28917.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 VACATED HEARING

ORDER NO. 28917

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.

On December 6th the Commission set a December 17, 2001 hearing date in Sandpoint, Idaho to provide the Company and Robaer Cobott the opportunity to show cause (if any) why the $20 per month flat-rate residential water rate 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.
YOU ARE HEREBY NOTIFIED that despite the mailing of Commission Notices and Orders to the registered office of the corporation as reflected in the Company’s corporate filing with the Idaho Secretary of State, the Commission, based on Staff investigation, has reason to believe that Robaer Cobott may be out of state and may be personally unaware of the scheduled hearing. The Commission therefore finds it reasonable to vacate the previously scheduled December 17, 2001 show cause hearing. Mr. Cobott may by written petition to the Commission request the rescheduling of such a hearing.
COMMISSION FINDINGS
The Commission has reviewed the filings of record in Case No. GNR-W-01-01. Our prior Orders, findings and directions to the Company in this case continue to be effective and unabated.
Addressing customer concerns regarding the adequacy of the present water system to serve existing customers, we reiterate that the Company is to make no new connections to the existing water system until further order of this Commission. Reference Order No. 28845.
The Company having failed to make formal Application for a Certificate of Public Convenience and Necessity as directed and required by Order No. 28845, we find it reasonable based on the established record in this case to assign Certificate of Public Convenience and Necessity No. 393 to Ponderosa Terrace Estates Water System, Inc., an Idaho for-profit corporation located at 2626 Wrenco Loop Road, Sandpoint, Idaho 38364. As reflected in the Company’s corporate filings with the Idaho Secretary of State, the identified agent of the corporation for purpose of service at said address is Robaer Cobott. Reference Idaho Code §§ 61-526; 61-528 and Commission Rules of Procedure 111 (Certificate—New Utility).
In assigning a certificate number, the Commission finds that Ponderosa is a water corporation as defined by Idaho Code §§ 61-124 and 61-125 and a public utility as defined by Idaho Code § 61-129.
We authorize service by Ponderosa to that water system located south of Sandpoint and southeast of the community of Sagle in Bonner County and serving Ponderosa Terrace Estates and any adjacent areas as may be presently served by the existing system—an area more particularly described as a water system located in the Southwest Quarter of Section 5, Township 55 North, Range 1 West, Boise-Meridian, Bonner County, Idaho.
We continue to find it reasonable to authorize only a $20 per month flat-rate charge for residential customer water usage. Reference Order No. 28903. Only those customers actually connected to the system and who have the physical service facilities in place that permit a customer to open a tap and receive water without a requested turn-on by the Company are to be charged for water service.
The Company continues to be prohibited from assessing any other fees or charges without first providing justification for such charges/fees and obtaining Commission approved tariffs. Reference Order No. 28903.
The Commission continues to find it reasonable to prohibit water shutoffs by the Company or involuntary termination of service without prior Commission approval. Reference Order No. 28845.
CONCLUSIONS OF LAW
The Idaho Public Utilities Commission has jurisdiction over this matter and Ponderosa Terrace Estates Water System, Inc., an Idaho for-profit corporation located at 2626 Wrenco Loop Road, Sandpoint, Idaho 83864 and over its current owner, Robaer Cobott, pursuant to the authority and power granted under Title 61 of the Idaho Code and the Commission’s Rules of Procedure, IDAPA 31.01.01.000 et seq.
O R D E R
In consideration of the foregoing and as more particularly described above, IT IS HEREBY ORDERED and the Commission does hereby vacate the previously scheduled December 17, 2001 show cause hearing in Case No. GNR-W-01-01.
IT IS FURTHER ORDERED and the Commission does hereby assign Certificate of Public Convenience and Necessity No. 393 to Ponderosa Terrace Estates Water System, Inc., an Idaho for-profit corporation.
IT IS FURTHER ORDERED and the Company is directed to comply with the requirements and prohibitions set forth in our findings above and in our prior Orders in this case. Reference Order Nos. 28845, 28903.
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-T-01-01_sw5
The $20 per month rate authorized by the Commission comports with the state average flat-rate for Commission regulated water companies.

NOTICE OF VACATED HEARING 1

Office of the Secretary
Service Date
December 14, 2001