The URL can be used to link to this page

Home My WebLink About20050714Additional reconnection cost info.pdfCEIV r-'1John R. Hammond, Jr., ISB No. 5470 BATT & FISHER, LLP S. Bank Plaza, 5th Floor 101 S. Capitol Boulevard Post Office Box 1308 Boise, ID 83701 Telephone: (208) 331-1000 Facsimile: (208) 331-2400 ;::0 t L. E 0 inns JUl 1 1+ 1'1'\3: 4 10ll liO PUBLIC 't .... U'~U ; tL . " " " r1("t::' " Attorney for Terra Grande Water BEFO RE THE ID AH 0 PUBLIC UTILITIES CO MMISSI 0 N IN THE MA TTER OF THE APPLICATION OF TERRA GRANDE WATER FOR APPROVAL OF TARIFF SCHEDULE NUMBERS 2 AND 3 FOR NEW SERVICECONNECTIONS AND RECONNECTION FEES Case No. TGW-O5- TERRA GRANDE RECONNECTION COST INFORMATION COMES NOW, Terra Grande Water (the "Company" or "Terra Grande ) and makes this filing to provide the Commission with additional information concerning the Company s request for approval of Tariff No. 3 which contains Terra Grande s proposed reconnection fees. Attached to this filing is the Affidavit of Barbara Child. Ms. Child states that from August 1 2005 until present she has had seven (7) disconnections and seven (7) subsequent reconnections to the Company s system. The most recent disconnection occurred on July 6, 2005 due to a customer failing to pay on a delinquent balance. As stated by Ms. Child and supported by invoices attached as Exhibit A, each reconnection costs the Company $65., the charge by a licensed plumber that provides this service. In addition, generally the plumber also charges Terra Grande for the disconnections which it performs. In this matter Terra Grande is only seeking to recover its reasonable and legitimate costs for performing reconnections to the system. The Company is not seeking approval of a similar TERRA GRANDE RECONNECTION COST INFORMATION, P. 1 OR\GiNAL charge for disconnections as it understands that the Commission does not generally authorize such charges. See Commission Order No. 28906. Although customers are not charged a disconnection fee the Company believes that the threat of disconnection from the water system is a collection tool that protects it from providing future service without receiving just payment from its customers. In most cases following disconnection a reconnection to the system along with payment of any delinquent account will occur. Further, in performing both the disconnection and reconnection the Company incurs costs. Based upon the Company s cost information, each disconnection and reconnection to the system costs the Company approximately $130.00. At this level of cost disconnection as a collection tool has limited utility. For example, using disconnection as a collection tool to collect a $75.00 utility bill arrearage would cost the company $130.00. Accordingly, without recovery of the actual costs the Company incurs for performing reconnections it is severely limited in using the threat of disconnection as a collection tool. Disconnection must be a viable collection tool for Terra Grande because each month it has a large water bill from United Water Company it must pay so that it can provide water service to its customers. Without effective collection tools the Company could be unable to generate sufficient revenues from its customers that are enough to pay the United Water bill. Should this occur, the Company s financial health will severely deteriorate and threaten the operation of the system. Should the Commission set the reconnection fee to low the Company will suffer detrimental financial impacts. For example if the reconnection fee were set at $20.00 the Company would lose $45.00 for each reconnection performed. Currently the Company has had six reconnections to its system with a cost to Terra Grande of $390.00 ($65.00 per each reconnection). Adding to that the bills which the Company receives from a plumber for each TERRA GRANDE RECONNECTION COST INFORMATION , P. 2 disconnection and Terra Grande s cost is $780.00. If the Company is authorized to only charge a $20.00 fee it would lose $660.00. For a small water company the inability to recover these costs is detrimental to its financial integrity and hampers its ability to operate and maintain the system. Based on the foregoing Terra Grande requests that the Commission approve its Tariff Schedule No.3 as filed. WHEREFORE, Terra Grande respectfully requests of the Commission: That its proposed Tariff Schedule No.3 be approved as submitted. DATED this of July, 2005. BATT & FISHER, LLP . Hammond, Jr. eys for Terra Grande Water TERRA GRANDE RECONNECTION COST INFORMATION, P. 3 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on this /~ of July, 2005, I caused a true and correct copy of the above and foregoing document to be served, in the manner indicated, on the following: Scott Woodbury Idaho Public Utilities Commission 472 W. Washington Boise, Idaho 83702 i71' Hand Delivery tJ U.S. Mail Facsimile Federal Express TERRA GRANDE RECONNECTION COST INFORMATION , P. 4 Exhibit A D & D Plumbing 5182 S Valley St Boise , ID 83709 208-375-4586 T erra Grande Water PO Box 7112 Boise, ID 83707 S T TEMENT May 31 2005 Disconnected 12/31/04 Customer request Service Call to Reconnect Water Service 1833 Penninger 5/05/05 per customer request $65. All Bills are due by the 10th of the Month A finance charge of 1.75% per month will be charged on all balances 30 days past due. This is an annual finance rate of 21%. A minimum late charge of $5.00 will be charged. D & D Plumbing 5182 S Valley St Boise , ID 83709 208-375-4586 Terra Grande Water PO Box 7112 Boise, ID 83707 STATEMENT December 31 , 2004 Disconnected 10/25/04 customer request owner deceased Service Call to Reconnect Water Service 1833 Penninger 12/20/04 per customer request $65. All Bills are due by the 10th of the Month A finance charge of 1.75% per month will be charged on all balances 30 days past due. This is an annual finance rate of 21%. A minimum late charge of $5.00 will be charged. D & D Plumbing 5182 S Valley St Boise , ID 83709 208-375-4586 T erra Grande Water PO Box 7112 Boise, ID 83707 STATEMENT October 31 , 2004 Disconnected 10/25/04 non payment $159. Service Call to Reconnect Water Service 8111 Lemhi 10/27/04 $65. All Bills are due by the 10th of the Month A finance charge of 1.75% per month will be charged on all balances 30 days past due. This is an annual finance rate of 21%. A minimum late charge of $5.00 will be charged. D & D Plumbing 5182 S Valley St Boise , ID 83709 208-375-4586 T erra Grande Water PO Box 7112 Boise, ID 83707 STATEMENT July 7, 2005 Service Call Connect 721 S Ash Park New Account $ 65. Disconnected May 31 2005 non payment $162. Service Call Reconnect 2133 Penninger New occupant (owner request)$ 65. Total $130. All Bills are due by the 10th of the Month A finance charge of 1.75% per month will be charged on all balances 30 days past due. This is an annual finance rate of 21%. A minimum late charge of $5.00 will be charged. D & D Plumbing 5182 S Valley St Boise , ID 83709 208-375-4586 Terra Grande Water PO Box 7112 Boise, ID 83707 STATEMENT June 30, 2005 Disconnected 5/31/05 Ferguson non payment $165.16 2013 S Ash Park Service Call Reconnect New occupant 6/2/05 $ 65. Disconnected 5/31/05 2006 Penninger non payment $114. Service Call new owner 6/18/05 Darwish $ 65. Disconnect 5/31/05 Kurtright non payment $197. 1639 Penninger Service Call Reconnect acct paid 6/6/05 $ 65. Total $195. All Bills are due by the 10th of the Month A finance charge of 1.75% per month will be charged on all balances 30 days past due. This is an annual finance rate of 21 %. A minimum late charge of $5.00 will be charged.