20051125Decision memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
FROM:DON HOWELL/DA VE SCHUNKE
DATE:NOVEMBER 23, 2005
SUBJECT:EAGLE WATER COMPANY'S SURCHARGE TARIFFS AND ITS
FAILURE TO FILE THE COMMISSION-ORDERED REPORT
REGARDING THE REPLACEMENT COSTS OF ITS 8-INCH LINE
CASE NO. EAG-05-
Compliance Tariffs
In Order No. 29903 issued October 27, 2005 , the Commission authorized Eagle
Water to implement a one-year surcharge to recover the costs of this summer s system
improvements, to prepare a system engineering report, and to prepare the Surcharge Application.
The surcharge designed was to recover $160 389. The Commission s Order directed Eagle
Water to submit conforming tariffs no later than November 3 , 2005. The Company did not
submit its surcharge tariffs until November 18 2005.
The Staff has reviewed the Company tariffs and has determined that they are
designed to recover approximately $160 389 in revenues. Consequently, the Staff recommends
that the Commission approve the surcharge tariffs for bills rendered after November 29,2005.
The Report Replacement Costs
Part of the costs included in the surcharge ($40 027) represent Eagle Water s costs in
replacing the 8-inch mainline in the gravel pit with a 12-inch mainline. This mainline supplies
the booster pump serving the Eagle Springs area. In its Order, the Commission noted that it did
not possess enough information to support recovery of the $40 027. Order No. 29903 at 7.
Consequently, the Commission directed Eagle Water to submit additional information to
substantiate recovery of this amount. More specifically, the Commission ordered Eagle Water to
file a report addressing at a minimum: (1) the reasonableness of using a
temporary easement for a 12-inch mainline; (2) whether the easement
DECISION MEMORANDUM
agreement provided for adequate notification regarding gravel operations
which might affect the mainline; (3) what is the basis for the $2 511 in legal
costs; and (4) whether (Eagle Water) has adequately explored seeking
recovery of damages to the mainline from other parties.
Order No. 29903 at 7. Eagle Water was directed to file this information within 21 days of the
Order, or no later than November 17,2005.
As of the date of this Memorandum, Eagle Water has not filed the information to
substantiate recovery of the $40 027.
COMMISSION DECISION
Does the Commission wish to approve the Company s surcharge tariffs effective
November 29, 2005?
What action does the Commission wish to pursue regarding the Company s failure to
file a timely report regarding the mainline replacement costs?
Anything else?
Don Howell
blsfM:EAG-O5-02 dh3
DECISION MEMORANDUM