20030106_356.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMISSIONER HANSEN
JEAN JEWELL
COMMISSION STAFF
LEGAL
FROM:SCOTT WOODBURY
DATE:DECEMBER 27,2002
RE:CASE NO. GNR-02-3 (Diamond Bar Estates Water Company)
APPLICATION FOR CERTIFICATE OF PUBLIC CONVENIENCE AND
NECESSITY
On November 29, 2002, Diamond Bar Estates LLC dba Diamond Bar Estates
Water Company (Diamond Bar; Company) filed an Application with the Idaho Public
Utilities Commission for a Certificate of Public Convenience and Necessity to serve the
Diamond Bar Estates Subdivision in Kootenai County, Idaho.Reference Application
Attachments, legal description and maps of subdivision and service area; Idaho Code ~ 61-
526; Commission Rules of Procedure, IDAP A 31.01.01.111. Diamond Bar Estates is more
particularly described as a portion of the North Y2 of Section 3, Township 51 North, Range 4
West Boise-Meridian, Kootenai County, Idaho.
Attached to the Application of Diamond Bar are 1) financial statements for 2000
and 2001 with profit and loss statements, 2) water rates from different water districts, 3) rate
schedule information, 4) names of customers and addresses, 5) legal description, 6) plat map,
7) request for tariff connection fees, 8) customer notice for discontinuance of service, 9) bill
statement, and 10) rule summary. The Company s Application is available for inspection at
the Commission s office, 472 West Washington, Boise, Idaho and has been posted on the
Commission s web site www.puc.state.id.
The Company indicates that the water system currently provides service to 37
customers. When complete, ultimately, the Company will serve 45 households with water
service. The Company indicates that initial service was started in 1994 by Diamond Bar
DECISION MEMORANDUM
Homeowners. On June 3, 2002, the Homeowners elected to turn the water system over to
Diamond Bar Estates LLc. The Company proposes a 2001 test year and an annual revenue
requirement of $27,449.
The rate structure proposed by Diamond Bar is as follows:
A customer s water usage will be determined by the reading on the
meter. Readings will be taken the first week of each month (April
through November) and the consumption figures will be measured in
gallons used.
Diamond Bar Water Company will bill each current customer every
month based on the following rate schedule which, as proposed, will go
into effect January 1 , 2003.
0- 7500 gallons
more than 7500 gallons
$21. 00
85 per thousand
During the months of December through March, meters will not be
read. The customers will be charged the base rate of $21.00 per
month. In April of each year customer s meters will be read and
usage will be prorated according to the number of months since the
last reading.
In addition to the commodity charge, the Company proposes
implementing the following non-recurring charges:
A charge of$1 000 for installation of water meter
A charge of $500 for water hookup fee
A fee of $50 will be charged for reconnection during business hours
A fee of $65 will be charged for reconnection after normal business
hours and weekends.
Commission Decision
Diamond Bar has filed an Application for a Certificate of Public Convenience and
Necessity. The Company provides existing service to 37 customers. The Company has
submitted proposed rates for an effective date of January 1 2003. Staff recommends that the
Company s Application be initially processed pursuant to Modified Procedure, i., by written
submission rather than by hearing. Reference Commission Rules of Procedure, IDAP A
31.01.01.201-204. Staff recommends that the proposed rates for residential customers be
approved on an interim basis for effective date January 1 , 2003. Staff proposes to conduct a
DECISION MEMORANDUM
public workshop for customers prior to the comment deadline. The Company has provided a
customer list with addresses. Individual copies of the Notice of Application, public workshop
and scheduling will be mailed to all customers. Does the Commission agree with the
proposed procedure?
The Commission has received a letter filing from Broadway Splicing and Supply,
Inc. (BSS) indicating that their present rate is $225/year for irrigation. Last year, BSS states it
added an irrigation system at a cost of $10 000 to irrigate a tree farm and green belt. With a
usage rate of $.75/1 000 gallons (different from proposed) BSS states their water bill would
be $1 , OOO/month. Further investigation is required.
Scott Woodbury
Vld/M:GNR-O2-
DECISION MEMORANDUM