20030725Notice of Application.pdf

Office of the Secretary
Service Date
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
July 25 , 2003
IN THE MATTER OF THE SALE/PURCHASE)
OF BITTERROOT WATER COMPANY. CASE NO. BIT-O3-
NOTICE OF APPLICATION
NOTICE OF MODIFIED
PROCEDURE
NOTICE OF COMMENT/
PROTEST DEADLINE
YOU ARE HEREBY NOTIFIED that on June 17 2003 , documentation was filed
with the Idaho Public Utilities Commission (Commission) pertaining to the sale/purchase of the
Bitterroot Water Company. The Bitterroot Water Company (Bitterroot) is a regulated public
utility maintaining and operating a water system and water supply and providing water service to
approximately 101 customers in Kootenai County, Idaho in an area more particularly described
as Silver Meadow subdivision located in Township 53 North, Range 03 West, Sections 20 and
, Boise-Meridian, Kootenai County, Idaho, as recorded in the Kootenai County Recorder
Office, Record No. 1375350. Certificate of Public Convenience and Necessity No. 319 was
issued to Bitterroot Water Company, Inc. by the Commission on December 14, 1995. Reference
Case No. GNR- W -95-, Order No. 26268.
As reflected in the second amended Purchase Agreement filed with the Commission
on July 7 2003, the Seller, Bruce Burnett, agrees to sell Kenneth and Cathy Rickel of Kootenai
County, Idaho, hereinafter called Purchasers, the Company stock of Bitterroot Water Company,
Inc., consisting of 100 000 shares of stock for the purchase price of $50 000. Pursuant to terms
of payment, Seller acknowledges receipt of $25 000 for 50 000 shares of stock. The balance of
the purchase price for the remaining 50 000 shares is payable at 8% per annum commencing
June 1 2003. Payments shall be $303.32 per month with the first payment being due on the 15
day of the month following Commission approval of this stock transfer. Payments will be due
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/ PROTEST DEADLINE
month to month until the balance is paid in full. The unpaid balance is secured by a promissory
note. Seller will retain possession of the balance of the shares until the note is paid.
The addresses of Seller and Purchasers are:
Seller: Bruce Burnett, 4240 Old Seward Highway, Suite 13, Anchorage, AK 99503
Purchasers: Kenneth and Cathy Rickel, PO Box 1261 , Hayden Lake, ID 83835
The SalelPurchase Agreement recites that the Certificate for Bitterroot Water
Company, Inc. will not change as a result of this transaction.
As reflected in the initial filing, the attorney for the Purchasers states that while this
is not to be a consolidation of water companies, his clients, the Rickels, currently own the
contiguous water company that bears their name. (Rickel Water Company - Commission
Certificate No. 324.) Both parties to the sale/purchase agree that it only makes economies of
scale and logistical sense that the companies be owned by local people. Further, it is recited that
the companies share a communal reservoir and some infrastructure.
The Rickels intend to leave the existing water service fees for Bitterroot "as is" for
the near future, but based on economics, contend that it is possible that an increase may be
needed. There are reportedly a number of hook ups which may be losing water due to faulty
back-flow prevention valves which need to be fixed and/or replaced. This repair, the Rickels
contend, will potentially stop the water shortages which have been occurring in the Bitterroot
system. The Rickels contend also that there is no question that the Company will need to have
another well and reservoir for the expansion of housing north of the Company s present customer
base.
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the filings of
record in Case No. BIT-03-1. The Commission has preliminarily determined that the public
interest regarding the sale/purchase of Bitterroot Water Company stock may not require a
hearing to consider the issues presented, and that issues raised by the Application may be
processed under Modified Procedure i.e., by written submission rather than by hearing.
Reference Commission Rules of Procedure, IDAPA 31.01.01.201-204.
YOU ARE FURTHER NOTIFIED that the Commission may not hold a hearing in
this proceeding unless it receives written protests or comments opposing the use of Modified
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NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/ PROTEST DEADLINE
Procedure and stating why Modified Procedure should not be used.
31.01.01.203.
Reference IDAP A
YOU ARE FURTHER NOTIFIED that the deadline for filing written comments or
protests with respect to the Application and the Commission s use of Modified Procedure in
Case No. BIT-03-1 is Thursday, August 14, 2003.Persons desiring a hearing must
specifically request a hearing in their written protests or comments.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the deadline, the Commission will consider the matter on its merits and enter its
Order without a formal hearing. If comments or protests are filed within the deadline, the
Commission will consider them and in its discretion may set the matter for hearing or may
decide the matter and issue its Order based on the written positions before it. Reference IDAP
31.01.01.204.
YOU ARE FURTHER NOTIFIED that written comments concerning Case
No. BIT-03-1 should be mailed to the Commission and to the Seller and Purchaser at the
addresses reflected below.
COMMISSION SECRETARY
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
BRUCE BURNETT
c/o NORM GISSEL
ATTORNEY AT LAW
1424 SHERMAN AVE, STE 100
COUERD'ALENE, ID 83814
Street Address for Express Mail:
472 W WASHINGTON ST
BOISE, ID 83702-5983
KENNETH & CATHY RICKEL
c/o TIM VANVALIN, ATTORNEY AT LAW
15381 HWY 41
PO BOX 1228
RATHDRUM, ID 83858-1228
These comments should contain the case caption and case number shown on the first page of this
document.
Persons desiring to submit comments to the Commission via e-mail may do so by
accessing the Commission s home page located at www.puc.state.id.. Click the "Comments
and Questions" icon, and complete the comment form, using the case number as it appears on the
front of this document. A hard copy of these comments must also be sent to the Seller and
Purchasers at the comment addresses listed above.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/ PROTEST DEADLINE
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.
YOU ARE FURTHER NOTIFIED that the Application in Case No. BIT-03-1 can
be reviewed during regular business hours at the Idaho Public Utilities Commission, 472 West
Washington Street, Boise, Idaho. In addition, the Application may be viewed by accessing the
Commission s website at www.puc.state.id.under the "File Room" icon and selecting the
appropriate topic heading.
DATED at Boise, Idaho this d.. '-It"- day of July 2003.
ll
Commission Secretary
Vld/N:BITWO301
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/ PROTEST DEADLINE