20070213Decision memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
CO MMISSI 0 NER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
FROM:DONOVAN E. WALKER
DATE:FEBRUARY 13, 2007
SUBJECT:STONERIDGE WATER COMPANY'S APPLICATION TO INCREASE
RATES AND MODIFY RULES AND REGULATIONS - CASE NO. SWS-
06-01.
On November 20, 2006, Stoneridge Water Company filed an Application with the
Commission seeking "to allow for the closing out of Phase I and Phase II loans for the Happy
Valley Ranchos annexation and surcharge associated thereto, for an increase in the monthly user
fees, an increase in the hook up fees, an increase in the disconnection/reconnection fees and for
clarifications and changes to the Rules and Regulations.
On December 18 , 2006, the Commission issued Order No. 30204, Notice of
Application and Notice of Modified Procedure, authorizing the use of Modified Procedure to
process this case. A comment deadline was net set at that time, as Staff wished to coordinate
workshops on several North Idaho cases into one trip. The Notice states that a comment
deadline will be established by subsequent Commission Order/Notice. On February 12, 2007
the Commission received a Petition to Intervene filed by Cindy Thomas, Resort Manager, on
behalf of the Stoneridge Recreational Club Condominium Owners Association Inc., dba
Stoneridge Resort. A public workshop is currently scheduled in this case for February 21 , 2007.
Staff now recommends establishing a comment deadline.
THE APPLICATION
The Company filed a fairly comprehensive Application following the pattern
available on the Commission s web page for small water company Certificates of Public
Convenience and Necessity. In fact the Company titled its Application as that for the issuance of
a Certificate. However, the Company currently possesses a Certificate See, Order No. 28994
DECISION MEMORANDUM
and it is clear from a review of the Application that it is requesting a general rate case. The
Company has not requested a specific effective date for the proposed new rates.
The Company had previously taken out a series of loans from the State Drinking
Water Revolving Fund totaling approximately $438 500. See Case No. SWS-04-, Order
No. 29719 (authorizing the loan amounts and describing the background surrounding the loans
system expansion, and system improvements).The Commission, in its previous Orders
authorizing the Company to incur the indebtedness, specifically reserved judgment on the
appropriate amount of the surcharge for Phase I interconnection. Order No. 29719 at 5. The
Commission also specifically reserved judgment on how the Company may collect the cost of
the backbone system improvements for Phase II. Id.
According to the Customer Notice prepared by the Company, its request to the
Commission consists of 6 parts: "1) A monthly fee to service the Happy Valley Ranchos loan
will be imposed on all those current and future customers that were added as a result of the
Happy Valley Ranchos annexation. 2) A monthly service fee to service the well repair loan will
be imposed on all current and future customers within the StoneRidge Utility service Territory.
3) A monthly user fee increase will be imposed on all current and future customers within the
StoneRidge Utility service territory. 4) A disconnect/reconnect fee increase will be imposed on
all customers choosing to have their water shut off and turned on at a later date. 5) A hook up
fee increase will be imposed on all customers requesting a new service connection. 6) And
clarifications and changes to some of the General Rules and Regulations.
The Company states that it currently has 374 customers, and will ultimately have
approximately 1207 customers with the planned developments within its service territory. It
appears that the Company is requesting to increase rates as follows:
Customer Charge Commodity Charge
Residential
Commercial
from $14/mo. to $38/mo.
from $20/mo. to $38/mo.
Irrigation $38/mo.
from $.30/1 ,000g to $.67/1 ,000g
from $.30/1 ,000g to $.67/1 ,000g
67/1 000g
The Company s existing Tariff also contains rates for:
Time Share $200/mo.
Complex
Golf Course
Irrigation
$1200/mo.
30/1 ,000g
30/1 ,000g
DECISION MEMORANDUM
The Company is also proposing to increase its hook-up fee for new service from $925 to $1 200.
The Company also proposes increasing its reconnection to $278 during office hours, and $328
after office hours. This amount equates to six months base charge plus $50 and $100
respectively. The Company s currently authorized reconnection fees are: 1) disconnected for 30
days or less - during office hours, $14 and after office hours, $28; and 2) disconnected for more
than 30 days - during office hours, $50 and after office hours, $64.
STAFF RECOMMENDA TON
Staff recommends a comment deadline of April 27, 2007.
COMMISSION DECISION
Does the Commission wish to establish a comment deadline of April 27 , 20077 Does
the Commission wish to grant the Petition to Intervene filed by Stoneridge Resort?
DECISION MEMORANDUM