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HomeMy WebLinkAbout2018Annual Report.pdfRIAUJ AI{IY(IAL REPORT OF RICKEL WATER COMPANY -ie---rr].+ 'Itn -^)-t'ct c)--oiJ]=h =F(rf)g.()t- =\.o Fm C)em ==cD(f ; NAME PO Box 1261 Hayden Lake, ID 83835 ADDRESS TO THE IDAHO PUBLIC UTILITIES COMMISSION YEAR ENDED 2018 FOR THE ANNUAL REPORT FOR WATER UTILITIES TO THE IDAHO PUBLIC UTILITIES COMMISSION FOR THE YEAR ENDING 2018 COMPANY INFORMATION 1 Give full name of utility 2 Dale of Organization 3 Organized under the laws of the state of 4 Address of Principal Office (number & street) 5 P.O. Box (if applicable) 6 City 7 State B Zip Code 9 Organization (proprietor, partnership, corp.) 10 Towns, Counties served RickelWater Company 4/1 3/1 995 ldaho 2446101d 95 N, Atho!, lD 83801 ma PO Box 1261 Hayden Lake ldaho 83835 Corporation Kootenai County 11 Are there any affiliated companies?No lf yes, attach a list with names, addresses & descriptions. Explain any services provided to the utility. 12 Contact lnformation Name President (Owner) Vice President Secretary General Manager Complaints or Billing Engineering Emergency Service Accounting 13 Were any water systems acquired during the year or any additions/deletions made to the service area during the year? No lf yes, attach a list with names, addresses & descriptions. Explain any services provided to the utility. 14 Where are the Company's books and records kept? Street Address 2446'l Old Hwy 95 N City Athol State ldaho 83801 Ken Rickel Ken Rickel Rickel Ken Rickel Rickel lnland NW Consultants Ken Rickel Susan Jacobson Phone No. 208-683-8105 208-683-8105 05 208-683-8105 0s 208-773-8370 208-683-8105 303-9414005 Rev 3/02 zip Page 1 NAME: Rickel Water Company COMPANY INFORMATION (Cont.) Forthe Year Ended 2018 15 ls the system operated or maintained under a service contract? 16 lf yes: With whom is the contract? When does the contract expire? What services and rates are included? Name of Organization Name of owner or operator Mailing Address City State zip 17 ls water purchased for resale through the system? 18 lf yes Yes Bitterroot Water Company No Ken Rickel PO Box 2306 Hayden Lake ldaho 83835 Water Purchased 19 Has any system(s) been disapproved by the ldaho Department of Environmental Quality? lf yes, attach full explanation 20 Has the ldaho Department of Environmental Quality recommended any improvements? lf yes, attach full explanation 21 Number of Complaints received during year concerning: Quality of Service High Bills Disconnection 22 Number of Customers involuntarily disconnected 23 Date customers last received a copy of the Summary of Rules required by IDAPA 31.21.01.701? Attach a copy of the Summary 24 Did significant additions or retirements from the Plant Accounts occur during the year? lf yes, attach full explanation and an updated system map Gallons/CCF 934,120 $Amount $ 280.24 No No 0 0 0 0 May-2018 Yes Rev 3/02 Page 2 NAME: Rickel Water Company ACCT # REVENUE & EXPENSE DETAIL Forthe Year Ended 2018 DESCRIPTION 1 2 3 4 5 o 7 8 4OO REVENUES 460 Unmetered Water Revenue 461.1 Metered Sales - Residential 461.2 Metered Sales - Commercial, lndustrial 462 Fire Protection Revenue 464 Other Water Sales Revenue 465 lrrigation Sales Revenue 466 Sales for Resale 400 Total Revenue (Add Lines 1 - 7) (also enter result on Page 4, line 1) * DEQ Fees Billed separately to customers ** Hookup or Connection Fees Collected ***Commission Approved Surcharges Collected 401 OPERATING EXPENSES 601.1-6 Labor - Operation & Maintenance 601.7 Labor - Customer Accounts 601.8 Labor - Administrative & General 603 Salaries, Otficers & Directors 604 Employee Pensions & Benefits 610 Purchased Water 615-16 Purchased Power & Fuel for Power 618 Chemicals 620.1-6 Materials & Supplies - Operation & Maint. 620.7-B Materials & Supplies - Administrative & General 631-34 Contract Services - Professional 635 Contract Services - Water Testing 636 Contract Services - Other 64142 Rentals - Property & Equipment 650 Transportation Expense 656-59 lnsurance 660 Advertising 666 Rate Case Expense (Amortization) 667 Regulatory Comm. Exp. (Other except taxes) 670 Bad Debt Expense 675 Miscellaneous $ $ 6,033 $ I 10 11 $ $ 6,033 Booked to Acct # Booked to Acct # Booked to Acct # 460.1 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 $70 $85 $ $280 $567 $ 1,380 $ $293 $ $ Tota! Operating Expenses (Add lines 12 - 32, also enter on Pg 4, line 2) $ 3,269 594 Rev 3/02 Page 3 Name: RickelWaterCompany INCOME STATEMENT For Year Ended 2018 ACCT #DESCRIPTION 1 2 3 4 5 b 7 8 Revenue (From Page 3, line 8) Operating Expenses (From Page 3, line 33) Depreciation Expense Amortization, Utility Plant Aquisition Adj. Amortization Exp. - Other Regulatory Fees (PUC) Property Taxes PayrollTaxes Other Taxes (list) DEQ Fees $ 6,033 $ 3,269 403 406 407 408.1 0 408.1 1 408.12 $9,469 $50 $690 9A 408.13 9B 9C 9D 10 409.10 11 409.11 12 410.10 13 410.11 14 411 15 412 16 17 413 18 414 19 20 415 21 416 22 419 23 420 24 421 25 426 26 408.20 27 409-20 28 29 30 427.3 31 427.5 32 Federal lncome Taxes State lncome Taxes Provision for Deferred lncome Tax - Federal Provision for Deferred lncome Tax - State Provision for Deferred Utility lncome Tax Credits lnvestment Tax Credits - Utility $20 Total Expenses from operations before interest (add lines 2-15) lncome From Utility Plant Leased to Others Gains (Losses) From Disposition of Utility Plant Net Operating lncome (Add lines 1, 17 &18less line 16) Revenues, Merchandizing Jobbing and Contract Work Expenses, Merchandizing, Jobbing & Contracts lnterest & Dividend lncome Allowance for Funds used During Construction Miscellaneous Non-Utility lncome Miscellaneous Non-Utility Expense Other Taxes, Non-Utility Operations lncome Taxes, Non-Utility Operations Net Non-Utility lncome (Add lines 20,22,23 & 24 less lines 21 ,25,26, &27) Gross lncome (add lines 19 & 28) lnterest Exp. on Long-Term Debt Other lnterest Charges NET INCOME (Line 29 less lines 30 & 31) (Also Enter on Pg 9, Line 2) $ 13,498 $ (7,465) $ $148 $350 $ (202) $ (7,667) $ Rev 3/02 Page 4 $ (7,667) Name: RickelWaterCompany ACCOUNT 101 PLANT IN SERVICE DETAIL For Year Ended 2018 SUB ACCT #DESCRIPTION Balance Beginning of Year Added During Year Removed During Year Balance End of Year 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 26 27 28 29 301 302 303 304 305 306 307 308 309 310 311 320 330 331 333 334 335 336 339 340 341 342 343 344 345 346 347 348 Organization Franchises and Consents Land & Land Rights Structures and lmprovements Collecting & lmpounding Reservoirs Lake, River & Other lntakes Wells lnfiltration Galleries & Tunnels Supply Mains Power Generation Equipment Power Pumping Equipment Purification Systems Distribution Reservoirs & Standpipes Trans. & Distrib. Mains & Accessories Services Meters and Meter lnstallations Hydrants Backflow Prevention Devices Other Plant & Misc. Equipment Office Furniture and Equipment Transportation Equ ipment Stores Equipment Tools, Shop and Garage Equipment Laboratory Equipment Power Operated Equipment Communications Equipment Miscellaneous Equipment Other Tangible Property 2 $ $5 $13 103 $ 54 $ 17 298 $ $ 172 1 932 $275 $$ 727 0 $$ $$ 585 $ $ TOTAL PLANT IN SERVICE (Add lines 1-28) $ 206 $0 g A year tota on ne1 2,098$ $ 5,094$ $ 13,103 $ $ $ 54,380 $ $ $ $ 17,298 $ $ $ 90,172 $ 102$$ 19,035 $275 $ $ 1,270$4,997$ $ $ $ $ 1,585$ $ $ $ 1,373$$ 208,037 Rev 3/02 Page 5 Name: RickelWaterCompany ACCUMULATED DEPRECIATION ACCOUNT 108.1 DETAIL For Year Ended 2018 SUB ACCT # Depreciation Rate Yo #Dtv/0! #Dtv/0! #Dtv/0! #Dtv/0! 5120000.00% #Dtv/0! -233333.33% Balance Beginning of Year Balance End of Year lncrease or 46 1 1 304 2 305 3 306 4 307 5 308 6 309 7 310 8 311 I 320 10 330 11 331 12 333 13 334 14 335 15 336 16 339 DESCRIPTION Structures and lmprovements Collecting & lmpounding Reservoirs Lake, River & Other lntakes Wells lnfiltration Galleries & Tunnels Supply Mains Power Generation Equipment Power Pumping Equipment Purification Systems Distribution Reservoirs & Standpipes Trans. & Distrib. Mains & Accessories Services Meters and Meter lnstallations Hydrants Backflow Prevention Devices Other Plant & Misc. Equipment Office Furniture and Equipment Transportation Equipment Stores Equipment Tools, Shop and Garage Equipment Laboratory Equipment Power Operated Equipment Communications Equipment Miscellaneous Equipment Other Tangible Property TOTALS (Add Lines 1 - 25) $ $ $ $ 01 1 154 $ $ 17 18 19 20 21 22 23 24 25 26 340 341 342 343 344 345 346 347 348 Rev 3/02 130 Enter beginning yeat on Pg 7, Line 7 Page 6 9,489$$ $ 46,312 $ 6,029$$ $ 62,013 $ 5,120$$ $154$ $980 $ $$ 130,097 Name: RickelWaterCompany ASSETS DESCRIPTION Utility Plant in Service (From Pg 5, Line 29) Utility Plant Leased to Others Plant Held for Future Use Construction Work in Progress Utility Plant Aquisition Adjustment Subtotal (Add Lines 1 - 5) Accumulated Depreciation (From Pg 6, Line 26) Accum. Depr. - Utility Plant Lease to Others Accum. Depr. - Property Held for Future Use Accum. Amort. - Utility Plant in Service Accum. Amort. - Utility Plant Lease to Others Accumulated Amortization - Aquisition Adj. Net Utility Plant (Line 6 less lines 7 - 12) lnvestment in Subsidiaries Other lnvestments Total lnvestments (Add lines 14 & 15) Cash Short Term lnvestments Accts/Notes Receivable - Customers Other Receivables Receivables from Associated Companies Materials & Supplies lnventory Prepaid Expenses Unbilled (Accrued) Utility Revenue Provision for Uncollectable Accounts Total Current (Add lines 17 -24 less line 25) Unamortized Debt Discount & Expense Preliminary Survey & lnvestigation Charges Deferred Rate Case Expenses Other Deferred Charges TotalAssets (Add lines 13, 16 & 26 - 30) BALANCE SHEET For Year Ended 2018 Balance Beginning of Year $2 665 $ 206,665 130 $7 7 $53 019 $ 131 540 Balance End of Year lncrease $ 30 $31 or 1 2 3 4 5 6 7 I 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 ACCT # 101 102 103 105 114 1 08.1 108.2 108.3 110.1 110.2 115 123 125 131 135 141 142 145 151 162 173 143 181 183 184 186 $ 52 $ $ $ $ $ $52 1 01 53 2$ $ $ $ $ $ 0$ 0$ $ 2,100$$ $0 $ $ $ $ $ 0$ Rev 3/02 Page 7 Name: Ricket Water Company BALANCE SHEET For Year Ended 2018 LIABILITIES & CAPITAL ACCT #DESCRIPTION 1 201-3 Common Stock 2 204-6 Preferred Stock 3 207-13 MiscellaneousCapitalAccounts 4 214 Appropriated Retained Earnings 5 215 Unappropriated Retained Earnings 6 216 Reacquired CapitalStock 7 218 Proprietary Capital I Total Equity Capital (Add Lines 1-5+7 less line 6) I 221-2 Bonds 10 223 Advances from Associated Companies 11 224 Other Long - Term Debt 12 231 Accounts Payable 13 232 Notes Payable 14 233 Accounts Payable - Associated Companies 15 235 Customer Deposits (Refundable) 16 236.11 Accrued Other Taxes Payable 17 236.12 Accrued lncome Taxes Payable 18 236.2 Accrued Taxes - Non-Utility 19 237-40 Accrued Debt, lnterest & Dividends Payable 20 241 Misc. Current & Accrued Liabilities 21 251 Unamortized Debt Premium 22 252 Advances for Construction 23 253 Other Deferred Liabilities 24 255.1 Accumulated lnvestment Tax Credits - Utility 25 255.2 Accum. lnvestment Tax Credits - Non-Utility 26 261-5 Operating Reserves 27 271 Contributions in Aid of Construction 28 272 Accum. Amort. of Contrib. in Aid of Const. ** 29 281-3 Accumulated Deferred lncome Taxes 30 Total Liabilities (Add lines 9 - 29 31 TOTAL LIAB & CAPITAL ( Add lines 8 & 30) ** Only if Commission Approved Balance Beginning of Year Balance End of Year lncrease or 1$ $ $ $ $ $ 0 0 12 16 601 81 $ $ tgt 01 31 $ $ $ $ 68,430 $ 68,430 $ 39,750 $ 39,750 $ (236,217\$ (266,340) $ (128,037)$ (158,160) $$ $ 16,601 $ $ 84,816 0$ $ 173,250 $ 173,250 $ (15,091)$ (15,091) $ 158,160 0$ Rev 3/02 Page 8 Name: Rickel Water Company 1 Retained Earnings Balance @ Beginning of Year 2 Amount Added from Current Year lncome (From Pg 4, Line 32) 3 Other Credits to Account 4 Dividends Paid or Appropriated 5 Other Distributions of Retained Earnings 6 Retained Earnings Balance @ End of Year 7 lelqiption (Class, Par Value etc.) STATEMENT OF RETAINED EARNINGS ForYear Ended 2018 CAPITAL STOCK DETAIL No. Shares Authorized DETAIL OF LONG.TERM DEBT Year-end Balance $ (236,217) $ (7,667) $(20,456) $ (2,000) $ (266,340) No. Shares Outstandi lnterest Paid Dividends Paid 0 lnterest Accrued Commo n.no r value 1 336 8 K & C Rickel lnterest Rate Note 0 109,336 $0 $0 Rev 3/02 Page 9 Name: RickelWaterCompany SYSTEM ENGINEERING DATA For Year Ended 2018 1 Provide an updated system map if significant changes have been made to the system during the year 2 Water Supply:Type of Treatment: (None, Chlorine Pu nation or location 1.5 Miles West on Brunner Road from north side of before railroad tracks Rated Capacity Total Capacity 000's Gal. Fluoride Filter etc. Usable Capacity 000's Gal. Annual Production Type of Reservoir (Elevated,Pres- urized Gal.Surface Well Water Supply Source (Well, Spring, Construction (Wood, Steel Steel 3 System Storage: or Location 1.5 Miles West on Brunner Road from north side of before railroad tracks (Duplicate form and attach if necessary. Asterisk facilities added this year.) 125 None 12,600 2,000 2,000 Pressure Rev 3/02 Page 10 SYSTEM ENGINEERING DATA (continued) For Year Ended 2018 4 Pump information for ALL system pumps, including wells and boosters Designation or Location Horse Power Rated Capacity &T ofP 1.5 Miles West on Brunner Road from north side of before railroad tracks Franklin Motor bmit pump curves un p usly or una' Attach additional sheets if inadequate space is available on this page. 5 lf Wells are metered: What was the total amount pumped this year? What was the total amount pumped during peak month? What was the total amount pumped on the peak day? 6 lf customers are metered, what was the total amount sold in peak month? 7 Was your system designed to supply fire flows? lf Yes: What is current system rating? How many times were meters read this year? During which months?May How many additionalcustomers could be served with no system improvements except a service line and meter? How many of those potential additions are vacant lots? 10 Are backbone plant additions anticipated during the coming year? lf Yes, attach an explanation of projects and anticipated costsl 11 ln what year do you anticipate that the system capacity (supply, storage or distribution) will have to be expanded? Discharge Pressure Energy Used This Year 15 KW year. 678,300 169,575 N/A 169 575 NO 18 9 10 10 NO 25 125 60 Rev 3/02 Page 1 1 UNKNOWN Name: Rickel Water Company Name: Rickel Water Company SYSTEM ENGINEERING DATA (continued) For Year Ended 2018 FEET OF MATNS ln Use Beginning Of Year Pipe Size 1 720 996 8" o lnstalled During Year Last Year Abandoned During Year This Year ln Use End of Year Last Year 720 9 996 CUSTOMER STATISTICS Number of Customers Thousands of Gallons Sold 2 2A 28 2C 3 3A 3B 3C Metered: Residential Commercial lndustrial Flat Rate: Residential Commercial lndustrial This Year 38 7 795 4 5 Private Fire Protection Public Fire Protection 6 Street Sprinkling 7 Municipal, Other 8 Other Water Utilities 7050 0 0 0 0 38 1,612 I 1 0 1,61239 Rev 3/02 TOTALS (Add lines 2 through 8) Page 12 38 8,500 CERTIFICATE State of ldaho ) ) ) SS County of Hooktv..ar WE, the undersigned, Kenneth W. Rickel and Catherine L. Rickel, of the RICKEL WATER COMPANY, utility, on our oath do severally say that the foregoing report has been prepared under our direction, from the original books, papers and records of said utility; that we have carefully examined same, and declare the same to be a correct statement of the business and affairs of said utility for the period covered by the report in respect to each and every matter and thing therin set forth, to the best of our knowledge, information and belief. t*/.2/ (Chief Officer) in nts) Subscribed and Sworn to Before Me this -L day of -Lot-, J Yt!- NOTARY PUBLIC My Commission Expires rar lrq I 7.oZo gd UexceUjnelson/anulrpts^r{trannualrpt cormtruuBm2GAlt TOIARYPI.ETTCSdldaho Rev 3/02 Page 13 RICKEL WATER COMPANY PO BOX 1261 HAYDEN LAKE,ID 83835 Ken Rickel, General Manager Telephone: 208-683-8105 or 208-660-2560 Fax: 208-683-4315 To Our Customers: This is a summary of the rules for termination of service for all Rickel Water Company customers as determined by the Idaho Public Utilities Commission (IPUC), as of March 1,1997. These rules cover the rights and responsibilities of the customer and the Rickel Water Company. An explanation of our rate schedule, other fees and landscaping restrictions has also been included. If you have any questions concerning this information, please contact: Rickel Water Company OR PO Box 1261 Hayden Lake, ID 83835 208-683-8 I 05 or 208-660-2560 208-683-4315 (fax) IPUC PO Box 83720 Boise, ID 83720-0074 208-334-0300 800-432-0369 RULES FOR TERMINATI ON OF SERVICE TERMINATION WITH PRIOR NOTICE With proper customer notice Rickel Water Company may deny or terminate water service for one of the following reasons: 1. Nonpayment of a past due bill or payment of a past due billing with a NSF check. 2. Failure to honor the terms of a payment arrangement. 3. Obtaining service by false identity. 4. Refusing to allow access to the water meter shut-off valve. 5. Willfully wasting service through improper equipment or otherwise. 6. Failure to apply for service. TERMINATION WITHOUT PRIOR NOTICE Rickel Water Company may deny or terminate water service without notice for one of the following reasons: 1. A situation exists that is immediately dangerous to life, physical safety or property. 2. To prevent a violation of federal, state or local safety or health codes. 3. Service is obtained, diverted or used without the authorization of Rickel Water Company. 4. Rickel Water Company has diligently attempted to notifo you of termination and has been unable to contact you. 5. If ordered by any court, The Commission, or any other duly authorized public authority. February 2018 (continued on next page) Page I of 3 Rickel Water Comnany Customer Rules NOTIFIgATION AND BILLING l. Meters will be read between the first and the fifth day of each month (weather permitting). Invoices will be sent out on the fifth day with payment due on or before the 20tl'of the same month. During the winter months a basic monthly fee of $30.00 per month will be charged. At the next reading of the meters, you will be billed for any water used over 15,000 gallons per month. 2. An invoice will be considered past due (25) twenty-five days after the invoice date. A written notice of termination must be mailed at least (7) seven days before the proposed termination date. 3. At least (24) t'wenty-four hours before the service is terminated, a notice will be left at the property advising you ofthe steps needed to have services continued or restored. 4. When the 24-hour period has ended, another attempt will be made to contact you in person or by phone before service is terminated. 5. No additional notice of termination is required if upon receipt of a termination noticeo The customer makes a payment arrangement and subsequently fails to keep that arrangement, o The customer tenders payment with a dishonored check, either at a Water Company collection visit to terminate service or by mail. PAYMENT ARRANGEMENTS AND SPECIAL CIRCUMSTANCES If you cannot pay your bill in full or you receive a notice of termination, please call our office. Pavment arrangements can be made to avoid termination of service. Termination of service willbe postponed thirty (30) days from the date of a written certification from a licensed physician or public health official stating the name of the person who is ill and their relationship to the customer. The certification must show the name, title and signature of the person certifoing that the termination of service will aggravate or create a medical emergency for a permanent resident of your household. COMPLAINT PROCEDURES If, at any time, you have a complaint concerning the termination of service, policies and practices or any other matter regarding our service please contact Rickel Water Company in person, by telephone or in writing. Your complaint will be investigated promptly and thoroughly. You will be notified in writing the results of the investigation and we will make every effort to resolve the complaint. If you are dissatisfied with the proposed resolution of your complaint, you may ask the IPUC to review the matter. Your request may be done orally or in writing. Your service will not be disconnected while the complaint is being investigated by the Rickel Water Company or the IPUC. (continued on next page) February 2018 Page?of 3 Rickel Water Companv Customer Rules RESTRICTION OF TERMINATION OF SERVICE Service cannot be disconnected on Friday after 2:00 p.m., on Saturday, Sunday, any legal holidays recognized by the State of Idaho or 2:00 p.m. on any day immediately before any legal holiday. Service may only be terminated between the hours of 8:00 a.m. and 4:00 p.m. Pacific Standard Time. The employee sent to the premises to terminate the services will identifo him/herself to you and state the purpose of the visit. This person is authorized to accept payment in full. HOOKUP The Rickel Water Company reserves the right to deny hookups during the winter months due to adverse weather conditions. New hookups will be scheduled as soon as weather conditions permit. HOOKT'P CHARGES AND FEES A one-time hookup charge of $6,000.00 willbe paid in advance for any new service hookup. The extra costs of an out of the ordinary circumstances requiring additional equipment or special construction techniques involved in the installation of a new service connection will be agree to in advance and put into writing by the customer and the Rickel Water Company. Only one residence per hookup is allowed, one stock tank will also be permitted. No irrigation of property will be permitted. The monthly rate is $30.00 per month for the first 15,000 gallons of water used. Water will be billed at $1.10 per thousand gallons after the first 15,000 gallons used. Meters will be read between the I't and the 5'h of the month. Payment is due in full (20) twenty days after the billing date and a bill may be considered delinquent (25) twenty-five days after the billing date. Arrangements can be made to pay in advance monthly, quarterly, semi-annually or annually. Any customer check returned to Rickel Water Company due to insufficient funds will be subject to a $25.00 NSF fee, which will be added to the customer's account. The customer will be contacted by Rickel Water Company staff to make payment arrangements, as the current balance and the NSF fee are due immediately. RECONNECTION FEE If water service has been terminated, any balance due plus a reconnection fee of ($25.00) twenty-five dollars must be paid in full before service can be restored. LANDSCAPING AROUND METERS Any landscaping to be placed within 6 feet in all directions of your water meter is required to have prior approval from the General Manager before the landscaping can be completed. Any landscaping completed prior to June l, 2008 is exempt, with the understanding that if the current landscaping does interfere with future water meter maintenance, it may have to be altered by the property owner to comply with this rule. NO ONE EXCEPT AN AUTHOzuZED AGENT OF TT{E RICKEL WATER COMPANY SHALL TAMPER WITH, INTERFERE WITH, REPAIR, CONNECT TO OR REPLACE ANY OF THE RICKEL WATER COMPANY'S PROPERTY, EXCEPT IN TFIE CASE OF EXTREME EMERGENCY February 2018 Page 3 of 3 Office of the Secretary Service Date April9,20l8 BEFORE THE IDAHO PUBLTC UTILITIES COMMISSION IN THE MATTER OF THE JOINT APPLICATION OF RICKEL WATER COMPAI{Y AND BITTERROOT WATER SYSTEM,INC. TO COMBINE INTO A SINGLE COMPANY CASE NO. RIC.W-T7.OI ORDER NO.34027 On July 28,2017, Rickel Water Company ("Rickel") and Bitterroot Water System,Inc. ("Bitterroot") submitted a one-page letter Application to the Commission to consolidate the two Companies into one, The Companies stated that they are interconnected and share common ownership. The Companies further stated that if the request were approved by the Commission, they would continue to operate under the current rate structure and rules. The Commission issued Notice of the Application and set an intervention deadline of September 5,2017. No intervenors appeared. Staff reviewed the Companies' Application, spoke with the Companies'owner, and requested additional information. Staff filed the only comments and recommended that the request to consolidate the two water utilities be conditionally approved. BACKGROUND Bitterroot is an owner-operated water utility providing water service under Certificate of Public Convenience and Necessity (CPCN) No. 3 19. It serves approximately 120 customers in in Kootenai County, Idaho. Rickel is a contiguous water utility providing water service under CPCN No. 324. It serves approximately 38 customers. STAFF COMMENTS Staff recommended that the two Companies be allowed to consolidate into a new company-Bitterroot Water System, Inc.-and to operate under the Bitterroot CPCN.I However, Staff also expressed that the new entity should maintain separate rates and accounting of the Rickel and Bitterroot Water System customer groups until the new entity obtains new rates through a general rate case. Staff reviewed the Companies' approved tariffs, and noted that it would be impossible to operate the two entities under the same tariff without raising rates on one customer group or the other. Staff commented that "applying Rickel rates to Bitterroot customer usage would increase I The Application stated a request to consolidate under the name Rickel Water, but in subsequent conversations with the applicants, the request was revised to use the name Bitterroot Water System, Inc. ORDER NO. 34027 ) ) ) ) ) I the average Bitterroot bill by approximately 90h." Staff Comments at 2. The tariffs also contain diff-erences in recurring and non-recurring charges, and rules and regulations. /d. Staff argued that a consolidation under a unified rate schedule would be possible only after a general rate case was filed. 1d. In discussions with Stafl the Companies agreed to retain the existing separate rate schedules. 1d. Staff recommended that the consolidated Company work with Staff to update its tariffs using the most current version of the Small Water Company Model Tariff.Id. Staff evaluated the applicants' claim that the two systems are intercorurected. Id. at3. Staff reported that the Companies did not sufficiently respond to Staff information requests. .[d. However, the Companies stated that an eight-inch diameter pipe connects the two systems. .Id. Staff highlighted a serious concern that the systems may not meet fire-flow requirements, a concern the local fire department echoed when questioned by Staff. /d. Staff stated that any rate case would require further evaluation of this issue. .Id. Finally, Staff recommended that the new consolidated company write to inform customers that it formed through the merger of Rickel Water Company and Bitterroot Water System, Inc., and that it had obtained the Commission's approval to operate those Companies' systems as a consolidated entity. Id. FINDINGS AND CONCLUSIONS The Idaho Public Utilities Commission has jurisdiction over Rickel Water and Bitterroot Water System, Inc., their joint Application, and the issues involved in this case by virfue of Title 61, and the Commission's Rules of Procedure, IDAPA 31.01.01.000 er seq. After thoroughly analyzing the proposal and Staff s comments recommending conditional approval, we approve the Application. We find that the Companies' Application is reasonable and in the public interest. ,See Browning v. Wood,99 Idaho 174,579 P ,2d 120 (1978) (noting that the Commission must consider the public interest in addressing Applications such as this). We further find the following conditions appropriate : 1. The combined Company must use the currently approved rates for Bitterroot and Rickel until it files and obtains new rates through a general rate case; 2. The combined Company must work with Staff to update its tariffs; and 3. The combined Company must notify all customers in writing that the Bitterroot and Rickel systems have consolidated into a single Company. 2ORDER NO. 34027 Accordingly, the Commission approves the Companies' Application to combine into a single entity, Bitterroot Water System, Inc. under CPCN No. 319. ORDER IT IS HEREBY ORDERED that the Companies' Application, and the merger of Rickel Water Company and Bittenoot Water System, Inc. into a single public utility called Bitterroot Water System Inc., is approved. The combined Company shall serve Rickel's and Bitterroot's former customers under Bitterroot Water System CPCN No. 319. CPCN No. 319 is amended to include the service area of Rickel Water Company CPCN No. 324. IT IS FURTHER ORDERED that CPCN No. 324, issued to Rickel Water Company, is cancelled. IT IS FURTHER ORDERED that the combined Company shall continue to bill and collect under Bitterroot Water's and Rickel Water's existing approved rates until the combined Company files and obtains new Commission-approved rates, through a general rate case. IT IS FURTHER ORDERED that the combined Company work with Staff to update its tariffs. IT IS FURTHER ORDERED that the combined Company send notice to its customers of the consolidation of Bitterroot and Rickel by no later than June 5,2018. THIS IS A FINAL ORDER. Any person interested in this Order may petition for reconsideration within twenty-one (21) days of the service date of this Order. Within seven (7) days after any person has petitioned for reconsideration, any other person may cross-petition for reconsideration. See ldaho Code $ 6l-626. JORDER NO. 34027 ?fr/DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this day of April2018. PAUL PRESIDENT Kru'fr;n^ Pa^ut rru drnG hAp pR, e oh7-vrrs s r oNER ERIC ANDERSON, COMMISSIONER Diane M. Hanian Commission Secretary RICW 170 t_llnal_bkl 4ORDER NO. 34027 ATTEST: