20060127second_notice_of_application_order_no_29960.pdf

Office of the Secretary
Service Date
January 27 2006
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF KOOTENAI HEIGHTS WATER
SYSTEM, INC. FOR A CERTIFICATE OF
PUBLIC CONVENIENCE AND NECESSITY
CASE NO. KHW-05-
SECOND NOTICE OF
APPLICATION
SECOND NOTICE OF
MODIFIED PROCEDURE
ORDER NO. 29960
On August 22, 2005 , Kootenai Heights Water System, Inc. (Kootenai Heights;
Company) filed an Application for a Certificate of Public Convenience and Necessity with the
Idaho Public Utilities Commission (Commission). On September 30, 2005 , the Commission
issued an initial Notice of Application and Modified Procedure establishing a deadline for
written comments of November 10, 2005. On November 1 , 2005 , the parties executed
Stipulation asking the Commission to suspend the written comment deadline. The Commission
suspended the comment deadline and directed the parties to report the status of this matter to the
Commission within 60 days. Order No. 29909. On January 20, 2006 , Staff reported that the
Company wishes to proceed with its original Application. With this Order the Commission
again authorizes the use of Modified Procedure and establishes a deadline for the submission of
comments and/or objections.
THE APPLICATION
YOU ARE HEREBY NOTIFIED that according to the Company s Application the
water system is currently in service with six residential customers connected to the system.
Application at 2. The Company states that the system will ultimately serve 11 residential
customers. Id. The requested service area for the water system consists of Lots 7-18 of
Kootenai Heights, with the well located on Lot 10. Application at 1. The Company states that
the cost to construct the system was $83 500 including the value of Lot 10. Application at 2.
The average monthly consumption for the entire system is 31 000 gallons, and the Company
states that billing will start on October 1 , 2005. Id. The Application states that proposed rates
SECOND NOTICE OF APPLICA nON
SECOND NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29960
and charges, rules, and forms are all contained within the Water Service Agreement submitted
with the Application. Id.
YOU ARE FURTHER NOTIFIED that the Water Service Agreement and Easement
(WSA) states that the system was developed to provide water "to certain Lots in Kootenai
Heights and for further development of additional land and lots in the sole discretion of the
Water Provider.WSA at 1. The WSA further provides that each Lot shall pay a hook-up fee of
000, and that rates will be $40 per month up to 10 000 gallons, and $4.00 per thousand
gallons used over 10 000 gallons per month. WSA at 2. Each customer will be metered, with
the cost of the meter and its installation paid by the Company. Id. The Agreement states that
monthly rates will not be increased for the first five years. WSA at 2-3. Additionally, the
Agreement states that monthly bills will not be sent, and the lot owner shall pay the monthly fee
on the first day of each month. WSA at 3. Billings will be sent to customers twice a year, on or
about May 1 and October 1 , for the purpose of computing and billing any excess water usage
over the allowed 10 000 gallons per month. WSA at 3-
YOU ARE FURTHER NOTIFIED that the Company submitted varIOUS
supplemental documents with its Application including: a map of the proposed service area, a
Water Service Agreement and Easement form, documents evidencing the incorporation of the
Company, a copy of the contract with its Certified Operator, a copy of a Clarification-
Modification of the Plat for Kootenai Heights, and a letter from the Department of
Environmental Quality (DEQ) evidencing conditional approval of the as-built plans.
YOU ARE FURTHER NOTIFIED that Kootenai Heights' revenue requirement, and
every component of it, both rate base and expense, are at issue. The Commission may grant
deny, or modify the revenue requirement requested and may find that a revenue requirement
different from that proposed by any party is just, fair and reasonable. IDAPA 31.01.01.124.0l.
YOU ARE FURTHER NOTIFIED that the proposed rates and charges for all
Kootenai Heights customers are at issue. The Commission may approve, reject or modify the
rates and charges proposed and may find that rates and charges different from those proposed by
any party are just, fair and reasonable. IDAP A 31.01.01.124.02.
SECOND NOTICE OF APPLICATION
SECOND NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29960
YOU ARE FURTHER NOTIFIED that the tariffs, practices, rules and regulations
service, instrumentalities, equipment, facilities, classifications, and customer relations of the
utility are at issue, and the Commission may address any of them in its Order.IDAPA
31.01.01.124.02.
YOU ARE FURTHER NOTIFIED that the Company s Application together with
supporting workpapers, testimonies and exhibits, have been filed with the Commission and are
available for public inspection during regular business hours at the Commission offices. The
Application and testimonies are also available on the Commission s Web site
www.puc.idaho.gov under the "File Room" icon.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the filing of
record in Case No. KHW-05-1. The Commission has preliminarily determined that the public
interest may not require a hearing to consider the issues presented in this case and that issues
raised by the Company s filing may be processed under Modified Procedure , by written
submission rather than by hearing. IDAPA 31.01.01.201-204. In so doing, the Commission
notes that Modified Procedure and written comments have proven to be an effective means for
obtaining public input and participation.
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. IDAPA 31.01.01.203.
YOU ARE FURTHER NOTIFIED that if no protests or written comments are
received within the deadline, the Commission will consider the matter and enter its Order
without a hearing. If protests or comments are filed within the deadline, the Commission will
consider them and may, in its discretion, set the matter for hearing or decide the matter and issue
its Order on the basis of the written positions before it. IDAP A 31.01.01.204.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be held
pursuant to the Commission s authority and jurisdiction under Title 61 of the Idaho Code, and
more specifically, Idaho Code 99 61-124, 61-125 , and 61-129.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission s Rules of Procedure, IDAPA 31.01.01.000 et seq.
SECOND NOTICE OF APPLICATION
SECOND NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29960
NOTICE OF COMMENT/PROTEST DEADLINE
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. KHW-05-1 is Thursday, March 9, 2006. Persons desiring a hearing must
specifically request a hearing in their written protests or comments.
YOU ARE FURTHER NOTIFIED that written comments concernIng this case
should be mailed to the Commission and to the Company at the addresses reflected below.
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
Street Address For Express Mail:
472 W. Washington Street
Boise, ID 83702-5983
Floyd N. McGhee, President
Kootenai Heights Water System, Inc.
PO Box 1925
Sandpoint, ID 83864
Gary A. Finney
Finney, Finney & Finney, P.
120 E. Lake Street, Suite 317
Sandpoint, ID 83864
These 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.idaho.gov. Click the "Comments and Questions
icon, and complete the comment form, using the case number as it appears on the front of this
document.
FINDINGS/CONCLUSIONS
The Idaho Public Utilities Commission has jurisdiction over Kootenai Heights Water
System, Inc.' s Application for a Certificate of Public Convenience and Necessity, and the issues
involved in this case by virtue of Title 61 , Idaho Code, and more specifically, Idaho Code 99 61-
124, 125, and 129, and the Commission s Rules of Procedure, IDAPA 31.01.01.000 et seq.
The Commission has preliminarily determined that the public interest may not
require a hearing to consider the issues presented in this case, and that issues raised by the
Company s filing may be processed under Modified Procedure, i.e., by written submission
rather than by hearing. IDAPA 31.01.01.201-204. In so doing, the Commission notes that
Modified Procedure and written comments have proven to be an effective means for obtaining
public input and participation.
SECOND NOTICE OF APPLICATION
SECOND NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29960
ORDER
IT IS HERBY ORDERED that this case be processed under Modified Procedure.
Persons interested in submitting written comments regarding this case or protesting the use
Modified Procedure should do so no later than March 9 2006.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this :J- 7 #.
day of January 2006.
MARSHA H. SMITH, COMMISSIONER
ATTEST:
Je D. Jewell
mission Secretary
O:KHW-05-01 dw3
SECOND NOTICE OF APPLICATION
SECOND NOTICE OF MODIFIED PROCEDURE
ORDER NO. 29960