DR 98-104
Rolling Ridge Water System
Petition to Increase Rates
Order Establishing Procedural Schedule and Granting
Limited Intervenor Status
O R D E R N O. 23,042
October 12, 1998
APPEARANCES: Stephen C. Robinson, C.P.A. for Rolling
Ridge Water System; and James L. Lenihan and Douglas W. Brogan
for the Staff of the New Hampshire Public Utilities Commission.
I. PROCEDURAL HISTORY
On July 28, 1998, Rolling Ridge Water System (Rolling
Ridge) filed a proposed permanent rate increase with supporting
financial schedules which, if approved, would have resulted in an
annual revenue increase of $7,693.00 or a 91.7% increase in
customers' annual rates. On August 31, 1998, the Commission
issued Order No. 23,004 suspending the proposed rate increase for
investigation pursuant to RSA 378:6 and setting a prehearing
conference for September 28, 1998. Rolling Ridge was required to
give personal service of the Order of Notice to all customers.
Following the issuance of the Order of Notice the
Commission was contacted by three customers. On September 17,
1998, the Commission received a letter from Edward and Geraldine
Rennie stating their opposition to the proposed rate increase.
On September 22, 1998, the Commission received a letter from
Thomas and Dolores Sweeney objecting to the proposed rate
increase and requesting intervenor status. The Sweeneys also
requested a financial audit of the utility and questioned whether
the water utility should be placed under receivership to allow
customers and the Commission time to explore interconnection
options for this water system which suffers form service
interruptions and bacteriological contamination. The Sweeneys
also requested a 120 day continuance for the prehearing
conference because of the seasonal occupancy of a large
percentage of the customers. On September 23, 1998, Steven
Sherlocke contacted the Commission and requested to be notified
of the hearing schedule and indicated a desire to participate in
the proceedings.
On September 28, 1998, the Commission held the duly
noticed prehearing conference. Because the matter had been
officially noticed, the Sweeneys' request for a continuance could
not be considered. At the prehearing conference Rolling Ridge
asserted that the rate increase was necessary to maintain the
financial integrity, and, thereby, the viability of the utility.
Staff stated that it would have to conduct discovery to
investigate the reasonableness of the proposed rate increase and
raised a number of operational issues concerning this utility.
Staff and Rolling Ridge were the only parties to appear at the
hearing.
Following the hearing Staff and Rolling Ridge met for a
technical session. On September 30, 1998, Staff submitted the
following agreed upon procedural schedule to govern the
Commission's investigation into the proposed rate increase:
Staff Data Request to Petitioner October 14, 1998
Responses to Staff Data Request October 28, 1998
Staff Testimony December 1, 1998
Settlement Conference December 8, 1998
Stipulation to Commission December 14, 1998
Hearing on the Merits December 17, 1998
II. COMMISSION ANALYSIS
The first issue for our consideration are the requests
for intervention by the Sweeneys and Mr. Sherlocke. The Hearings
Examiner recommended limited intervenor status because neither
party appeared at the prehearing conference and because limited
intervenor status would allow the parties to remain apprised of the
proceedings. We will grant limited intervenor status to the
Sweeneys and Mr. Sherlocke without prejudice to their right to
request full intervenor status later in the proceeding should they
desire to take a more active role in the proceedings than that of
limited intervenor. The Sweeneys will be placed on the service
list to ensure they receive relevant documents.
Based on the report of the hearings examiner we find the
proposed procedural schedule adequate for an investigation into the
requested rate increase, but somewhat ambitious given the
operational concerns raised by the Sweeneys and Staff. Thus, we
will reserve the right to amend the procedural schedule as
necessary.
Pursuant to RSA 374:1 all utilities under our
jurisdiction must provide safe and adequate service to customers.
The Sweeneys' letter and Staff's concerns raise questions
concerning the safety and adequacy of service provided by this
utility. We direct Staff to investigate and submit recommendations
as necessary to remedy any inadequacies affecting the quality of
service to customers.
Based upon the foregoing, it is hereby
ORDERED, that the procedural schedule agreed upon between
Commission Staff and Rolling Ridge Water System is adopted subject
to the conditions set forth in the forgoing order; and it is
FURTHER ORDERED, that Staff shall conduct an
investigation into the adequacy of service being provided customers
and make the appropriate recommendations to ensure adequate
service.
FURTHER ORDERED, that the Sweeneys and Mr. Sherlocke are
granted limited intervenor status without prejudice to their right
to seek full intervenor status later in the proceedings.
By order of the Public Utilities Commission of New
Hampshire this twelfth day of October, 1998.
Douglas L. Patch Susan S. Geiger Nancy Brockway
Chairman Commissioner Commissioner
Attested by:
Thomas B. Getz
Executive Director and Secretary