BEFORE THE PUBLIC SERVICE COMMISSION
OF THE STATE OF MISSOURI
In
the Matter of the Application of )
Peaceful
Valley Service Company’s Request ) File No. SR-2014-0153
For
Increase in Sewer Operating Revenues ) Tracking No. YS-2014-0425
In
the Matter of the Application of )
Peaceful
Valley Service Company’s Request ) File
No. WR-2014-0154
For
Increase in Water Operating Revenues ) Tracking No. YW-2014-0426
ORDER DIRECTING STAFF TO SUBMIT REPORT
Issue Date: July 29, 2014 Effective
Date: July 29, 2014
Peaceful Valley Service Company
(“Peaceful Valley” or “Company”) notified the Commission it wanted to increase
its annual sewer revenue by approximately $93,840. Peaceful Valley requested
the increase in order to pay for needed upgrades to its waste water treatment
facility based on stricter ammonia discharge requirements adopted by the Missouri
Department of Natural Resources (“DNR”). DNR set a deadline of January 1, 2018
for the completion of construction by Peaceful Valley on a new sewer treatment
plant.
The Staff of the Missouri Public
Service Commission (“Staff”) submitted for Commission approval a disposition
agreement between Staff and Peaceful Valley. The Disposition Agreement does not
provide Peaceful Valley an opportunity to collect funds for future waste water
treatment improvements. At a local public hearing held on June 25, 2014,
Peaceful Valley customers testified in support of an increase in rates that
would address the DNR mandated improvements.
At a July 23rd Agenda
meeting the Commission discussed the disposition agreement and its failure to
address upgrades to the sewer system. Members of the Commission were interested
in exploring rate mechanisms that could provide funding for any improvements,
but wanted additional information on DNR’s requirements, how much money Company
needed, and the time-frame for improvements in the form of a compliance plan as
outlined below.
The Commission will direct its Water and Sewer Department to obtain information from Peaceful Valley and submit a report on Peaceful Valley’s compliance plan.
THE COMMISSION ORDERS THAT:
1.
The
Water and Sewer Department of the Missouri Public Service Commission shall obtain
the following information from Peaceful Valley:
· What projects are required by DNR?
§ Documentation of what DNR requires.
§ Records showing by what date a compliance project must be completed and deadlines for submission of progress reports to DNR, and any DNR issued schedule of compliance; including lower cost options to come into compliance with DNR’s requirements.
§ Documentation showing detailed costs of the projects, including any engineering studies, consultant reports, or any other analysis of potential costs. If none, indicate reasons no information is available.
§ Documentation showing timeline for completing project, including expenditures for each step or phase of construction.
· What steps has the Company taken to determine availability of financing to contribute to the cost of completing the required capital investment?
· Documentation – forms, letters, statements under affidavit, etc. – detailing requests or inquiries regarding financing and results of those requests.
2. The Water and Sewer Department shall file a report on Peaceful Valley’s plan to comply with DNR’s regulations by August 15, 2014.
3. This order shall become effective immediately upon issuance.
BY THE COMMISSION
Morris L.
Woodruff
Secretary
Kim S.
Burton, Regulatory Law Judge,
by
delegation of authority pursuant to
Section
386.240, RSMo 2000.
Dated at
Jefferson City, Missouri,
on this 29th
day of July, 2014.