NC0061719_NC Utilities Commission_20020503

STATE OF NORTH CAROLINA
UTILITIES COMMISSION
RALEIGH
DOCKET NO. W-274, SUB 387
BEFORE THE NORTH CAROLINA UTILITIES COMMISSION
In the Matter of
Notification of Intent by Heater Utilities, Inc., Post Office
Drawer 4889, Cary,North Carolina 27519, to Begin
Operations in an Area Contiguous to Present Service
Area Providing Water and Sewer Utility Service along
Applewhite Lane in Woodlake Resort and Golf Club
Subdivision in Moore County, North Carolina, and for
Approval of Rates
i
MAY 6 2002
ORDER
RECOGNIZING
CONTIGUOUS
EXTENSION AND
APPROVING
RATES
BY THE COMMISSION: On March 28, 2002, Heater Utilities, Inc. (Heater or
Applicant), filed an application notifying the Commission of its intent to begin operations
in an area contiguous to a present service area and for approval of rates. Heater desires
to expand water and sewer utility service along Applewhite Lane in Woodlake Resort and
Golf Club Subdivision, which is contiguous to Heater's present Woodlake Subdivision in
Moore County, North Carolina. The Applicant's proposed rates are the same as currently
approved in its other franchised service areas. The Applicant states that there are
presently no customers being served. The Applicant expects eventually to serve 10
residential customers in Applewhite Lane in Woodlake Resort and Golf Club Subdivision.
Heater is acquiring the water and sewer utility systems under an agreement
between Woodlake Water and Sewer Company, Inc. (Woodlake), and Heater dated
January, 1999. Heater is paying $400 for each water customer and $400 for each sewer
customer.
On the basis of the verified notification and the records of the Commission, the
Commission makes the following
FINDINGS OF FACT
1. Heater presently holds water franchises for approximately 400 systems (544
subdivisions) serving approximately 30,514 customers in 33 counties and sewer franchises
for approximately 33 systems (57 subdivisions) serving approximately 4,790 customers in
eleven counties. Heater's record of service is satisfactory.
2. The service area covered by the extension is the area shown on the plans
attached as Exhibit 7 to the notification form filed in this docket. There are presently no
customers being served along Applewhite Lane in Woodlake Resort and Golf Club
Subdivision. Heater expects eventually to serve ten residential customers in this
subdivision.

3. The Public Staff has recommended that Heater be required to post a $20,000
bond for Applewhite Lane in Woodlake Resort and Golf Club Subdivision. Heater currently
has $4,300,000 of bonds posted with the Commission. Of this amount, $3,800,000 of bond
surety is assigned to specific subdivisions and $500,000 of bond surety is unassigned.
4. Heater has the technical, managerial, and financial capacity to provide water
and sewer utility service in this contiguous extension area.
5. Heater has filed all exhibits required with the application.
6. The NC Division of Environmental Health has issued a plan approval letter
for the water distribution system in Applewhite Lane in Woodlake Resort and Golf Club
Subdivision, consisting of 6-inch and 2-inch mains. The plans are approved under serial
number 01-02126, dated February 5, 2002. The water system is approved for 10 lots.
7. The NC Division of Water Quality has issued a wastewater collection permit
in Applewhite Lane in Woodlake Resort and Golf Club Subdivision for the extension of
gravity and force mains from the Woodlake Resort and .Golf Club Subdivision collection
system. The extension will consist of a 80 gpm pump station with duplex pumps, 8-inch
gravity sewer mains, and a 3-inch force main. The Applewhite Lane collection system is
approved by Permit No. WQ0020640, dated December 7, 2001, for nine three -bedroom
residences discharging 3,240 gpd.
Based upon the foregoing, the Commission is of the opinion that $20,000 of
Heater's unassigned bond surety should be assigned to Applewhite Lane in Woodlake
Resort and Golf Club Subdivision, that the notification to provide water and sewer utility
service in Applewhite Lane in Woodlake Resortand Golf Club Subdivision meets the
criteria for contiguous expansion, that the requested rates should be approved, and that
the agreement described above should be approved.
IT IS, THEREFORE, ORDERED as follows:
1. That $20,000 of the $500,000 unassigned bond surety shall be assigned to
to Applewhite Lane hi Woodlake Resort and Golf Club Subdivision. The remaining
unassigned bond surety shall be $480,000. -
2. That the contiguous extension of water and sewer utility service from the
Woodlake Resort and Golf Club Subdivision system into Applewhite Lane in Woodlake
Resort and Golf Club Subdivision in Moore County, North Carolina, is recognized as
meeting the Commission's criteria for such extension. The service area covered by the
extension is the area shown on the plans attached as Exhibit 7 to the notification form filed
in this docket.
3. That Appendix A constitutes the Certificate of Public Convenience and
Necessity.
2

4. That the Schedule of Rates (see Docket No. W-274, Sub 357) is approved
for Heater in Applewhite Lane in Woodlake Resort and Golf Club Subdivision. These are
the same rates approved by the Commission for Heater's other franchised areas.
5. That the agreement between Heater and Woodlake, described hereinabove,
is approved.
ISSUED BY ORDER OF THE COMMISSION.
This the 3`d/ day of
rb042902.01
, 2002.
NORTH CAROLINA UTILITIES COMMISSION
rnou,r4
Gail L. Mount, Deputy Clerk
3

STATE OF NORTH CAROLINA
UTILITIES COMMISSION
RALEIGH
APPENDIX A
DOCKET NO. W-274, SUB 387
BEFORE THE NORTH CAROLINA UTILITIES COMMISSION
HEATER UTILITIES, INC.
is granted this
CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY
to provide water and sewer utility service
in
APPLEWHITE LANE IN WOODLAKE RESORT AND GOLF CLUB SUBDIVISION
Moore County, North Carolina
subject to any orders, rules, regulations,
and conditions now or hereafter lawfully made
by the North Carolina Utilities Commission.
ISSUED BY ORDER OF THE COMMISSION.
This the 3 day of 't \C 2002.
NORTH CAROLINA UTILITIES COMMISSION
vVal •ThOW\t—
Gail L. Mount, Deputy Clerk