DEPARTMENT OF ADMINISTRATIVE SERVICES
IN THE MATTER OF THE |
PROPOSED REVISION OF THE |
RULES AND REGULATIONS | PSC REGULATION
BY THE PUBLIC SERVICE | DOCKET NO. 13
COMMISSION GOVERNING |
MINIMUM STANDARDS FOR |
SERVICE PROVIDED BY |
PUBLIC WATER COMPANIES |
(OPENED MAY 14, 1985; |
REOPENED AUGUST 21, 2001) |
Reg. No. 13, Rules and Regulations Governing Minimum Standards for Service Provided by Public Water Companies
Order No. 5847
AND NOW, to-wit, this 11th day of December, 2001, the Commission having received and considered the Findings and Recommendations of the Hearing Examiner, previously designated in the above-captioned matter, which was submitted after a duly publicized evidentiary hearing, and having heard from all parties and the Commission Staff that there are no exceptions to said Findings and Recommendation;
AND WHEREAS, based upon the recommendations of the Hearing Examiner, the Commission has determined that the evidence of record supports approving the amendment to Section 4.2.4 of the Minimum Standards Governing Service Provided by Public Water Companies, as proposed by Commission Staff;
Now, therefore, IT IS ORDERED:
1. That the Commission hereby adopts and approves in its entirety the Findings and Recommendations of the Hearing Examiner, which is attached hereto as Exhibit “A.”
2. That the Commission adopts the proposed amendment to Section 4.2.4 of the Minimum Standards Governing Service Provided by Public Water Companies, the exact text and citation of which are attached hereto as Exhibit “B.”
3. That the Secretary shall transmit this Order, together with the exact text of Section 4.2.4 of the Minimum Standards Governing Service Provided by Public Water Companies to the Registrar of Regulations for publication on January 1, 2002.
4. That the effective date of this Order shall be the later of January 10, 2002, or ten days after the date of publication in the Register of Regulations of this Order and the final text of Section 4.2.4 of the Minimum Standards Governing Service Provided by Public Water Companies.
5. The Commission reserves the jurisdiction and authority to enter such further Orders in this matter as may be deemed necessary or proper.
By Order Of The Commission:
Arnetta McRae, Chair
Joshua M. Twilley , Vice Chair
Jaymes B. Lester, Commissioner
Joann T. Conaway, Commissioner
Attest:
Karen J. Nickerson, Secretary
Exhibit "A"
IN THE MATTER OF THE |
PROPOSED REVISION OF THE |
RULES AND REGULATIONS | PSC REGULATION
BY THE PUBLIC SERVICE | DOCKET NO. 13
COMMISSION GOVERNING |
MINIMUM STANDARDS FOR |
SERVICE PROVIDED BY |
PUBLIC WATER COMPANIES |
(OPENED MAY 14, 1985; |
REOPENED AUGUST 21, 2001) |
Findings and Recommendations of the Hearing Examiner
Dated: November 14, 2001
William F. O’Brien, Hearing Examiner
IN THE MATTER OF THE |
PROPOSED REVISION OF THE |
RULES AND REGULATIONS | PSC REGULATION
BY THE PUBLIC SERVICE | DOCKET NO. 13
COMMISSION GOVERNING |
MINIMUM STANDARDS FOR |
SERVICE PROVIDED BY |
PUBLIC WATER COMPANIES |
(OPENED MAY 14, 1985; |
REOPENED AUGUST 21, 2001) |
Findings and Recommendations of the Hearing Examiner
William F. O’Brien, duly appointed Hearing Examiner in this Docket pursuant to 26 Del. C. § 502 and 29 Del. C. ch. 101, by Commission Order No. 5787, dated August 21, 2001, reports to the Commission as follows:
On behalf of Commission Staff:
Murphy, Spadaro & Landon
By: Chase T. Brockstedt, Esquire
On behalf of the Division of the Public Advocate:
G. Arthur Padmore, Public Advocate
II. Background
1. In PSC Order No. 2076 (May 27, 1980), Regulation Docket No. 13, the Commission originally adopted its Minimum Standards Governing Service Provided by Public Water Companies (“Minimum Standards”).
2. On October 12, 2000, United Water Delaware, Inc. ("United") filed a request with the Commission for a waiver of the meter testing procedures under Section 4.2.4 of the Minimum Standards. Section 4.2.4 requires public water utilities to ensure the accuracy of its meters by conducting testing procedures on all meters in service on a specified frequency keyed to the size of the meter. United sought to test a statistical sampling of its 32,000 5/8” meters, rather than all of the meters.
3. Based on United's submission, and in light of improvements in the design and manufacturing of water meters, Commission Staff reviewed the Minimum Standards and proposed an amendment to Section 4.2.4. Under the proposed amendment, a public water utility shall ensure the accuracy of its meters by either: (1) conducting periodic tests on meters under the presently mandated schedule; or (2) conducting tests on a sampling of meters pursuant to a statistical meter sampling program submitted by the water utility and approved by the Commission.
4. On August 21, 2001, by PSC Order No. 5787, the Commission reopened Regulation Docket No. 13 to consider Staff’s proposed amendment. The Commission directed publication of notice of the proposed amendment, set a deadline of October 31, 2001 for the filing of comments by interested parties, and scheduled a public hearing for November 7, 2001. United Water was the only company or organization to file comments.
5. In accordance with PSC Order No. 5787, a duly noticed1 public hearing was conducted at the Commission’s offices in Dover. Representatives of Staff and the Public Advocate appeared at the hearing. No member of the public appeared at or otherwise participated in the proceeding.
6. At the conclusion of the hearing, I closed the evidentiary record, which consists of four exhibits and an 18-page verbatim transcript of the proceedings. Briefs were deemed unnecessary. I have considered all of the record evidence of this docket and, based thereon, I submit for the Commission’s consideration these Findings and Recommendations.
II. The Proposed Amendment
7. The current Standard 4.2.4 requires periodic testing of all meters on prescribed time intervals, which vary with the size of the meter. The proposed Standard 4.2.4 requires a utility to develop a testing program that consists of either the existing testing schedule of all meters or:
[t]he periodic testing of a random sampling of particularly-grouped meters under a meter testing plan submitted by the utility and specifically approved by the Commission. Such a plan may apply to the testing of all sizes of meters or meters of a particular size. The sampling procedures in any such plan shall be sufficient to ensure confidence in the accuracy of the meters included in the group represented by the sample. With such plan, the utility shall submit sufficient information and data to establish the ability of the sampling procedure to establish the accuracy of the utility's meters. The results of testing under any such approved plan shall be available to the Commission.
Exhibit 2.
III. Summary of Evidence
8. Connie McDowell, PSC Chief of Technical Services, testified on behalf of Staff. Transcript, 7. Ms. McDowell asserted that the Commission had granted a waiver of the current testing requirement to United Water because the testing of all of their 5/8 inch meters was costly and because the sampling alternative United developed was reasonable. She stated that Staff believed that other water companies should have the same opportunity to test meters in accordance with a statistical sampling program if such meters did not require such stringent testing.
9. Ms. McDowell submitted a memorandum, written by Commission Engineer Malak Michael, dated August 17, 2001, in which Mr. Michael supported United’s waiver request and recommended a rule change to Section 4.2.4. Exhibit 4. Mr. Michael asserted that, from an engineering standpoint, it was unnecessary to test 100% of United’s 5/8 inch meters in accordance with the current schedule. In addition, he noted that a statistical meter sampling program would produce savings for United and for its customers.
10. Carla E. Hjelm, Corporate Attorney – Operations and Corporate Secretary, submitted written comments on behalf of United Water, dated October 30, 2001. Exhibit 3. She supported the proposed amendment and asserted that “appropriate statistical sampling programs benefit the public interest and improve efficiency by determining which meters may not be functioning properly, thereby eliminating inaccurate meters from service, while at the same time avoiding unnecessary and costly testing on accurate meters.”
11. The Public Advocate expressed concerns about the particulars of United Water’s testing plan. Those concerns, however, were addressed outside of this proceeding because they relate to United’s approved meter sampling program rather than to Staff’s proposed amendment to Standard 4.2.4.
IV. Findings and Recommendations
12. The Commission has the authority and jurisdiction to promulgate and amend regulations under 26 Del. C. § 209(a) and 29 Del. C. § 10111 et seq. Pursuant to 26 Del. C. § 209(a), the Commission may fix “just and reasonable” regulations governing any public utility.
13. Staff has shown that by allowing water companies to propose statistical meter sampling programs as an alternative to the current testing requirements, such companies can reduce costs without unreasonably diminishing the effectiveness of their meter testing process. United Water and the Public Advocate -- the only other participants in this docket -- each supported the proposed amendment.
14. For these reasons, I recommend that the Commission adopt, as just and reasonable, Staff’s proposed amendment to Section 4.2.4 of the Minimum Standards (Exhibit No. 2). A proposed form of Order implementing the above recommendation is appended, as Exhibit “A,” for the Commission’s convenience.
Respectfully submitted,
William F. O’Brien, Hearing Examiner
Exhibit “B”
4.2.4 Meter Testing. Each utility shall make periodic tests of meters to assure their accuracy. The periodic test interval shall not be longer than provided in the following schedule: Each utility shall have in place, and implement, a program for the testing of its meters to ensure their accuracy. Such program shall consist of either:
(a) The periodic testing of meters at intervals no longer than provided in the following schedule:
(1) 5/8 inch and 3/4 inch:
Once every 15 years
(2) 1 inch and 1-1/2 inch:
Once every 10 years
(3) 2 inch, 3 inch, and 4 inch:
Once every 3 years
(4) 6 inches and larger: Once every year
or
(b) The periodic testing of a random sampling of particularly-grouped meters under a meter testing plan submitted by the utility and specifically approved by the Commission. Such a plan may apply to the testing of all sizes of meters or meters of a particular size. The sampling procedures in any such plan shall be sufficient to ensure confidence in the accuracy of the meters included in the group represented by the sample. With such plan, the utility shall submit sufficient information and data to establish the ability of the sampling procedure to establish the accuracy of the utility's meters. The results of testing under any such approved plan shall be available to the Commission.
5 DE Reg. 1414 (01/01/02) (Final)
1 See, Exhibit 1, which consists of the affidavits of publication of notice.