20050118_1061.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
CO MMISSI 0 NER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:DONOVAN E. WALKER
DATE:JANUARY 13, 2004
SUBJECT:IN THE MATTER OF THE APPLICATION OF RESORT WATER CO.
INC. FOR THE ISSUANCE OF CERTIFICATE OF PUBLIC
CONVENIENCE AND NECESSITY, FOR APPROVAL OF RATES AND
CHARGES, AND FOR APPROVAL OF RULES AND REGULATIONS
GOVERNING THE RENDERING OF WATER SERVICE - CASE NO.
RES- W -04-
On August 13, 2004, Resort Water filed an Application requesting the issuance of a
Certificate of Public Convenience and Necessity. The Company also requested approval of an
increase in existing rates and charges for water service and approval of the Company s Rules and
Regulations governing the rendering of water service. On September 1 , 2004, the Commission
issued a Notice of Application and Order No. 29575 which suspended the Company s proposed
schedule of rates and charges for water service for a period of five months from the Company
proposed effective date of September 13 2004.
THE APPLI CA TI 0 N
According to the Company s Application, Resort Water provides domestic water service
to customers in Bonner County, Idaho, primarily located within the Schweitzer Mountain Resort
Planned Unit Development. Resort Water currently serves 287 residential units, or equivalent
residential units (ERU), which include 11 condominium associations billed as a single customer
as well as six commercial customers representing approximately 91 ERU's. Resort Water
current water rate is a monthly flat rate of$33.00 per ERU.
According to Resort Water s Application they are requesting an increase in their monthly
flat rate from $33.00 per ERU to $61.96 per ERU. See Exhibit D of the Application. The
Application states that the Company seeks the additional revenues to recover increased expenses
and costs associated with plant additions, and to produce a fair rate of return. The accompanying
DECISION MEMORANDUM
testimony of Tim Elsea, Director of Resort Water Company, states that Resort Water is owned
by Harbor Mountain Utility Company LLC, who in turn is part of a larger family of companies
know as Harbor Mountain LLC. In 1999 Schweitzer Mountain Resort, including the domestic
water system, Resort Water, was purchased from the Trustee in a federal bankruptcy proceeding.
STAFF RECOMMENDATION
Staff recommends that this Application be processed by Modified Procedure with a
public workshop prior to submitting comments. Staff recommends that the effective date of the
company s proposed increase in rates be suspended for an additional 30 days to allow
completion of the public workshop prior to submitting comments.Staff recommends that
comments be submitted by February 17, 2005 , and reply comments be submitted by March 3
2005.
COMMISSION DECISION
Does the Commission wish to process this Application by Modified Procedure with a
public workshop and comment deadlines as recommended by Staff?
Donovan E. Walker
DECISION MEMORANDUM