companies. A separate accounting system is to be established for the water system activities and detailed receipts of time records are to be maintained.
Previously approved rates or charges for water service to the Stoneridge Water System continue to be effective. The Commission notes that CDS has agreed to abide by the previously approved disconnection and reconnection charges. Reference Order No. 28376. While we find it reasonable for the Company to require a two day advance notice for disconnection, we find the requirement of a written request to be unreasonable. CDS is directed to file new tariff sheets reflecting authorized rates, including non-recurring charges and general service provisions.
CONCLUSIONS OF LAW
The Idaho Public Utilities Commission has jurisdiction and authority over CDS Stoneridge Associates-Land, LLC dba Stoneridge Water Company, 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 cancel Certificate of Public Convenience and Necessity No. 365 previously issued to Mr. Keith Garner dba Stoneridge Water System, Bonner County, Idaho.
IT IS FURTHER ORDERED and the Commission does hereby issue Certificate of Public Convenience and Necessity No. 395 to CDS Stoneridge Associates-Land, LLC (CDS) dba Stoneridge Water Company for service to the Stoneridge water system in Bonner County, Idaho. CDS is required to furnish a more precise legal description of the served area for the Certificate file.
IT IS FURTHER ORDERED and the Commission does hereby authorize continuance of the rates and charges for water service previously established and approved for the Stoneridge Water System. CDS is required to file new tariff sheets, signed by an authorized representative, reflecting the name of the new owner.
IT IS FURTHER ORDERED and CDS is required to adopt and implement the Commission’s Customer Relations Rules (IDAPA 31.21.01), Customer Information Rules (IDAPA 31.21.02), and Small Water Policies (IDAPA 31.36.01) including an accounting system consistent with the information required by the Commission’s Annual Report for small water companies.
IT IS FURTHER ORDERED and CDS is required to inform its customers of the Commission approved rates and policies.
IT IS FURTHER ORDERED and CDS is required to make written petition or application to the Commission prior to any proposed change in ownership of the Stoneridge Water Company system.
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 with regard to any matter decided in 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 April 2002.

PAUL KJELLANDER, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

DENNIS S. HANSEN, COMMISSIONER

ATTEST:

Jean D. Jewell
Commission Secretary

vld/O:SWSW0101_sw

ORDER NO. 28994 1

Office of the Secretary
Service Date
April 5, 2002