28803.inv.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

in the matter of THE INVESTIGATION INTO WHETHER PONDEROSA TERRACE ESTATES WATER SYSTEM, INC. IS A PUBLIC UTILITY SUBJECT TO REGULATION BY THE IDAHO PUBILC UTILITIES COMMISSION. )
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CASE NO. GNR-W-01-01

NOTICE OF INVESTIGATION

ORDER NO. 28803

The Idaho Public Utilities Commission (Commission) has received several complaints in response to a May 30, 2001 letter announcing a significant increase in rates by Ponderosa Terrace Estates Water System, Inc. (Ponderosa; Company). Ponderosa operates a water system located south of Sandpoint and east of the community of Sagle in Bonner County. There are approximately 20 full-time residences connected to the system and a total of approximately 90 properties within the area served by the water system. This system has been in place since approximately 1969. The current owner is Robaer Cobott.
Ponderosa Terrace Estates Water System, Inc. is an Idaho for profit corporation located at 2626 Wrenco Loop Road, Sandpoint, Idaho 83864 (telephone [phone]).
Initial inquiry leads Commission Staff to conclude that the Company’s customers have no say regarding operation and management of the Company or the prices it charges for water. The Commission notes that Ponderosa Terrace Estates Water System, Inc. does not possess a Certificate of Public Convenience and Necessity to provide water service and operate as a public utility. Reference Idaho Code §§ 61-526, -527, -528. We find it reasonable to conduct an investigation pursuant to our statutory authority and jurisdiction under Title 61 of the Idaho Code, commonly known as Public Utilities Law, specifically Idaho Code §§ 61-612 and 61-501. The purpose of our investigation is to determine whether Ponderosa Terrace Estates Water System, Inc. is a water corporation as defined by Idaho Code §§ 61-124 and 61-125:
61-124 Water System—the term “water system” when used in this act includes all reservoirs, tunnels, shafts, dams, dikes, headgates, pipes, flumes, canals, structures and appliances, and all other real estate, fixtures and personal property, owned, controlled, operated, or managed in connection with or to facilitate the diversion, development, storage, supply, distribution, sale, furnishing, carriage, apportionment or measurement of water for power, irrigation, reclamation or manufacturing, or for municipal, domestic or other beneficial use for hire.…

61-125 Water Corporation—the term “water corporation” when used in this act includes every corporation or person, their lessees, trustees, receivers or trustees, appointed by any court whatsoever, owning, controlling, operating or managing any water system for compensation within this state.

and a public utility as defined by Idaho Code § 61-129:
61-129 Public Utility—the term “public utility” when used in this act includes every common carrier, pipeline corporation, gas corporation, electrical corporation, telephone corporation, water corporation, and wharfinger, as those terms are defined in this chapter and each thereof is hereby declared to be a public utility and to be subject to the jurisdiction, control, and regulation of the Commission and to the provisions of this act: provided, that the term “public utility” as used in this act shall cover cases both where the service is performed and a commodity delivered directly to the public or some portion thereof, and where the service is performed or the commodity delivered to any corporation or corporations, or any person or persons, who in turn, either directly or indirectly or mediately or immediately, performs the services or delivers such commodity to or for the public or some portion thereof.

In particular, this investigation will seek to establish answers to the following questions:
Whether Ponderosa Terrace Estates Water System, Inc. is a public utility and is engaged in selling water for compensation without having a Certificate of Convenience and Necessity from the Public Utilities Commission? Reference Idaho Code §§ 61-526, -527, -528, I.C. § 61-125.
Whether Ponderosa Terrace Estates Water System, Inc. is demanding unjust or unreasonable charges for its water service? Reference Idaho Code 61-301.
Whether Ponderosa Terrace Estates Water System, Inc. furnishes, provides and maintains service, instrumentalities, equipment and facilities as shall promote the safety and health of its patrons, employees and the public and as shall be in all respects adequate, efficient, just and reasonable? Reference Idaho Code 61-302.
Whether Ponderosa Terrace Estates Water System, Inc. has failed to file with the Commission tariff schedules showing all rates, charges and classifications collected or in force, or to be collected or in force, together with all rules, regulations, contracts, privileges and facilities which in any manner reflect or relate to rates, classifications or service? Reference Idaho Code § 61-305.

We direct the Company to address these questions by formal written answer in this case on or prior to Wednesday, August 15, 2001. If the Company answers (1) and (4) in the affirmative, or if our investigation reveals such, we will direct the Company to file for a Certificate of Public Convenience and Necessity (Reference IDAPA 31.01.01.111 Application for Certificates—Form and Contents) and will conduct an investigation into the adequacy of its service and the justness and reasonableness of its rates.
O R D E R
In consideration of the foregoing, IT IS HEREBY ORDERED that Ponderosa Terrace Estates Water System, Inc. respond to the foregoing questions regarding compliance with Title 61 of the Idaho Code on or prior to August 15, 2001.
The Company is Further Ordered and directed to cooperate with the Commission Staff’s investigation of this matter. Commission Staff is directed to issue production requests, written interrogatories or other forms of discovery as well as pursue its statutory right to examine and audit the records of Ponderosa Terrace Estates Water System, Inc. as they relate or pertain to the sale of water.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this _______ day of July 2001.

PAUL KJELLANDER, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

DENNIS S. HANSEN, COMMISSIONER

ATTEST:

Jean D. Jewell
Commission Secretary

vld/O:GNR-W-01-01_sw

NOTICE OF INVESTIGATION
ORDER NO. 28803 1

Office of the Secretary
Service Date
July 31, 2001