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DECISION MEMORANDUM TO: COMMISSIONER KJELLANDER COMMISSIONER SMITH COMMISSIONER HANSEN JEAN JEWELL RON LAW LOUANN WESTERFIELD TONYA CLARK DON HOWELL DAVE SCHUNKE RANDY LOBB BOB SMITH MARGE MAXWELL LYNN ANDERSON GENE FADNESS WORKING FILE FROM: SCOTT WOODBURY DATE: MAY 2, 2002 RE: CASE NO. MNV-W-02-1 (Morning View Water)APPLICATION FOR RATE INCREASE On April 26, 2002, Nolan Gneiting, President of Morning View Water Co, Inc. (Morning View; Company) filed an Application with the Idaho Public Utilities Commission (Commission) requesting authority to increase rates for water service by $30 a month, an increase of 136%. Current authorized tariff rates for Morning View are a $22 per month flat-fee plus a public drinking water fee of $6.67 per year. Base rates have not been changed since June 21, 1990. The Company alleges that its fees and expenses have increased and includes three years of accounting data with its Application. Morning View provides water service to 53 customers. The Company requests an effective date of June 1, 2002. Commission Decision Staff recommends that the Company's Application be processed pursuant to Modified Procedure and that the effective date be suspended to permit adequate time for investigation and comment. Does the Commission agree with Staff's proposed procedure, if not, how does the Commission wish to process Morning View's Application? Scott Woodbury vld/M:MNVW0201_sw