20070425notice_of_application_order_no_30311.pdf

Office of the Secretary
Service Date
April 25, 2007
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF DIAMOND BAR EST A TES WATER
COMPANY FOR AN INCREASE IN RATES
AND CHARGES FOR WATER SERVICE IN
THE STATE OF IDAHO
NOTICE OF APPLICATION
CASE NO. DIA-07-
NOTICE OF
MODIFIED PROCEDURE
ORDER NO. 30311
On April 13, 2007, Diamond Bar Estates Water Company filed an Application to
increase its rates for water service, its fees for installation of a meter, and implementation of a
new customer connection charge. The Company requests an effective date for the new rates and
charges of June 1 , 2007. With this Order the Commission suspends the Company s requested
effective date, authorizes the use of Modified Procedure, establishes a deadline for interested
persons to submit comments, and directs Staff to conduct a public workshop pursuant to Rule
125.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that Diamond Bar Estates Water was granted a
Certificate of Public Convenience and Necessity authorizing it to provide water service to the
Diamond Bar Estates Subdivision in Kootenai County, Idaho, on May 30 2003. Case No. GNR-
02-, Order No. 29247. The Company s initial rates and charges were also approved and set
with Order No. 29247. The Company s authorized service territory was expanded to include the
Boekel Estates Subdivision on August 2, 2004. Case No. DIA- W -04-, Order No. 29556.
YOU ARE FURTHER NOTIFIED that according to the Company s Application it is
seeking authority to: (1) increase the water rate it charges customers by approximately 87.44%;
(2) increase the fees for first time installation of a meter to serve a new customer from $200 to
$310; and (3) implement a new customer connection charge of either $2 500 or $5 500 where a
service line to the property does not currently exist.
YOU ARE FURTHER NOTIFIED that according to the Company s Customer
Notice the Company is proposing to increase the base montWy charge for the first 7 500 gallons
of water from $21 per month to $50 per month. Additionally, the Company proposes to increase
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30311
the charge for water usage in excess of 7 500 gallons per month from $0.45 to $0.52 per
thousand gallons. The Company states that this increase is necessary so that it can recover its
operating costs, and that it has been operating at a loss for a number of years. Diamond Bar
Estates provides service to approximately 43 customers.
YOU ARE FURTHER NOTIFIED that the Application and supporting workpapers
testimonies 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
testimonies are also available on the Commission s website at www.puc.idaho.gov under "File
Room.
YOU ARE FURTHER NOTIFIED that Diamond Bar s revenue requirement, and
every component of it, both rate base and expense, are at issue. The Commission may grant
deny, or modify the revenue requirement requested and may find a revenue requirement different
from that proposed by any party to be just, fair, and reasonable. IDAPA 31.01.01.124.01.
YOU ARE FURTHER NOTIFIED that the rates and charges of all Idaho 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.
IDAPA 31.01.01.124.02.
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 and may approve, reject, or modify existing or
proposed relationships among and between customer classes or rate groupings.IDAP A
31.01.01.124.02.
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 classes or rate
groupings of customers. IDAPA 31.01.01.124.02.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30311
YOU ARE FURTHER NOTIFIED that the tariffs, practices, rules, regulations,
servIce, instrumentalities, equipment, facilities, classifications, and customer relations of the
utility are at issue, and the Commission may address any of them in its Order.IDAPA
31.01.01.124.02.
YOU ARE FURTHER NOTIFIED that the Commission has jurisdiction over this
matter pursuant to Title 61 of the Idaho Code, and specifically Idaho Code 99 61-502, 61-622
and 61-623.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission s Rules of Procedure, 31.01.01.000 et seq.
SUSPENSION OF PROPOSED EFFECTIVE DATE
Due to the complexities of this case and other constraints on the Commission s time,
the Commission finds that it cannot resolve Diamond Bar s requested rate increase before the
proposed effective date of June 1 , 2007. Pursuant to Idaho Code 99 61-622 and 61-623 , the
Commission hereby suspends the proposed rates for a period of thirty (30) days plus five (5)
months from June 1 , 2007, or until such time as the Commission enters an Order accepting,
rejecting, or modifying the request in this matter.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the filing of
record in Case No. DIA-07-01. The Commission has preliminarily determined that the public
interest may not require a hearing to consider the issues presented in this case and that issues
raised by the Company s filing may be processed under Modified Procedure, i.e., by written
submission rather than by hearing. IDAPA 31.01.01.201-204. In so doing, the Commission
notes that Modified Procedure and written comments have proven to be an effective means for
obtaining public input and participation.
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
Procedure and stating why Modified Procedure should not be used. IDAP A 31.01.01.203.
YOU ARE FURTHER NOTIFIED that if no protests or written comments are
received within the deadline, the Commission will consider the matter and enter its Order
without a hearing. If protests or comments are filed within the deadline, the Commission will
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30311
consider them and may, in its discretion, set the matter for hearing or decide the matter and issue
its Order on the basis of the written positions before it. IDAP A 01.01.01.204.
NOTICE OF COMMENT/PROTEST DEADLINE
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. DIA- W-07-01 is August 10, 2007. Persons desiring a hearing must specifically
request a hearing in their written protests or comments.
YOU ARE FURTHER NOTIFIED that written comments concerning this case
should be mailed to the Commission and to the Company 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 83702-5983
Robert N. Turnipseed
Diamond Bar Estates Water Co.
PO Box 1870
Hayden, ID 83835
E-mail: avondalecon~verizon.net
Robert E. Smith
2209 N. Bryson Rd.
Boise, ID 83713
E-mail: utilitygroup~yahoo.com
document.
These comments should contain the case caption and case number shown on the first page of this
Persons desiring to submit comments via e-mail may do so by accessing the
Commission s homepage located at www.puc.idaho.gov. Click the "Comments and Questions
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 the Applicant at the addresses listed above.
ORDER
IT IS HEREBY ORDERED that the proposed schedules of rates and charges
submitted by Diamond Bar in this matter are suspended for a period of thirty (30) days plus five
(5) months from June 1 2007, or until such time as the Commission enters an Order accepting,
rejecting, or modifying the request in this matter.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30311
IT IS FURTHER ORDERED that this case be processed by Modified Procedure.
Persons interested in submitting written comments regarding this case or protesting the use
Modified Procedure should do so no later than August 10, 2007.
IT IS FURTHER ORDERED that Commission Staff is hereby directed to conduct a
public workshop in order to dispense information concerning the Company s Application and to
receive written or oral comments from the public prior to Staff filing testimony or comments in
this case. IDAPA 31.01.01.125. Notice of the public workshop will be issued under separate
cover.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this d.fJ-t+-
day of April 2007.
MARSHA H. SMITH, COMMISSIONER
ATTEST:
~t:)tf.ffJ2jJe D. Jewell
Co mission Secretary
O:DlA-O7-01 dw
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30311