HomeMy WebLinkAbout990524_sw.docDECISION MEMORANDUM
TO: COMMISSIONER HANSEN
COMMISSIONER SMITH
COMMISSIONER KJELLANDER
MYRNA WALTERS
DON HOWELL
STEPHANIE MILLER
TONYA CLARK
RON LAW
RANDY LOBB
GEORGE FINK
BOB SMITH
MARGE MAXWELL
DAVID SCOTT
WORKING FILE
FROM:
DATE: May 24, 1999
RE: CASE NO. GNR-W-97-1 (GROUSE POINT)
APPLICATION FOR CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY AND RATES
On July 23, 1997, Walt Wanner, President of Statewide Construction, Inc. filed an Application on behalf of Grouse Point Water Company LLC (Company; Grouse Point) for a Certificate of Public Convenience and Necessity to serve the Grouse Point Subdivision in Ada County, Idaho. Reference Application, Attachment 4, Legal Description and Maps of Subdivision and Service area; Idaho Code 61-526; Commission Rules of Procedure, IDAPA 31.01.01.111. The Grouse Point Subdivision, consisting of 24 lots in varied states of development, is located on the east side of Cloverdale Road about one-quarter mile south of Hubbard Road and just north of the New York Canal.
Presently, domestic water service, which commenced November 1996, is provided to Grouse Point customers at a flat rate of $20 per month. No connection fees are collected. Operation and maintenance services are provided under contract with EM, a United Water Idaho Inc. affiliate. Financing for the water system was out-of-pocket financing. All costs have been paid and there are no liens or incumbrances on the system.
Regulatory proceedings in Case No. GNR-W-97-1 were informally suspended at the request of Grouse Point so as to provide the Company with the opportunity to negotiate for the sale and purchase of the system. Negotiations did not result in a sale. The Company requested that the Commission proceed with processing its Certificate Application contending that issuance of the requested Certificate was required by and consistent with the Public Convenience and Necessity.
On December 1, 1998, a Notice of Application in Case No. GNR-W-97-1 was issued by the Commission. On April 26, 1999, the Commission Staff filed a report (attached) with the Commission setting forth the results of its investigation and recommendations. In its report Staff discusses the service area, the water supply system, the operation of the system, accounting and financials, and rate design.
Staff recommends issuance of a Certificate to Grouse Point with the service territory limited to currently developed property and adjoining well sites. Staff notes that the existing water supply has present excess capacity which may be used to support the Company’s plans for future expansion. Staff recommends approval of the requested $20/month flat rate, but indicates that budget estimates and operating expense for 24 customers would support a higher $28 per month rate.
Mr. Walt Wanner, the owner of the Grouse Pointe Water Company, has reviewed Staff’s report and concurs with its assessment and recommendations.
Commission Decision
Staff recommends that Grouse Point’s Application for a Certificate and rates 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. Staff would also propose that individual notice be provided to all customers. Does the Commission agree with Staff’s procedural recommendation?
vld/M:GNR-W-97-1_sw.doc
DECISION MEMORANDUM 2