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