20080527_2253.pdf

DECISION MEMORANDUM
TO:COMMISSIONER REDFORD
CO MMISSI 0 NER SMITH
CO MMISSI 0 NER KEMPTON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:SCOTT WOODBURY
DEPUTY ATTORNEY GENERAL
DATE:MAY 22, 2008
SUBJECT:CASE NO. TTS-08-01 (Teton Springs)
CERTIFICATE APPLICATION AND REQUEST FOR APPROVAL OF
RA TES, CHARGES, RULES AND REGULATIONS
Certificate of Convenience and Necessity
On May 20, 2008, Teton Springs Water & Sewer Company, LLC (Teton Springs;
Company) filed an Application with the Idaho Public Utilities Commission (Commission)
requesting a Certificate of Convenience and Necessity to provide domestic, culinary water
service in Teton County, Idaho to customers within the Teton Springs Golf and Casting Club
planned unit development. Idaho Code 99 61-125 (Water Corporation); 61-129 (Public Utility)
and 61-527 (Certificate of Convenience and Necessity) and Rule III of the Commission s Rules
of Procedure, IDAP A 31.01.01.111. The Teton Springs development consists of 581 single-
family building lots, 14 commercial lots, and 2 multi-family dwellings which will contain 143
residential units at full build-out. The development is an all-season resort community. Most of
the homes within the community are second or third homes for the owners. The sales price for
lots within the community range from $252 000 to $2.8 million.
The Teton Springs water system consists of two wells, a water storage reservoir
water mains , hydrants, and service lines. As reflected in the Application, the original cost of the
water system was approximately $2 882 000.
Proposed Rates and Charges
Teton Springs presently charges active residential and commercial customers an
unmetered flat rate of $240 per quarter. Active residents of multi-family units are presently
DECISION MEMORANDUM
assessed a flat rate of $80 per quarter. Teton Springs proposes to change rates for existing
customers and to assess a new Availability Charge for inactive residential and commercial
customers whose property fronts an existing main, but who have not connected to the system, as
reflected below.
Proposed
Number of
Active Current
Description Customers Rates/Month Monthly Rates Quarterly Rates
Unmetered Residential:
Total No. of Single-
family lots: 581 194 $80.$50.$150.
Total No. ofInactive
Lots: 387 $25.$75.
Unmetered Commercial:
Total No. of
Commercial Lots: 19 $80.$150.$450.
Total No. ofInactive
Lots: 14 $75.$225.
Unmetered Multi-Family:
Total No. of Multi-
Family Units: 143 $26.$50.$150.
Stating that it does not presently have sufficient water consumption data, the Company proposes
to charge customers initially under a flat rate rather than a metered rate.
Additional Fees and Charges
As reflected in the Company s Application the following additional charges and fees
are also proposed:
Schedule No. lA: DEQ Fee (recovered in tariff water rates)
Schedule No.2: Miscellaneous Fees and Charges
1) Return check charge: $20.00 each occurrence
2) Reconnection charge for non-payment terminations:
During normal business hours $ 50.
Other than normal business hours $100.
3) Field collection trip charge - applicable to customers who pay
outstanding bills for service at the time Company personnel arrive at
customer s premises to terminate service: $50.
Schedule No.3: Bulk water sold to contractors.
DECISION MEMORANDUM
1) Backflow Prevention Device Rental Charge - $25.00 per day
2) Bulk Water Charge - $25.00 per day.
Schedule No.
1) Base Hook-up Fee (no fee proposed)
2) Uncollected Availability Charge
Proposed Rules and Regulations Governing the Rendering of Service
Included with the Company s Application are proposed Rules and Regulations
governing the rendering of service. The following subject areas are addressed in the Rules and
Regulations: Application for Service; Service Connection; Meters; Bills; Discontinuance of
Service; Customer Deposits; Service for Construction Purposes; Application and Rules Are
Contract; Fire Protection; and Miscellaneous.
COMMISSION DECISION
Teton Springs Water & Sewer Company, LLC has filed an Application for a
Certificate of Convenience and Necessity and requests approval of proposed rates and charges
and rules and regulations. The Company is presently providing service to a number of
residential (194), commercial (5), and multi-family (73) customers. The Company recommends
that its Application be approved for an effective date of June 20, 2008. Staff recommends that
the Company be issued a Certificate of Convenience and Necessity, that a notice of the
Company s Application be issued, that continuation of existing rates be authorized, and that the
remainder of the Company s Application proposal be suspended pending investigation, further
procedure, and Commission Order.
Scott Woodbury
Deputy Attorney General
bls/M:TTS-O8-
DECISION MEMORANDUM