LAKES REGION WATER CO., INC. DOCKHAM SHORES ESTATES WATER COMPANY, INC.
ORDER No. 25, 964
DW 16-619
New Hampshire Public Utilities Commission
November 10, 2016
Petition
to Transfer Utility Assets and Franchise and for Related
Approvals
Order
Approving Settlement Agreement
Justin
C. Richardson, Esq., Upton & Hatfield, LLP, for Lakes
Region Water Co., Inc.; Ethan G. Wood, Esq., Patrick G. Wood
Law Office, PLLC, for Dockham Shores Estates Water Company,
Inc.; Donald M. Kreis, Esq., Office of the Consumer Advocate,
on behalf of residential utility customers; and David K.
Wiesner, Esq., for the Staff of the New Hampshire Public
Utilities Commission.
Martin
P. Honigberg Chairman.
In this
order, the Commission approves Lakes Region Water
Company's acquisition of the assets and utility franchise
of Dockham Shores Estates Water Company. The Commission also
authorizes Lakes Region to borrow up to $135, 000 to finance
the acquisition of utility assets and to make significant
improvements to the water system. Finally, the Commission
approves modifications to Dockham Shores' tariff, as well
as a step adjustment in rates not to exceed $6, 620 following
construction of capital improvements. After the closing of
the transaction, Dockham Shores will cease to be a regulated
utility in the State of New Hampshire.
I.
PROCEDURAL HISTORY
Lakes
Region Water Co., Inc. (Lakes Region), is a New Hampshire
corporation authorized to operate as a public water utility
in the State of New Hampshire. Lakes Region currently serves
a total of 1, 672 customers in 17 separate systems located in
the Lakes Region and White Mountain regions of New Hampshire.
Dockham Shores Estates Water Company, Inc. (Dockham Shores),
is a New Hampshire corporation and a regulated public water
utility that provides service to 60 customers in the Town of
Gilford. Dockham Shores is owned by Colin and Mary Robertson,
who are its sole shareholders.
On May
31, 2016, Lakes Region and Dockham Shores submitted a joint
petition (the Joint Petition) seeking approval to: (1)
transfer Dockham Shores' water utility assets and
franchise in Gilford to Lakes Region, pursuant to RSA 374:22
&:30; (2) discontinue Dockham Shores' operation as a
public utility following the transfer pursuant to RSA 374:28;
(3) authorize Lakes Region to borrow an amount not to exceed
$135, 000 pursuant to RSA 369:1 &:2, for the purpose of
acquiring the Dockham Shores assets and funding capital
improvements to the water system; (4) authorize a step
adjustment in the rates of Dockham Shores customers, to be
filed no later than December 31, 2017, following construction
of capital improvements, designed to yield additional
revenues of up to $6, 620; and (5) authorize Lakes Region to
modify the tariff of Dockham Shores to reflect the existing
terms and conditions of service provided by Lakes Region,
pursuant to RSA 378:3.
Included
with the Joint Petition were the Asset Purchase Agreement
(APA), under which Lakes Region will pay $60, 000 in cash for
the utility assets; a report detailing the needed capital
improvements, including electrical upgrades, telemetry, and
pump station improvements; the most recent Sanitary Survey
prepared by the New Hampshire Department of Environmental
Services; and a term sheet from CoBank ACB (CoBank)
indicating that its interest rate for a fully amortizing loan
of 20 years was 5.27 percent as of April 29, 2016.
On June
10, 2016, the Office of the Consumer Advocate (OCA) filed a
notice of participation. On June 13, the Commission issued an
Order of Notice establishing a prehearing conference and
technical session for July 7. No petitions for intervention
were received. Following...
