HomeMy WebLinkAbout20050614_1232.pdfDECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEG AL
FROM:DONOVAN E. WALKER
DATE:JUNE 10, 2005
SUBJECT:TERRA GRANDE WATER - TARIFF SCHEDULES NO.2 AND 3
On May 24, 2005, Terra Grande submitted by letter Tariff Schedules No.2 and No.
regarding new service connections and reconnection fees, respectively. Upon initial review
Staff recommends separating the two Tariff Schedules and processing one as a Tariff Advice
and the other pursuant to Modified Procedure.
THE COMPANY'S PROPOSED TARIFF SCHEDULES
On May 24, 2005 , the Commission received by letter Tariff Schedules No.2 and No.
3 from Terra Grande Water. Tariff Schedule No.2 deals with new service connections to the
Company s system, and generally states that the Company will be responsible for the completion
of a new service connection and the customer will be responsible for paying the actual cost of
completing the connection. The Company stated that this Schedule was submitted because: 1)
the Company does not currently have a schedule detailing charges for new connections; 2) the
Commission Staff has recently informally recommended that without such a Schedule the
Company must install new connections at its own costs pending a rate case; and 3) the Company
wishes to retain control of the method of installation for new water service connections.
Tariff Schedule No.deals with reconnection fees. This schedule proposes a
reconnection fee of $65 during the office hours of 8:00 a.m. to 5:00 p., Monday through
Friday, and $100 for after hour reconnections. The Company states that this Schedule was
submitted because the Company does not currently have a schedule detailing charges for
reconnection fees.
DECISION MEMORANDUM
The Company requested that both Schedules be effective as of the date of filing
because, as a small water company with a small customer base, it cannot afford to absorb the
immediate financial hit it will take if it must perform these services without a means to recover
its costs. Additionally, the Company stated that notice of the proposed new charges is to be
provided to its customers at the time of its billing on or around June 1 , 2005. The proposed
Notice was attached to the transmittal letter received by the Commission on May 24 2005.
STAFF RECOMMENDATION
Staff contacted the Company and recommended processing Schedule No., dealing
with new connections, as a Tariff Advice. Staff also recommended that Schedule No.
concerning reconnection fees, be handled as if it were an Application and processed by Modified
Procedure with a 21-day comment period. The Company sent an updated letter on June 9, 2005
and stated that it agrees with these recommendations, that it has no objection to the Staff
position to review these proposed tariffs through different procedures, and stands ready for the
Commission s review. The Company also requested Modified Procedure for its proposed Tariff
Schedule No., and stated that it will file additional information in that regard.
The Tariff Schedules were received by the Commission on May 24, 2005. The
Company requested an effective date coincident with the filing date. The 30-day effective date
pursuant to Commission Rule of Procedure 134, IDAPA 31.01.01.134, would be June 23 , 2005.
Staff recommends: 1) processing Schedule No.2 as a Tariff Advice; 2) that the
effective date for Schedule No.2 be suspended to June 29, 2005 so that the matter may be
brought before the Commission at its June 28 2005 Decision Meeting; and 3) processing
Schedule No.3 as an Application, with its own case number, pursuant to Modified Procedure
with a 21-day comment period.
COMMISSION DECISION
Does the Commission wish to process Terra Grande Water s proposed Tariff
Schedule No., dealing with new service connections, as a Tariff Advice?
If so, does the Commission wish to suspend the effective date of Schedule No.2 until
June 29 , 2005 , so the matter may be heard at the Commission s Decision Meeting on June 28
2005?
DECISION MEMORANDUM
Does the Commission wish to process Terra Grande s proposed Tariff Schedule No.
dealing with reconnection fees pursuant to Modified Procedure, giving the matter a case number
and setting a 21-day comment period?
Does the Commission wish to employ some other procedure for processing the
Company s requests?
Donovan E. Walker
DECISION MEMORANDUM