20071128Ltr from MR to Hasselstrom.pdf

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Mack A. Redford
Commssîoner
Idaho Public Utilities Commission
P.O. Box 83720
Boise, Idaho 83720-0074
c.L. "Butch" Otter
Governor
November 28, 2007
Carol Hasselstrom
188 Nort 3950 East
Rigby, ID 83442
Dear Ms. Hasselstrom:
This letter is in response to a letter you sent to Governor Otter on November 13,2007, regarding
the status of water service provided by Morning View Water Company. I want to first than you
for yoU! report on the recentimprovements and continuing problems in service quaity provided
by the water company. The Commission identified and addressed several water service
problems in its Mornng View Water rate case order issued August 30th of this year, and it is
helpful to hear from customers regarding impact on service.
As you correctly pointed out in your letter, the.Commission has.established a moratorium on new
connections pending improvement in system water pressure~ acquisition of sufficient water rights
to serve the system and the metering of customers. The Commssion has worked closely with
the Division of Environmenta Quality (DEQ) to convince Mr. Gneiting to undertake the
necessary system improvements. Our focus has been on maintaining water service while
improving system water pressure and water quality. Installationofa backup well in July is just
the first step in improving overall service.
The approach used by the Commission in situations like these is to persuade small-water
compaiîY owners,.in ths case Mr. Gneiting, to voluntaly make system improvements and
properly manage the water system without fines or lengty litigation. We do this by working
with the owner to identify physical system deficiencies and developing methods, such as the
surcharge, to pay for improvements. We find that for undercapitalized operations like Morning
View Water it is often easier for the owner to walk away from the system or fight the
Commission though lengthy litigation than to invest in needed system improvements.
In most cases, the Commission believes that water customers are ultimately better served by
encouraging cost-effective upgrades by existing owners than they would be though fines, jail
time or attempting to remove curent ownership. These steps are viewed as a last resort.
Located at 472 West Washington Street, Boise, Idaho 83702
Telephone: [phone] Facsimile: [phone]
Carol Hasselstrom
November 28, 2007
Page 2
Ultimately, the challenge is to provide adequate service at reasonable rates. To that end the
Commssion will continue to work with Mr. Gneiting to assure compliance with DEQ
regulations, to begin instalation of customer meters, to secure necessar water rights and to
improve customer relations. Again, I want to than you for your letter. Your periodic feedback
is very valuable in helping assess our progress.
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A.- . ,.. ~
Mack . r
President
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cc: Governor C. L. "Butch" Otter
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November 19,2007
Carol HasseIstrom
188 Nort 3950 East
Rigby, in 83442
Dear Carol,
Tha you for contactig me about sml public utility water companes. I appreciate the
opportty to respond.
I have forwarded yoUr concers to PUC CommissIon President Mack A. Redford. I have
-asked the commssioner to respond directy to you~on this matter an to provide me with
a copy of IDS response.
."Than again for contactIng me. Pleae kee me infonned on ths and any other state
governent issues of concer to you.
CLOlbb
STATE CAPITOL. BOISE, IOAHO 83720. (208) 334-210Q
l~ V. V I J. V
Carol Halstrm
188 Nort 3950 Eas
Rigby, il 83442 RECEfVED
NOV 15207,
November 13; 2007 OFFICE OF THE GOVERNOR
Governor C. L. Oter
Offce of the Goveror
Sta Capital
Boise, il 83720
Dea. Governor Otter:
This leter is for two resons: (first) to th you for your forwardin my previous lett
requestg a change in the laws regarding smal public utilty water compa.es and
(second) to updte you on what ha been accomplished
Thans to your leter accompaying my letrs to the Public Utilities Commission and
the Deparen of Envionentai Quaty, a $400 fie wa a.qsessed by the DEQ for low
water pressur on Nola Gneiti and the Public Utilities Commsson restcted any new
unts being hooked up to the wells un cern crtea is met. We now hBvc water
pressur. Morning View Water removed a sand tr that ha not worked for years and
we no longer have sand and rut visible in the water.
The Public Utilities Commission ha stopped all hookups to th wells unti (1) Morning
View Water purchaes adequate shaes of water to cover what it is deliverng to
customer, (2) water pressure must be kePt at lega lits, and (3) all of the existig unts
must have meter ined. As I stated abve, the water prssure is up. I don't know if
it's in the lega limts: but it is an improvement. Jeffern County ha stopped issug
building pets for th ar Mr. Gneitig lost his license to nm a public utty an ha
had to get someone with a licese to help ru Morning View Water. He ha not taen the
necessar stps to have his licene reinted or renewed, whichever one he needed. One
of my neighbors is trg to put a manufactured home on proper they have owned for
sever years. Becae the property had water to it before the Public Utiities cut off any
new building permts, they can obta a permt for this propert as soon as Nola submits
water samples from each of the thee wells to the DEQ. Ths st han't happeed even
thoug my neighbors have ben working on this for severa months. Nolan keeps ielli
them that he has everyg taen care of and it will jus be a couple of more weeks. A
manuf~iu home,Company in Idaho Fal pur~ei several lots frm Mr. Gneiting.
Now they are not able to put liomeson these lots. 'i believe th thy ar looking at Jegåàction aganst Mr. Gneiti.' , ,
The above is all 'busis as usua' for Mr. Gneiting. He wil never meter the existing
unts even though he has been offered the acal meter free. He win not purhase any
more water rights th the ones he has. Mr. Gneitîng uses most of the revenue from the
water to finance his many business interests. He has never put any more into the business
tI has been absolutely necessar to get the DEQ and PUC off of his back. Jefferson
County ordered Mr. Gneitig to stop putng tlàilers into his 'not quite legal' trler pak
eaHer ths year. Mr. Gncîting ha put at Ieati 15 more trailers in since then. My point is
that Mr. Gneitng caot be forced to do anytg. and he knows It. Ifhe waits long
enough the pressur wîI go away and he can go back to 'busiess as usual' .
We, the cusomers ofMomig View Water, are not the only ones in th position.
Reading the open and closed cases on the PUC websIte shows me th Mr. Gneitiis
only one of a number of smal Public Utilities who are doing the same thg to their
customers. Who pays for all of this neglect - the customer pay with rae jncreaes and
special levies. The people who are responsible for the collapse of the water sysems
'don't have to. This isn't fair and needs to stop. It win not ~iop until thè laws arc changed
and enforced to ~iop the above. The curnt enforcement of the curent laws only enbles
these sml companes to remai in business.
Agai than you and your stff so much for your reponse in tils matr.
Sinceely,
Ceu
Carol Hasselstom