20061127_1749.pdf

DECISION MEMORANDUM
TO:CO MMISSI 0 NER KJELLAND ER
CO MMISSI 0 NER SMITH
CO MMISSI 0 NER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:WELDON STUTZMAN
DATE:NOVEMBER 24, 2006
SUBJECT:CASE NO. SPL-06-
PROCESS FOR SPIRIT LAKE EAST
APPLICATION TO INCREASE RATES
WATER COMPANY'
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 in excess of 9,000 gallons per
month. The Company also asked approval for an increase in the connection fee for new service
from $1 200 to $2 500. The Company proposed an effective date of September 14, 2006, but the
Commission issued Order No. 30119 on August 29, 2006, suspending the proposed effective
date.
The Commission issued a Notice of Application along with its Order No. 30119, but
did not determine a procedural schedule for completing review of the Application filed by Spirit
Lake. The Commission s Notice states that the Commission Staff will conduct an audit of the
Company s Application and that the Commission will issue an Order regarding the further
processing of the rate case following completion of the Staff s audit. Staff is in the process of
completing its audit of the Company s Application and relevant workpapers and other
documents. In addition, and following Notice issued by the Commission on October 19, 2006
Staff convened a public workshop in Spirit Lake on November 8 , 2006.
Although Staff has identified issues that will require adjustment to the Company
Application, Staff recommends that the Commission establish a schedule and proceed by
DECISION MEMORANDUM
Modified Procedure. Staff recommends that Staff and interested persons file written comments
and recommendations by January 19, 2007 , and that the Company have until February 9, 2007
to file any reply comments.
CO MMISSI ON D ECISI
Should the Commission issue a Notice of Modified Procedure to process the
Application filed by Spirit Lake, and providing for Staff comments by January 19, 2007 and
reply comments by February 9, 20077
Weldon B. Stutzman
bls!M: SPL-O6-0 1 ws2
DECISION MEMORANDUM