ModProc_app.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE PROPOSED SALE OF THE ALGOMA WATER SYSTEM. )
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) CASE NO. GNR-W-02-01

NOTICE OF APPLICATION

NOTICE OF MODIFIED PROCEDURE

NOTICE OF COMMENT/PROTEST DEADLINE

YOU ARE HEREBY NOTIFIED that on January 30, 2002, the Idaho Public Utilities Commission (Commission) received a Letter filing requesting cancellation of Certificate of Convenience and Necessity No. 392 for the Algoma water system and issuance of a new Certificate to the purchasers of the water system, the Neu family, Christopher and Kate Neu and Larry and Colleen Neu. They will operate the Algoma water system as a proprietorship under the name of NSI. The Application sets forth the general terms of purchase and includes the qualifications of the Neu family for ownership and management of the community water system. Reference Idaho Code § 61-526; IDAPA 31.01.01.112.
The Algoma water system serves the Algoma Addition Subdivision. The subdivision is located in Bonner County a few miles south of Sandpoint and is more particularly described as the Algoma Addition; South ½ of the SouthEast ¼ of Section 16, Township 56 North, Range 2 West, Boise-Meridian, Bonner County, Idaho. The water system has approximately 31 customers. Reference Idaho Code §§ 61-124, 61-129.
The current owner of the Algoma Water System, ESI Inc., operates and provides water service under Certificate of Public Convenience and Necessity No. 392. Reference Certificate File Minute Entry dated October 30, 2001.
Under the terms of the negotiated exchange, the system is being sold to the Neu family for $113,000. As represented, the buyers are familiar with the Commission’s regulatory authority and rules and are prepared to abide by existing tariffs and directives. They are aware of the Commission’s web site and have made themselves familiar with copies of the Commission’s Utility Customer Rules (IDAPA 31.21.01) and Customer Information Rules (IDAPA 31.21.02).
As reflected in the filing, the Neu family has lived in Bonner County for over 100 years. They have been involved in all levels of the community from county commissioner to nurse, to veterinary medicine, to road building and construction, to logging operations and sales. They are also, it is represented, no strangers to the utility business, currently owning and operating two sewer systems and having just sold a third to a homeowners association. In addition to having a broad business background, the Neus represent that they are familiar with real estate development and construction and own their own equipment. This will enhance their ability to maintain the water system. It is also represented that Chris Neu has enrolled in a DEQ Water System Operator Certification course. The Neus understand that accounting for the water system must be in accordance with the Commission’s Uniform System of Accounts and must be maintained on a stand-alone basis separate and apart from any other business activities of the buyers. It is the stated intent of the Neus to retain the services of Dwight Sheffler, a CPA in Sandpoint, to do the billing for all of their systems and to complete and meet the Commission’s accounting requirements. It is also the Neu’s intent to transition from flat-rate to metered water service during the 2002 calendar year.
The proposed transfer of ownership is contingent upon and subject to Commission approval.
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the filings of record in Case No. GNR-W-02-01. The Commission has preliminarily determined that the public interest regarding cancellation of the underlying Certificate of Public Convenience and Necessity No. 392 for the Algoma Water System and issuance of a new Certificate to the Neu family may not require a hearing to consider the issues presented and that issues raised by the Application may be processed under Modified Procedure, i.e., by written submission rather than by hearing. Reference Commission Rules of Procedure, IDAPA 31.01.01.201-204.
YOU ARE FURTHER NOTIFIED that the Commission may not hold a hearing in this proceeding unless it receives written protests or comments opposing the use of Modified Procedure and stating why Modified Procedure should not be used. Reference IDAPA 31.01.01.203.
YOU ARE FURTHER NOTIFIED that the deadline for filing written comments or protests with respect to the Application and the Commission’s use of Modified Procedure in Case No. GNR-W-02-01 is Wednesday, March 20, 2002. Persons desiring a hearing must specifically request a hearing in their written protests or comments.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are received within the deadline, the Commission will consider the issue on its merits and enter its Order without a formal hearing. If comments or protests are filed within the deadline, the Commission will consider them and in its discretion may set the matter for hearing or may decide the matter and issue its Order based on the written positions before it. Reference IDAPA 31.01.01.204.
YOU ARE FURTHER NOTIFIED that written comments concerning Case No. GNR-W-02-01 should be mailed to the Commission and to the existing and proposed Certificate holders for the Algoma Water System at the addresse(s) reflected below.

COMMISSION SECRETARY
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074

Street Address for Express Mail:

472 W WASHINGTON ST
BOISE, ID 83702-5983 JOE LAPHAM, PRESIDENT
ESI INC.
1229 WEST ODEN BAY ROAD
SANDPOINT, ID 83864

CHRISTOPHER and KATE NEU
1444 MEADOW LANE
SAGLE, ID 83860

LARRY and COLLEEN NEU
2337 SOUTHSIDE SCHOOL ROAD
COCOLALLA, ID 83813
All comments should contain the case caption and case number shown on the first page of this document.
Persons desiring to submit comments via e-mail may do so by accessing the Commission’s homepage located at www.puc.state.id.us under the heading “Contact Us.” Once at the “Contact Us” page, select “Email Case Comments or Questions,” fill in the case number as it appears on the front of this document, and enter your comments.
YOU ARE FURTHER NOTIFIED that the Application in Case No. GNR-W-02-01 can be reviewed during regular business hours at the Idaho Public Utilities Commission, 472 West Washington Street, Boise, Idaho and the Company’s present office, 1229 W Oden Bay Road, Sandpoint, Idaho 83864 (telephone: [phone]).

DATED at Boise, Idaho this _________ day of February 2002.

PAUL KJELLANDER, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

DENNIS S. HANSEN, COMMISSIONER

ATTEST:

Jean D. Jewell
Commission Secretary

Vld/N:_GNRW0201_sw

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/PROTEST DEADLINE 1

Office of the Secretary
Service Date
February 28, 2002