Idaho Public Utilities Commission

Case No. AWS-W-07-01, Order No. 30567

June 12, 2008

Contact: Gene Fadness (208) 334-0339, 890-2712

Rates increase for customers of Bonner County water company

The Idaho Public Utilities Commission approved an increase in rates to the approximate 30 household and commercial customers of Algoma Water Company south of Sandpoint.

The commission also approved the sale of the company to Robert Carrier of Las Vegas for $161,000. The previous owner is Paul Greenwood of Los Angeles. The commission said the sale price cannot be recovered from customers.

Rates for residential customers will increase to a monthly flat rate of $27. The previous rate was $17.59 and the company sought an increase to $36. The commercial rate increases to a flat monthly rate of $44.50 from the current $28.15. Algoma requested an increase to $54 per month. The new rates are anticipated to become effective within the next two weeks after the company files its revised tariffs with the commission.

The commission also ordered the repair or replacement of the well house meter. An investigation by commission staff determined the meter is no longer functioning and that more than six months of records are missing from the meter logbook. Further, staff determined that drawings for the system are inadequate. The drawings are needed to locate shut-off valves in case there need to be emergency shut-offs. The commission ordered that Algoma report to the commission when it has replaced or repaired the well house meter and updated system drawings.

Commission staff expressed some concern about the potential for a co-mingling of funds with three community sewer systems in Bonner County that are also owned by Carrier. Commission staff did not find any affiliate transactions between Algoma and the unregulated sewer systems, but cautioned the company that when purchasing equipment for maintenance and repairs, that the cost of such equipment be allocated among all companies receiving a benefit from the purchase.

Algoma falls within the boundaries of the Sagle Valley Water and Sewer District. The district objected to the sale of Algoma to any entity other than the district. However, the commission said it does not have the authority to compel the owner of Algoma to sell to Sagle Valley.

The commission’s order is final. Interested parties may petition the commission for reconsideration by no later than July 2. Petitions for reconsideration must set forth specifically why the petitioner contends that the order is unreasonable, unlawful or erroneous. Petitions should include a statement of the nature and quantity of evidence the petitioner will offer if reconsideration is granted.

Petitions can be delivered to the commission at 472 W. Washington St. in Boise, mailed to P.O. Box 83720, Boise, ID, 83720-0074, or faxed to 208-334-3762.

A full text of the commission’s order, along with other documents related to the case, is available on the commission’s Web site at www.puc.idaho.gov. Click on “File Room” and then on “Water Cases” and scroll down to Case Number AWS-W-07-01.