20080612notice_of_application_order_no_30571.pdf

Office of the Secretary
Service Date
June 12, 2008
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF TETON SPRINGS WATER AND SEWER
COMPANY, LLC FOR THE ISSUANCE OF A
CERTIFICATE OF CONVENIENCE AND
NECESSITY, FOR APPROVAL OF RATES
AND CHARGES FOR WATER SERVICE
AND FOR APPROVAL OF RULES AND
REGULATIONS GOVERNING THE
RENDERING OF WATER SERVICE
CASE NO. TTS-08-
NOTICE OF APPLICATION
NOTICE OF
INTERVENTION DEADLINE
ORDER NO. 30571
On May 20, 2008 , Teton Springs Water and Sewer Company, LLC (Teton Springs;
Company) filed an Application with the Idaho Public Utilities Commission (Commission)
requesting that the Commission issue it a Certificate of Convenience and Necessity. Idaho Code
~ 61-526; IDAPA 31.01.01.111. The Company also requests that the Commission approve a
change in existing rates and charges for water service and approve the Company s proposed
Rules and Regulations Governing the Rendering of Water Service.
The Commission in this Order finds that Teton Springs Water and Sewer Company,
LLC is being operated in such a manner as to bring it within the jurisdiction of the Commission
under Title 61 , Idaho Code; Idaho Code ~~ 61-124, 61-125 , 61-129. We further find that the
present and/or future public convenience and necessity requires issuance of Certificate of
Convenience and Necessity No. 475 to Teton Springs Water and Sewer Company, LLc.
Reference Idaho Code ~~ 61-526 61-528; IDAPA 31.01.01.111. We authorize continued water
service under the existing flat rate and suspend the proposed change in rates and charges for a
period of thirty (30) days plus five (5) months from June 20, 2008, or until such earlier time as
the Commission may issue an Order accepting, rejecting, or modifying the Application in this
case.
NOTICE OF APPLICATION
Certificate of Convenience and Necessity
As reflected in the Company s Application, YOU ARE HEREBY NOTIFIED that
Teton Springs requests a Certificate of Convenience and Necessity to provide domestic, culinary
water service in Teton County, Idaho to customers within the Teton Springs Golf and Casting
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30571
Club planned unit development (Teton Springs Resort Community). Idaho Code ~~ 61-125
(Water Corporation); 61-129 (Public Utility) and 61-526 (Certificate of Convenience and
Necessity) and Rule III of the Commission s Rules of Procedure, IDAPA 31.01.01.111. The
Teton Springs development consists of 581 single-family building lots, 14 commercial lots, and
2 multi-family dwellings which will contain 143 residential units at full build-out. The
development is an all-season resort community. Teton Springs currently serves 194 residential
customers, 5 commercial customers and 73 multi-family unit customers. The Teton Springs
water system consists of two wells, a water storage reservoir, water mains, hydrants, and service
lines. The legal description and map of the proposed service area is set out in Application
Exhibits Band C.
Proposed Rates and Charges
As reflected in the Company s Application, YOU ARE FURTHER NOTIFIED that
Teton Springs presently charges active residential and commercial customers an unmetered flat
rate of $240 per quarter. Active residents of multi-family units are presently assessed a flat rate
of $80 per quarter. Teton Springs proposes to change rates for existing customers and to assess a
new Availability Charge for inactive residential and commercial customers whose property
fronts an existing main, but who have not connected to the system, as reflected below.
Number of
Active Current Proposed
Description Customers Rates/Quarter Quarterly Rates
Unmetered Residential:
Total No. of Single-Flat rate service:
family lots: 581 194 $240.$150.
Total No. of Inactive Availability charge:
Lots: 387 $75.
Unmetered Commercial:
Total No. of Flat rate service:
Commercial Lots: 19 $240.$450.
Total No. of Inactive Availability charge:
Lots: 14 $225.
Unmetered Multi-Family:
Total No. of Multi- Flat rate service:
Family Units: 143 $80.$150.
Availability charge:
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30571
Stating that it does not presently have sufficient water consumption data, the Company proposes
to charge customers initially under a flat rate rather than a metered rate.
Additional Fees and Charges
As reflected in the Company s Application, YOU ARE FURTHER NOTIFIED that
the following additional charges and fees are also proposed:
Schedule No. lA: DEQ Fee (recovered in tariff water rates)
Schedule No.2: Miscellaneous Fees and Charges
1) Return check charge: $20.00 each occurrence
2) Reconnection charge for non-payment terminations:
During normal business hours $ 50.
Other than normal business hours $100.
3) Field collection trip charge - applicable to customers who pay
outstanding bills for service at the time Company personnel arrive at
customer s premises to terminate service: $50.
Schedule No.3: Bulk water sold to contractors.
I) Backflow Prevention Device Rental Charge - $25.00 per day
2) Bulk Water Charge - $25.00 per day.
Schedule No.
1) Base Hook-up Fee: $1 500
2) Uncollected Availability Charge
In the event any customer fails to
required by Schedule No.1. . .
pay the Availability Charge as
Proposed Rules and Regulations Governing the Rendering of Service
YOU ARE FURTHER NOTIFIED that included with the Company s Application are
proposed Rules and Regulations governing the rendering of service. The following subject areas
are addressed in the Rules and Regulations: Application for Service; Service Connection;
Meters; Bills; Discontinuance of Service; Customer Deposits; Service for Construction Purposes;
Application and Rules Are Contract; Fire Protection; and Miscellaneous.
NOTICE OF INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this case for
the purpose of becoming a party, i., to present evidence, to acquire rights of cross-examination
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30571
to participate in settlement or negotiation conferences, and to make and argue motions must file
a Petition to Intervene with the Commission pursuant to Rules 72 and 73 of the Commission
Rules of Procedure, IDAP A 31.01.01.072-073. The deadline for filing a Petition to Intervene
is Friday, June 27, 2008. Persons seeking intervenor status shall also provide the Commission
Secretary with their electronic mail address to facilitate future communications in this matter.
YOU ARE FURTHER NOTIFIED that the following persons are designated as Teton
Springs' representatives in this matter:
Dean J. Miller
McDevitt & Miller LLP
420 W. Bannock Street
PO Box 2564 (83701)
Boise, ID 83702
E-mail: ioe~mcdevitt-miller.com
Jon Penardi
Director
Teton Springs Water and Sewer
Company, LLC
75 West 950 South, Suite 3
Victor, ID 83455
YOU ARE FURTHER NOTIFIED that the Company s Application in Case No. TTS-
08-01 and supporting exhibits and testimony may be viewed online at www.puc.idaho.gov
clicking on "File Room" and "Water Cases " or can be viewed during regular business hours at
the offices of the Idaho Public Utilities Commission, 472 West Washington Street, Boise, Idaho
or at the office of Teton Springs located at 75 West 950 South, Suite 3 , Victor, Idaho 83445.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission s jurisdiction under Title 61 of the Idaho Code and that the
Commission may enter any final Order consistent with its authority under Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission s Rules of Procedure, IDAPA 31.01.01.000 et seq.
COMMISSION FINDINGS
The Commission has reviewed and considered the filings of record in Case No. TTS-
W -08-01. Based on the established record, we find that Teton Springs is operating as a water
corporation and presently provides domestic culinary water service to customers in the Teton
Springs Resort Community in Teton County, Idaho and is a public utility as defined by Idaho
law. Idaho Code ~~ 61-124 61-125 61-129. Based on our findings, the Company s request for
a Certificate, and acquiescence to Commission jurisdiction, this Commission finds it reasonable
to issue Certificate of Convenience and Necessity No. 475 to Teton Springs Water and Sewer
Company, LLC. Reference Idaho Code ~~ 61-526 , 61-528; IDAPA 31.01.01.111.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30571
Teton Springs has submitted a proposed schedule of rates and charges for water
service to become effective on and after June 20, 2008. We find the Application is of sufficient
importance and complexity to require the Commission s investigation into the reasonableness of
the proposed rates and charges. The Commission is unable to consider the proposed change in
rates and charges before June 20, 2008 and therefore finds it reasonable to authorize
continuation of existing rates and to suspend the proposed change in rates and charges for a
period of thirty (30) days plus five (5) months from the proposed June 20, 2008 effective date.
This will provide time for Commission Staff to audit the Company s financial books, inspect the
Company s physical plant and complete its investigative report.
Pending further investigation, the Commission finds it reasonable to direct Teton
Springs to continue providing culinary water service at the Company s present flat rates and to
file formal tariffs setting forth the customer rates and charges we approve. The Company is
apprised that as a regulated utility all rates and charges of the utility must be approved by the
Commission and set forth in tariff schedules on file with the Commission. Idaho Code ~ 61-313.
No other charges are permitted.
CONCLUSIONS OF LAW
The Idaho Public Utilities Commission has jurisdiction over Teton Springs Water &
Sewer Company, LLC, its Application for a Certificate of Convenience and Necessity, its
Application for approval of proposed rates and charges, and the issues involved in this case by
virtue of Title 61 , Idaho Code, and the Commission s Rules of Procedure, IDAPA 31.01.01.000
et seq.
The Commission has the authority under Idaho Code ~ 61-622 to suspend the rates
and charges that are the subject of the Application for a period of thirty (30) days plus five (5)
months, or less if the Commission acts sooner, from the proposed effective date of June 20
2008.
It is necessary to suspend the rates proposed in the Application for a period of five (5)
months, or less if the Commission acts sooner, from the effective date of June 20, 2008 , to
permit the Commission Staff to audit the Company financial records and inspect the
Company s physical plant, to provide sufficient time to calendar further procedure, to receive
customer and Staff comments and to consider and determine the issues presented in this
Application.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30571
ORDER
In consideration of the foregoing and as more particularly described above, IT IS
HEREBY ORDERED and the Commission does hereby issue Certificate of Convenience and
Necessity No. 475 to Teton Springs Water and Sewer Company, LLC for the water system
operated by the Company and serving the Teton Springs Resort Community in Teton County,
Idaho.
IT IS FURTHER ORDERED that the proposed schedule of rates and charges for
water service in Case No. TTS-08-01 is suspended for a period of thirty (30) days plus five
(5) months from June 20, 2008 , or until such earlier time as the Commission may issue an Order
accepting, rejecting, or modifying the Application in this case.
IT IS FURTHER ORDERED that Teton Springs provide continued culinary water
service at the Company s existing quarterly flat rate. The Company is directed to file a tariff
schedule setting forth the Commission-approved rates. No change in the existing rates and
charges is permitted without prior Commission approval.
IT IS FURTHER ORDERED that Teton Springs adopt and implement the
Commission s Customer Relations Rules (IDAPA 31.21.01.000 et seq.
),
the Commission Utility
Customer Information Rules (IDAP A 31.21.02.000 et seq.
),
and an accounting system consistent
with the information required by the Commission s annual report for small water companies
(Idaho Code ~ 61-405).
IT IS FURTHER ORDERED that Teton Springs make written petition or application
to the Commission prior to any proposed change in ownership of the water system.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30571
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
~ -fA
day of June 2008.
MACK A. REDFORD, PRESID T '
MARSHA H. SMITH, COMMISSIONER
ATTEST:
fJ,Je D. Jewell
Commission Secretary
bls/O:TTS-08-01 sw
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30571