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 	  !               X  X  X X      X X  X X      \	  	   `   * T i m e s   N e w   R o m a n       T T   3| 6        < 6X  9   ` (  " C o u r i e r   N e w       T T                                                                                       XXx 6X   @ DQX@ \	  	   `   * T i m e s   N e w   R o m a n       T T                                                                               XXP \	    P 6QXP \	  	   `   * T i m e s   N e w   R o m a n       T T                                                                               6 \	    P 6QP    (   V               $                     X^n  X  X X      Xf X  X X^n 
           D    U ? e U  E   E      e o e          
 	  !               X  X  X X      X X  X X               @    U  DECISIONMEMORANDUM   	       (        hX      (#(#( TO:         `	 COMMISSIONERNELSON   	             `	 COMMISSIONERSMITH         `	 COMMISSIONERHANSEN         `	 MYRNAWALTERS         `	 STEPHANIEMILLER         `	 DAVIDSCHUNKE         `	 DONHOWELL         `	          `	           FROM:    `	 SUSANHAMLIN   	 @            `	 BOBSMITH         h    	 0      	     BEVBARKERGARYRICHARDSONTONYACLARKDONOLIASONROSESCHULTEWORKINGFILE   
  p   (             hX ( DATE:    `	 FEBRUARY2,1996   	    RE:     0    `	 PETITIONSFORRECONSIDERATIONFORPACKSADDLE   	    CASE NO. GNRW951    `	(#`	(#                     OnJanuary8,1996,theCommissiongrantedPacksaddleDevelopmentCompany   	 P   (Packsaddle)aCertificateofPublicConvenienceandNecessitytooperateasapublicutilityandissuedOrderNo.26296establishingrates.OnJanuary24,1996,RobertL.Young,Sr.(Young),throughhisattorneyofrecord,KippManwaring,filedaPetitionforReconsideration.OnJanuary26,1996,DonLingleandSusanPatla(Lingle/Patla),representingthemselvesasfulltimecustomersofPacksaddle,alsofiledaPetitionforReconsiderationofOrderNo.26296andrequestedastayoftheratesestablishedinthatOrder.OnJanuary30,1996,Packsaddle,throughitsattorneyofrecord,filedaresponsetoYoungsPetition.PacksaddledidnotfilearesponsetoLingle/PatlasPetition.-    , X   	 X   X- YOUNGSPETITION   	 `'"/   <    , X   
 X , X   	 X<      YoungrequestsreconsiderationofOrderno.26296andCertificateofPublicConvenienceandNecessityNo.320byanevidentiaryhearing.TheissuesallegedinYoungs   	 0*%3   petitionareasfollows:   	 *B&5                 1.0    
 YoungallegesthattheratebaseallowancecomposedofanewpumpinwellNo.   	       1,anewpressuretankandanewpressurepumpshouldbeconsideredcontributedcapitalinvestmentunderCommissionRule103(IDAPA31.36.101)andexcludedfromratebase.Insupportofthisposition,Youngatteststhatthereplacementofthisequipmentwas incurredwhenanimproperlydrilledwellcollapsedandcausedthemotorsandpumpstoburnout.YoungsAffidavitatp.2.    
(#
(#       2.0    
 YoungchallengestheissuanceoftheCertificateofPublicConvenienceand   	 `    Necessity. HeallegesthattheCommissiondidnotgiveproperconsiderationofthepublicneedofthiswaterutilityorfortheavailabilityofalternativeservice,andclaimsthatthewaterusersarepreparedtopurchasethesystem.Insupportofthis petition heoffershisowntestimonyintheattachedaffidavit.YoungsAffidavitatp.2.    
(#
(#       3.0    
 YoungclaimsthattheCommissionerredinthecalculationofthenumberof   	    fulltimeandseasonalcustomersonthesystem.Insupportofthisallegation,hereferenceshisownaffidavit.YoungsAffidavitatp.1.    
(#
(#       4.0    
 Youngchallengesthe12%returnonequityallowedbytheCommissionandthe   	 4   operatingexpensestheCommissionusedtodeterminetherevenuerequirement.Insupportofthesechallenges,heoffershisaffidavitandanattachmenttothataffidavitwhichisaneconomicprofileofTetonCountyfurnishedbytheUniversityofWyoming.YoungsAffidavitatp.2andattachment.    
(#
(#       5.0    
 Finally,Youngspecificallychallengeslaborrates,hoursandtravelexpense   	     allowances,characterizing themasexorbitantandunrealistic.Insupportofthesechallengesheoffershisaffidavit.YoungsAffidavitatp.3.    
(#
(#           LINGLE/PATLASPETITION   	 l         The Lingle/Patlapetitionforreconsiderationthey request anevidentiaryhearingandastayoftheratesestablishedinOrderNo.26296.Theyspecificallyasktohavetheratesleftat$28/monthwhichwassetininterimOrderNo.26077,for another12monthsuntilPacksaddleaccumulatesforthePUCayearofwellkeptrecordsdocumentingoperatingcostsandmaintenancehoursforthesystemsinitspresenceconditions.Lingle/Patlapetitionatp.1.      Lingle/Patla specificgroundsforreconsiderationareasfollows:              1.0    
  Lingle/Patla allegethatsinceOrder No.26296 statesthattheannualoperating   	 )j$+    expensesare  high considering the numberofcustomersandqualityofthesystem,andthattheestimatedanticipatedexpensedoesnotrepresentactual   	 *B&-   expensesincurredbyPacksaddle,thesestatementsdonotjustifyratesthatarefair,justandreasonable.Lingle/Patlawanttheratesbasedonactualratesexpenses,ratherthanestimatedexpenses.    
(#
(#       2.0    
 Lingle/Patlaallegethatthemonthlywaterrateof$43isexcessiveandmuch   	 `   higherthanallsystemsofcomparablesizeinTetonCounty,especiallybeingthatTetonCountyisoneofthelowestpercapitaincomecountiesinthestateofIdaho.    
(#
(#       3.0    
 Lingle/Patlaallegethatthemonthlywaterrateof$43ishigherthancomparable   	 L	   systemsthroughoutthestateofIdahoandexceedstheratessetforsystemswhicharemuchlargerandmorecomplex.    
(#
(#       4.0    
 Lingle/Patlaallegethatthetimeestimatedformaintenancelabor(12   	    hours/week)farexceedswhatisrequiredforthistypeofsystemgiventheOrdersconclusionthat thesystemswatersupplyispracticallynewandshouldserveforanumberofyearswithoutmajorexpenses.    
(#
(#       5.0    
 Lingle/PatlaallegethatduringtheearlierstagesofCommissionStaffs   	 H   investigation,Staffgaveaguessofwhattheratesmightbe.Lingle/PatlaclaimthatratesthatwereactuallyrecommendedbyStaffandgrantedbyOrderNo.26296were54%higherthentheoriginallyestimatedbyStaff.Theyclaimtheywantanopportunitytoinvestigatethehigherrecommendedrate,especiallysincethisestimatedidnotrepresentactualexpensesincurredbyPacksaddle.    
(#
(#       6.0    
 Lingle/Patlaallegethatthe12%returnonratebaseappearstoexceedwhatis   	    normalforasystemofthissize.TheyallegethatutilitycompaniescitedasexamplesintheOrderserveamuchlargercustomerbaseandhavehigherrelativeriskconsideringtotalcapitalexpendituresandequipment.    
(#
(#                Lingle/PatlaindicatethattheywillprovideevidenceforthepointsenumeratedabovebasedonresearchtheyhavedoneinTetonCounty,IdahoandarecurrentlycollectingevidencefromPUCStaffandMr.Manwaring,theirformerattorneyastheWaterUsersAssociation,tosubstantiateeachpoint. 	   	 B'"(   PACKSADDLES RESPONSETOYOUNGSPETITION   	            PacksaddlefiledaresponsetoYoungsPetitionforReconsideration.Packsaddle   	 b   claimsthatYoungistryingtosupplementtherecordwhichwasalreadystipulatedtobyYoungsattorneyattheSeptember6,1995,hearing.PacksaddlealsoclaimsthatYoungsallegationsarealtogetherwithoutfoundation.PacksaddleassurestheCommissionthatiftherecordweretobereopened,thatadditionalevidencewouldonlysupporttherecordasalreadyestablished.PacksaddledidnotfilearesponsetoLingle/Patlaspetition.ItisunclearfromLingle/PatlaspetitionwhetherPacksaddlereceivedacopyastherewasnocertificateofservice.  RULESOFLAW   	 "r        Idaho Code 61626andCommissionRulesNo.331340,IDAPA31.01.01.331340,   	    describestheprocedureforReconsiderationofCommissionOrders.Itstatesthatanycorporation,publicutility,orinterestedpersonshallhavetherighttofileapetitionforreconsiderationwithin21daysfromthedateoftheOrder.PetitionsforReconsiderationmustsetforththegroundswhythepetitionerscontendtheOrderisunreasonable,unlawful,erroneous,ornotinconformitywiththelaw.Thepetitionmustgiveastatementofthenatureandquantityofevidenceorargumentthepetitionerwillofferifreconsiderationisgranted.Thepetitionermustalsostatewhethertheyrequestreconsiderationbyevidentiaryhearing,writtenbrief,commentsorinterrogatories.Rule332statesthatgroundsforreconsiderationorissuesofreconsiderationthatarenotsupportedbyspecificexplanationmaybedismissed.     Within28daysafterthefilingofthepetitiontheCommission must issueanOrderdeterminingwhethertograntthe petition.  Ifreconsiderationisgranted,  thematter mustbereheard,orwrittenbriefs,comments,orinterrogatoriesmustbefiledwithin13weeksafterthedateofthefilingofthepetition.TheCommissionmaygrantreconsiderationuponpetitionsofanyinterestedparty.Reconsiderationbyrehearingisconductedinaccordancewiththeproceduresatotherhearings,exceptthatpartieswhosepetitionsaregrantedaretreatedascomplainantsorpetitioners.     Rule333andIdaho Code 61626statethatfilingapetitiondoesnotexcuseany   	 (#4   personfromcomplyingwiththeoriginalorder,nordoesitstaytheenforcementoftherates.The   	 *V%6   CommissionmaystaytheeffectivenessofanyOrderbyasubsequentOrderifaskedforinthepetitionforreconsideration.     STAFFSRECOMMENDATION   	 &        BasedonCommissionrulesandtheIdahoCode, both Youngand Lingle/Patla have   	 8
   filedtimelypetitionsforreconsideration. Packsaddles responsetoYoungspetitionwastimelyfiled.Astherulesspecify,anyinterestedpartymayfileapetitionfor reconsideration, Stafffindsthat aswaterusersofPacksaddlebothYoungandLingle/Patlaareinterestedpartiesandhaveproperstandingforreconsideration.     YoungspetitionlaysoutspecificgroundsforreconsiderationandcitesYoungsaffidavitandtheStudybytheUniversityofWyomingforsupportoftheallegations.Althoughthequantityofevidenceissmall,itisStaffsopinionthatthissatisfiedtherequirementsofCommissionrulesandtheIdahoCodeofspecificallygivingthenatureoftheargumentandevidencetosupport   	 H   theallegationforthepetitionforreconsideration.     Lingle/Patlaalsolaysoutthespecificgroundsforreconsideration.TheystatetheywillofferevidenceofresearchtheyhavedoneinTetoniaCountyandarecurrentlycollectingevidencefromthePUCandtheirpreviousattorney.TheyhavesatisfiedpartoftherequirementofRule331byspecificallylistingthegroundsforreconsideration.However,itisquestionableiftheyhavemettherequirementofa statementofthenatureandquantityofevidenceorargumenttheywilloffer.AsLingle/Patlahavelistednospecificevidenceitcouldbeviewedthattheyhavenotgivenastatementofthenatureandquantityofevidence.Ontheotherhand,itcouldalsobearguedthattheyhavegivena statementof...[the]argumenttheywillofferandthatthisissufficientfortherules.     PacksaddleresponsetoYoungspetitionclaimsthattheyareattemptingtosupplementtherecordstipulatedtobythepartiesattheSeptember6,1995hearing.      It isStaffsopinionthatOrderNo.26296wasaccuratelybasedontherecordbeforethe Commission ,. thereisnothingintherulesorstatutetopreventpetitionersfromofferingnewevidenceintheirpetitionsforreconsideration.   	 (#4        Finally,Staff notesallparties had adequateopportunitytoreviewtherecord,cross
    
 examinethewitnessesandsubmittestimonyinsupportoftheirpositionpriortoissuanceofOrder   	 (#4   No.26296.Nevertheless,Staffstandsreadytogoforwardwitharehearing  shouldtheCommissiongrantreconsideration   ifthatistheCommissionsdesire . 
    
         COMMISSIONDECISION   	 &                 1.0    
 DoestheCommissionwishtograntthePetitionforReconsiderationofOrder   	 8
   No.26296andCertificateNo.320filedbyYoung?    
(#
(#       2.0    
 DoestheCommissionwishtograntthePetitionforReconsiderationofOrder   	 L   No.26296filedbyLingle/Patla?Therequestforstayofrates?    
(#
(#       3.0    
 DoestheCommissionwishtosetthismatterforrehearing?Boise,Driggs,or   	    Elsewhere?    
(#
(#       4.0    
 DoestheCommissionwishtodenyallrequestsforreconsideration?     
(#
(#            5.0    
 DoestheCommissionhaveanotheralternative?    6 
(#
(#  Л c  @      4  D p (# % ' 0* , . 81 3 5 @8 : < H? A , X   
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