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HomeMy WebLinkAbout19990806.docDECISION MEMORANDUM TO: COMMISSIONER HANSEN COMMISSIONER SMITH COMMISSIONER KJELLANDER MYRNA WALTERS DON HOWELL STEPHANIE MILLER TONYA CLARK RON LAW RANDY LOBB BOB SMITH WORKING FILE FROM: DATE: August 6, 1999 RE: CASE NO. UWI-W-99-3 JOINT PETITION OF UNITED WATER AND BARBER WATER AGREEMENT FOR OPERATION/MANAGEMENT OF BARBER WATER On August 5, 1999, United Water Idaho Inc. (United Water) and Barber Water Corporation (Barber Water) filed an emergency petition with the Idaho Public Utilities Commission (Commission) seeking an immediate Commission Order authorizing the operation of the Barber Water domestic water system by United Water. The Petitioners represent that they have reached an oral agreement in principle on a new purchase and sale agreement, which when reduced to writing will be presented to the Commission for approval. In the interim, it is represented that Mr. David Tripplet, the operational manager of Barber Water, has become unexpectedly ill, has been hospitalized for emergency surgery, and may be unable to function as the operational manager for some period of time. As represented, Barber has requested that United Water assume immediate operation of the Barber Water domestic water system [under Barber Water tariffs, rates and charges]. In anticipation of the pending purchase, and to ensure that safe and reliable service is provided to Barber Water customers pending the sale, United Water is willing to do so. For its service, it is agreed that United Water will be entitled to revenues received after the date it commences operations. Staff Analysis The Application of Petitioners is scant on information. Staff is unaware of the proposed terms of sale and expresses no position regarding same. United Water represents to Staff that it has no intention without Commission authorization to make capital improvements or related expenditures in the Barber Water system. If approved and if the arrangement exceeds 60 days in duration, United Water and Barber Water should be directed to work with Staff to develop an appropriate accounting protocol. Should the Commission approve the proposed arrangement, Staff contends that it should be specifically noted that, in so doing, the proposed sale is not a fait accompli. Commission Decision The Petitioners request that the Commission issue an Order approving the proposed management arrangement without further notice. Does the Commission find the proposed procedure (re without additional notice, etc.) to be reasonable? Does the Commission wish to approve the proposed arrangement for operation/ management of the Barber Water system? If approved, any qualifying or directing language? vld/M:UWI-W-99-3_sw DECISION MEMORANDUM 1