20140121_4278.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM CHRIS HECHT
DATE:JANUARY 16,2014
RE:TETON WATER &SEWER,LLC’S REQUEST TO REVISE ITS
GENERAL RULES AND REGULATIONS;CASE NO.TTS-W-13-OI
BACKGROUND
On December 15,2013,Teton Springs Water &Sewer LLC (Company”)requested a
change to its General Rules and Regulations,Section 6 —Billing and Payment,particularly
paragraph 6.5.
Commission Order No.32685 (Case No.TTS-W-08-01)authorized the Company to bill its
residential customers a Basic Flat Rate Service charge of$1 18.00 per quarter.In addition,
because many of the residential customers are seasonal residents and the results of customers
disconnecting and reconnecting throughout the year could have a negative effect on the
Company’s revenue,the Commission allowed the Company a Reconnection After Seasonal
Disconnect Charge.This charge is equal to two quarters of the applicable rate,currently $236 for
residential customers.It is applied when a customer requests service after they have been
disconnected more than 30 days.
Currently,if a customer requests sen’ice after a disconnection of more than thirty (30)
days,the Company bills the customer the quarterly charge of $118 and the Reconnection after
Seasonal Disconnect Charge of $236.However,as a result of a customer complaint to the
Commission regarding the Company’s practice of billing for the full quarterly charge of $1 18
regardless of the amount of time of actual service,the Company has agreed to pro-rate the
quarterly charge to reflect the actual period of service to a customer.The Company will continue
the practice of billing the Reconnection after Seasonal Disconnect Charge.
Commercial customers also pay a flat rate charge on a quarterly basis.The amount
charged varies by the size of the customer’s service line.
DECISION MEMORANDUM 1 JANUARY 16,2014
The Company has requested a revision to Paragraph 6.5 to reflect its new billing practice.
to read as follows:
6.5 V/here services are provided for a period less than the Billing Period,
the amount charged shall be equivalent to the actual number of months and
days in which service is provided during that current billing period.
Staff recommends revised wording as follows:
6.5 Where services are provided for a period less than the entire quarterly
billing period,the amount charged shall be pro-rated based on the actual
number of days service is provided.
The Company has accepted Staffs revision.The Company is not requesting any changes
to its Rate Schedule I —Recurring Charges or its Rate Schedule 2 —Non-Recurring Fees and
Charges.The Company is only asking the Commission to allow it to pro-rate charges for service
provided for less than a full billing period.The policy would apply to both residential and
commercial customers.The Company has not requested an effective date,instead asking that any
action on the part of the Commission be taken as soon as possible.
STAFF RECOMMENDATLON
Staff believes that there should be no significant effect on the Companys revenue
requirements as a result of this change.Staff believes it is appropriate for the Company to pro-rate
the quarterly charges to reflect actual usage and Staff recommends approval of the changes to
Paragraph 6.5 of the General Rules and Regulations as revised by Staff.Staff will work with the
Company in filing the revised tariff page.Staff recommends that the revised tariff become
effective February 1,2014.
COMMLSSION DECISION
Does the Commission wish to approve the Company’s revision of its General Rules and
Regulations,particularly Paragraph 6.5 with an effective date of February 1,2014?
CChris f-lecht
UdmcmosIfls-\V TarilTRevision 2014
DECISION MEMORANDUM JANUARY 16,2014