HomeMy WebLinkAbout2000407_sw.docDECISION MEMORANDUM
TO: COMMISSIONER HANSEN
COMMISSIONER SMITH
COMMISSIONER KJELLANDER
MYRNA WALTERS
RON LAW
TONYA CLARK
DON HOWELL
STEPHANIE MILLER
DAVE SCHUNKE
RANDY LOBB
RICK STERLING
GEORGE FINK
MARGE MAXWELL
WORKING FILE
FROM:
DATE: APRIL 7, 2000
RE: CASE NO. UWI-W-00-3 (United Water)
PROPOSED PURCHASE OF M&M MOUNTAIN VIEW SUBDIVISION WATER COMPANY, INC. (M&M)
On March 31, 2000, an Application in Case No. UWI-W-00-03 was filed with the Idaho Public Utilities Commission (Commission) by United Water Idaho Inc. (United Water) for an Order approving the purchase by United Water of water service properties owned by M&M Mountain View Acres Subdivision Water Company, Inc. (M&M). The purchase price is $20,800. United Water further requests approval of certain rate and ratemaking matters including the right of United to include in rate base and future rate proceedings the full purchase price of the assets and related acquisition costs in the amount of $2500.
United Water provides water service to approximately 65,000 customers within the Idaho counties of Ada and Canyon and operates under Certificate of Public Convenience and Necessity No. 143 (as Amended). M&M provides potable water service to approximately twenty-four (24) residential customers within the M&M Mountain View Acres Subdivision in Nampa, Canyon County, Idaho. M&M is a non--profit Idaho corporation whose members also comprise the Company’s customer base.
The $20,800 purchase price will be applied against an existing M&M indebtedness in the approximate amount of $32,670 to the Idaho Department of Water Resources, leaving an unpaid loan balance of approximately $11,870 which will be paid by M&M out of cash reserves.
As represented in the Application, the M&M water distribution system is unmetered. The current monthly rate is $28.50. United proposes to provide unmetered service pursuant to tariff Schedule 1E (attached). In all other respects, United Water will provide service in accordance with the rules and regulations applicable to its service territory. Revenue collected from M&M’s customers based on the proposed rate, the Company contends, will be such that United Water’s current customers will not be burdened by the purchase of M&M’s assets.
As represented, the current owners of M&M desire to convey the M&M domestic water system to United Water because increasingly complex regulatory requirements make it difficult or impossible for the Homeowners Association to operate this system. None of the homeowners are qualified to receive required operator certificates. None of the homeowners have the necessary training or experience to comply with the EPA Information Reporting Rule. None of the homeowners have the necessary training or experience to perform the testing requirements of the Safe Drinking Water Act.
Included in the Company’s Application is a map and legal description of the proposed boundary expansion including the underlying Agreement for Purchase and Sale and a copy of the proposed applicable tariff. United Water contends that public interest does not require a hearing to consider the issues presented. The Company requests that the Application be processed under Modified Procedure, i.e., by written submission rather than by hearing. Reference Commission Rules of Procedure, IDAPA 31.01.01.201-204. Staff concurs with the Company’s proposed procedure and will ensure that individual copies of notice will be mailed to all customers at their respective mailing addresses.
Commission Decision
Does the Commission find it reasonable to process the Application in Case No. UWI W-00-3 under Modified Procedure? If not, what is the Commission’s preference?
vld/M:UWI-W-00-3_sw
DECISION MEMORANDUM 2