20021220Customer Letter.doc

December 20, 2002

Dear Ponderosa Terrace Estates Water System Customer:

Thank you for your patience while the Idaho Public Utilities Commission has conducted its proceedings regarding regulation of the Ponderosa Terrace Estates Water System. In response to confusion experienced by customers, Commission Staff and the Company, the Commission recently addressed the issue of seasonal disconnections in Order No. 29127.

In short, the Commission found that although customers can disconnect and pay nothing for up to eight months, customers must pay for at least four months of water service each calendar year to maintain their customer status. In order to reconnect after more than eight months of disconnection, a customer must apply as a new applicant and pay a $2,500 hook-up fee. Although $2,500 is a lot to pay to reconnect to the system after eight months, it is intended to benefit customers who pay their bills year-round by ensuring that those who do not will still contribute to the system’s maintenance. Order No. 29127 is enclosed if you would like to read the Order in its entirety.

If you have any questions or concerns, please contact Marge Maxwell of the Commission Staff at [phone].

Sincerely,

Lisa Nordstrom
Deputy Attorney General

Enclosure

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