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HomeMy WebLinkAbout20060828_1649.pdfDECISION MEMORANDUM TO:COMMISSIONER KJELLANDER COMMISSIONER SMITH COMMISSIONER HANSEN COMMISSION SECRETARY COMMISSION STAFF LEG AL FROM:WELDON STUTZMAN DATE:AUGUST 21, 2006 SUBJECT:CASE NO. SPL-06- SPIRIT LAKE EAST WATER COMP ANY'S APPLICA TION TO INCREASE RATES On August 14, 2006, Spirit Lake East Water Company filed an Application requesting authority to increase its rates and charges for water service. The Company requested approval to increase its rates from $12 to $24 for the first 9 000 gallons of water usage, and from 10 to $.20 for every 100 gallons of water used by a customer over 9 000 gallons per month. In addition, the Company asked approval for an increase in the connection fee for new service from 200 to $2 500. The Company proposed an effective date of September 14 2006 for the new rates. Spirit Lake has been providing water serVIce for nearly 23 years and currently provides service to 280 customers in Kootenai and Bonner Counties, Idaho. The Application states that the Company s rates for consumption have not changed since initially approved by the Commission in November 1983. In June 2004, the Commission approved an increase in the Company s connection fee from $650 to $1 200. The Company states that the $2 500 connection fee it now proposes is the actual cost it incurs in connecting a new customer to the water system. The Company is requesting the new service connection fee to cover the amount actually paid to outside contractors who perform the connection work. The Company requested its Application by processed by Modified Procedure. Because it is not possible for Staff to complete the necessary audit and review of the Company s Application prior to the proposed effective date for new rates, Staff recommends the DECISION MEMORANDUM Commission suspend the Company s proposed effective date, and that a notice of the Company Application be issued. Once Staff has completed its initial investigation of the Company Application, Staff will make a recommendation regarding the procedure to complete the Commission s review of the Application. COMMISSION DECISION Should the Commission suspend the proposed effective date of September 14, 2006 for new rates for Spirit Lake, and issue a Notice of Application including a deadline for intervention of September 15 , 20067 u-- ~ ~ Weldon B. Stutzman bls/M:SPL-O6-01 ws DECISION MEMORANDUM