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Home My WebLink About20030604Stipulation and Proposed Settlement.pdf(O'if, r\ECEIVED \1) ;:~' 1 FD BEFORE THE IDAHO PUBLIC UTILITIES-COMMISSION 20il3JUN-4 P11 1:33 ,,-;;,;;) ! UDLIC jJTi ITIr:~ COM~1ISSI0N CASE N . PTE=W -03- STIPULATION AND PROPOSED SETTLEMENT IN THE MATTER OF PONDEROSA TERRACE ESTATES WATER SYSTEM, INC.S FAILURE TO COMPLY WITH COMMISSION ORDERS. Commission Staff (Staff) and Robaer Cobott, President ofPonderosa Terrace Estates Water System, Inc. (PTE or Company), hereby enter into the following Stipulation and Proposed Settlement. The purpose of this Proposed Settlement is to resolve disagreement regarding the definition of PTE's customer classes, application of hook-up fees, and the role of the Commission in regulating the Company. PROCEDURAL HISTORY In Order No. 29212, the Commission directed PTE to appear at a show cause hearing to explain why it has failed to comply with prior Commission Orders. The Show Cause Hearing took place on April 28, 2003 at the Bonner County Courthouse in Sandpoint, Idaho. PTE' owner, Robaer Cobott, explained that he took the actions he felt were necessary to maintain the viability of his Company. At the hearing, both Commission Staff and Mr. Cobott indicated a willingness to find a mutually agreeable solution that would allow PTE to continue operation under the Commission s regulatory oversight without raising customer rates. This solution is set forth below as a Proposed Settlement in this case. PROPOSED SETTLEMENT To establish principles by which the Company should be operated going forward Staff and PTE agree that: 1. Since the Commission issued Order Nos. 29086 and 29172, PTE' customer inventory has undergone substantial changes due to the drilling of private wells or customers that otherwise ceased taking service. To maintain consistent cashflow and prevent full-time residents from bearing a sizable rate increase, Staff and PTE believe that all property owners should pay a monthly rate to maintain the physical and financial viability of the PTE water system. To reflect these changed circumstances, PTE shall henceforth have two customer classes defined as follows: STIPULATION AND PROPOSED SETTLEMENT a. Resident Customers Resident customers are full-time water system users who live year-round on property serviced by PTE. Resident customers shall be charged $48.00 per month, twelve months a year. b. Non-Resident Customers : Non-Resident customers are all other property owners who do not live year-round on property serviced by PTE, residing onsite part or none of the year. The Non- Resident customer class shall include customers who could be served by the system, even if they are not physically connected to the PTE system. Non-Resident customers shall be charged $25. per month, twelve months a year. 2. Prior to resuming water service, delinquent amounts due the Company after the Commission took jurisdiction over the PTE water system on September 13, 2001 shall be paid at the Commission-approved rate applicable for each month of service rendered. Furthermore PTE customers with delinquent bills who wish to take service after this Settlement is approved must also pay either all unpaid bills for service rendered since the date the Commission approves this Settlement or 500, whichever amount is less. 3. The Company will disconnect water service in accordance with the Commission s General Rules and Regulations for Small Water Utilities and Uniform Customer Relations Rules. Customers who seek to initiate or resume service due to disconnection for nonpayment or voluntary seasonal disconnection must also pay a $35 reconnection fee. 4. PTE may seek collection of unpaid bills incurred prior to the Commission asserting jurisdiction over the Company on September 13, 2001 in Order No. 28845 through judicial means (i., small claims court) rather than use the Commission disconnect procedures for non-payment of amounts owed. 5. PTE will abide by Idaho Public Utility Commission Rules generally applicable to customer relations and water utilities. 6. Although PTE believes that it should be entitled to collect late fees and interest on delinquent bills to encourage prompt payment, Staff and the Company have not reached a settlement on this particular issue and will leave it open for the Commission s consideration. 7. If this Proposed Settlement is approved by the Commission, Staff will assist PTE in filing the necessary changes to its tariffs. STIPULATION AND PROPOSED SETTLEMENT 8. Staff and the Company agree that this Stipulation and Proposed Settlement is in the public interest with respect to the issues covered by it and that all terms of the Stipulation are fair, just and reasonable under the present circumstances. 9. Staff and Company request that the foregoing Proposed Settlement be approved by the Commission at the Commission s earliest possible convenIence. PONDEROSA TERRACE ESTATES WATER SYSTEM, INe. ~~ President and Owner Ponderosa Terrace Estates Water System, Inc. Date S-/~-tf3 COMMISSION STAFF By'Date to o~ -03 isa D. Nordstrom Attorney for Commission Staff N:PTEWO301 ln _Stipulation STIPULATION AND PROPOSED SETTLEMENT CERTIFICATE OF SERVICE HEREBY CERTIFY THAT I HAVE THIS 4th DAY OF JUNE 2003 SERVED THE FOREGOING STIPULATION AND PROPOSED SETTLEMENT IN CASE NO. PTE-03-, BY MAILING A COpy THEREOF, POSTAGE PREPAID, TO THE FOLLOWING: ROBAER COBOTT PONDEROSA TERRACE ESTATES WATER SYSTEM 2626 WRENCO LOOP ROAD SANDPOINT ill 83864 ~~~ SECRETARY CERTIFICATE OF SERVICE