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