DE 97-003
Greenfield Hill Estates Homeowners Association
Request for Exemption from Regulation
Order NISI Granting Exemption from Regulation as a Public Utility
O R D E R N O. 23,183
March 30, 1999
I. PROCEDURAL HISTORY
The Petitioner, Greenfield Hill Estates Homeowners
Association (Association), filed a petition on February 18, 1999
requesting exemption of its water system located in Plaistow, New
Hampshire from regulation as a public water utility. The docket
was originally opened in January 1997 as the result of an earlier
exemption request by the developer of Greenfield Hill Estates,
Richard P. Early, Sr. The primary need for exemption has been
created, both then and now, by the existence of a single
non-paying customer who is also, by choice, the only non-member
of the Association. While about 30 of the 43 lots in the
development were built out as of early 1997, all 43 lots have now
been sold and 40 of them developed. All but one of the 40 are
served by the water system, with the remaining lot served by a
private well due to its location. At least two of the three
undeveloped lots are owned by adjacent lot owners and may be
retained in an undeveloped state indefinitely.
The petition reveals the following information:
Subsequent to the original filing in 1997, control of the
Association and ownership of the water system both passed to the
homeowners. The Association contacted several entities about
possible sale of the system, but ultimately voted in November
1998 to retain system ownership. It anticipates continuing to
contract with a third party for system operation and maintenance.
The Association has invested significant time and
thought in developing rates, fees and customer service rules, all
included in its petition and all of which would apply equally to
both member and non-member customers. Applicable portions have
been approved by vote of the Association and/or its Board of
Directors. Rates and fees will be presented annually to
homeowners at the Association's annual meeting. The Association
will establish and maintain a separate set of accounts for the
water system.
Commission Staff has reviewed the Association's By-Laws
and Declaration of Covenants, and has confirmed with the
Department of Environmental Services that there are no
outstanding reporting, monitoring, enforcement or other
violations or significant deficiencies for the water system at
this time.
II. COMMISSION ANALYSIS
RSA 362:4,I allows exemption if "the whole of such
water ... system shall supply a less number of consumers than 10,
each family, tenement, store or other establishment being
considered a single consumer, ... whenever the commission may
find such exemption consistent with the public good." Treatment
of the Association as a single consumer providing service to
itself and not the public is reasonable and consistent with past
treatment of similar situations. Re North Country Water Supply,
Inc, 80 NH PUC 380 (1995). See also Re Belleau Lake Corporation
80 NH PUC 49 (1995). Thus the Association and the single
non-member customer would comprise the current total of two
system consumers for purposes of the statute. The proposed
conditions of exemption would allow enforcement action, after due
notice, against any non-paying customers.
The burden of compliance with ratemaking, tariff
filing, reporting, accounting and other requirements under
regulation would far exceed any corresponding benefit to
customers in this case. In light of all of the above factors, we
find the requested exemption to be in the public good.
Based upon the foregoing, it is hereby
ORDERED NISI, that Greenfield Hill Estates Homeowners
Association is exempted from the provisions of RSA Title XXXIV in
accordance with RSA 362:4,I; and it is
FURTHER ORDERED, that the Petitioner shall mail a copy
of this order by first class mail, or hand-deliver same, to each
customer on or before April 6, 1999, to be documented by
affidavit filed with this office no later than April 13, 1999;
and it is
FURTHER ORDERED, that all persons interested in
responding to this petition be notified that they may submit
their comments or file a written request for a hearing on this
matter before the Commission no later than April 16, 1999; and it
is
FURTHER ORDERED, that any party interested in
responding to such comments or request for hearing shall do so no
later than April 23, 1999; and it is
FURTHER ORDERED, that this Order Nisi shall be
effective May 3, 1999, unless the Commission provides otherwise
in a supplemental order issued prior to the effective date.
By order of the Public Utilities Commission of New
Hampshire this thirtieth day of March, 1999.
Douglas L. Patch Susan S. Geiger Nancy Brockway
Chairman Commissioner Commissioner
Attested by:
Thomas B. Getz
Executive Director and Secretary