20220316Comments.pdf

,',\'irf-ft:...-..:iu';uTAYLOR R. BROOKS
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 11542
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Street Address for Express Mail:
I I33I W CHINDEN BLVD, BLDG 8, SUITE 2OT-A
BOISE, ID 837I4
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF TETON WATER &
SEWER COMPANY'S APPLICATION FOR
RESERVE FUND DISTRIBUTION
CASE NO. TTS.W-22.01
COMMENTS OF THE
COMMISSION STAFF
COMES NOW, the Staff of the ldaho Public Utilities Commission, ("Staff') by and
through its Attorney of record, Taylor R. Brooks, Deputy Attorney General, and submits the
following comments.
BACKGROUND
On January 3,2022, Teton Water & Sewer Company ("Company") applied to the Idaho
Public Utilities Commission ("Commission") requesting approval to use its reserve fund for
three separate 2021 repair projects. Application at l. The Company states that the total cost of
these projects exceeded the available funds in the Company's reserve account. Id. The
Commission issued a Notice of Application and Notice of Modified Procedure setting deadlines
for interested persons to comment on the Application and for the Company to reply.
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1STAFF COMMENTS MARCH 16,2022
The Commission authorized the creation of a reserve fund for the Company in 2009 but
conditioned use of the fund solely for capital expenditures greater than llYo of the Company's
annual revenue requirement. See Order No. 30718 at 12. Additionally, the Commission required
the Company to establish an auditable paper trail for use of the fund and required the Company
to provide the Commission with written notice of the intended use with the emergency details
and related invoices. Id. at 13.
The Company is a water corporation and public utility as defined in ldaho Code
$$ 6l-125 and 6l-129 and is licensed to do business in the State of [daho.
The Company completed three repair projects in202l and seeks Commission approval to
pay for these projects using the reserve fund. Application at l. The repair projects include a
water leak repair at 48 Moulton Lane, a water leak repair at 73 Beesley Lane, and a water leak
repair at 33 TargheeTrail. Id.
The Company states 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] $12,106.55 ." Id. The Company stated that it transferred "$l1,208.85 to
reimburse the operating account, which then left a balance of 524,286.00 of expenses that were
covered by funds other than the capital account." 1d. Thus, the Company requests approval
from the Commission to use its future contributions to the reserve fund to reimburse the
operating account for remaining unreimbursed expenses. 1d
The Company has included in its Application a summary of expenses, invoices, and a
QuickBooks report for each project as directed by the Commission in Order No. 30718. Id.
STAFF ANALYSIS
Staff has reviewed the Company's Application and recommends the Commission find the
emergency repair costs for three projects in the amount of $35,494.85 are prudent.
In Order No. 30718, the Commission authorized the Company to establish an Emergency
Reserve Fund with specific parameters for accessing the funds. The requirements for accessing
the funds are as follows:
2STAFF COMMENTS MARCH 16,2022
o The Company must file a notice of application to use the fund;
. The fund is only to be used for emergencies and unplanned capital expenditures
(plant repair, maintenance and replacement);
o The Company must establish an auditable paper trial for all expenditures paid from
the fund; and
o The fund can be used only for capital expenditures greater than l0%o of the
Company's annual revenue requirement. I
On January 3,2022, the Company filed an Application for use of the fund. In the
Application, the Company included expenditures for three projects, all of which were water leak
repairs. Because of the nature of the repairs, Staff maintains that all three projects qualiff as
emergencies. Included in the Application were copies of invoices for each repair along with
photos capturing the leaks and repairs made. Staff reviewed the invoices and photos included in
the Application and conducted an analysis comparing previous project expenses with202l
project expenses. Staffbelieves that all three projects are necessary and prudent. The total
expenses for each project are as follows:
o 48 Moulton Lane, $13,328.60
. 73 Beesley Lane, $l1,336.25
. 33 Targhee Trail, $10,830.00
As it stands, total cost of the three projects ($35,494.85) exceeds the available funds in
the reserve account ($12,106.55),leaving $23,388.30 of repair expenses that are prudently
incurred but cannot be covered by the Emergency Reserve Fund. Recovery for those expenses
not covered by the Emergency Reserve Fund should be determined in the Company's current
general rate case (Case No. TTS-W-22-02) that was filed on March 1,2022.
STAFF RECOMMENDATIONS
After review and consideration of the Company's Application, Staff recommends that the
Commission approve the Company's use of the Emergency Reserve Fund at the end of 2021 for
the entire amount totaling $12,106.55. Staff also recommends that recovery of the expenses not
covered by the Emergency Reserve Fund be addressed in the Company's current general rate
case
1 ln Order No. 34000, the Commission eliminated the 10% of annual revenue requirement condition
JSTAFF COMMENTS MARCH 16,2022
Respectfully submittedthis blh day ofMarch}021.
Geneml
Technical Staff: Joe Terry
Chris Hecht
Ty Johnson
KevinKeyt
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4STAFF COMMENTS MARCH 16,2022
CERTIFICATE OF SERVICE
I TIEREBY CERTIFY THAT I HAVE THIS I6TH DAY OF MARCH 2022,
SERVED THE FOREGOING COMMENTS OF TIIE COMMISSION STAFF, IN
CASE NO. TTS-W-ZZ-OI, BY E- MAILING A COPY THEREOF, TO TTIE
FOLLOWING:
JON PINARDI
TETON WATER & SEWER CO
PO BOX 786
DRIGGS ID 83422
E-MAIL: [e-mail]
[e-mail]
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CERTIFICATE OF SERVICE