GNRW011.docx

1 SANDPOINT, IDAHO, THURSDAY, JUNE 20, 2002, 1:00 P.M.
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4 COMMISSIONER KJELLANDER: Well, good
5 afternoon. This is the time and place for a
6 technical hearing in Case No. GNR-W-01-1, also
7 referred to as In the matter of the investigation
8 into whether Ponderosa Terrace Estates Water System,
9 Inc., is a public utility subject to regulation by
10 the Idaho Public Utilities.
11 My name's Paul Kjellander; I'll be the
12 Chairman of today's hearing. To my left is
13 Commissioner Marsha Smith, and to my right is
14 Commissioner Dennis Hansen. The three of us
15 comprise the Commission, and upon the conclusion of
16 this technical hearing and public hearing we will be
17 the three who deliberate on the record that is
18 developed here today and issue a final Order based
19 on that official record.
20 The two main issues before us today in
21 the hearing are, one, what rate shall be collected
22 pending a final Order issued after these
23 proceedings; and the second issue is billing and
24 disconnection issues.
25 As I mentioned, this is the technical
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HEDRICK COURT REPORTING COLLOQUY
P.O. BOX 578, BOISE, ID
1 hearing. Later this evening we have a public
2 hearing scheduled, however, I do believe that there
3 are some individuals here who are users of the Water
4 Company, if I'm not mistaken. So if you would like,
5 upon the conclusion of the technical hearing or
6 perhaps during a break depending on how things shake
7 out, we might be able to give you an opportunity to
8 provide your public testimony so that you don't have
9 to stay around until six o'clock this evening when
10 we're scheduled for that hearing. So we'll try to
11 accommodate that if that will fit into your
12 schedule.
13 So with that, why don't we begin with
14 the appearances of the party, and let's begin with
15 the -- let's see -- assistant lieutenant --
16 assistant attorney general representing the Staff of
17 the Public Utilities Commission.
18 MS. NORDSTROM: Thank you. My name is
19 Lisa Nordstrom, and I'm a deputy attorney general
20 for the State of Idaho representing the Commission
21 Staff in this case.
22 COMMISSIONER KJELLANDER: And why
23 don't we move to the Water Company, Mr. Cobott.
24 MR. COBOTT: My name is Robaer Cobott.
25 I'm the owner and operator of the Water Company.
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HEDRICK COURT REPORTING COLLOQUY
P.O. BOX 578, BOISE, ID
1 COMMISSIONER KJELLANDER: Thank you.
2 Are there any preliminary matters that
3 need to come before the Commission before we begin
4 these proceedings?
5 MS. NORDSTROM: Staff has one
6 preliminary issue:
7 Based upon the testimony that was
8 filed by Mr. Cobott and Mr. Fairfax, Staff has
9 prepared rebuttal testimony and we have it in
10 written form. It's approximately two pages with
11 three exhibits. And we propose providing that to
12 the Commission and we've provided it to the other
13 party, and the Commission may need time to review it
14 if they would like to do so.
15 Staff also recommends that direct and
16 rebuttal be combined to accommodate this or to allow
17 this new testimony to be considered at the same time
18 as the direct. The hope is -- is that that will
19 provide some efficiency so that we can talk about
20 the issues with all the information at hand.
21 Staff's feeling that that might be helpful, rather
22 than provide an artificial distinction.
23 COMMISSIONER KJELLANDER: Okay. Thank
24 you. So then it's your intent then to do the direct
25 and rebuttal combined.
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HEDRICK COURT REPORTING COLLOQUY
P.O. BOX 578, BOISE, ID
1 MS. NORDSTROM: Yes.
2 COMMISSIONER KJELLANDER: And without
3 objection, we'll move in that direction.
4 MR. COBOTT: I have a comment to that,
5 please.
6 COMMISSIONER KJELLANDER: Certainly,
7 Mr. Cobott.
8 MR. COBOTT: I do not agree with the
9 rebuttal. You asked for my direct testimony, I gave
10 it to you, end of story. I am not going to answer
11 any more questions on a direct rebuttal, especially
12 from Bob Smith, end of story. You take my testimony
13 or forget it.
14 HEARING OFFICER: Mr. Cobott, we
15 appreciate your comments. The Rules of Procedure
16 that we follow is that when you're under oath, if
17 apparently at that point if you don't feel like
18 asking questions, then you can respond accordingly
19 at that time.
20 MR. COBOTT: I will not answer any
21 questions. I will not even look at it. I gave my
22 testimony. In other words, what you're saying is I
23 lied on my testimony. I am not going to be called a
24 liar; I've been called a liar before. I'm not going
25 to be called a liar again. Now, if you want to get
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HEDRICK COURT REPORTING COLLOQUY
P.O. BOX 578, BOISE, ID
1 hard-nosed here, I'll get really hard-nosed.
2 COMMISSIONER KJELLANDER: Mr. Cobott,
3 appreciate your comments. We'll move forward with
4 the proceeding. What I would like to ask you though
5 at this point is that you have received a copy of
6 the rebuttal testimony. If you'd like an
7 opportunity to take a break or --
8 MR. COBOTT: I refused the copy. I
9 did not receive it; I refused it. I will not read
10 it. I will not answer any questions on that
11 rebuttal statement.
12 COMMISSIONER KJELLANDER: That is
13 certainly your prerogative.
14 Are there other issues that need to
15 come before the Commission at this time?
16 MS. NORDSTROM: I'm sorry.
17 COMMISSIONER KJELLANDER: Are there
18 other issues that need to come before the Commission
19 at this time?
20 MS. NORDSTROM: No. No. But I do
21 have copies of the rebuttal testimony if the
22 Commissioners would like to receive it.
23 COMMISSIONER KJELLANDER: I would
24 certainly like that, and I would also like to take a
25 break of about 10 to 15 minutes to give the
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HEDRICK COURT REPORTING COLLOQUY
P.O. BOX 578, BOISE, ID
1 Commissioners an opportunity to review that
2 testimony.
3 (Recess.)
4 COMMISSIONER KJELLANDER: I think
5 we're ready to go back on the record. We've had an
6 opportunity to review the rebuttal testimony filed
7 by Mr. Smith.
8 And would also like to remind
9 individuals involved today including those that are
10 in attendance in the audience that we act as a court
11 in our operation in this function. We have a court
12 reporter. So it's significant that as we move
13 forward with testimony and the cross-examination
14 that we have just one person talking at a time,
15 because it makes it extraordinarily impossible for
16 our court reporter to actually try and run dialogue
17 from two people simultaneously. So I just want to
18 put that as a remainder as we go forward.
19 So with that then, I believe we're
20 ready for Ms. Nordstrom, Deputy Attorney General,
21 and her first witness.
22 MS. NORDSTROM: Thank you,
23 Mr. Chairman. The State would call as its first
24 witness Robert Smith.
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HEDRICK COURT REPORTING COLLOQUY
P.O. BOX 578, BOISE, ID
1 ROBERT E. SMITH,
2 produced as a witness at the instance of the Staff,
3 being first duly sworn, was examined and testified
4 as follows:
5
6 DIRECT EXAMINATION
7
8 BY MS. NORDSTROM:
9 Q. Good afternoon. Please state your
10 name and spell your last name for the record.
11 A. My name is Robert E. Smith, S-M-I-T-H.
12 Q. By whom are you employed and in what
13 capacity?
14 A. I'm employed by the Idaho Public
15 Utilities Commission as a utilities auditor.
16 Q. Are you the same Robert E. Smith that
17 filed direct testimony on June 7th, and prepared
18 Exhibit Nos. 101 through 106?
19 A. Yes.
20 Q. Are you also the same Robert E. Smith
21 that filed rebuttal testimony on today's date,
22 June 20, 2002, numbered one through two, with
23 Exhibit Nos. 117 through 119?
24 A. Yes, I am.
25 Q. Do you have any changes or corrections
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HEDRICK COURT REPORTING SMITH (Di)
P.O. BOX 578, BOISE, ID Staff
1 to your testimony or exhibits?
2 A. None that I'm aware of.
3 Q. If I were to ask you the questions set
4 out in your prefiled testimony today, would your
5 answers be the same?
6 A. Yes, they would.
7 MS. NORDSTROM: I would move that the
8 prefiled direct and rebuttal testimony of
9 Robert E. Smith be spread upon the record as if
10 read, and that Exhibits 101 through 106 and 117
11 through 119 be marked for identification.
12 COMMISSIONER KJELLANDER: Without
13 objection, we will have both the direct and the
14 rebuttal testimony of Mr. Smith spread across the
15 record, and Exhibits 101 through 106 marked for
16 identification.
17 (The following prefiled direct and
18 rebuttal testimony of Mr. Smith is spread upon the
19 record.)
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HEDRICK COURT REPORTING SMITH (Di)
P.O. BOX 578, BOISE, ID Staff