3. Additional Steps for Augmenting the Water Supply in Whiskey Shoals Service Area
PAWW has an obligation as a public utility to serve all customers within its Whiskey Shoals service area absent justification to the contrary, 4 and water supply limitations that can potentially be remedied is not justification for failing to consider water supply augmentation and continuing to deny service to new customers. As the table above illustrates, the single working well in the Whiskey Shoals service area does not provide sufficient water supply to meet the needs of the existing four customers, even prior to considering the other 22 unserved lots in the service territory. The well rehabilitation or construction provided for in the settlement agreement will greatly improve the Whiskey Shoals water supply but the needs of prospective customers in the Whiskey Shoals service area should also be addressed.
Although this complaint proceeding only resolves water service to the Calone residence, PAWW's obligations as a public utility require that it develop and implement a plan to assess and meet the needs of all current and prospective public utility water customers in its Whiskey Shoals service territory. Specifically, PAWW must undertake a Whiskey Shoals water supply augmentation study that includes: (1) assessing interest in public utility water service by the owners of the other unserved parcels located in the Whiskey Shoals service territory, (2) determining what improvements would be necessary to serve any prospective customers, (3) preparing cost estimates and projected rate impacts, and (4) obtaining any required Commission authorization.
Therefore, we order PAWW to prepare a Whiskey Shoals water supply augmentation study. Such a study must include notice to all existing customers and the owners of all unserved parcels in the Whiskey Shoals service territory, and solicit interest in obtaining public utility water service from PAWW. The notice will be subject to review and approval by the Commission's Public Advisor, and shall be issued no later than 60 days after the effective date of this decision. PAWW shall keep its current customers and any interested new customers informed of its supply augmentation efforts, with no less than quarterly written updates.
The study must include a thorough technical analysis of the supply options and evaluation of the costs and benefits of each option. Rate impacts should also be studied. The Commission's Division of Water and Audits shall provide assistance and direction to PAWW. The study must also include an implementation plan and timetable for placing any needed facilities into service and offering new service connections, as well as making any required rate filings with the Commission.
PAWW shall submit its Whiskey Shoals water supply augmentation study to the Commission no later than the earlier of its next general rate case or one year from the effective date of this decision.
4 See D.03-03-037, mimeo. at 5.
