20111011Comments.pdf

WELDON B. STUTZMAN
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 3283
RECEIVED
7311 OCT I I PM 3: 04
Street Address for Express Mail:
472 WWASHINGTON
BOISE ID 83702-5918
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF UNITED WATER IDAHO INC. FOR
AUTHORITY TO APPLY ABANDONED
DEPOSITS TO LOW INCOME
ASSISTANCE PROGRAM.
)
) CASE NO. UWI-W-LL-03
)
)
) COMMENTS OF THE
) COMMISSION STAFF
)
COMES NOW the Staff of the Idaho Public Utilities Commission, by and through
its Attorney of record, Weldon B. Stutzman, Deputy Attorney General, and in response to the
Notice of Application and Notice of Modified Procedure issued in Order No. 32359 on
September 20, 2011, submits the following comments.
BACKGROUND
On September 2,2011, United Water Idaho Inc. (United Water, Company) fied an
Application requesting Commission authority to pay unclaimed deposits to its UW Cares
program. Idaho Code § 14-508(1) provides that a deposit paid to a utilty "in advance for utilty
services to be fuished, less any lawfl deductions, that remains unclaimed by the owner for
more than one (1) year after termination of services for which the deposit or advanced payment
was made is presumed abandoned." Pursuant to paragraph 2 of Section 14-508, the Commission
may certify to the Idaho State Treasurer that a utility paricipates in a financial assistance
STAFF COMMENTS 1 OCTOBER 11,2011
program that assists the utilty's low income and disadvantaged customers with their utilty bils.!
Upon certification by the Commission, "the utility shall pay the fuds which would have been
presumed to be abandoned under subsection (1) of this section to the financial assistance
program certified by the public utilties commission." Idaho Code § 14-508(2).
United Water's Application states that it curently holds two deposits related to the
construction of subdivision water main extensions. The projects were abandoned by the
developers prior to completion. The deposit amounts totaled $95,656.19 at the time United
Water filed its application. United Water asserts that it "made dilgent effort to return the
deposits to the depositors, but has been unable to do so." United Water Application, p. 3.
Because the deposits have remained unclaimed for more than a year, they are presumed
to be abandoned pursuant Idaho Code § 14-508 and the Commission's Utilty Customer
Relations Rule 110, IDAPA 31.01.21.110. Accordingly, United Water requests a Commission
Order certifying to the Idaho State Treasurer that United Water paricipates in a financial
assistance program which assists the utilty's low-income and disadvantaged customers with
their utilty bils, and authorizing transfer of the deposits, less reasonable costs of this
proceeding, to the dedicated UW Cares account.
STAFF REVIEW
Staffhas reviewed United Water's Application and cited statutes and rules. Staff
supports the Company's request to transfer the abandoned deposits plus accrued interest to the
UW Cares Idaho program. The UW Cares program assists low-income and disadvantaged
customers with payment of water bils. The program curently provides up to $50 in anual
water bil assistance to qualifying customers, and United Water initially designed it to match
customer contributions into the fud up to $20,000 anually. Since 2005, the program has
provided more than $74,000 in assistace to more than 1,600 qualified customers.
United Water Idaho, Inc. received a deposit on January 31, 2007 from Shaunessey, LLC
for Park Place Gardens subdivision. The curent balance of that deposit is $80,878.48. Another
deposit was received on April 21, 2008 from Hard Rock Construction for the Catalpa
Subdivision. The curent balance of this deposit is $14,771.71. The deposits were initially
1 Idaho Code § 14-501(1) was amended in 2010 to designate the Idaho State Treasurer to receive the Commission's
certification.
STAFF COMMENTS 2 OCTOBER 11,2011
collected to cover the Company's inspection and overhead costs on the construction of water
mains into the developments. The projects were abandoned by the developers prior to
completion.
United Water maintains that it has made diligent efforts to return the money to the
developers but has been unable to do so. Under Idaho Code § 14-508(1) and the Commission's
Utility Customer Relations Rule 110(01), these deposits are presumed abandoned. Rule 110(02)
states that "a utilty may apply to the Commission for approval to pay unclaimed deposits and
advance payments presumed to be abandoned to a financial assistance program which assists the
utilty's low-income and disadvantaged customers with payment of utilty bils."
United Water Idaho initiated UW Cares in 2005 as the first and only water utilty
customer assistance program in the state. The program is administered through El-Ada
Community Action Parnership social service organizations. United Water states that at the
curent level of customer demand, the abandoned deposits would provide funds sufficient to
maintain the program for several years. The additional fuds would also enable expansion of the
UW Cares program. Absent a ruling from the Commission that United Water paricipates in this
program, the abandoned deposits would escheat to the general fud of the State of Idaho.
United Water also requests that it be allowed to pay reasonable attorney's fees from the
abandoned deposits for the preparation and processing of this Application. The Company
estimated the attorney fees to be approximately $5,000. Staff believes that it is inappropriate and
possibly unlawfl to pay legal fees from the deposits. Idaho Code § 14-508(1) allows unclaimed
deposits to be transferred to a "financial assistace program. . . less any lawfl deductions...."
Staff is not persuaded that attorney fees incured to transfer unclaimed deposits to a financial
assistance program constitute lawfl deductions to the two customer deposits mentioned above.
Staff believes that costs incured to obtain the Commission's certificate and processing this
application is a normal and routine legal cost to the utilty.
The Company's Application did not request that the Commission's Order be continual
and on-going with regards to future abandoned customer deposits. Staff believes that the
Company should request certification and approval of future abandoned deposits it wishes to
transfer to the UW Cares program.
STAFF COMMENTS 3 OCTOBER 11,2011
STAFF RECOMMENDATION
Staff recommends that the Commission approve the Company's request and issue an
order certifying to the Idaho State Treasurer that United Water Idaho, Inc. paricipates in a
financial assistace program which assists the utilty's low-income and disadvantaged customers
with their utilty bils, and authorizing transfer of the abandoned funds to the dedicated UW
Cares account. Staff does not recommend that the Commission allow United Water Idaho, Inc.
to deduct and pay from the abandoned fuds the reasonable attorneys' fees.
Respectfully submitted this ii.
1/ - day of October 201 1.
kig~~
Deputy Attorney General
Technical Staff: Donn English
i:umisc:commentsuwiw! 1.3wsde comments
STAFF COMMENTS 4 OCTOBER 11,2011
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 11TH DAY OF OCTOBER 20ll,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN
CASE NO. UWI-W-II-03, BY MAILING A COPY THEREOF, POSTAGE PREPAID,
TO THE FOLLOWING:
DEAN J MILLER
CHAS F McDEVITT
McDEVITT & MILLER LLP
PO BOX 2564
BOISE ID 83701
E-MAIL: joe(ßmcdevitt-miler.com
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CERTIFICATE OF SERVICE