20191217_mh1.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:MATT HUNTER
DEPUTY ATTORNEY GENERAL
DATE:DECEMBER 13,2019
SUBJECT:IN THE MATTER OF TETON WATER &SEWER COMPANY'S
APPLICATION FOR APPROVAL OF USE OF EMERGENCY RESERVE
FUND MONIES;CASE NO.TTS-W-19-01.
On November 22,2019,Teton Water &Sewer Company ("Teton Water"or
"Company")applied to the Commission for approval of $18,044.80 in expenses to be reimbursed
from Teton's emergency reserve fund ("Fund").
BACKGROUND
In Order No.30718,the Commission authorized Teton Water to establish the Fund.
The Fund is only to be used "for emergencies and major unplannedcapital expenditures,"such as
plant maintenance,repair,or replacement.Order No.30718 at 12.While Teton Water may
immediately access the Fund,it must "establish an auditable paper trail and provide the
Commission with contemporaneous written notice of the Company's use of the [Fund]for an
allegedly permitted purpose with emergency details and related invoices."Id.at 13.After the
emergency use of Fund monies,the Company must file an application requesting the Commission
determine whether the Fund withdrawal(s)meet the Commission's eligibilityrequirements.Id.
APPLICATION
Teton Water states in its Application that it spent $18,044.80 to purchase a backup well
pump,transformer,and associated materials during summer 2019.Application at 1.The Company
states Well #1 and Well #2 were running almost continuously,but failing to maintain minimum
reservoir levels during peak demand periods.Id.The Company estimated that,if Well #1 failed,
the Company would have only 8-12 hours to repair the well before its reservoir would be emptied.
DECISION MEMORANDUM l
Id.Because Well #1 has not been replaced or serviced since 2011,the Company determined it
would be wise to have a replacement pump,motor,and transformer on hand in case of failure.Id.
The Company states it began consulting with Buchanan Well Drilling,Inc.("Buchanan")and
Rendezvous Engineering on June 18,2019 about pump replacement parts.On June 27,2019,the
Company requested Buchanan order a Goulds pump,a Franklin motor,310 feet of pump cable,
two check valves,and 42 feet of galvanized steel pipe.Id.at 1-2.The total cost of this purchase
(including three person hours and mileage)was $16,864.80.Id.at 2.The Company also ordered
around this time a replacement transformer for $1,180.00.Id.at 1 and 3.
The Company states the transformer was delivered on July 17,2019,and the remaining
replacement materials were on hand with Buchanan sometime between July 29 and August 2,
2019.Id.at 1.The Company states that,while none of its water system failed during summer 2019,
the length of time required to get replacement parts shows the Company could not have fixed a
well before its reservoir was depleted.Id.The Company requests the Commission authorize the
Company to use the Fund to cover these expenses,and requests its case be processed by Modified
Procedure.Id.
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Application and Notice of
Modified Procedure,setting a February 26,2020 comment deadline and a March 4,2020 reply
comment deadline.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure,setting a February 26,2020 comment deadline and a March 4,2020 reply comment
deadline?
Matt Hunter
Deputy Attorney General
lildgaltWATI ILTTS-W [9-01\nyma \TTSWI90Lmhalen
DECISION MEMORANDUM 2