20110621order_no_32268.pdf

Office of the Secretary
Service Date
June 21,2011
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE COMMISSION’S )
INVESTIGATION OF ISLAND PARK )CASE NO.ISL-W-11-O1
WATER COMPANY,INC.’S BILLING )
PRACTICES )ORDER NO.32268
__________________________________________________________________________________
)
Island Park Water Company,Inc.(“Company”)is located in eastern Idaho near West
Yellowstone,where it provides water services to approximately 334 customers.In 2010 and
2011,Company customers complained to the Commission that the Company is charging
customers a different annual rate than the rate specified in the Company’s tariff schedule.More
specifically,the Company issued annual water bills charging customers on a “per lot basis”
instead of a “per customer”or per connection basis.Commission Staff subsequently investigated
the complaints and obtained substantiating information.
Based on the complaints and Staff’s investigation,the Commission on its own motion
issues this emergency Order directing the Company to:(1)cease all billing practices that conflict
with the tariff;(2)refrain from terminating service to customers who did not pay annual bills that
conflict with the tariff;(3)send corrected invoices to all customers who were billed incorrectly
and simultaneously provide copies to the Commission;(4)repay customers for any amounts
collected based on a rate exceeding the rate allowed by the tariff;(5)send a copy of its current
customer list to the Commission;and (6)provide Staff with a specific date and time that the
Commission’s auditors may visit the Company.
BACKROUND
In 2008,the Company asked the Commission to approve an increase to its annual
service rate.On November 5,2008,the Commission issued Order No.30668 in Case No.ISL
W-08-01 authorizing the Company to increase its annual rate to “$280 per year per customer.”
Order No.30668 at 6-7,14.The Order also directed the Company to file a tariff schedule
specifying the new rate.Id.at 15.
The Company subsequently filed its tariff schedule with the Commission.The tariff
schedule establishes the Company’s annual rate for “[ajil customers”at “$280 per year.”The
tariff became effective on November 5,2008.Per the Public Utilities Law,the Company may
bill its customers only at the rate specified in the Company’s Commission-approved tariff
ORDER NO.32268 1
schedule.See Idaho Code §61-3 13 (“Except in this act as otherwise provided,no public utility
shall charge,demand,collect or receive a greater or less or different compensation from any
product or commodity ...or service ...than the rates ...as specified in its schedules on file
and in effect”).
When Commission Staff investigated the customer’s complaints,Staff obtained
evidence that the Company is not billing according to the tariff schedule.For example:
•The Company sent Staff a sample bill identifying the “2011 Yearly Water
Tariff’as being “$280/lot,”rather than 280 per customer.
•Company customers sent Staff copies of actual bills from the Company in
which the Company had billed customers more than the approved,$280
per customer rate .For instance,the Company billed customer Leslie
Folsom for $840,Paul and Carol Smith for $840,Kevin and Tammie
Merrill for $560,and John and Pam Stanford received two different bills
for $1,237.97.
•Company customers also sent Staff a copy of a Company newsletter
reporting that the “2011 Yearly Water Tariff is $280 per individual lot”
and that “[a]yearly tariff rate (*$280 per lot)was established by the IPUC
and is based upon availability of water to each lot.”The newsletter further
states that “[t]he $280 tariff is for a single residential usage ...[which]
also prohibits multiple RV’s parked on any lot having access to water,
without paying for usage.”
JURISDICTIONAL STATEMENT
The Commission has authority over the Company pursuant to Idaho Code §§61-125
and 61-129.The Commission has authority to investigate the billing practices of the utility
pursuant to Idaho Code §61-503,61-3 13 and 61-612.Based upon the customers’complaints
and the information described above,the Commission finds substantial evidence exists to take
immediate action to require the Company to bill only as specified in its approved tariff.
Additionally,the Commission directs the Company to provide Staff with information needed to
ensure compliance with Order No.30668.
ORDER
IT IS HEREBY ORDERED that the Company immediately cease all billing practices
that conflict with its approved tariff including,without limitation,any attempts to collect
amounts not allowed by the tariff.
ORDER NO.32268 2
IT IS FURTHER ORDERED that the Company refrain from terminating service to
customers who did not pay Company bills that do not conform to the tariff.
IT IS FURTHER ORDERED that the Company send new,corrected invoices to all
customers who received incorrect bills.The Company must send the corrected invoices within 30
days of the date of this Order and simultaneously provide copies of the corrected invoices to the
Commission.
IT IS FURTHER ORDERED that the Company,within 30 days of the date of this
Order,repay customers for any amounts collected based on an incorrect rate exceeding the $280
per customer rate allowed by the tariff.Idaho Code §61-641.
IT IS FURTHER ORDERED that the Company,within 14 days of the date of this
Order:
a.Provide Commission Staff with a list of the Company’s customers;and
b.Provide Commission Staff with a specific date and time within the next 30
days when Company personnel will be available at the Company’s offices,
with appropriate documentation,to meet with Commission Staff auditors.
ORDER NO.32268 3
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this /
day of June 2011.
64cPAULKJLA,PRESIDENT
MACK A.REDFORD,CO MIIONER
A J 4&_
ARSHA H.SMITH,COMMISSIONER
ATTEST:
Je D.Jewelti
Commission Secretary
O:ISL-W-1 1-OIkk
ORDER NO.32268 4