20070426Comment.pdf

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Idaho Public Works Commission
P. O. Box 83720,
Boise, Idaho 83720.,0074
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Re: Case # SWS-06-
Joe lecke
In the enclosed Notice of Application to Increase Rates from
Stoneridge, there has to be a calculation error or a typo error on the
percentage for Residential for HVR (copy attached).
When we, Happy Valley Ranchos, were approached by Stoneridge to
hook on to their water system we were assured by Stone ridge and
their engineer, that there were two good operating wells drawing water
from the aquafer.(Advantages of Stoneridge Water System , Paragraph
1). We had a meeting of all interested water users so Stoneridge,
their engineer and the Idaho Public Works Commission would give us the
advantages of hooking on to Stoneridge Water and this was one of the
deciding factors, since we were told we would have to have our own
second well to continue operating Happy Valley Water.
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There are two records of currently needed improvements to
Stoneridge Water Co. at the time of our decision to merge with them.
One in the Advantages of Stoneridge Water System , Paragraph 6 and
another in the letter Stoneridge wrote to Happy Valley Water , dated
June 14 , 2002 Paragraph 6, telling us there were additional costs that
Stoneridge was looking to do but those additional costs would not be
borne by Happy Valley Ranchos.
We could have hired an attorney to negotiate with Stoneridge to help
with the cost but decided to work with Stoneridge ourselves. We had
to come up with some figures on laying the pipes, etc, to hook up to
our existing water system. It started at about $167 000.00 and kept
going up from there, ending with our hook up cost $278,000.00, totally
born by Happy Valley Ranchos Water.
Page two - Case SWS-06-01 -Campilli
Now you want us to pay for the improvements Stoneridge did to their
water system , which would make our hook up price to be $438,457.
which is more than double our original estimate.
Also when asked why Stoneridge wanted us to be on their system , their
response was it would mean more users for their under-utilized water
system allowing them to run it more effectively and it would benefit
them when they applied for funds for the additional improvements they
were going to do to their system (next to the lastparagraph of their
letter dated June 14, 2002). In light of the added customers from
Happy Valley Ranchos Water and the added users they are getting on
their property we do not understand why they would even have to ask
for a raise in water rates.
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In essence, as explained at the meeting of April 21 , it appears that
Happy Valley customers are asked to pay for our original hook up, plus
the improvements to St6neridge Water System and pay for an
increase in water rates. If this is the case, we have been badly misled
by every one concerned.
Sin Rerely"
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Olvaldo & Helen Campilli
96 Meadow Drive,
Blanchard, Idaho 83804
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J:muary 12 2007
Notice of Application to Increase Rates
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rt d an Application with the Idaho PublicThill i8 ~() Itutify you ~hl1t on November 20, 2006 StoneR, ge ater ompany ,e ,
lie RanchosUtilities Commission (lPUC) asking to allow for the closin~ out of~hase I and Phase II loans fo~ the lIap
py h \ \-u fees(HYR) annexation and surcharge associated thereto, for an Increase tn the monthly user fees, an Increase In It ~ 00 an increase in the disconnectionlreconnection fees and for clarifications and changes to the Rules and Regu ahons,
ht the Application StoneRidge Water Company is proposing a revenue increase of $153 52?, which represents an ove;anincrease in rates of 161 %, to be applied to all classes of customers, The proposed changes tncl~de: I) A monthly fe~ o
f hthe HYR loan will be imposed on all those current and future customers that were or will be added as a resu tot e~;~c
:nnexation. 2) A monthly service fe~ to service the well repair loan will he.imposed on all curre Lalld!-\J.tlW:-.cust mers within the StoneRid e Water Come.any service l:errit~3) A monthly user fee tncrease WIll be Imposed ~n allcurrent and fut re customers wi hin the StOne Ridge Water Company service territory. 4) A dIsconnect/reconnect fee Increasewill be imposed on all customers choosing to have their water s~ut off and turned on at a lat~r da~e, 5) A hook up feeincrease will be imposed on all customers requesting a new servIce connectIOn, 6) And clanficatlOns and changes to some ofthe General Rules and Regulations.
The following table shows the proposed increase by customer class:
Customer Class Revenue from the Revenue from the % increaseExisting Rates Proposed Rates In RevenueResidential SR $30 260 $58 221 92%Resiaerifi-aLHVR '$:269(j8
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549
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:93%Residential - Timeshare 532 $70 015 1882%Commercial - CDS 512 977 97%Commercial - Timeshare $885 817 105%Golf Course Irrigation $19 500 $30 606 57%Total $82 657 $236 186 ;).15,3.(161%
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The proposed increase is necessary so that StoneRidge Water Company will have an opportunity to earn a return on its
investments in water facilities which are providing service to customers, StoneRidge Water Company has invested nearly
$450 000 since the last rate increase, in addition to borrowing $439 000 in State Loan Revolving Funds to interconnect theHVR water system and refurbish the backbone system that have not yet been allowed for recovery in
the Company s rates.An increase in revenue is necessary to support these investments and to maintain a sound financial position, Additionally on
going costs of operations have increased since StoneRidg~ Water Company
s last general rate case,
The proposed increase in rates is subject to review and a decision by the IPUC
, which may accept, modify or reject in wholeor in part the proposed increase. A complete copy of the proposal is available at the StoneRidge Water Company
s office atC"hatwold Road, Blanchard, Idaho and at the Idaho Public Utilities Commission s office at 472 W, Washington, Boise, Idaho83702-5983, It is also available on-line at the IPUC website:hltp:llwww ,DUC. idaho,gov/internet/cases/summarv ,SWSW060 I,html
You can also file a comment on the Applicationvia the IPUC web site at:
http://www.Duc.idaho.gov/forms/iDuc/iDuc,html
Or mail comments to:Idaho Public Utilities Commission
O. Box 83720
Boise, Idaho 83720-0074
ublic worksho will be held in the Blanchard Area b the IPUC staff to dis ense information and receive comments.Time and date to be set by the IPUc.
Sincerely,
StoneRidge Water Company
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MEMORANDUM
DATE: November 27. 2002
" TO: "'-" Happy Va~ley Ranchos Owners Association
, FROM: Eric J. Eldenburg, P.
SUBJECT: Advantages/Disadvantages of Connection w/Stoneridge Water System
The following list represents those adv~mtageS/disadvantages that I have briefl~ ~hought ofrelated to connection of the HVR water $yst~m to the Stonendge water system.
12.
13.
ADVANTAGES: '
. . . .
1. Excellent water Quality with no treatment, other than minImal disInfectIon,2. The expensive and labor intensive HVR filtration system can be abandoned.3. Over 300,000 9;:1110'18 of water storage available for emergencylftre flow use..~t. ' WaterSlJI)P\y-pt9Vlded-bYiwq wetls.f9( redundancy.;5, Fire flow available to loWer pressure tier. 6. Merging will allow the following:
a. One set of operators Instead of two.b. One set of water quality tests instead of
tWo.c. One set of administrators instead of two.
The Happy Valley Ranchos Water, Ine board can be abandoned.When the DEQ loan is paid off, water rates will be less expensive than before the merger.All operation and maintenance work accomplished by existing salaried Stoneridge
personnel. who are available 24/7.
Stone ridge Utilities Company owns a backhoe, which results in less cost for maintenancerequiring excavation.
As a result of the merger process, the HVR water system will be upgraded to includeadditional blowoffs, new fire hydrants, re-coating of existing steel tanks, and additionalstorage capacity at Upper reservoir site.
less work/stress/headaches for HVR residents who serve on the board,Stoneridge personnel available during normal working hours for questions/comments.
10.
11.
." OISADV ANT AGES:1. less local control over water system issues.
Higher water rates until the DEQ loan is paid off.
DEQ LOAN SPECIFICS:
The DEQ loan program will retroactively fund engineering costs as long
as the contract forengineering services is approved by the DEQ before costs are incurred, The
engineer would alsohave to meet the Errors and Omission Insurance requirements ($100
000 or 2 x engineeringcontract amount, whichever is greater). Prior approval by the DEQ is also required for any other,project-related cosls incurred before the loan is approved.
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Ed Ba1nis~;.
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Happy Yalley Ranchos Watcr, Inc.
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Dear Kathi 'and Ed
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F~t I'd lik~ to thank both ofyoD, the board-ofH~ppy Yaney Rancho
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Inc. and
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the users, for the opportunities you have provided for us to discuss a potential
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:relationship between Happy Valley Ranchos and CDS Stoneridge Utilities
, LLC. This
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' letter is to outline the tenus of the potential relationship between Happy
Valley Ranchos
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: Water Inc. and CDS Stoneridge Utilities, LLC doing business as Stoneridge UtilityCompany~'
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:-::-":"Xs -per'ourpresentation at your annual meeting on Thursday, May the
16th and the follow:;: on meeting we had on Friday, May 31 $1 2002, outlined below is the structure and' estimated timeline.
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ii\~.Jn order for Stoneridge UtiIityCompany to service the Happy Valley Ranchos water
;i;':, "users and provide a level of tire protection to a portion of the Happy Valley Ranchos
: co~unity,it is estimated that approximately $168 600 of work will neeq to be done.
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. This will enable ail users to receive water from the Blanchard
VaHcy aquifer, which hassome of the best quality water in the state. Additionally, fIre protection
will be brought in~~i' \, to a portion of the homesites that will allow
for an estimated decrease in insurancepremiums to those users of$40-$100 .:umually. '
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The Idaho Public Utilities Commission
(!PUC) regulates water service provided by thee ,Stoneridge Utility Company. Currently the charge for residential customers is a
$14/mQnth meter charge. Additionally, there is a commodity charge ofSO.
30/1 OOO;:), : gallons for aU consumption. Other relevant charges are Rc-Connect Fees of$14 during: office hours and $28 after office hours. It should be noted that because
ofthe seasonality
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' of our user base we have an application into the IPUC to inc:ease this Re-
Connect Fee to$50. Th~re is also a Hookup Charge of $925 for any new users that would want to come
onto the system. This charge would not apply to anyone who converts from your system
to ours at the time of connection to Stoneridge Utility Company water system,
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'- 'c'" At thisp~in:t Eric 'Eldenburg fl.'om Sewell Engineeringhas submHted a letter on,botll of' ,our behaIPs to the Idaho Department of Environmental Quality (DEQ) in Coeur d' Alene
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, to request ourpl~~ement on a Priority Funding List !or?,
~99~~tI!:-?~ Program.
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wa;t~r:1i~~X:S:fr~m'Hfippj~"anef;'R~hCh()S.lA.~O'pYPJgrip s leller is att:.lehe~ with the bf6\\t&6;WJi'o(w()rk:~lidcbsts. ,,
It is our understanding from meeting with John Tindall oflhe DEQ that there are l~~fe than adequate funds available from the PtOiority Funding List Loan Pfogram to facIlitatethIs project. Furthell1l0re, John has indicated that the costs of these funds would be 2%
' amortized over 20 years.
, Ass l1ning an average consumption of 10 000 gallons per month and 8S homes would
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' hookup tq the Stooeridge water system , Happy Valley Ranchos Olontl1ly billing would
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Assessment for system wide hookup to Stoncridgc $10.
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(TIlls is the $168 800 at 2%/20 year amort spread over 85 users)
~:~""~.:~U~i L..,, , TOTAL MONTHLY CHARGE $27.
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SWewouldneed to look at tillS assessment on an annual basis, as theoretically the 85 users
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w6uld i~crease as new users hookup trom Happy Valley Ranchos
, as such thiskLLi"asses~.t:ne!1.~_9()u1d be spread across a larger user base and hence the assessment amount
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would decrease for the individual user.
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13 .sed oifourinitial meetiog and tile followio!: meeting we had, iI is my assumption Ihat
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you wil! eventually dissolve the current Happy Valley Ranchos Water Company, As
such, tile structure ofthis relalionship would hetliat the individual walcr consumer
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C: Happy Valley Ranchos would be a water customer of the S
tonerid ge Utility Company,
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with a monthly estimated rate as identified above. Any increase in this rate structure
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aling body nver allt~, wat~~;~ry~~echarges of the Stoneridge Utility Company.
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f/f' :~;The chain of events to get the individual user at Happy Valley Ranchos to be a
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" Stoneridge customer would be:
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A written agreement in concept has to be reached between Happy Valley Ranchos
Water, Inc. and Stoneriqge Utility Company. This agreement would need to
cover:
1. Capital Improvements necessary and agreed to connect Happy Valley
Ranchos users to Stoncridge Utility Company.
2. Which entity would apply for the DEQ funds for the improvement-
It is myunderstanding that Stoneridge Utility should apply, as this entity has more
assets, and it will be the sW-viving entity once all users
are hooked in; and
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