20050224Notice of Application Order No 29716.pdf

Office of the Secretary
Service Date
February 24 2005
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF TERRA GRANDE WATER FOR
INTERIM RATE RELIEF AND FURTHER
PROCEEDINGS TO ESTABLISH JUST AND
REASONABLE RATES
NOTICE OF APPLICATION
CASE NO. TGW-O5-
NOTICE OF MODIFIED
PROCED URE
ORDER NO. 29716
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that on February 9 2005 , Terra Grande Water filed
an Application with the Commission requesting immediate interim rate relief further
proceedings to establish just and reasonable rates, and deferred accounting treatment for excess
water supply costs above interim rates if appropriate. This Application is based upon the
emergency interconnection of Terra Grande Water with United Water Idaho Inc.
YOU ARE FURTHER NOTIFIED that on June 8, 2004, the Commission issued
Terra Grande Water a Certificate of Public Convenience and Necessity and authorized the
Company s current two-season flat rate fee schedule of $26 per month in the summer and $16
per month in non-summer months. Order No. 29512 (Case No. TGW-04-1). Additionally,
that Order initiated an investigation of the Company. Idaho Code ~~ 61-501 , 61-503. The
purpose of the investigation is to establish: (1) whether the existing flat rates for water service
are just and reasonable; and (2) whether Terra Grande provides and maintains "service
instrumentalities, equipment and facilities (that) promote the safety and health of its patrons
employees and the public (and is) in all respects adequate, efficient, just and reasonable.Idaho
Code ~ 61-302.
YOU ARE FURTHER NOTIFIED that on January 21 and January 24, 2005 , the
Commission was informed by the Company and by the Department of Environmental Quality
(DEQ) that the three water supply wells of Terra Grande were contaminated with
Trichloroethylene (TCE), a hazardous chemical. Customers were notified on January 21 , 2005
not to consume the water and to minimize all other uses of the water. DEQ recommended an
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29716
emergency interconnection of Terra Grande s water system to United Water s supply system
and offered to make funds available from the Idaho Hazardous Waste Emergency Response
Fund to pay for the costs of making the connection. On January 28 2005 , the Commission was
notified that the interconnection with United Water was completed.
YOU ARE FURTHER NOTIFIED that, according to its Application, Terra Grande
has provided water service to the Terra Grande subdivision for over 50 years, and currently has
approximately 117 residential customers. The Company states that it notified customers of the
contamination on January 21 2005 , and advised them to cease the use of water for drinking and
to minimize all other uses, such as bathing and showering. The Company also started supplying
bottled water to its customers and arranged for them to purchase water at wholesale price from a
Wal-Mart across from the subdivision. Terra Grande notified customers that it would provide
them with a billing credit against future bills for their purchase of water. According to the
Application this credit amount has not yet been calculated. Terra Grande and DEQ are working
together to determine the cause of the contamination, but have not yet been able to identify the
party responsible for the contamination of the Company s water source.
YOU ARE FURTHER NOTIFIED that the Application states that the connection
with United Water s supply system was completed on January 28 2005 , and United Water began
providing water service to the Company around 5:00 p.m. on that same day under United
Water s current Schedule 1 , General Metered Service. This connection consists of: (1) a 3"
meter installed in a concrete vault; (2) 4" pipe connecting the United Water system with Terra
Grande s system; and (3) a backflow device to prevent any residual contamination from the
Terra Grande system from entering into United Water s system. DEQ provided funds from the
Idaho Hazardous Waste Emergency Response Fund to pay for the costs for the emergency
connection.
YOU ARE FURTHER NOTIFIED that, according to the Company s Application
United Water s charges under Schedule 1 for general metered service consist of a volume charge
for all water use of $0.9825 per 100 cubic feet (CCF) in the winter, and $1.2281 per CCF for the
summer. In addition, United Water assesses a customer charge for a 3" meter of $82.42 bi-
monthly. Summer rates apply for all water consumed between May 1 and September 30 each
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29716
year. United Water also assesses a $.50 bi-monthly charge as required by DEQ to fund the State
Drinking Water Program and a 3% Municipal Franchise Fee as required by the City of Boise.
Interim Rate Relief
YOU ARE FURTHER NOTIFIED that Terra Grande Application requests
immediate interim rate relief, effective as of the date they filed the Application, February 9
2005. The Application states that the Company requests this immediate authorization to change
its rates based on an emergency that was beyond its control and that has unexpectedly increased
its expenses on short notice. The Company asserts that it has shown good cause for the
Commission to approve its request for interim rate relief on less than thirty (30) days notice.
Idaho Code ~ 61-307; IDAPA 31.01.01.121 and 31.01.01.122.02. Additionally, the Company
requests that it be authorized to add the costs of purchasing water from United Water to the
Company s existing flat rate. Terra Grande asks that it be allowed to charge its customers the
new surcharge rate based upon United Water s charge, effective as of February 9, 2005 , after the
receipt of its first bill from United Water. The Application does not state when the first bill from
United Water is expected to arrive.
YOU ARE FURTHER NOTIFIED that Terra Grande requests that in the interim the
Commission allow it to continue charging its customers the $16 flat rate per month based on the
Company s current, filed tariff. The Company proposes to divide its United Water bill by the
total number of Terra Grande customers, and pass this pro rata expense on to each customer
equally by adding a surcharge to their existing flat rate. ~nited Water bills on a bi-monthly
basis, and Terra Grande bills its customers in advance for two months of service.
Further Proceedings to Establish Rates
YOU ARE FURTHER NOTIFIED that Terra Grande requests that the Commission
allow further proceedings in conjunction with its investigation in Case No. TGW-04-1 to
establish just and reasonable rates for its customers on a going-forward basis once more detail is
developed regarding the Company s operations. In the event that actual cost recovery is not
authorized by the Commission, the Company also requests authorization to defer any excess
water supply costs, until new rates are implemented that provide for recovery of excess water
supply costs, over and above any interim rate that is put in place. The Application requests that
the Company s request for more permanent rate relief be processed by Modified Procedure.
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NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29716
YOU ARE FURTHER NOTIFIED that the Company states that notice to its
customers concerning this interim and more general rate request is being accomplished by new
media releases and by individual notice mailed to each customer. The customer notice is
attached to the Company s Application as Attachment C.
YOU ARE FURTHER NOTIFIED that the Application together with supporting
workpapers, testimonies and exhibits, have been filed with the Commission and are available for
public inspection during regular business hours at the Commission offices. The Application and
testimonies (excluding exhibits) are also available on the Commission Website at
www.puc.idaho.gov under the "File Room" icon and then "Water Cases.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the filing of
record in Case No. TGW-05-1. The Commission has preliminarily determined that the public
interest may not require a hearing to consider the issues presented in this case and that issues
raised by the Company s filing may be processed under Modified Procedure , by written
submission rather than by hearing. IDAP A 31.01.01.201-204. In so doing, the Commission
notes that Modified Procedure and written comments have proven to be an effective means for
obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that the Commission may not hold a hearing in
this proceeding unless it receives written protests or comments opposing the use of Modified
Procedure and stating why Modified Procedure should not be used. IDAPA 31.01.01.203.
YOU ARE FURTHER NOTIFIED that if no protests or written comments are
received within the deadline, the Commission will consider the matter and enter its Order
without a hearing. If protests or comments are filed within the deadline, the Commission will
consider them and may, in its discretion, set the matter for hearing or decide the matter and issue
its Order on the basis of the written positions before it. IDAP A 01.01.01.204.
NOTICE OF COMMENT/PROTEST DEADLINE
YOU ARE FURTHER NOTIFIED that the deadline for filing written comments
or protests with respect to the Application and the Commission s use of Modified Procedure in
Case No. TGW-05-is March 4, 2005. Persons desiring a hearing must specifically request
a hearing in their written protests or comments.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29716
YOU ARE FURTHER NOTIFIED that written comments concernIng this case
should be mailed to the Commission and to Terra Grande Water at the addresses reflected below.
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
John R. Hammond
Batt & Fisher LLP
101 S. Capital Blvd., Suite 500
Boise, ID 83701
E-mail: irh~battfisher.com
Street Address For Express Mail:
472 W. Washington Street
Boise, ID 83702-5983
Barbara V. Child
10012 Eshelman Street
Boise, ID 83701
E-mail: chinachild(fYcab leone. net
These comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission s homepage located at www.puc.idaho.gov. Click the "Cominents and Questions
icon, and complete the comment form, using the case number as it appears on the front of this
document. These comments must also be sent to the Applicant at the addresses listed above.
FIND IN GS AND CON CL USI 0 NS
The Idaho Public Utilities Commission has jurisdiction over Terra Grande Water, its
Application for interim rate relief and further proceedings to establish just and reasonable rates
and the issues involved in this case by virtue of Title 61 , Idaho Code, specifically Idaho Code
61-124 61-125 61-129, and the Commission s Rules of Procedure, IDAPA 31.01.01.000 et seq.
The Commission finds that good cause exists to authorize expedited proceedings to
consider the issue of interim rate relief based upon the nature of the contamination to Terra
Grande s source of water supply, the health and safety of the public and Terra Grande
customers, and the emergency interconnection with United Water s supply source. Idaho Code
61-307, IDAPA 31.01.01.202.02.
The Commission has preliminarily determined that good cause exists to consider
interim rate relief on an expedited basis, that the public interest may not require a hearing to
consider the issues presented in this case, and that issues raised by the Company s filing may be
processed under Modified Procedure, i., by written submission rather than by hearing.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29716
IDAPA 31.01.01.201-204. In so doing, the Commission notes that Modified Procedure and
written comments have proven to be an effective means for obtaining public input and
participation.
Based upon the emergency nature of this particular case, as well as the finding of
good cause for expedited proceedings, the Commission finds that a public workshop pursuant to
IDAP A 31.01.01.125 will not be required prior to staff filing comments regarding interim rate
relief. Further, the Commission reserves ruling, at this time, upon public workshops that may be
ordered as part of any further proceedings to establish a more permanent, just and reasonable
rate.
ORDER
IT IS HERBY ORDERED that this case be processed under Modified Procedure.
Persons interested in submitting written comments regarding this case or protesting the use of
Modified Procedure should do so no later than March 4, 2005.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this ~~+1v
day of February 2005.
Commissioner Kjellander Out of the Office
PAUL KJELLANDER, PRESIDENT
MARSHA H. SMITH, COMMISSIONER
ATTEST:
Barbara Barrows
Assistant Commission Secretary
O:TGWWO501 dw
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29716