28911.hrg.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 PUBLIC UTILITIES COMMISSION. )
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CASE NO. GNR-W-01-1

NOTICE OF SHOW CAUSE HEARING

ORDER NO. 28911

BACKGROUND
On September 13, 2001, the Idaho Public Utilities Commission (Commission) issued Order No. 28845 in Case No. GNR-W-01-1. In its Order the Commission found that Ponderosa Terrace Estates Water System, Inc. (Ponderosa; Company) was operating in such manner as to fall within the Commission’s jurisdiction. Reference Idaho Code §§ 61-124—Water Systems; 61-125—Water Corporation and 61-129—Public Utility. Of significance, the Commission found that the Company’s customers have no say regarding the operation and management of the Company or the prices it charges for water and related services.
Ponderosa operates a water system located south of Sandpoint and southeast of the community of Sagle in Bonner County, Idaho. 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. The system has been in place since approximately 1969. The current owner is Robaer Cobott. Ponderosa is an Idaho for-profit corporation located at 2626 Wrenco Loop Road, Sandpoint, Idaho 83864.
The Commission in its Order No. 28845 directed Ponderosa Terrace Estates Water System, Inc. to:
File an Application for a Certificate of Public Convenience and Necessity for the water system operated by the Company, located south of Sandpoint and east of the community of Sagle in Bonner County, Idaho.

File proposed schedules of rates and charges, with supporting documentation. Any rates and charges collected from the date of the Commission’s Order are subject to refund to the extent that they may be determined excessive.

Adopt and implement the Consumer Relations Rules, the Commission’s Utility Customer Information Rules, and an accounting system consistent with the information required by the Commission’s annual report for small water companies.

To date, the Company has not responded to the Commission’s Order and has made no filing and provided no documentation to justify its rates.
On November 28, 2001, the Commission issued Order No. 28903 in Case No. GNR-W-01-1 establishing a $20 per month flat-rate charge for residential customer water usage effective December 1, 2001. Reference Idaho Code §§ 61-501; 61-502; 61-503. The Company was further prohibited from assessing any other fees or charges without first providing justification for such charges/fees and obtaining Commission approved tariffs.
YOU ARE HEREBY NOTIFIED that a public hearing in Case No. GNR-W-011 is scheduled for MONDAY, DECEMBER 17, 2001, COMMENCING AT 6:00 P.M. AT THE EDGEWATER RESORT, 56 BRIDGE STREET, SANDPOINT, IDAHO (Telephone: [phone]). The purpose of the hearing is to permit the Company and Robaer Cobott to show cause (if any) why the $20 per month flat-rate residential water charge established in Order No. 28903 is not reasonable and should not continue and why the Company should not be required to refund/credit customers the difference billed/ received since the date of the Commission’s Order No. 28845. The Commission following the show cause hearing will also receive public comment from customers regarding Ponderosa Terrace Estates and its water service operations.
YOU ARE FURTHER NOTIFIED that all hearings in this matter will be held in facilities meeting the accessibility requirements of the Americans with Disabilities Act (ADA). In order to participate in or to understand testimony and argument at a public hearing, persons needing help of a sign language interpreter or other assistance may ask the Commission to provide a sign language interpreter or other assistance as required under the ADA. The request for assistance must be received at least five (5) working days before the hearing by contacting the Commission Secretary at:

IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone] (TELEPHONE)
[phone] (FAX)

YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held pursuant to the Commission’s jurisdiction under Title 61 of the Idaho Code and that the Commission may enter any final Order consistent with its authority under Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted pursuant to the Commission’s Rules of Procedure, IDAPA 31.01.01.000 et seq.
O R D E R
IT IS HEREBY ORDERED and the Commission does hereby adopt the scheduling set forth above for Show Cause Hearing in Case No. GNR-W-01-1.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of December 2001.

PAUL KJELLANDER, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

DENNIS S. HANSEN, COMMISSIONER

ATTEST:

Jean D. Jewell
Commission Secretary

Vld/O:GNR-W-01-01_sw4
The $20 per month rate authorized by the Commission comports with the state average flat-rate for Commission regulated water companies.

NOTICE OF SHOW CAUSE HEARING
ORDER NO. 28911 1

Office of the Secretary
Service Date
December 6, 2001