20061013Decision memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:TERRI CARLOCK
DATE:OCTOBER 12, 2006
SUBJECT:EAGLE WATER COMPANY'S SURCHARGE UPDATE;
CASE NO. EAG-OS-
Eagle Water Company (Eagle Water) is allowed to collect surcharge revenues pursuant to
Order No. 29903 to pay for an engineering study, accounting fees, legal fees and some main
replacement costs. The total amount to be collected by surcharge is $112 414. Eagle Water has
collected $104 856 as of October 6, 2006. When payments for September usage are received, it
is anticipated that the surcharge will have collected more than the authorized amount. Eagle
Water has not filed its final engineering report or requested specific treatment related to the
surcharge now that the authorized amounts will be fully collected.
STAFF RECOMMENDATION
Staff believes it is important to analyze the ongoing system needs for Eagle Water
customers while recognizing that the authorized surcharge amounts will be fully collected. To
balance these concerns, Staff recommends that the surcharge continue until December 31 , 2006
subject to refund, with the following restrictions:
1) Surcharge revenues must be retained in the surcharge savings account subject to
refund.
2) No additional authority to spend surcharge funds, beyond those specifically identified
in Order No. 29903 , will be granted at this time.
DECISION MEMORANDUM OCTOBER 12, 2006
3) Require Eagle Water to file no later than December 31 , 2006 the final engineering
study with system improvement recommendations and an Application detailing any
surcharge request.
4) Require Eagle Water to stop the surcharge with December 2006 meter readings
January 2007 billings, if the engineering report and Application are not filed with the
Commission by December 31 , 2006.
5) Require Eagle Water to refund the surcharge revenues collected above $112 414 if the
required filings are not received.
Staff believes these requirements are reasonable. It allows the customer surcharge tariff
to be contiguous during this period when lower surcharge dollars are expected to be collected. It
also allows Staff and the Commission to evaluate system needs that will benefit customers while
requiring Eagle Water to complete actions that have been required of the Company.
COMMISSION DECISION
Should the Staff recommendation and conditions be accepted?
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Terri Carlock
TC:udmemos/eagwO52 dmlO.O6 surcharge
DECISION MEMORANDUM OCTOBER 12 , 2006