DE 97-255
Birchview by the Saco, Inc.
Hearing on Receivership or Penalties
Order to Show Cause Why Authority to Operate
as a Public Utility Should Not Be Revoked
or Penalties Imposed
O R D E R N O. 22,845
February 2, 1998
On July 17, 1997, customers of the Birchview by the
Saco, Inc. (Birchview or Company) water system in the Town of
Bartlett contacted Commission Staff (Staff) regarding certain
concerns in relation to that system. Staff met with those
customers on August 6, 1997 and toured the water system on
August 18, 1997.
On August 29, 1997, Staff Water Engineer Douglas Brogan
sent Mr. Carlton Bacon, the system owner, a letter identifying
certain deficiencies and concerns in regard to the system and
requesting specific written information by October 15, 1997. A
second letter was sent on October 20, 1997 noting the absence of
a response and requesting one by November 15, 1997. On December
22, 1997, Mr. Brogan informed the Commission by memo of the
absence of a substantive response and of a number of immediate
system needs including two of three wells being inoperative, a
main break remaining unrepaired, holes in the pump station roof
and a refusal by the Company to install mandated corrosion
control. Mr. Brogan's memo also stated that the system had
additional longer term needs, that it had over $40,000 of
outstanding Company accounts payable and that it had earned a 7
percent rate of return in 1996.
The Commission subsequently directed Mr. Bacon to
submit, by January 9, 1998, information earlier requested by
Staff. Mr. Bacon was also informed that failure to respond would
subject him to a $100 per day fine. He was also apprised that,
in the event a satisfactory report were not filed, a show cause
hearing would be scheduled.
On the date that the report was due, Mr. Bacon
telephoned the Executive Director and stated that because of the
holidays he had not had adequate time to compose a report. Mr.
Bacon was advised to file a report as soon as possible. Mr.
Bacon's report was filed on January 22, 1998 in which he noted
several ongoing problems with pump pressure and pipe fittings.
He also noted the need to replace lines and the overall need for
capital to upgrade the system, which prompted a request to
recover the balance of rate case expenses. Finally, he reported
that the Bartlett Water Precinct was interested in taking over
the system.
Staff has reviewed Mr. Bacon's report and submitted a
memorandum which points out, among other things, that Mr. Bacon
does not list outstanding accounts payable as requested by staff.
He reports that a leak has been fixed but does not explain that
the leak was fixed by customers. He claims two wells are working
when the system operator reports that only one is working.
Finally, he has not provided any details regarding specific
efforts to consummate a sale to the Bartlett Water Precinct and
he does not offer any evidence that his disregard for the
maintenance of the system will change.
We find that Mr. Bacon's report is inadequate.
Moreover, the report demonstrates a continued pattern of
unresponsiveness and neglect and raises questions about
Birchview's ability to provide safe and adequate service.
Accordingly, we will hold a hearing at which Mr. Bacon shall be
prepared to answer questions about the status of the system and
efforts to transfer the system. We will also address at that
hearing issues of fines or other remedial actions.
Based upon the foregoing, it is hereby
ORDERED, that Birchview appear before the New Hampshire
Public Utilities Commission at its offices at 8 Old Suncook Road,
Concord, New Hampshire at 10:00 a.m. on February 26, 1998 to show
cause why its authority to operate its water system in the Town
of Bartlett should not be revoked or why other actions and
penalties should not be imposed; and it is
FURTHER ORDERED, that Birchview send a copy of this
Order to each of its customers by first class U.S. mail, on or
before February 9, 1998; and it is
FURTHER ORDERED, that Birchview provide the Commission
by February 17, 1998 an affidavit reporting that copies of this
order have been sent to customers.
By order of the Public Utilities Commission of New
Hampshire this second day of February, 1998.
Douglas L. Patch Bruce B. Ellsworth Susan S. Geiger
Chairman Commissioner Commissioner
Attested by:
Thomas B. Getz
Executive Director and Secretary