20061214_1760.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:DONOV AN E. WALKER
DATE:DECEMBER 12, 2006
SUBJECT:STONERIDGE WATER COMPNAY'S APPLICATION TO INCREASE
RATES AND MODIFY RULES AND REGULATIONS, CASE NO. SWS-
06-
On November 20, 2006, Stoneridge Water Company filed an Application with the
Commission seeking "to allow for the closing out of Phase I and Phase II loans for the Happy
Valley Ranchos annexation and surcharge associated thereto, for an increase in the monthly user
fees, an increase in the hook up fees, an increase in the disconnection/reconnection fees and for
clarifications and changes to the Rules and Regulations.
THE APPLICATION
The Company filed a fairly comprehensive Application following the pattern
available on the Commission s web page for small water company Certificates of Public
Convenience and Necessity. In fact the Company titled its Application as that for the issuance of
a Certificate. However, the Company currently possesses a Certificate See Order No. 28994
and it is clear from a review of the Application that it is requesting a general rate case. The
Company has not requested a specific effective date for the proposed new rates.
The Company had previously taken out a series of loans from the State Drinking
Water Revolving Fund totaling approximately $438 500. See Case No. SWS-04-, Order
No. 29719 (authorizing the loan amounts and describing the background surrounding the loans
system expansion, and system improvements).The Commission, in its previous Orders
authorizing the Company to incur the indebtedness, specifically reserved judgment on the
appropriate amount of the surcharge for Phase I interconnection. Order No. 29719 at 5. The
DECISION MEMORANDUM
Commission also specifically reserved judgment on how the Company may collect the cost of
the backbone system improvements for Phase II. Id.
According to the Customer Notice prepared by the Company, its request to the
Commission consists of six parts: "1) A monthly fee to service the Happy Valley Ranchos loan
will be imposed on all those current and future customers that were added as a result of the
Happy Valley Ranchos annexation. 2) A monthly service fee to service the well repair loan will
be imposed on all current and future customers within the StoneRidge Utility service Territory.
3) A monthly user fee increase will be imposed on all current and future customers within the
StoneRidge Utility service territory. 4) A disconnect/reconnect fee increase will be imposed on
all customers choosing to have their water shut off and turned on at a later date. 5) A hook up
fee increase will be imposed on all customers requesting a new service connection. 6) And
clarifications and changes to some of the General Rules and Regulations.
The Company states that it currently has 374 customers, and will ultimately have
approximately 1 207 customers with the planned developments within its service territory. It
appears that the Company is requesting to increase rates as follows:
Residential
Commercial
Irrigation
Customer Charge
from $14/mo. to $38/mo.
from $20/mo. to $38/mo.
$38/mo.
Commodity Charge
from $.30/1 ,000 g to $.67/1 000 g
from $.30/1 000 g to $.67/1 000 g
67/1 000 g
The Company s existing Tariff also contains rates for:
Time Share Complex
Golf Course Irrigation
$200/mo.
200/mo.
30/1 000 g
30/1 000 g
The Company is also proposing to increase its hook-up fee for new service from $925 to $1 200.
The Company also proposes increasing its reconnection to $278 during office hours, and $328
after office hours. This amount equates to six months base charge plus $50 and $100
respectively. The Company s currently authorized reconnection fees are: (1) disconnected for
30 days or less - during office hours, $14 and after office hours, $28; and (2) disconnected for
more than 30 days - during office hours , $50 and after office hours, $64.
DECISION MEMORANDUM
STAFF RECOMMENDA TON
Staff has reviewed the Company s Application and recommends that it be processed
by Modified Procedure. Staff anticipates an extensive audit and investigation required by the
issues presented in this case. Additionally, because of the magnitude of the requested increases
as well as the complex nature of the issues involved and the number of customers, Staff
recommends that a public workshop be conducted in order for Staff to dispense information
. about the Company s Application and to receive comments prior to Staff filing its testimony or
comments.
Staff would like to coordinate its public workshop and on-site inspection with other
pending cases and public workshops in the North Idaho area, and thus requests it be allowed
some flexibility in scheduling the workshop and comment deadline.
COMMISSION DECISION
Does the Commission wish to authorize the use of Modified Procedure and issue
Notice of the Company s Application? Does the Commission wish to have Staff conduct a
Public Workshop? See Procedural Rule 125, IDAPA 31.01.01.125.
DECISION MEMORANDUM