20220422Final_Order_No_35382.pdf

ORDER NO. 35382 1

Office of the Secretary
Service Date
April 22, 2022

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF TETON WATER &
SEWER COMPANY’S APPLICATION FOR
RESERVE FUND DISTRIBUTION
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CASE NO. TTS-W-22-01

ORDER NO. 35382

On January 3, 2022, Teton Water & Sewer Company (“Company”) applied to the Idaho
Public Utilities Commission (“Commission”) requesting approval to use its 2022 reserve fund for
three separate 2021 repair projects. Application at 1.
On February 2, 2022, the Commission issued a Notice of Application and Notice of
Modified Procedure setting comment deadlines for the public and the Company. See Order No.
35306. Staff was the only party to file comments in the matter.
Now the Commission issues this final Order granting in part the Company’s
Application.
BACKGROUND
In 2009, the Commission authorized and established an Emergency Reserve Fund for
the Company with specific parameters for using the funds. Order No. 30718 at 10. To use that
Emergency Fund, the Company must (1) file a notice of application to use the fund with the
Commission; (2) use the fund solely for emergencies and unplanned capital expenditures; and (3)
establish an auditable paper trail for all expenditures paid from the fund. Staff Comments at 3; see
also Order No. 30718 at 12-13.1
THE APPLICATION
The Company completed three repair projects in 2021 including (1) a water leak repair
at 48 Moulton Lane, (2) a water leak repair at 73 Beesley Lane, and (3) a water leak repair at 33
Targhee Trail. Application at 1. The Company stated the total cost of these projects $35,494.85
exceeded the available funds in the reserve account. Id. The Company stated “[a]t the start of the
year, the [reserve] account had $4,666.55, with the addition of funds at $640/month for the year, .
. . the year-end available funds [totaled] $12,106.55.” Id. The Company stated that it transferred

1 Notably, Order No. 30718 also required the use of the emergency fund for capital expenditures greater than ten-
percent of the company’s annual revenue requirement, but Order No. 34000 eliminated this requirement. See Order
No. 34000 at 3.

ORDER NO. 35382 2
“$11,208.85 to reimburse the operating account, [which left] a balance of $24,286.00 of expenses
that were covered by funds other than the capital account.” Id. Thus, the Company requested
approval from the Commission to use its future contributions to the reserve fund to reimburse the
operating account for remaining unreimbursed expenses. Id. In its Application, the Company
included a summary of expenses, invoices, and a QuickBooks report for each project as directed
by the Commission in Order No. 30718. Id.
STAFF COMMENTS
Staff recommended the Commission approve the Company’s proposed use of the
available Emergency Fund for incurred emergency expenses in 2021. Staff Comments at 3. To the
extent the Emergency Fund could not cover those expenses, Staff recommended recovery through
the Company’s subsequently filed general rate case (Case No. TTS-W-22-02). Id. Staff analyzed
the repairs and believed all three projects qualified as emergencies—therefore, Staff believed the
emergency repair costs were prudently incurred. Id.
COMMISSION FINDINGS AND DECISION
The Commission has jurisdiction over this matter under Idaho Code §§ 61-501, -502
and -503. The Commission is empowered to investigate rates, charges, rules, regulations, practices,
and contracts of public utilities and to determine whether they are just, reasonable, preferential,
discriminatory, or in violation of any provision of law, and to fix the same by order. Idaho Code
§§ 61-502 and -503.
Having reviewed the record, we find the emergency repair costs to be prudently
incurred by the Company. Accordingly, the use of the Company’s Emergency Fund balance to pay
for three 2021 emergency repairs is fair, just, and reasonable. Because the Emergency Fund was
unable to cover all the 2021 emergency repair expenses, we direct the Company to seek recovery
of those expenses through the Company’s subsequently filed 2022 general rate case (Case No.
TTS-W-22-02).
O R D E R
IT IS HEREBY ORDERED that the Company’s request to use its Emergency Fund—
up to the balance in the fund—to cover three emergency repairs during 2021 is approved.
IT IS FURTHER ORDERED that the Company must seek recovery of expenses not
covered by its Emergency Fund through the Company’s 2022 general rate case (Case No TTS-W-
22-02).

ORDER NO. 35382 3
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order regarding any matter
decided in this Order. Within seven (7) days after any person has petitioned for reconsideration,
any other person may cross-petition for reconsideration. See Idaho Code § 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 22nd
day of April 2022.

ERIC ANDERSON, PRESIDENT

JOHN CHATBURN, COMMISSIONER

JOHN R. HAMMOND JR., COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

I:\Legal\WATER\TTS-W-22-01\orders\TTSW2201_final_tb.docx