20080411notice_of_amended_application_order_no_30526.pdf

Office of the Secretary
Service Date
April!!2008
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF ALGO MA WATER
COMP ANY'S APPLICATION FOR
APPROVAL TO SELL THE WATER
COMPANY AND FOR AN ORDER
AUTHORIZING INCREASES IN THE
COMPANY'S RATES AND CHARGES FOR
WATER SERVICE.
CASE NO. AWS-07-
NOTICE OF
AMENDED APPLICATION
NOTICE OF PUBLIC WORKSHOP
NOTICE OF
MODIFIED PROCEDURE
NOTICE OF PUBLIC HEARING
ORDER NO. 30526
In July 2007, Algoma Water Company filed an Application seeking Commission
approval to sell the Company (and transfer its Certificate of Public Convenience and Necessity
No. 396) to Mr. Robert J. Carrier. In addition to the sale of the Company, Algoma requested a
significant increase in its monthly flat rates for water service.
On August 13 2007, the Commission issued a Notice of Application and deadline for
intervention. Order No. 30405. No persons petitioned to intervene. The Commission then
issued a Notice of Parties on September 4 2007. Thereafter, the Company and Staff engaged in
protracted discovery. On March 27 , 2008 , the Company requested that its initially proposed rate
be increased. Based upon this request, the Commission issues this Amended Notice and has
determined to process this Application by Modified Procedure as set out below.
NOTICE OF AMENDED APPLICATION
A. The Proposed Sale
YOU ARE HEREBY NOTIFIED that in the present Application, Mr. Greenwood
proposes to sell Algoma Water (and apparently the three non-regulated sewer systems) to Mr.
Carrier for approximately $161 000.Attachment D Addendum No.As part of the
Application, Mr. Carrier has submitted a financial statement. The Application indicates that Mr.
NOTICE OF AMENDED APPLICATION
NOTICE OF PUBLIC WORKSHOP
NOTICE OF MODIFIED PROCEDURE
NOTICE OF PUBLIC HEARING
ORDER NO. 30526
Carrier has a background in real estate and "income producing business management."
Application at 1. Mr. Carrier has been investing in Bonner County since 2004 and also owns
real estate in Nevada. The Application states that Mr. Carrier possesses the financial ability to
assume responsibility for the Algoma Water System. Id.
YOU ARE FURTHER NOTIFIED that in addition to the financial statement, the
parties have also included an abbreviated business plan that explains how Mr. Carrier intends to
incorporate the water company into his other businesses in Idaho. Briefly, Mr. Carrier intends
retain Bob Hansen of Water Systems Management, Inc., to continue the overall management of
the Company and continue the services of Terry Deal (Deal Pump & Electric) for operational
maintenance and emergency purposes. Finally, the business plan indicates that Mr. Carrier
intends to continue to employ Joan Brittain as the bookkeeper/accoul1tant. Ms. Brittain has been
Algoma s bookkeeper for the last four years.
B. The Changes to the Proposed Rate Increase
YOU ARE FURTHER NOTIFIED that Algoma has recently requested a greater
increase in its monthly flat rates for service than was originally sought. The Company now
proposes to increase its existing monthly flat rates for service as set out below:
Commercial Rate: from $28.15 to $54.00 per month
Residential Rate: from $17.59 to $36.00 per month
The Company s March 27 request stated that it has been many years since there has been a rate
increase. The Company anticipated making major repairs to its system during the summer of
2008. It further stated that the Company is operating "in the red with negative net income" and
requests an expedited review.
YOU ARE FURTHER NOTIFIED that the Application and the Amended
Application, supporting workpapers, and exhibits have been filed with the Commission and are
available for public inspection during regular business hours at the Commission offices. The
Application and workpapers are also available on the Commission Website at
www.puc.idaho.gov under "File Room" and then "Water Cases.
YOU ARE FURTHER NOTIFIED that Algoma s intrastate revenue requirement, and
every component of it, both rate base and expense, are at issue. The Commission may grant
NOTICE OF AMENDED APPLICATION
NOTICE OF PUBLIC WORKSHOP
NOTICE OF MODIFIED PROCEDURE
NOTICE OF PUBLIC HEARING
ORDER NO. 30526
deny, or modify the revenue requirement requested and may find a revenue requirement different
from that proposed by any party is just, fair and reasonable.
YOU ARE FURTHER NOTIFIED that the rates and charges for all Algoma retail
customers, both recurring and non-recurring, including those of any special-contract customers
are at issue, and every component of every existing and proposed rate and charge is at issue. The
Commission may approve, reject or modify the rates and charges proposed and may find that
rates and charges different from those proposed by any party are just, fair and reasonable.
YOU ARE FURTHER NOTIFIED that the Commission may approve, reject or
modify existing or proposed relationships between and among rates and charges within, between
or among customer classes or rate groupings. The Commission may approve, rej ect or modify
existing or proposed relationships among and between customer classes or rate groupings.
YOU ARE FURTHER NOTIFIED that the Commission may abolish, reduce or
create rate blocks or categories of rates and charges; abolish, create or reduce components of
rates and charges; abolish, reduce or create customer classes or rate groupings; and abolish
reduce or create absolute or relative differences among and between existing customer classes or
rate groupings of customers.
YOU ARE FURTHER NOTIFIED that the tariffs, practices, rules, servIces
instrumentalities, equipment, facilities, classifications and customer relations procedures of
Algoma are at issue, and the Commission may address any of them in its final Order.
YOU ARE FURTHER NOTIFIED that the Company has asked for expedited review
of its Amended Application and the larger monthly rates. Rather than require Algoma to issue
another notice to its customers of the larger rate request, we find it reasonable to forward a copy
of this Notice to each customer. ID AP A 31.21. 02.1 02.
NOTICE OF PUBLIC WORKSHOP
YOU ARE HEREBY NOTIFIED that the Commission Staff will hold a public
workshop for customers of Algoma. The purpose of the public workshop is to provide customers
with an overview of the Company s Application and dispense information. At the workshop,
customers will have an opportunity to ask questions of the Staff regarding the Company
Application. Representatives of the Company may also be available. The Staff will hold its
NOTICE OF AMENDED APPLICATION
NOTICE OF PUBLIC WORKSHOP
NOTICE OF MODIFIED PROCEDURE
NOTICE OF PUBLIC HEARING
ORDER NO. 30526
public workshop on TUESDAY. APRIL 22. 2008. AT 7:00 P.M.. AT SANDPOINT HIGH
SCHOOL LIBRARY. 410 SOUTH DIVISION STREET. SANDPOINT. IDAHO 83864
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the
public interest may not require a formal technical hearing in this matter and will proceed under
Modified Procedure pursuant to the Commission s Rules of Procedure 201 through 204, IDAPA
31.01.01.201 through .204. The Commission notes that Modified Procedure (with written
comments) and a public hearing have proven to be an effective means for obtaining public input
and participation in cases of this nature.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on the
Application or the subsequent request to increase the initial rates may file a written comment in
support or opposition with the Commission no later than April 25, 2008. The comment must
contain a statement of reasons supporting the comment. Persons desiring a technical hearing
must specifically request it in their written comments. Written comments concerning this
Application shall be mailed to the Commission and the Applicant at the addresses reflected
below:
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
Street Address for Express Mail:
472 W. Washington Street
Boise, ID 83702-5918
Paul Greenwood
Algoma Water Company
PO Box 751
Sandpoint, ID 83864
Bob Hansen
67 Wild Hope Trail
Sandpoint, ID 83864
E-mail: wsmibob~aol.com
Robert Carrier
3842 Higley Street
Las Vegas, NV 89103
These comments should contain the case caption and case number shown on the first page of this
document. Persons desiring to submit comments via e-mail may do so by accessing the
Commission s home page located at www.puc.idaho.gov. Click the "Comments and Questions
NOTICE OF AMENDED APPLICATION
NOTICE OF PUBLIC WORKSHOP
NOTICE OF MODIFIED PROCEDURE
NOTICE OF PUBLIC HEARING
ORDER NO. 30526
icon, and complete the comment form, using the case number as it appears on the front of this
document. These comments must also be sent to Algoma Water Company at the e-mail
addresses listed above.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set, the Commission will consider this matter on its merits and
enter its Order without a formal hearing. If written comments are received within the time limit
set, the Commission will consider them and, in its discretion, may set the same for formal
hearing.
NOTICE OF PUBLIC HEARING
YOU ARE FURTHER NOTIFIED that the Commission will convene a public
hearing in this matter. The purpose of the public hearing is to take testimony from members of
the public and customers of Algoma Water Company. The public hearing will convene on
TUESDAY. APRIL 29. 2008. AT 7:00 P.M.. AT SAND POINT HIGH SCHOOL
LffiRARY. 410 SOUTH DIVISION STREET. SAND POINT. IDAHO 83864
YOU ARE FURTHER NOTIFIED that all workshops and hearings in this matter
will be held in facilities meeting the accessibility requirements of the Americans with
Disabilities Act (ADA). Persons needing the help of a sign language interpreter or other
assistance in order to participate in or to understand testimony and argument at a public hearing
may ask the Commission to provide a sign language interpreter or other assistance at the hearing.
The request for assistance must be received at least five (5) working days before the hearing by
contacting the Commission Secretary at:
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone] (Telephone)
[phone] (FAX)
Mail: secretary~puc.idaho.gov
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be held
pursuant to the Commission s jurisdiction under Title 61 of the Idaho Code and specifically
NOTICE OF AMENDED APPLICATION
NOTICE OF PUBLIC WORKSHOP
NOTICE OF MODIFIED PROCEDURE
NOTICE OF PUBLIC HEARING
ORDER NO. 30526
Idaho Code ~~ 61-124, 61-125, 61-129, 61-526, and 61-622. The Commission may enter any
final Order consistent with its authority under Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission s Rules of Procedure, IDAP A 31.01.01.000 et seq.
ORDER
IT IS HEREBY ORDERED that this case be processed under Modified Procedure
with a public hearing. Interested persons may file written comments no later than 21 days from
date of this Order, or may testify at the public hearing set out above. Parties shall present their
evidence by written comments.
IT IS FURTHER ORDERED that the Commission Secretary serve this Notice upon
the customers of A1goma Water Company.
DONE by Order ofthe Idaho Public Utilities Commission at Boise, Idaho this lIrA
day of April 2008.
MACK A. REDFORD, PRESIDENT
tk~ MARSHA H. SMITH, COMMISSIONER
~V-~JI . KEMPTON, CO ISSIONER
ATTEST:
Commission Secretary
O:AWS-07-0l dh2
NOTICE OF AMENDED APPLICATION
NOTICE OF PUBLIC WORKSHOP
NOTICE OF MODIFIED PROCEDURE
NOTICE OF PUBLIC HEARING
ORDER NO. 30526