20060629Staff to Algoma 1-20.pdf

CECELIA A. GASSNER
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
BAR NO. 6977
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Street Address for Express Mail:
472 W. WASHINGTON
BOISE, IDAHO 83702-5983
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. AWS-06-
IN THE MATTER OF THE APPLICATION'
TO SELL THE ALGOMA WATER SYSTEM
CERTIFICATE OF PUBLIC CONVENIENCE
AND NECESSITY NO. 396 FIRST PRODUCTION
REQUEST OF THE
COMMISSION STAFF TO
ALGOMA WATER SYSTEM
The Staff of the Idaho Public Utilities Commission, by and through its attorney of
record, Cecelia A. Gassner, Deputy Attorney General, requests that Algoma Water System
Algoma" or "Company ) provide the following documents and information on or before
MONDAY, JULY 24, 2006.
The Company is reminded that responses pursuant to Commission Rules of Procedure
must include the name and phone number of the person preparing the document, and the name
location and phone number of the record holder. Reference IDAP A 31.01.01.228.
This Production Request is to be considered as continuing, and Algoma is requested to
provide, by way of supplementary responses, additional documents that it or any person acting
on its behalf may later obtain that will augment the documents produced.
FIRST PRODUCTION REQUEST
TOALGOMA WATER
JUNE 29 2006
Please provide answers to each question; supporting workpapers that provide detail or are
the source of information used in calculations; the name and telephone number of the person
preparing the documents; and the name, location and telephone number of the record holder.
For each item, please indicate the name of the person(s) preparing the answers, along
with the job title of such person(s) and the witness who can sponsor the answer at hearing.
Request No.1: Please provide the date and manner in which the revised "Customer
Notice of Sale" was provided to customers of Algoma.
Request No.2: Please provide the number of customer complaints received by the
Company for calendar year 2005 broken into categories by topics: high bills, disconnection
water quality, etc.
Request No.3: Please provide an example of a customer billing statement.
Request No.4: Please provide a copy of Algoma s Initial Notice of Past Due document.
Request No.5: Please provide a copy of Algoma s Final Notice of Past Due document.
Request No.6: Please provide a copy of Algoma s annual Summary of Rules and
Customer Regulations.
Request No.7: Please provide the details of the ~ 1031 exchange. What property of the
Buyer is going to be exchanged for the balance of the amount due under the Purchase
Agreement? How will the exchange of the property affect the financial statement (Attachment
A) ofMr. Greenwood?
Request No.8: Based on the transaction, does the Buyer expect to claim any rate base or
return related to the assets of the water company in future rate cases? If the Buyer expects to
claim any rate base or return after the conclusion of the transaction, please provide all the
financial information to justify the amount claimed.
FIRST PRODUCTION REQUEST
TOALGOMA WATER
JUNE 29, 2006
Request No.9: The filed Annual Reports (2005, 2004 and 2002) do not provide
financial information regarding any rate base of the water company; however, there is some
indication that the Company has made repairs and improvements to the water system in the past
two (2) years. (A) What value of any repairs made to the water system in the past two (2) years
does the Buyer believe should be capitalized and included in the rate base? (B) Please provide
documentation (invoices, etc.) showing all amounts.
Request No. 10: The 2005 Annual Report shows a loan from Panhandle State Bank with
a 2005 balance of $32 305.90. Does the Bank have any lien or encumbrance on the Company
assets? If so, what will be the disposition ofthe loan, and who will be responsible for the
payment of such debt obligation? If the Bank does not have any lien against the assets of the
water company, is the Buyer going to assume any responsibility for the payment of such debt?
Request No. 11: Please provide a pro forma income statement, cash flow statement and
balance sheet for the Company after the Buyer assumes ownership.
Request No. 12: What amount of cash will the Buyer need to invest into the Company
so that the Company can maintain its ability to meet its monthly obligations? How will the
Buyer provide this cash to the Company?
Request No. 13: Will the Company incur any expenses or overhead costs from the
Buyer or any of the Buyer s other companies? Will the Company be allocated any expenses
from the Buyer or any of the Buyer s companies?
Request No. 14: The 2005 Annual Report shows a Retained Earnings balance as of the
end of the year of $7 283.04. What will happen to this retained earnings balance after the close
of the transaction?
Request No. 15: In the Department of Environmental Quality s State ofIdaho Public
Water System Enhanced Sanitary Survey of the Algoma Water System conducted on July 22
2005 , nine system deficiencies were noted. Please provide detailed information and
FIRST PRODUCTION REQUEST
TO ALGOMA WATER
JUNE 29 2006
documentation of what has been done to address each of the deficiencies and the current status of
each item. For any deficiency that has not been fully resolved please provide an explanation as
to how it will be resolved by the Buyer.
Request No. 16: Previously, Algoma had indicated intentions of installing meters to
customer service lines. Please provide the status of meter purchases and installation. If no
progress has been made installing meters, what is the Company s meter installation plan for the
future?
Request No. 17: Which community sewer systems in Bonner County does the Buyer
own?
Request No. 18: Please provide a copy of the tariff that would take effect after the sale
ofthe water system to Buyer.
Request No. 19: Please provide explanatory detail of what the "two week feasibility
study" set forth on page 2 of Attachment D of the Application refers to and who conducted such
study. Please provide a copy of the study and results, or the date on which such results will be
available if the study has not yet been conducted.
Request No. 20: Please provide a copy of the Certificate of Assumed Business Name in
the State ofIdaho for Algoma Water System.
.,c
Dated at Boise, Idaho this) 't day of June 2006.
cec
Deputy Attorney General
Technical Staff: Tammie Estberg
Joe Leckie
Mike Darrington
i:umisc:comments/awswO6.1cgte prod req 1
FIRST PRODUCTION REQUEST
TO ALGOMA WATER
JUNE 29, 2006
CERTIFICATE OF SERVICE
HEREBY CERTIFY THAT I HAVE THIS 29TH DAY OF JUNE 2006
SERVED THE FOREGOING FIRST PRODUCTION REQUEST OF THE
COMMISSION STAFF TO ALGOMA WATER IN CASE NO. AWS-06-
BY MAILING A COpy THEREOF, POSTAGE PREPAID, TO THE FOLLOWING:
LARRY NEU
C/O TOMLINSON BLACK
200 MAIN ST
SANDPOINT, ID 83864
PAUL E GREENWOOD
22311 ROMAR ST
CHATSWORTH CA 91311
~~,
SECRETARY
CERTIFICATE OF SERVICE