DW 99-016
WESCO Utilities, Inc.
Hearing on Deficiencies and the Appropriateness of Fines,
Penalties and/or Revocation of Franchise
Order to Show Cause
Why Fines or Penalties Should Not Be Imposed or
Authority to Operate as a Public Utility Reconsidered,
as a Result of Deficiencies in Company Operations
and Responsiveness
O R D E R N O. 23,134
February 1, 1999
WESCO is a public water utility serving approximately
27 customers in the Town of Hooksett. On September 30, 1997, the
Commission, by Order No. 22,744, approved a Settlement Agreement
(Agreement) granting WESCO Utilities (WESCO) a 26.8% rate
increase. Re WESCO Utilities, 82 NH PUC 709 (1997). The Agreement
also provided that WESCO would undertake certain system
improvements and actions including:
a) immediately addressing the cause of entrained air in the
system;
b)move eight outside customer meter readers and increase the pump
station operating pressure range to 50-65 psi by September 30,
1997;
c) report the status of (a) and (b) above to the Commission by
October 15, 1997;
d) apply for a waiver of DES testing requirements by March 15,
1998;
e)purchase a back up well pump end, install well air tube and
tank sight tubes, replace pump station compressor, mag starter
and light fixture by September 30, 1998; provided, however, that
these expenditures shall not be incurred prior to resolution of
issues regarding potential transfer of the water system to the
Hooksett Village Precinct or prior to six months from the
Commission's order, whichever occurs first;
f) complete testing of all customer meters, address the stolen
water issue and implement any appropriate counter-measures and
install a single two inch blowoff at the intersection of Springer
Road and Pine Street by September 30, 1998;
g)the company owner or owners attend at least one water-related
seminar, meeting or course annually; and
h) enter into meaningful discussions with the Hooksett Village
Precinct regarding the possibility of transfer of the system to
the Precinct.
On January 12, 1999, Mr. Mark Cloutier filed with the
New Hampshire Public Utilities Commission (Commission) a letter
asserting that WESCO Utilities (WESCO) was in violation of
Commission Orders and regulations and that water service was, for
a variety of reasons, inadequate. Mr. Cloutier recommended that
WESCO be placed in receivership and sold to the Hooksett Village
Precinct. On the same date, Mr. Cloutier submitted to the
Commission a petition reportedly signed by a number of the WESCO
customers asking the Commission to, among other things,
investigate WESCO for not complying with Order No. 22,744.
Also, on January 12, 1999, Douglas W. Brogan, Staff
Water Engineer, submitted a memorandum to the Commission stating
that the Company had reportedly only relocated eight problematic
outside meter readers and had postponed action on most other
matters. In addition, Mr. Brogan noted that during the summer
the output of WESCO's single well had dropped dramatically
requiring, first, water to be trucked in and, more recently, a
temporary connection to the Precinct; that WESCO had not
adequately addressed the system's pressure problems; and, that
the Company has an ongoing history of poor customer relations and
unwillingness to act responsibly in exercising its franchise
obligations, requiring Staff to act to ensure continuity of
service to customers.
Mr. Brogan proposes that the Company either transfer
the system to another entity by June 1, 1999, or, in the
alternative, respond with specific proposals to address the
unreliability of supply and system operation, improve customer
service and responsiveness, address the outstanding commitments
from Order 22,744 and report monthly on its progress in this
regard.
Staff's memorandum sets forth a continued pattern of
unresponsiveness and neglect on the part of the Company and
raises questions about whether WESCO 1)has fulfilled its duty to
provide safe and adequate service; 2)has failed to comply with
Commission Orders and regulations; 3) should be subjected to
appropriate fines and penalties; 4) should be placed in
receivership; and, 5) should be sold to the Hooksett Village
Precinct. Accordingly, we will hold a hearing at which the
Company shall be prepared to respond to the deficiencies noted
above. We will also address at that hearing the Company's status
with regard to transfer of its system and issues of fines and/or
other remedial action.
Based upon the foregoing, it is hereby
ORDERED, that, pursuant to RSA 365:41, RSA 365:42, RSA
374:17, RSA 374:28, RSA 374:47-a WESCO 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
March 5, 1999 to respond to the deficiencies noted above, and to
show cause why fines or other penalties should not be imposed, or
why its authority to operate its water system in the Town of
Hooksett should not be a matter for reconsideration; and it is
FURTHER ORDERED, that WESCO send a copy of this Order
to each of its customers, the Hooksett Town Clerk, the Hooksett
Village Precinct and the New Hampshire Department of
Environmental Services by first class U.S. mail, on or before
February 10, 1999; and it is
FURTHER ORDERED, that Commission Staff send a copy of
Douglas Brogan's January 12, 1999 memo to WESCO, the New
Hampshire Department of Environmental Services' Water Supply
Division and the Hooksett Village Precinct by first class U.S.
mail on or before February 10, 1999; and it is
FURTHER ORDERED, that WESCO provide the Commission by
March 5, 1999 an affidavit reporting that copies of this order
have been sent to customers, the Hooksett Town Clerk, the
Hooksett Village Precinct and the New Hampshire Department of
Environmental Services; and it is
FURTHER ORDERED, that pursuant to N.H. Admin. Rules Puc
203.01, WESCO shall notify all persons desiring to be heard at
this hearing by publishing a copy of this Order of Notice no
later than February 10, 1999, in a newspaper of general
circulation in those portions of the state in which operations
are conducted, publication to be documented by affidavit filed
with the Commission on or before March 5, 1999; and it is
FURTHER ORDERED, that pursuant to N.H. Admin. Rules Puc
203.02, any party seeking to intervene in the proceeding shall
submit to the Commission at 8 Old Suncook Road, Concord, New
Hampshire an original and eight copies of a Petition to Intervene
with copies sent to WESCO and the Office of the Consumer Advocate
on or before March 2, 1999, such Petition stating the facts
demonstrating how its rights, duties, privileges, immunities or
other substantial interests may be affected by the proceeding, as
required by N.H. Admin. Rule Puc 203.02 and RSA 541-A:32,I(b);
and it is
FURTHER ORDERED, that any party objecting to a Petition
to Intervene make said Objection on or before March 5, 1999.
By order of the Public Utilities Commission of New
Hampshire this first day of February, 1999.
Douglas L. Patch Susan S. Geiger Nancy Brockway
Chairman Commissioner Commissioner
Attested by:
Thomas B. Getz
Executive Director and Secretary