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HomeMy WebLinkAbout20080515Sandpoint.pdf. . .- RECEIVED BEFORE THE IDAHO PUBLIC UTILITIES COMi~~i~ i UTllJ IN THE MATTER OF ALGOMA WATER ) COMPANY'S APPLICATION FOR ) APPROVAL TO SELL THE WATER ) COMPANY AND. FOR AN ORDER ) AUTHORIZING INCREASES IN THE ) COMPANY' S 'RATES AND CHARGES ) FOR WATER SERVICE. ) PUBLIC HEARING ,...~.~ AT SANDPOINT, IDAHO APRIL 29, 2008, AT 7:00 P.M. HEARING OFFICER: Mack A.Redford, Commissioner Idaho Public Utilities Commission Reported by: Charlotte R. Crouch, CSR No. 192Notary Public Spokiìne, Washington 509.455.4515 1.800.879.1700 Co~ur d'Alene, Idaho North~rn Offices 208.765.1700 1.800.879.1700 WW.mmCourt.com 208.345.9611 1.800.234.9611 . . . 1 APPEARANCES 2 3 Mr. Mack A. Redford, Commissioner, Hearing Officer, Idaho Public Utili ties Commission, 472 W. 4 Washington, P. O. Box 83720, Boise, ID 83720-0074. 5 Mr. Donald L. Howell, II, Deputy Attorney 6 General, Lead Attorney, Public Utili ties Commission, 472 W. Washington, P. O. Box 83720, Boise, ID 7 83720-0074. 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 2 M & M Court Reporting Service, Inc.1-800-879-1700 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION 4/29/08 .1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 0 . . TESTIMONY OF: Adam Hofer . Timothy Blankenship Petition M & M Court Reporting Service, Inc. I N D E X EXHIBITS Admitted PAGE 5 7 PAGE 7 1-800-879-1700 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION 4/29/08 Page 3 . . . 1 A PUBLIC HEARING, was held before the Idaho 2 Public Utili ties Commission on this 29th day of April 3 2008, 7: 00 P.M. at the Sandpoint High School Library, 4 410 South Division Street, Sandpoint, Idaho, before 5 M & M Court Reporting Service, Inc., by Charlotte R. 6 Crouch, Court Reporter and Notary Public within and 7 for the State of Idaho, to be used in an action 8 pending before said Commission, said cause being Case 9 No. AWS-W-07-01. 10 AND THEREUPON, the 'following proceedings 11 were had, to wit: 12 HEARING OFFICER: We'll go on the record 13 now. 14 My name is Mack Redford, and I'm a 15 Commissioner of the Idaho Public Utilities Commission. 16 We're holding a hearing here in Sandpoint on the 17 matter of Algoma Water Company's application for 18 approval to sell the water company, and for an order 19 authorizing increases in the company's rates and 20 charges for water. 21 The case number is AWSW-W-07-01. The 22 hearing in this matter was issued by the Commission on 23 11 April 2008. The purpose of the hearing tonight is 24 to take testimony of interested parties as to the 25 proposed sale, and the rate increase for Algoma. Let Page 4 M & M Court Reporting Service, Inc.1-800-879-1700 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION 4/29/08 . . . 1 me tell you what is it not. It's not for the purpose 2 of answering any questions. That was done in an 3 earlier proceeding at a workshop. We are simply here 4 to take the comments of anyone who wants to testify. 5 And before you testify, Mr. Howell, whom I'LL 6 introduce, who is the general counsel for the 7 Commission, will ask you to swear under oath, and 8 he'll ask you to give your address, and so on and so 9 forth. 10 Again, we're pleased about those of you who 11 are here who will be testifying. And we also have 12 Mr. Chris Hecht, who is with the Commission. He's 13 14 si tting in the back of the room, and if there's any questions or technical questions that you might want 15 to ask him after the proceeding, he'll be glad to 16 answer any of these questions. 17 So, what I'd like to do at this time is 18 call the first witness who is Adam Hofer. If you'd 19 like to step forward, and raise your right hand, 20 please. 21 ADAM HOFER, 22 having been first duly sworn to tell the truth, the 23 whole truth, and nothing but the truth relating to 24 said cause testified as follows: 25 HEARING OFFICER: Step right up to the Page 5 M & M Court Reporting Service, Inc.1-800-879-1700 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION 4/29/08 . . . 1 2 podium here, and speak. MR. HOWELL: Would you state your full name 3 for the record, and spell your last name, please? 4 MR. HOFER: Adam Edward Hofer, H-O-F-E-R. 5 And my address, 94 Norman Way in Sagle. 6 MR. HOWELL: And, sir, are you a customer 7 of Algoma Water Company? 8 9 MR. HOFER: Yes. MR. HOWELL: All right. And if you'd like 10 to give the Commissioner your statement, please do. 11 MR. HOFER: I just -- you know, I see the 12 rate increase, and I don't understand how that is a 13 14 feasible amount. You know, that's a 100 percent increase, and I just don't understand how that -- you 15 know, if a person knows that a company is in the red, 16 and that it has a negative net income, why would they 17 buy it? You know, if -- you know, if he just wants to 18 raise the -- the water bill or sewer bill a little bit 19 a year, that is understandable, in my eyes. But to go 20 from -- you know, the combination bill is $60 a month, 21 is what we pay; $62.58, I think. And to go from -- 22 back to what the proposed is, which is over $90 a 23 month, you know, I don't make a lot of money, and 24 that's more than what they charge here in town. And 25 so, I don't think that this is going to do anything, Page 6 M & M Court Reporting Service, Inc.1-800-879-1700 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION 4/29/08 . . . 1 but I had all of the neighbors, my neighborhood, sign 2 a petition, and it's just very simple. I got off work 3 tonight, hauled home, typed this up, and then ran my 4 neighborhood, and this is what I came up with. I 5 don't know if it's going to do any good or not. 6 HEARING OFFICER: Well, certainly. Let's 7 admi t that as an exhibit to the hearing, and we'll 8 note for the record that this is a petition against 9 or a petition by what Mr. Hofer represents are the 10 homeowners and rate payers in this area. I'd like to 11 read it. It says, "This is a petition against the 12 raise in our water and sewer monthly charge. A raise 13 14 15 in our water is fine, but a 100 percent increase is not." And there are sixteen names that are listed. Thank you very much. We'll make this a 16 part of the record. It will be noted by the 17 Commission. 18 19 MR. HOFER: Thank you. HEARING OFFICER: Thank you. 20 Tim Blankenship? 21 TIM BLANKENSHIP, 22 having been first duly sworn to tell the truth, the 23 whole truth and thing but the truth relating to said 24 cause, testified as follows: 25 MR. HOWARD: Thank you, sir. Page 7 M & M Court Reporting Service, Inc.1-800-879-1700 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION 4/29/08 . . . 1 Would you state your name, and spell your 2 last name for the record? 3 MR. BLANKENSHIP: My name is Timothy 4 Blankenship, B-L-A-N-K-E-N-S-H-I-P. 5 MR. HOWARD: Do you have a mailing address, 6 sir? 7 MR. BLANKENSHIP: My company mailing 8 address is 1205 Highway 2, Suite 101, Sandpoint. 9 MR. HOWARD: And are you a customer of 10 Algoma? 11 MR. BLANKENSHIP: I represent the Sagle 12 Valley Water and Sewer District. 13 14 15 MR. HOWARD: Great. Do you have a statement you'd like to give the Commission? MR. BLANKENSHIP: Earlier -- late last 16 month, we sent a letter to the Commission stating that 17 the Algoma water system is within the Sagle Valley 18 Water and Sewer District. 19 HEARING OFFICER: And we've received that 20 letter. 21 MR. BLANKENSHIP: I just wanted to 22 reiterate that they are in the District,. and these 23 properties, because they're in the District, will be 24 assessed for the new water system that's being put in. 25 So, in addition to the rate increase that the Page 8 M & M Court Reporting Service, Inc.1-800-879-1700 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION 4/29/08 . . . 1 particular customers are going to see, they're also 2 going to have a $30.50 assessment for a water system 3 that they're not going to be using. 4 What the District would like is for the 5 system to merge with the Sagle Valley Water System 6 such that they would be provided better pressure, 7 better service, and a lower rate than what they're 8 being currently -- what's currently being suggested as 9 the new rate that they would be having. 10 HEARING OFFICER: Well, for the record, I'd 11 li ke to indicate that we have received a letter from 12 your company, and it has and will become part of the 13 14 record. And it will certainly be reviewed by the Commission prior the any decision as to the sale of 15 the water company and/or any rate increase. 16 And I might state that just because the 17 company has asked for a rate increase doesn't make it 18 so. We will be the ones that decided what is the fair 19 rate. 20 Thank you. 21 22 MR. BLANKENSHIP: Okay. HEARING OFFICER: Is there anyone else that 23 would like to testify? 24 (No response.) 25 HEARING OFFICER: Well, hearing that, I'd Page 9 M & M Court Reporting Service, Inc.1-800-879-1700 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION 4/29/08 . . . 1 like to thank you very much for coming to our hearing, 2 and you certainly live in a beautiful area, and all of 3 us love this part of the state. 4 Thank you very much. 5 (The hearing concluded at 7: 05 P.M.) 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 10 M & M Court Reporting Service, Inc.1-800-879-1700 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION 4/29/08 A buy day 6:257:59:1,2,3 abilty 6:17 4:211:17 good 11:12 B-L-A-N-K-E-N-S-H-...decided 7:5 action 8:4 9:18 Great.4:711:15 decision 8:13 Adam C 9:14 3:55:18,216:4 C Deputy H addition 2:1 2:5 H 8:25 call direction 3:15 address 5:18 11:9 hand 5:86:58:5,8 case District 5:1911:17 admit 1:54:8,21 8:12,18,22,239:4 hauled 7:7 cause Division 7:3 Admitted 4:85:247:24 4:4 hearing 3:17 certainly Donald 1:10,142:34:1,12,16 Algoma 7:69:1310:2 2:5 4:22,235:257:6,7 1:44:17,256:78:10 CERTIFICATE duly 7:198:199:10,22,25 8:17 11:1 5:227:22 9:2510:1,5 amount Certified d'Alene Hecht 6:13 11:2 11:22 5:12 and/or certify held 9:15 11:3 E 4:1 answer charge E hereunto 5:16 6:247:12 2:1,13:1,15 11:16 answering charges earlier he'll 5:2 1:64:20 5:38:15 5:8,15 application Charlotte Edward High 1:44:17 1:174:511:2,20 6:4 4:3 approval Chris employee Highway 1:54:18 5:12 11:13 8:8 April Coeur exhibit Hofer 1:124:2,23 11:22 7:7 3:55: 18,216:4,4,8,11 area combination Expires 7:9,18 7:1010:2 6:20 11:23 holding asked coming eyes 4:16 9:17 10:1 6:19 home.assessed comments 7:3 8:24 5:4 F homeowners assessment Commission fair 7:10 9:2 1:2,142:3,64:2,8,15 9:18 HOWARD attorney 4:225:7,127:17 feasible 7:258:5,9,13 2:5,611:14 8: 14,169: 14 11:23 6:13 Howell authorizing Commissioner financially 2:55:56:2,6,9 1:64:19 1:142:34:156:10 11:15 H-O-F-E-R Ave company fine 6:4 11:21 1:54:186:7,158:7 7:13 AWSW-W-07-01 9:12,15,17 first I 4:21 company's 5:18,227:22 ID AWS-W-07-01 1:4,64:17,19 following 2:4,611:22 1:54:9 concluded 4:10 Idaho 10:5 follows 1:2,11,142:34:1,4,7 B correct 5:247:24 4:15 B 11:10 foregoing II 3:15 counsel 11:4,10 2:5 back 5:6 forth income 5:13 6:22 Court 5:911:5 6:16 beautiful 4:5,6 forward increase 10:2 Crouch 5:19 4:256:12,147:138:25 best 1:174:611:2,20 full 9:15,17 11:11 CSR 6:2 increases better 1:17 1:64:19 9:6,7 currently G indicate bil 9:8,8 general 9:11 6:18,18,20 customer 2:65:6 interested bit 6:68:9 give 4:2411:15 6:18 customers 5:86:108:14 introduce Blankenship 9:1 given 5:6 3:67:20,218:3,4,7,11 C.S.R 11:11 issued.8:15,219:21 11:20 glad 4:22 Boise 5:15 2:4,6 D go J Box D 4: 12 6: 19,21 January 2:4,6 3:1 going 11:23 Page 12 K know 6: 11,13,15,17,17,20,23 7:5 knows 6:15 L L 2:5 late 8:15 Lead 2:6letter 8: 16,20 9: 11 Let's 7:6 Library 4:3 listed 7:14 little 6:18 live 10:2 lot 6:23 love 10:3 lower 9:7 M M 4:5,5 Mack 1:142:34:14 mailng 8:5,7 matter 1:44:17,22 merge 9:5 money 6:23 month 6:20,238:16 monthly 7:12 N N 2:13:1 name 4:146:2,38:1,2,3 names 7:14 negative 6:16 neighborhood 7:1,4 neighbors 7:1net 6:16 new 8:249:9 Norman 6:5 Notary 1:174:611:21 note M & M Court Reporting Service, Inc.i -800-879- i 700 BEFORE THE IDAHO PUBUC UTIUTIES COMMISSION 4/29/08 Page 13 7:8 purpose 7:11 5:247:24 5:1811:16 noted 4:235:1 School testify witnesses 7:16 put 4:3 5:4,59:23 11:6 number 8:24 seal testifying work.4:21 P.M 11:17 5:11 7:2 1:124:310:5 see testimony workshop 0 6:11 9:1 3:34:2411:7,11 5:3 0 Q sell thank 2:4,6 questions 1:54:18 7:15,18,19,259:20 X oath 5:2,14,14,16 sent 10:1,4 X 5:711:6 8:16 thing 3:1,15 objections R service 7:23 11:7 R 1:74:59:7 think y Officer 1:172:14:511:2,20 set 6:21,25 year1:142:34:125:257:6 raise 11:5,16 Tim 6:19 7: 198: 199: 10,22,25 5:196:187:12,12 sewer 7:20,21 Okay ran 6:187:128:12,18 time S 9:21 7:3 Sherman 5:1711:5,6 $30.50onesrate11:21 Timothy 9:29:18 4:256:127:108:25 Shorthand 3:68:3 $60order9:7,9,15,17,19 11:2 tonight 6:201:54:18 rates sign 4:237:3 $62.581:64:19 7:1 town 6:21Preadsimple6:24 $90P7:11 7:2 transcribed 6:22 2:1,1,4,6 received simply 11:9 PAGE 8:199:11 5:3 true # 3:3,15 record sir 11:10 part 4:126:37:8,168:2 6:67:258:6 truth #192 7:169:1210:3 9:10,1311:11 sitting 5:22,23,237:22,23,23 11:20 particular recorded 5:13 typedsixteen7:3 19:1 11:8 parties red 7:14 100 4:2411:14 6:15 South U 6:137:13 pay Redford 4:4 understand 101 6:21 1:142:34:14 speak 6:12,14 8:8.payers reiterate 6:1 understandable 11 7:10 8:22 spell 6:19 4:23 pending relating 6:38:1 Utilties 12th 4:8 5:237:23 state 1:2,142:3,64:2,15 11:17 percent relative 4:76:28:19:1610:3 1205 6:137:13 11:13 statement V 8:8 person Reported 6:108:14 Valley 18 6:15 1:17 stating 8:12,179:5 11:23 petition Reporter 8:16 192 3:177:2,8,9,11 4:611:3 stenographically W 1:17 place REPORTER'S 11:8 W 11:5 11:1 step 2:3,6 2 placed Reporting 5:19,25 want 2 11:6 4:5 Street 5:14 8:8 please represent 4:4 wanted 2008 5:206:3,10 8:11 suggested 8:21 1:124:3,2311:18 pleased represents 9:8 wants 2013 5:10 7:9 Suite 5:46:17 11:23 podium response 8:811:21 Washington 29 6:1 9:24 swear 2:4,6 1:12 pressure reviewed 5:7 water 29th 9:6 9:13 sworn 1:4,5,74:17,18,206:7 4:2 prior right 5:227:22 system 6:187:12,138:12,17 49:14 5:19,256:9 8: 18,249:2,5,15proceedingroom8:17,249:2,5,5 Way 410 5:3,15 5:13 4:46:5proceedingsTwe'll 472 4:1011:4 5 T 4:127:7,15 2:3,6 properties 5 3:15 we're 8:23 2:13:15 take 4:165:10 5 proposed Sagle 4:245:4 we've 5 4:256:22 6:58:11,179:5 taken 8:19 3:5.provided sale 11:4 WHEREOF 9:6 4:259:14 technical 11:16 7 Public Sandpoint 5:14 wit 71:2,10,14,172:3,64:1 1:11 4:3,4,168:8 tell 4:11 3:6,17 11:214:2,6,1511:21 says 5:1,227:22 witness 7:00testified M & M Court Reporting Service, Inc.i -800-879- i 700 BEFORE THE IDAHO PUBliC UTILIES COMMISSION 4/29/08 . . . , , 1:124:3 7:05 10:5 8 816 11:21 83720 2:4,6 83720-0074 2:4,7 83814 11:22 9 94 6:5 M & M Court Reporting Service, Inc.1-800-879-1700 Page 14 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION 4/29/08 ~, '" . . . 1 REPORTER'S CERTIFICATE 2 I, CHARLOTTE R. CROUCH, Certified Shorthapd 3 Reporter, do hereby certify: 4 That the foregoing proceedings were taken before 5 me at the time and place therein set forth, at which 6 time any witnesses were placed under oath; 7 That the testimony and all obj ections made 8 were recorded stenographically by me and were 9 thereafter transcribed by me or under my direction; 10 That the foregoing is a true and correct 11 record of all testimony given, to the best of my 12 ability; 13 That I am not a relative or employee of any 14 attorney or of any of the parties, nor am I 15 financially interested in the action. 16 IN WITNESS WHEREOF, I have hereunto set my 17 hand and seal this 12th day of May, 19 18 2008.. 20 ,,/ :r,#~ 1~iR.~1 :'?~:: CHARLOTTE R . CROUCH, C. S . R. # 192 ":"'(,)C',Ñotary Public"'~~" 816 Sherman Ave. , Suite 7 Coeur d' Alene, ID 83814 21 22 23 My Commission Expires January 18, 2013. 24 25 Page 11 M & M Court Reporting Service, Inc.1-800-879-1700 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION 4/29/08