Zamzow_sw.doc

December 1, 2000

Rick Zamzow
Zamzow’s Corporate Office
1201 Franklin Road
Nampa, Id 83687

Dear Mr. Zamzow:

In response to your request, I am providing you with this letter to outline the position of the Commission Staff with regard to your complaint against Eagle Water Company concerning line extension charges.

The Commission Staff has reviewed the charges claimed by Eagle Water for extending new water service to your new Zamzow Store in Eagle. We have also carefully reviewed Eagle Water tariffs. Please be advised that the Company’s tariffs require a written agreement with the customer prior to commencement of any construction or line extension. The tariffs generally require prepayment of all costs by the customer. Reference Eagle Water General Rules and Regulations, Rule 3.4—Application for Service; Rule 13—Main Line Extensions; and tariff Schedule No. 5—Service Line and Hookup Charges.

One of the purposes of a written contract or agreement is to avoid disputes. From our investigation it appears that the Company has constructed portions of its main line to coincide with construction of roads and highways and in advance of actual requests for service. Such a practice is not specifically provided for in the Company’s Rules and Regulations. Once roads and highways are paved there is generally a five-year moratorium in cutting the pavement. During periods of moratorium, main line construction would require tunneling, a significantly more expensive alternative.

The Company’s Rules and Regulations authorize collection of onsite and offsite construction charges from customers requesting service. The fact remains, however, the Company required no written agreement with Zamzow at the time service was requested. There is no tariffed formula for computing onsite and offsite construction charges. Accordingly, the Commission Staff offers no opinion as to the reasonableness of the Company’s proposed charges. Because there was no written agreement, however, the Commission Staff would oppose any attempt by the Company to terminate service to Zamzow for nonpayment of said charges.

Staff understands that Eagle Water Company continues to believe that it is justified in charging you for both the onsite and offsite work. The Commission does not involve itself in matters of collection and has no jurisdiction to award damages. Eagle Water’s recourse for collection is through the courts. Although the Company has no written agreement with Zamzow, I encourage you to consider the equity of the Company’s position and the value of services received. I hope that the parties are able to reach an amicable resolve of this matter.

If you have further questions or need additional information, please feel free to contact me.

Sincerely,

Scott D. Woodbury
Deputy Attorney General

Rick Sterling, P.E.
Staff Engineer

cc: Robert DeShazo
846 N. Eagle Road
Box 455
Eagle, ID 83616-0455
Vld/L:Zamzow_sw
Rick Zamzow
December 1, 2000
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