20050506Decision Memo.pdf

DECISION MEMORANDUM
COMMISSIONER KJELLANDER
CO MMISSI 0 NER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
TO:
FROM:SCOTT WOODBURY
DATE:MAY 4, 2005
SUBJECT:CASE NO. BCS-05-1 (Bar Circle "
COMMERCIAL FIRE PROTECTION TARIFF
On April 22, 2005 , Robert Turnipseed, president of Bar Circle "S" Water Co. (Bar
Circle; Company) filed an Application with the Idaho Public Utilities Commission
(Commission) requesting authority to establish commercial fire protection tariff rates. Bar Circle
is located in Hayden, Idaho and provides water service to approximately 129 customers.
Bar Circle does not currently have an approved commercial fire protection tariff.
reflected in its Application, at the request of Waterford Park LLC, a boat and RV condominium
storage facility, the Company entered into an agreement with Waterford to provide fire
protection service required for the facility.Attached to the Application is a copy of the
Waterford agreement and a copy of the engineer s master plan for the storage facility that shows
the location of water lines, fire hydrants and sprinkler service lines that are being installed to
meet the fire protection requirements. Waterford is paying the cost to move existing lines and
install new lines and hydrants.
Bar Circle states that it must dedicate a large portion of its existing storage reservoir
to the fire suppression leads of the Waterford facility. The Company reports that nearly a third
of Bar Circle s existing reservoir will be dedicated to meeting the required 53 400 gallon storage
requirement.
Bar Circle anticipates that additional growth will occur in the area in the near future
and that the Company will expand to serve new customers. Because of the large portion of the
existing reservoir that will be dedicated to fire protection for the Waterford facility, the Company
DECISION MEMORANDUM
states that it will need to construct additional storage to meet its growth requirement sooner than
anticipated. Attached to the Company s Application is an engineering estimate for the
construction of a new 20 000-gallon reservoir. Total cost of the new reservoir is expected to be
$90 000.
Bar Circle requests approval of commercial fire protection rates as follows:
Monthly rate for commercial private hydrants $146.
Monthly rate for commercial sprinklers per connection $ 97.
The rates were developed using the cost of the new reservoir that could be avoided were it not
for the dedication of a portion of the Company s existing facilities. Because the new reservoir is
much smaller than the dedicated portion of the Company s existing reservoir, the Company
believes its calculations are conservative. The fire protection rates when applied to the entire
Waterford facility, the Company contends, will generate monthly revenue of$1 121.68.
As reflected in attachments to the Company s Application, the dedicated portion of
the existing reservoir is the equivalent of 23 residential customers average daily requirements
during the peak season of the year. The fire flow requirement for the Waterford facility, the
Company contends, is nearly twice the average demand of the existing residential customers
connected to the system.
COMMISSION DECISION
Bar Circle requests Commission authority to establish commercial fire protection
tariff rates. Staff has reviewed Bar Circle s filing and recommends that the matter be processed
pursuant to Modified Procedure, i., by written submission rather than by hearing. Reference
Commission Rules of Procedure, IDAPA 31.01.01.201-204. Does the Commission agree that it
is appropriate to process the case pursuant to Modified Procedure?
Scott D. Woodbury
bls/M:BCSWO501 sw
DECISION MEMORANDUM