20020607Cobott Letter.doc

June 7, 2002

Robaer Cobott
2626 Wrenco Loop Rd.
Sandpoint, ID 83864

RE: Staff Testimony in Case No. GNR-W-01-1

Dear Mr. Cobott:

Please find enclosed Staff's testimony as filed with the Commission on Friday, June 7, 2002. When drafting your Ponderosa testimony, feel free to use the format of Staff's testimony as a guide. On Monday, Michael Fuss will FAX you a list of suggested questions that you may wish to address in your testimony. These questions are offered only as a guide and are not required in any way. That said, the Commission stated in Order No. 29046 that it specifically wishes Staff and Ponderosa to address the following issues based upon the concerns stated in your letters:

1. Rate designs that recover Ponderosa’s reasonable expenses from defined customer classes;

2. The dollar amount necessary to appropriately compensate Ponderosa for the administration, maintenance and operation of its water company;

3. The appropriate rate of return to be earned by Ponderosa;

4. What amount Ponderosa should pay Mr. Cobott for mortgaging his home to finance a second well as required by the Department of Environmental Quality;

5. Whether the restriction on new hook-ups should be lifted and how many future hook-ups should be allowed given limited system capacity;

6. The appropriate dollar amount necessary for water testing;

7. What amount Ponderosa should pay Mr. Cobott for the property taxes and maintenance expenses he pays for the land on which the water system is located;

8. What amount Ponderosa should pay Mr. Cobott for use of his personal equipment and maintenance thereof; and

9. What fees are appropriate for Ponderosa to charge customers who hook-up to the system, or who voluntarily disconnect or are disconnected for non-payment.

We look forward to receiving your testimony on June 17. Please contact me at [phone] or Michael Fuss at [phone] if we can be of assistance or answer any questions you may have.

Sincerely,

Lisa D. Nordstrom
Deputy Attorney General

Enclosure

cc: Jean Jewell

L:GNRW0101_ln2

Robaer Cobott
June 7, 2002
Page 2