HAMPSTEAD AREA WATER COMPANY, INC.
Nos. 25, 979
No. DW 16-825
New Hampshire Public Utilities Commission
January 23, 2017
Petition
for Franchise Expansion - Wells Village, Sandown
Order
Nisi Granting Petition
Martin
P. Honigberg, Chairman
In this
order, the Commission grants Hampstead Area Water Company,
Inc., authority to expand its franchise to serve a proposed
40 acre, 50 unit condominium development to be known as Wells
Village in the Town of Sandown.
I.
BACKGROUND
Hampstead
Area Water Company, Inc. (HAWC or the Company), is a
regulated water utility pursuant to RSA 362:2 and RSA 362:4
serving the areas of Hampstead and Atkinson with satellite
systems in various towns in Rockingham County, including
Sandown. On October 11, 2016, HAWC filed a petition to extend
its franchise area in the Town of Sandown to provide service
to a proposed 50 unit condominium development to be known as
Wells Village. The franchise area request included the 40.83
acre development shown on Tax Map 13, Lot 1 in the town and a
request to include land adjacent to the development that
would increase its new franchise area to a total of
approximately 265 acres. HAWC also requested authority to
acquire the associated water utility assets of Wells Village,
approval for financing in connection with the Company's
payment of connection fees to the developer of the Wells
Village project, and authority to charge its currently
effective tariff rates to customers in the new franchise
area. The petition and subsequent docket filings, other than
information for which confidential treatment is requested of
or granted by the Commission, are posted to the
Commission's website at
http://www.puc.nh.gov/Regulatory/Docketbk/2016/16-825.html
In
support of its petition, HAWC also submitted a contract among
HAWC, Kasher Corporation, and Lewis Builders Development,
Inc. d/b/a Hampstead Water Services Company, an affiliate of
HAWC (the Service Company), which outlined the terms under
which Kasher will sell the system to HAWC. The Service
Company will design and build the system to serve the 50 unit
condominium development. Kasher will pay the Service Company
to construct a portion of the system. The Service Company
will design and perform the installation of the pumping and
treatment station, generator, and controls. The projected
cost estimate for installation of the water system is $462,
305, as outlined in a project cost schedule submitted as part
of the application. Under the terms of the agreement, HAWC
will pay Kasher $50, 000 for acquisition of the system in $1,
000 increments as each of the fifty condominiums are hooked
up to the system. HAWC will execute a promissory note in
favor of Kasher that memorializes the agreement to make the
$1, 000 per hookup installment payments. Because HAWC is
paying $1, 000 per hookup, a majority of the system cost will
be carried on the Company's books as a Contribution in
Aid of Construction. The full installation cost will not be
included in rate base.
HAWC
submitted an executed and recorded Water Rights Deed and
Easement given to HAWC by Kasher for water rights in the
proposed franchise area. HAWC submitted evidence from the New
Hampshire Department of Environmental Services (DES) of
approvals granted to Kasher for the use of two bedrock wells
to supply water for domestic consumption in the proposed
franchise area. DES permitted the wells on September 28,
2016, with a letter of Conditional Final Approval.
HAWC
also submitted testimony by its president, Harold Morse. Mr.
Morse stated that he believes the Company has the financial,
managerial...
