ORDER NO. 99-470
ENTERED AUG 04 1999
This is an electronic copy. Appendices and footnotes may not appear.
BEFORE THE PUBLIC UTILITY COMMISSION
OF OREGON
UM 937
| In the Matter of the Investigation Regarding the Service Adequacy of Chart Subdivision. | ) ) ) |
|
DISPOSITION: INVESTIGATION OPENED
On April 12, 1999, the Oregon Health Division (OHD) Drinking Water Program requested that the Public Utility Commission of Oregon investigate the adequacy of water service provided by Chart Subdivision. The request stated that the owner had not made provision for providing adequate service, the system did not meet OHD operation and maintenance standards, and there was no one on site responsible for operating the system. It also reported that customers had experienced a water outage and did not know who should be called for repairs.
The PUC Staff conducted an informal investigation, described in the Staff report attached as Appendix A to this order. As a result, the Company agreed to certain conditions set out in a stipulation (attached to and incorporated in the Staff report). Staff has concluded, however, that implementation of the stipulation will not resolve all of the water service problems.
At the Commission’s public meeting on July 6, 1999, Staff presented its report and requested that the Commission open an investigation pursuant to ORS 756.515 regarding the service adequacy of Chart Subdivision. Staff also recommended that the Commission adopt the attached Stipulation.
The Commission agrees that further investigation is necessary and will open an investigation to examine the service adequacy of Chart Subdivision. The Commission agrees to adopt the stipulation.
ORDER
IT IS ORDERED that:
Made, entered, and effective ____________________________.
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A party may request rehearing or reconsideration of this order pursuant to ORS 756.561. A request for rehearing or reconsideration must be filed with the Commission within 60 days of the date of service of this order. The request must comply with the requirements of OAR 860-014-0095. A copy of any such request must also be served on each party to the proceeding as provided by OAR 860-013-0070. A party may appeal this order to a court pursuant to ORS 756.580.
Appendix A
| ITEM NO. | 3 |
PUBLIC UTILITY COMMISSION OF OREGON
STAFF REPORT
PUBLIC MEETING DATE: July 6, 1999
| REGULAR AGENDA | X |
CONSENT AGENDA | EFFECTIVE DATE |
DATE: June 25, 1999
TO: Bill Warren through Marc Hellman and Mike Myers
FROM: Kathy Miller
SUBJECT: Chart Subdivision Water System
SUMMARY RECOMMENDATION:
Staff recommends the Commission open an investigation pursuant to ORS 756.515 regarding the service adequacy of Chart Subdivision (Chart or Company). Staff also recommends that the Commission adopt the attached stipulation which provides for the correction of several water service problems. The parties to the stipulation are Chart, the Oregon Health Division (OHD), and the Public Utility Commission Staff (Staff).
DISCUSSION:
Chart is a small investor-owned water system, located near Hermiston, Oregon, serving 37 customers. The Company is only subject to service regulation at this time because customers, to date, have not petitioned for rate regulation.
On April 12, 1999, the OHD Drinking Water Program requested in writing that PUC investigate the adequacy of water service provided by Chart Subdivision. The request stated that the owner had not made provisions for providing adequate service, the system did not meet OHD operation and maintenance standards, and there was no one on site responsible for operating the system. Further, it was reported that customers had experienced a water outage and did not know whom to call for repairs.
On April 13, 1999, PUC staff contacted the owner, George Hart, vacationing out of state. Mr. Hart was aware of the water outage and claimed to have made prior arrangements with persons in Hermiston to address any water system problems during his absence. There was a difference of opinion between the company and the customers regarding who the local service contacts were. At PUC request, the company sent notice on April 15, 1999, to its customers regarding whom to call for future repairs to the system.
On April 26, 1999, at PUC/OHD’s request, Gene Cox of the Oregon Association of Water Utilities performed an on-site inspection of the system. Certain issues Mr. Cox identified (such as the ones listed below) are consistent with a system analysis performed by IRZ Consulting,
LLC, dated June 4, 1998, and the OHD’s Sanitary Hazards Inspection performed on May 5, 1997. Thus the issues listed below are of a continuing nature, which have yet to be resolved by the company on its own initiative.Inadequate pressure/flow
Need for regular and preventative maintenance
Poor water quality (due to operations not source)
Inadequate fire protection
Inadequate storage
Algae growth due to lack of routine flushing
Tank repairs
OHD and PUC staff met with Mr. Hart and Chart customers on May 24, 1999, in Hermiston, Oregon. During the meeting, the Company offered to give the water system to the customers; however, the customers declined to take the system in its present condition. The customers concerns included:
Inadequate water pressure
Water service outages
Pressure fluctuations
Inadequate system maintenance and repair
Inadequate communication between the Company and customers
Leak repair responsibility
Poor water quality (due to operations not source)
Questionable quality of pipe material and size
Reservoir leaks
Lack of security for pumphouse and equipment
Company’s use of water restrictors on customers lines
At the May 24, 1999, meeting, the Company agreed to the conditions contained in the attached stipulation (Attachment A), which has been signed by all parties. The stipulation addresses certain concerns raised by the customers to resolve a number of water service issues. Implementation of the stipulation likely will not resolve all of Chart’s water service problems. Therefore, a more comprehensive investigation, pursuant to ORS 756.515, is needed to address any outstanding issues not resolved by the stipulation.
STAFF RECOMMENDATION:
Staff recommends the Commission open an investigation pursuant to ORS 756.515 regarding the service adequacy of Chart Subdivision. Staff also recommends that the Commission adopt the attached stipulation.
Attachments
cc: Gary Burnett, OHD
chtsub pmm/7-6-99