THE ON GOING SAGA OF THE SMALL WATER UTILITY

1
THE ON GOING SAGA OF THE SMALL WATER UTILITY
NARUC SUMMER MEETINGS 2008

• INITIATED BY
• DAVID R. MONIE P.E.
• PRESENTED BY
• ROGER M. HALL

2
SMALL SYSTEMS HAVE FALLEN FROM FAVOR
NARUC SUMMER MEETINGS 2008

• They were the backbone of the industry
• They met the needs of many communities for years
• Mergers and Purchases to form larger system
• Took the conveniently located and viable systems
• Many remaining utilities are small systems that
  are not convenient, not always desirable or are
  not readily available for acquisition

3
SMALL SYSTEMS
NARUC SUMMER MEETINGS 2008

• Will continue to be part of the the industry and
  will be an on going concern to Regulators and the
  Industry
• Some have said The only good small system is
  the one that has just been acquired or
• the only good small system is the dead small
  system

4
NOT ALL SMALL SYSTEMS ARE BAD
NARUC SUMMER MEETINGS 2008

• Many have maintained a high standard of
  regulatory compliance and service

5
GOOD OR BAD SMALL SYSTEMS DO OFFER A CHALLENGE
FOR BOTH REGULATORS AND WATER MANAGERS
NARUC SUMMER MEETINGS 2008

• The issue has been on the agenda of many NAWC and
  NARUC conferences over the past years
• It also occupies much of the time of the
  Regulators

Without much having been accomplished
6
HOWEVER IN THE PAST YEAR SOME STEPS HAVE BEEN
TAKEN
NARUC SUMMER MEETINGS 2008

• The NRRI (NATIONAL REGULATORY RESEARCH INSTITUTE)
  has completed a White Paper researching what
  Commissions are doing to better regulate small
  systems by Melissa J. Stanford.
• This effort has resulted in a proposal by David
  Denig - Chakroff, Director, Water Research and
  Policy Certification Requirements As a Path to
  Improve Small Water Utility Operation

7
LETS NOT LOSE THE MOMENTUM The Small Systems
Committee of NAWC Would like to call for
NARUC SUMMER MEETINGS 2008

• A SMALL SYSTEMS WORK GROUP (SSWG) with
  representatives of
• NARUC (probably at the Staff level, not
  necessarily members of the staff subcommittee)
• NAWC Small Companies Committee
• National Association of State Utility Consumer
  Advocates (NASUCA) Already one volunteer

8
The Small systems work Group
NARUC SUMMER MEETINGS 2008

• The group would hopefully consist of
• a Group small enough to be workable
• Representatives of as many different
  Jurisdictions or Regions as practical
• With approximately four or five from NAWC

9
THE GOAL OF THE SSWG
NARUC SUMMER MEETINGS 2008

• Come up with recommendations of Best Practices
  in both Regulation and Management for small
  systems
• Propose piloting of possible Regulatory Practices
  that are identified as Best Practices
• This could be as simple as follow-up to existing
  regulatory practices already in place
• Stepping outside the box for some new ideas
• with the potentially of Piloting new ideas
• Establish proposals that could be endorsed by
  both NARUC and the NAWC

10
SSWG WOULD OPERATE
NARUC SUMMER MEETINGS 2008

• By conference calls and E-Mails, used to discuses
  opinions and ideas No Budget
• According to the rules established at its first
  conference call
• According to time tables set up at the first
  conference call
• Steps defined during the first conference call

11
SSWG WOULD CONSIDER
NARUC SUMMER MEETINGS 2008

• Various items and would not be restricted to any
  pre-arranged agenda. Items could include
• Rate case procedures
• The high cost (100 - 500) of rate processing on
  a per customer basis
• Certification Requirement Improvements
• Incentives for Consolidation