2018Annual Report.pdf

BITL N
ANNLTAL REPORT
OF
BITTERROOT T'VATER COMPANY
NAME
PO Box 2306
Hayden Lake, lD 83835
ADDRESS
TO THE
IDAHO PUBLIC
UTILITIES COMMISSION
FOR THE
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YEAR ENDED 2018
ANNUAL REPORT FOR WATER UTILITIES TO
THE IDAHO PUBLIC UTILITIES COMMISSION
FOR THE YEAR ENDING 2018
COMPANY !NFORMATION
1 Give full name of utility
2 Date of Organization
3 Organized under the laws of the state of
4 Address of Principal Office (number & street)
5 P.O. Box (if applicable)
6 City
7 State
8 Zip Code
9 Organization (proprietor, partnership, corp.)
10 Towns, Counties served
Bitterroot Water Company
6/16/1995
ldaho
24461 Old Highway 95 N, Athol, !D 83801 (Not mailing address)
PO Box 2306
Hayden Lake
ldaho
83835
Corporation
KootenaiCounty
11 Are there any affiliated companies?No
lf yes, attach a list with names, addresses & descriptions. Explain any services
provided to the utility.
12 Contact lnformation Name Phone No.
President (Owner)
Vice President
Secretary
General Manager
Complaints or Billing
Engineering
Emergency Service
Accounting
Ken Rickel 208-683-81 05
Ken Rickel 208-683-81 05
Rickel 208-683-81 05
Ken Rickel 208-683-8105
Rickel 208-683-8105
lnland Northwest Gonsultants 208-773-8370
Ken Rickel 208-683-8105
Susan Jacobson -4005
13 Were any water systems acquired during the year or any additions/deletions made
to the service area during the year? No
lf yes, attach a list with names, addresses & descriptions. Explain any services
provided to the utility.
14 Where are the Company's books and records kept?
Street Address 24461 Old Highway 95 N
City Athol
State ldaho
zip 83801
Rev 3/02
Page 1
NAME: Bitterroot Water Company
COMPANY INFORMATION (Cont.)
For the Year Ended 2018
15 ls the system operated or maintained under a
service contract?
16 lf yes: With whom is the contract?
When does the contract expire?
What services and rates are included?
No
17 ls water purchased for resale through the system?No
18 lf yes Name of Organization
Name of owner or operator
Mailing Address
City
State
zip
Gallons/CCF $Amount
Water Purchased
19 Has any system(s) been disapproved by the
ldaho Department of Environmental Quality?
lf yes, attach full explanation
20 Has the ldaho Department of Environmental Quality
recommended any improvements?
lf yes, attach full explanation
21 Number of Complaints received during year concerning:
Quality of Service
High Bills
Disconnection
22 Number of Customers involuntarily disconnected
23 Date customers last received a copy of the Summary
of Rules required by IDAPA 31.21.01.701?
Attach a copy of the Summary
24 Did significant additions or retirements from the
Plant Accounts occur during the year?
lf yes, attach full explanation
and an updated system map
$
No
No
0
0
0
0
May-2018 (All new customers receive
a copy in their packet)
No
Rev 3/02
Page 2
NAME: Bitterroot Water
ACCT #
REVENUE & EXPENSE DETAIL
For the Year Ended 2018
DESCRIPTION
1
2
3
4
5
6
7
8
4OO REVENUES
460 Unmetered Water Revenue
461.1 Metered Sales - Residential
461.2 Metered Sales - Commercial, lndustrial
462 Fire Protection Revenue
464 Other Water Sales Revenue
465 lrrigation Sales Revenue
466 Sales for Resale
400 Total Revenue (Add Lines 1 - 7)
(also enter result on Page 4, line 1)
. DEQ Fees Billed separately to customers
** Hookup or Connection Fees Collected
***Commission Approved Surcharges Collected
$ 64,228
$300
$32
$
$400
$ 1,325
$
$
11 925
$ 4,510
$7841
$ 2,930
$400
$200
$ 1,089
$2 722
$ 64,560
Booked to Acct #
Booked to Acct #
Booked to Acct #
o
'10
11
460
460
12 601.1-6
13 601.7
14 601.8
15 603
16 604
17 610
18 615-16
19 618
20 620.1-6
620.7-8
631-34
635
636
64142
650
656-59
660
666
667
670
401 OPERATTNG FXFENSES
Labor - Operation & Maintenance
Labor - Customer Accounts
Labor - Administrative & General
Salaries, Officers & Directors
Employee Pensions & Benefits
Purchased Water
Purchased Power & Fuel for Power
Chemicals
Materials & Supplies - Operation & Maint.
Materials & Supplies - Administrative & General
Contract Services - Professional
Contract Services - Water Testing
Contract Services - Other
Rentals - Property & Equipment
Transportation Expense
lnsurance
Advertising
Rate Case Expense (Amortization)
Regulatory Comm. Exp. (Other except taxes)
Bad Debt Expense
$
$
21
22
23
24
25
26
27
28
29
30
31
32
33
675 Miscellaneous $3 761
TotalOperating Expenses (Add lines 12 - 32, also enter on Pg 4,line 2) $ 31,046
Rev 3/02
Page 3
Name: Bitterroot Water Company
INCOME STATEMENT
For Year Ended 2018
ACCT #DESCRIPTION
1
2
3
4
5
o
7
I
403
406
407
408.10
408.1 1
408.12
409.10
409.11
41 0.1 0
410.11
411
412
Revenue (From Page 3, line 8)
Operating Expenses (From Page 3, line 33)
Depreciation Expense
Amortization, Utility Plant Aquisition Adj.
Amortization Exp. - Other
Regulatory Fees (PUC)
Property Taxes
PayrollTaxes
Other Taxes (list) DEQ Fees
$ 31,046
$ {8,671
$112
$701
$
Federal lncome Taxes
State lncome Taxes
Provision for Deferred lncome Tax - Federal
Provision for Deferred lncome Tax - State
Provision for Deferred Utility lncome Tax Credits
lnvestment Tax Credits - Utility
$
Total Expenses from operations before interest (add lines 2-15)
lncome From Utility Plant Leased to Others
Gains (Losses) From Disposition of Utility Plant
Net Operating lncome (Add lines 1,17 &18less line 16)
Revenues, Merchandizing Jobbing and Contract Work
Expenses, Merchandizing, Jobbing & Contracts
lnterest & Dividend lncome
Allowance for Funds used During Construction
Miscellaneous Non-Utility lncome
Miscellaneous Non-Utility Expense
Other Taxes, Non-Utility Operations
lncome Taxes, Non-Utility Operations
Net Non-Utility lncome (Add lines 20,22,23 & 24 less lines 21 ,25,26, A 27)
Gross lncome (add lines 19 & 28)
lnterest Exp. on Long-Term Debt
Other lnterest Charges
NET INCOME (Line 29less lines 30 & 31) (Also Enter on Pg 9, Line 2)
$ 64,560
$ 50,549
$
$ 14,011
$ (1,001)
$ 13,010
9A 408.13
9B
9C
9D
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
20
413
414
415
416
419
420
421
426
408.20
409-20
427.3
427.5
$ 1,001
Rev 3/02
Page 4
$ 13,0'10
Name: Bitterroot Water Company
ACCOUNT 101 PLANT IN SERVICE DETAIL
For Year Ended 2018
SUB
ACCT #
301
302
303
304
305
342
343
344
345
346
347
348
DESCRIPTION
Organization
Franchises and Consents
Land & Land Rights
Structures and lmprovements
Collecting & lmpounding Reservoirs
Lake, River & Other lntakes
Wells
lnfiltration Galleries & Tunnels
Supply Mains
Power Generation Equipment
Power Pumping Equipment
Purification Systems
Distribution Reservoirs & Standpipes
Trans. & Distrib. Mains & Accessories
Services
Meters and Meter lnstallations
Hydrants
Backflow Prevention Devices
Other Plant & Misc. Equipment
Office Furniture and Equipment
Transportation Equipment
Stores Equipment
Tools, Shop and Garage Equipment
Laboratory Equipment
Power Operated Equipment
Communications Equipment
Miscellaneous Equipment
Other Tangible Property
TOTAL PLANT IN SERVICE
(Add lines 1-28)
Added
During
Year
13
21 384
54 10
116
715
beginning year
Balance
Beginning
of Year
Removed
During
Year
on
Balance
End of
Year
$ 2,098
$ 5,094
19
54
$
20 487
01
11 012
1 035
275
$
,771
1
2
3
4
5
6
7
I
I
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
$
$
$
$
$
$
$
$
306
307
308
309
310
311
320
330
331
333
334
335
336
339
340
341
$
997
$
$
$
$$
$ 2,098
$ 5,094
$ 11,s79
$ 54,380
$896
$ 11,413 $ 17,222
$ 115,012
$ 19,578 660$
$275
4,997$715$
$ 224,426 $ 19,494
Rev 3/02
Page 5
Name: Bitterroot Water Company
ACCUMULATED OEPRECIATION ACCOUNT 108.1 DETAIL
For Year Ended 2018
1
2
3
4
5
o
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
SUB
ACCT #
304
305
306
307'
308
309
310
311
320
330
331
333
334
335
336
339
340
341
342
343
344
345
346
347
348
DESCRIPTION
Structures and lmprovements
Collecting & lmpounding Reservoirs
Lake, River & Other lntakes
Wells
lnfiltration Galleries & Tunnels
Supply Mains
Power Generation Equipment
Power Pumping Equipment
Purification Systems
Distribution Reservoirs & Standpipes
Trans. & Distrib. Mains & Accessories
Services
Meters and Meter lnstallations
Hydrants
Backflow Prevention Devices
Other Plant & Misc. Equipment
Office Furniture and Equipment
Transportation Equipment
Stores Equipment
Tools, Shop and Garage Equipment
Laboratory Equipment
Power Operated Equipment
Communications Equipment
Miscellaneous Equipment
Other Tangible Property
TOTALS (Add Lines 1 - 25)
32.780/o
19.47o/o
$
$
96.32o/o
85.670/o
$
Enter beginning & end of year totals on Pg 7,ne7
Depreciation
Rate
Yo
Balance
Beginning
of Year
Balance
End of
Year
lncrease
or
Decrease
10 957
380
716
425
109 209
333
188
21 489
$
$
$
7,431$$ 18,388
$
$
$ 54,380
$
$
$ 13,771 $ 20,487
$ 25,301 $ 34,726
$
$
$ 109,209
$
116$18,450$
188$
$
$
4,996$715$
$
$
$
$
$
$
$
$
$ 47,334 $ 260,823
Rev 3/02
Page 6
Name: Bitterroot Water Company
BALANCE SHEET
For Year Ended 2018
ASSETS
DESCRIPTION
Utility Plant in Service (From Pg 5, Line 29)
Utility Plant Leased to Others
Plant Held for Future Use
Construction Work in Progress
Utility Plant Aquisition Adjustment
Subtotal (Add Lines 1 - 5)
Accumulated Depreciation (From Pg 6, Line 26)
Accum. Depr. - Utility Plant Lease to Others
Accum. Depr. - Property Held for Future Use
Accum. Amort. - Utility Plant in Service
Accum. Amort. - Utility Plant Lease to Others
Accumulated Amortization - Aquisition Adj.
Net Utility Plant (Line 6 less lines 7 - 12)
lnvestment in Subsidiaries
Other lnvestments
Total Investments (Add lines 14 & 15)
Cash
Short Term lnvestments
Accts/Notes Receivable - Customers
Other Receivables
Receivables from Associated Companies
Materials & Supplies lnventory
Prepaid Expenses
Unbilled (Accrued) Utility Revenue
Provision for Uncollectable Accounts
Total Current (Add lines 17 -24 less line 25)
Unamortized Debt Discount & Expense
Preliminary Survey & lnvestigation Charges
Deferred Rate Case Expenses
Other Deferred Charges
TotalAssets (Add lines 13, 16 & 26 - 30)
Balance
Beginning
of Year
$84
$ 84,838
47 334
$ 37,504
693
$353
$ 27,046
$ 64,550
Balance
End of
Year
lncrease
932
$ 204,932
$ 213 489
098
57
$019
or
ACCT #
1 101
2 102
3 103
4 105
5 114
6
7 108j
8 108.2
I 108.3
10 1 '10.1
11 110.2
12 115
13
14 123
15 125
16
17 131
1B 135
19 141
20 142
21 145
22 151
23 162
24 173
25 143
26
27 181
28 183
29 184
30 186
3'l
$
$
$
$
$
$
$
$
$
$
$
895$
$
$
$
579
$ 289,771
$ z89,7tt
$ 260,823
2,098$
$ 26,849
$ 85,272
(331)$
$ 84,941
$
2,019$
$ 113,809
Rev 3/02
Page 7
Name: Bitterroot Water Company
BALANCE SHEET
ForYear Ended 2018
LIABILITIES & CAPITAL
DESCRIPTION
Common Stock
Preferred Stock
Miscellaneous Capital Accounts
Appropriated Retained Earnings
Unappropriated Retained Earnings
Reacquired Capital Stock
Proprietary Capital
Total Equity Capital (Add Lines 1-5+7 less line 6)
Bonds
Advances from Associated Companies
Other Long - Term Debt
Accounts Payable
Notes Payable
Accounts Payable - Associated Companies
Customer Deposits (Refundable)
Accrued Other Taxes Payable
Accrued lncome Taxes Payable
Accrued Taxes - Non-Utility
Accrued Debt, lnterest & Dividends Payable
Misc. Current & Accrued Liabilities
Unamortized Debt Premium
Advances for Construction
Other Deferred Liabilities
Accumulated lnvestment Tax Credits - Utility
Accum. lnvestment Tax Credits - Non-Utility
Operating Reserves
Contributions in Aid of Construction
Accum. Amort. of Contrib. in Aid of Const. **
Accumulated Deferred lncome Taxes
Total Liabilities (Add lines 9 - 29
LIAB & CAPITAL ( Add lines I & 30)
** Only if Commission Approved
Balance
Beginning
of Year
167 794
$1 800
7
181 7
$
$ 230
$ 64,550
Balance
End of
Year
lncrease
$
11 086
$ 11
99
$ 11 887
103
$ 49,259
or
1 201-3
2 204-6
3 207-13
4 214
5 215
6 216
7 218
8
I 221-2
10 223
11 224
12 231
13 232
14 233
15 235
16 236.11
17 236.12
18 236.2
19 237-40
20 241
21 251
22 252
23 253
24 255.1
25 255.2
26 261-5
27 271
28 272
29 281-3
30
31 TOTAL
ACCT #
$
$
$
1$
$
81
$
$
$
$
$
25
$
$
$
$
$ (51,708)
1,800$
$ (49,908)
$ 12,438
$ 126,087
$
$
$ 25,192
$
$ 163,718
$ 113,809
Rev 3/02
Page 8
Name: Bitterroot Water Company
1 Retained Earnings Balance @ Beginning of Year
2 Amount Added from Current Year lncome (From Pg 4, Line 32)
3 Other Credits to Account
4 Dividends Paid or Appropriated
5 Other Distributions of Retained Earnings
6 Retained Earnings Balance @ End of Year
7 Description (Class, Par Value etc.)
STATEMENT OF RETAINED EARNINGS
For Year Ended 2018
CAPITAL STOCK DETAIL
No. Shares
Authorized
DETAIL OF LONG.TERM DEBT
Year-end
Balance
$ (167,794
$13,010
$ 1 '10,326
$
$ (7,250)
$ (51,708)
No. Shares
Outsta
lnterest
Paid
Dividends
Paid
0
lnterest
Accrued
Common $1 Par Value 50
I
lnterest
Rate
50,000
Rev 3/02
Page 9
SYSTEM ENGINEERING DATA
For Year Ended 2018
1 Provide an updated system map if significant changes have been made to the system during the year
2 Water Supply:Type of
Treatment:
(None, Chlorine
Pum nation or location
Corner of Brunner &
3 System Storage:
Road
Rated
Capacity
Total
Capacity
000's
Gal.
Fluoride
Filter etc.
Usable
Capacity
000's
Gal.
Annual
Production
Type of
Reservoir
(Elevated,Pres-
Gal Surface
Well
Construction
(Wood, Steel
Concrete
ation or Location
Corner of Brunner &Road
(Duplicate form and attach if necessary. Asterisk facilities added this year.)
120 Chlorine 34,174
100 90 Boosted
Rev 3/02
Page 10
Name: Bifterroot Water Company
Water
Supply
Source
(Well, Spring,
Name: Bitterroot Water Company
SYSTEM ENGINEERING DATA
(continued)
For Year Ended 2018
4 Pump information for ALL system pumps, including wells and boosters.
Designation or Location
&of Pum
Horse
Power
Rated
Capacity
Discharge
Pressure
Energy
Used
This Year
11 KW
34,174,203
1 Well-Submersible
Booster Pum #1
3 Booster Pum #2
4 6 Pressure Tanks
** Submit pump curves or unavailable. Asterisk facilities added this year.
Attach additional sheets if inadequate space is available on this page.
5 lf Wells are metered:
What was the total amount pumped this year?
What was the total amount pumped during peak month?
What was the total amount pumped on the peak day?
6 lf customers are metered, what was the total amount sold in peak month?
Was your system designed to supply fire flows?
lf Yes: What is current system rating?
8 How many times were meters read this year?
During which months?April, May, June, July,
August, September
9 How many additional customers could be served with no system improvements
except a service line and meter?
How many of those potential additions are vacant lots?
10 Are backbone plant additions anticipated during the coming year?
lf Yes, attach an explanation of projects and anticipated costsl
11 ln what year do you anticipate that the system capacity (supply, storage or distribution)
will have to be expanded?
8,145,900
N/A
7
7 307 140
Yes
Residential
90
90
NO
20 120 20
15
30
45
Rev 3/02
Page 1 1
Unknown
6
Name: Bitterroot Water Company
I
SYSTEM ENGINEERING DATA
(continued)
For Year Ended 2018
FEET OF MAINS
ln Use
Beginning
Of Year
Pipe
Size
Metered:
Residential
Commercial
lndustrial
Flat Rate:
Residential
Commercial
lndustrial
lnstalled
During
Year
Last
Year
Abandoned
During
Year
ln Use
End of
Year
Last
Year
4 Private Fire Protection
5 Public Fire Protection
6 Street Sprinkling
Municipal, Other
Other Water Utilities
32,000
500
CUSTOMER STATISTTCS
Number of Customers
This
Year
160
8"
o
32,000
3
2
2A
28
2C
3
3A
3B
3C
22
5
59
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
7
8
0
4
0 0
0 0
This
Year
116 31,731
1
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
9341
118 32,665
Rev 3/02
TOTALS (Add lines 2 through 8)
Page 12
32,
943
CERTIFICATE
State of ldaho
County of Vwlena;
WE, the undersigned, Kenneth W. Rickel and Catherine L. Rickel, of the BITTERROOT WATER COMPAN\
utility, on our oath do severally say that the foregoing report has been prepared under our direction,
from the original books, papers and records of said utility; that we have carefully examined same, and
declare the same to be a correct statement of the business and affairs of said utility for the period
covered by the report in respect to each and every matter and thing therin set forth, to the best of our
knowledge, information and belief.
)
)
)
SS
tu
tnis 5 oav ofl$)-,?or "\
(Chief Officer)
(Officer Cha Accounts)
gdUexcel/jnelson/anulrpts^iltrannualrpt
Subscribed and Sworn to Before Me
NOTARY PUBLIC
My Commission Expires ar lrtl TDL>
coMf\,4 rsstor.t Nt,MBEtl :r,j?7 :
IJJITAF:\' PI '[]I IC
Sl;'le cl iCailii
Cummrssion ErPres 07. l9 lC20
Rev 3/02
Page 13
{il
Bitterroot Water Company lnc.
PO Box 2306
Hayden Lake, lD 83835
Phone: [phone] or [phone]
SUMMARY OF RULES AND REGULATTONS OF THE IDAHO PUBLTC UTTUTTES COMMTSSTON (tpUC) GOVERNTNG CUSTOMER
RETATIONS OF NATURAL GAS, ELECTRIC AND WATER PUBLIC UTITITIES
A utility may terminate service to a customer without his/her permission after adequate notice for the following reasons:1. Failure to pay an undisputed past due bill, or when payment is made with a dishonored check or electronic payment.2. Failure to make security deposit where it is required.
3. Failure to abide by terms of a payment arrangement.4. Customer or applicant misrepresented their identity for the purpose of obtaining utility service.5. Customer or applicant denied or prevented the utility's access to the meter.6. Willful waste of service through improper equipment or otherwise.7. Customer or applicant is a minor not competent to contract as defined by ldaho Code.8. Customer or applicant owes money on an existing account or from a previous account for service provided within the
past four years.
A utility may deny or terminate service without prior notice to the customer or applicant and without his/her permission
for one or more of the following reasons:
1. A situation exists that is immediately dangerous to life, physical safety, or property.
2. The utility is ordered to terminate service by any court, the Commission or other duly authorized public authority.
3. The service is obtained, diverted, or used without the authorization or knowledge of the utility.
4. The utility has made a diligent attempt to notify the customer of termination, but has been unable to make contact.
NOTIFICATIONt. A billing may be considered past due twenty (20) days after the billing date. A written notice of termination
must be mailed at least seven (7) days before the proposed termination date. (lnitial Notice)
2. At least twenty-four (24) hours before the service is terminated, another attempt shall be made to contact the customer
in person or by telephone. (Final Notice)
3. lf service is not terminated within twenty-one (21) calendar days after the proposed termination date, another initial and
final notice are required.
4. No additional notice is required if, upon receipt of a termination notice, the customer makes a payment arrangement
and fails to keep it, or when payment is made with a dishonored check or electronic payment.
WHEN TERMINATION IS NOT AIIOWED
1. The unpaid bill totals less than fifty dollars (S50) or two (2) months service, whichever is less.
2. The unpaid bill is for service to another customer.
3. The unpaid bill results from the purchase of non-utility goods or services.
4. Terminations are not allowed on Friday, Saturday, Sunday, legal holidays recognized by the State of ldaho, the day
preceding legal holidays, or at any time when the company is not open for business.
MEDICAL EMERGENCY
lf the customer or a member of the customer's family is seriously ill or has a medical emergency, the utility will postpone
termination of service for thirty (30) days if a written certificate signed by a licensed physician or public health official is
received.
Page 1 May 2018
These rules cover the rights and responsibilities of the customer and the utility.
Bitterroot Water Company lnc.
SUMMARY OF RULES AND REGULATIONS OF THE TDAHO PUBLTC UTtUTtES COMMTSSTON (tpUC) GOVERNTNG CUSTOMER
RELATTONS OF NATURAL GAS, ELECTRIC AND WATER PUBLIC UTITITIES
(Continued)
PAYMENT ARRANGEMENTS
The Company may assist you by making payment arrangements not requiring immediate payment in full. Please contact
us prior to the Final Date to arrange such a payment plan.
DEPOSIT
The IPUC rules allow utilities to ask for deposits or payment guarantees under specific conditions. At this time, the
Company does not require deposits or payment guarantees.
COMPLAINT PROCEDURE
An informal or formal complaint concerning the termination of service, policies and practices, or any other matter may be
fileddirectlywiththeutility. lfthecustomerisdissatisfiedwiththeproposedresolutionofthecomplaint,theymay
contact the Consumer Assistance staff atl
ldaho Public Utilities Commission
PO Box 83720
Boise,lD 83720-0074
800-432-0359 (toll free) or 208-334-0359 http://www.puc.idaho.sov
Termination of service is prohibited while a complaint is pending with the Commission or with a court in the
State of ldaho.
The Commission's Utility Customer Relation Rules are available on the IPUC's website.
Page 2 May 2018
Office of the Secretary
Service Date
April9,20l8
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE JOINT
APPLICATION OF RICKEL WATER
COMPAT\TY AND BITTERROOT WATER
SYSTEM,INC. TO COMBINE INTO A
SINGLE COMPANY
CASE NO. RIC.W.17.O1
ORDER NO. 34027
On July 28,2017, Rickel Water Company ("Rickel") and Bitterroot Water System,lnc.
("Bitterroot") submitted a one-page letter Application to the Commission to consolidate the two
Companies into one. The Companies stated that they are interconnected and share common
ownership. The Companies further stated that if the request were approved by the Commission,
they would continue to operate under the current rate structure and rules.
The Commission issued Notice of the Application and set an intervention deadline of
September 5,2017. No intervenors appeared. Staff reviewed the Companies' Application, spoke
with the Companies' owner, and requested additional information. Staff filed the only comments
and recommended that the request to consolidate the two water utilities be conditionally approved.
BACKGROUND
Bitterroot is an owner-operated water utility providing water service under Certificate
of Public Convenience and Necessity (CPCN) No. 319. It serves approximately 120 customers in
in Kootenai County, Idaho. Rickel is a contiguous water utility providing water service under
CPCN No. 324. It serves approximately 38 customers.
STAFF COMMENTS
Staff recommended that the two Companies be allowed to consolidate into a new
company-Bitterroot Water System, Inc.-and to operate under the Bitterroot CPCN.I However,
Staff also expressed that the new entity should maintain separate rates and accounting of the Rickel
and Bitterroot Water System customer groups until the new entity obtains new rates through a
general rate case.
Staff reviewed the Companies' approved tariffs, and noted that it would be impossible
to operate the two entities under the same tariff without raising rates on one customer group or the
other. Staff commented that "applying Rickel rates to Bitterroot customer usage would increase
I The Application stated a request to consolidate under the name Rickel Water, but in subsequent conversations with
the applicants, the request was revised to use the name Bitterroot Water System, Inc.
ORDER NO. 34027
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the average Bitterroot bill by approximately 9oh." Staff Comments at 2. The tariffs also contain
diff-erences in recurring and non-recurring charges, and rules and regulatrons. Id. Staff argued that
a consolidation under a unified rate schedule would be possible only after a general rate case was
fied. Id. In discussions with Staff, the Companies agreed to retain the existing separate rate
schedules. Id. Staff recommended that the consolidated Company work with Staff to update its
tariffs using the most current version of the Small Water Company Model Taiff . Id,
Staff evaluated the applicants' claim that the two systems are intercomected. Id. at3.
Staff reported that the Companies did not sufficiently respond to Staff information requests. 1d.
However, the Companies stated that an eight-inch diameter pipe connects the two systems. 1d.
Staff highlighted a serious concern that the systems may not meet fire-flow requirements, a
concern the local fire department echoed when questioned by Staff. Id, Staff stated that any rate
case would require fuither evaluation of this issue. /d.
Finally, Staff recommended that the new consolidated company write to inform
customers that it formed through the merger of Rickel Water Company and Bitterroot Water
System, Inc., and that it had obtained the Commission's approval to operate those Companies'
systems as a consolidated entity. Id,
FINDINGS AND CONCLUSIONS
The Idaho Public Utilities Commission has jurisdiction over Rickel Water and
Bitterroot Water System, Inc., their joint Application, and the issues involved in this case by virtue
of Title 61, and the Commissionls Rules of Procedure, IDAPA 31.01.01 .000 et seq. After
thoroughly analyzingthe proposal and Staff s comments recommending conditional approval, we
approve the Application.
We find that the Companies' Application is reasonable and in the public interest. See
Browningv. Wood,99Idaho 174,579P.2d120 (1978) (notingthatthe Commissionmustconsider
the public interest in addressing Applications such as this). We further find the following
conditions appropriate :
1. The combined Company must use the currently approved rates for Bitterroot and
Rickel until it files and obtains new rates through a general rate case;
2. The combined Company must work with Staff to update its tariffs; and
3. The combined Company must notify all customers in writing that the Bitterroot and
Rickel systems have consolidated into a single Company.
2ORDER NO. 34027
Accordingly, the Commission approves the Companies' Application to combine into a
single entity, Bitterroot Water System, Inc. under CPCN No. 319.
ORDER
IT IS HEREBY ORDERED that the Companies' Application, and the merger of Rickel
Water Company and Bittenoot Water System, Inc. into a single public utility called Bitterroot
Water System Inc., is approved. The combined Company shall serve Rickel's and Bitterroot's
former customers under Bitterroot Water System CPCN No. 319. CPCN No. 319 is amended to
include the service area of Rickel Water Company CPCN No. 324.
IT IS FURTHER ORDERED that CPCN No. 324, issued to Rickel Water Company,
is cancelled.
IT IS FURTHER ORDERED that the combined Company shall continue to bill and
collect under Bitterroot Water's and Rickel Water's existing approved rates until the combined
Company files and obtains new Commission-approved rates, through a general rate case.
IT IS FURTHER ORDERED that the combined Company work with Staff to update
its tariffs.
IT IS FURTHER ORDERED that the combined Company send notice to its customers
of the consolidation of Bitterroot and Rickel by no later than June 51 2018.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order. Within seven (7)
days after any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See ldaho Code $ 6l-626.
3ORDER NO. 34027
?41DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of April 2018.
PAUL ER, PRESIDENT
K;*^,. Fo^*
rrufrnYf flapsn, e 5Mfu rssr oNER
ERIC ANDERSON, COMMISSIONER
ATTEST:
Diane M. Hanian
Commission Secretary
RICW I ?0 l-final_bl3
4ORDER NO. 34027