PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON * * * * * * * * * Timberline Four Seasons * WS-C * * * * * * * * *

Transcription

1 PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON * * * * * * * * * Robert And Janet Deal v. * Timberline Four Seasons * -0-WS-C Utilities, Inc. * * * * * * * * * * David And Jan Rosenau v. * Timberline Four Seasons * -0-WS-C Utilities, Inc. * * * * * * * * * * Robert J. Gilchrist v. * Timberline Four Seasons * -0-WS-C Utilities, Inc. * * * * * * * * * * Quentin T. Rayhart v. * Timberline Four Seasons * -0-WS-C Utilities, Inc. * * * * * * * * * * Reporter: Aliana Vignali Any reproduction of this transcript is prohibited without authorization by the certifying agency.

2 Karen Henson Bibbee v. * Timberline Four Seasons * -0-WS-C Utilities, Inc. * * * * * * * * * * Stephen Callender Schimpff * V. Timberline Four Seasons * -0-WS-C Utilities, Inc. * * * * * * * * * * Timberline Four Seasons * Utilities, Inc. * -0-WS-GI * * * * * * * * * * HEARING TRANSCRIPT * * * * * * * * * BEFORE: KEITH GEORGE, Administrative Law Judge HEARING: Tuesday, October 0, 0 : a.m. LOCATION: PSC Hearing Room No. 0 Brooks Street Charleston WV

3 A P P E A R A N C E S LESLIE J. ANDERSON, ESQUIRE Public Service Commission of West Virginia 0 Brooks Street P.O. Box Charleston, WV -0 Counsel for the Public Service Commission JOHN W. COOPER, ESQUIRE Cooper & Preston nd Street Parsons, WV Counsel for Canaan Valley Public Service District 0 CHRISTOPHER D. NEGLEY, ESQUIRE Shuman, McCuskey & Slicer, PLLC Virginia Street East, Suite 00 Charleston, WV 0 Counsel for the Timberline Four Seasons Utilities ALSO PRESENT: Diane Beall Robert Gilchrist

4 INDEX TO WITNESSES DISCUSSION AMONG PARTIES - WITNESS: FREDERICK HERZ DIRECT EXAMINATION By Attorney Negley - CROSS EXAMINATION By Attorney Cooper - WITNESS: ROBERT METZGER DIRECT EXAMINATION By Attorney Cooper 0 CROSS EXAMINATION By Attorney Negley STATEMENT By Attorney Anderson DISCUSSION AMONG PARTIES - 0

5 E X H I B I T S Page Number Description Offered NONE OFFERED 0

6 P R O C E E D I N G S Good morning. My name's Keith A. George. I'm an Administrative Law Judge with the Public Service Commission of West Virginia. We're here for a hearing on interim relief in Case Number -0-WS-GI. point I'll take appearances for the record. At this John Cooper, here on behalf of Canaan Valley Public Service District, Your Honor. for Timberline Utilities. My name's Christopher Negley. I'm here 0 I am Leslie Anderson, and I'm here on behalf of the Staff of the Public Service Commission. I'm assuming that no individual Complainants appear? Okay. Very well. I understand from Ms. Anderson that the parties may desire an opportunity to discuss matters before the hearing starts. Is that correct? Yes.

7 Yes, sir. Okay. How much time do you need? How about to 0 minutes. Okay. Well, why don't we take a half-hour break? And we'll resume the hearing at ten o'clock. Your Honor, I'm going to request that other than the Staff parties, the rest of the people take advantage of our lobby while we meet in private. That's between you all. I'm already --- I'm off the record ---. I am adamant, because it's a settlement discussion. And the rest of the people here are public 0 or they're not officially parties to the case. Again, I'm going to go off the record. If you want to have a private discussion, it's up to you how you structure it. SHORT BREAK TAKEN

8 I'm ready to resume the hearing. Mr. Cooper, since it's your motion for interim relief, do you want to address what's going on? Your Honor, during the recess, there'd been discussions with Timberline Four Seasons Utilities. We have reached what I think is an agreement in the interim basis, subject to your approval. And I believe that actually Mr. Negley will place that on the record. And then he will call Mr. Herz to verify and I will call Mr. Metzger to verify. Sounds reasonable. Fine to me. Mr. Negley? Your Honor, my name is Chris Negley. an attorney for Timberline Four Seasons Utilities, I'm Incorporated. At this time I'd like to discuss what an agreement to be placed on the record. At this time, this is the interim relief requesting relief for three months of payments that were outstanding by the utility to the Canaan Valley Public Service District. Timberline Four Seasons Utilities ---. The

9 You agree they're $,000 in arrearage? We agree that they're --- well, I agree that they owe three months. The issue of late fees, which is --- will be adjudicated later. From the parties. Okay. 0 Talking about the monthly $,.0. Timberline Four Seasons Utilities is agreeable to a sweep of its accounts through the ACH Program on the th, the th and the 0th of each month. And Your Honor, for the th that would be an $,000 sweep. And the th that would be an $,000 sweep. And the 0th it would be a combined sweep. That would be the remainder of the $,.0, which is $,.0, plus the current monthly obligation, which is $,.0. So the 0th sweep, Your Honor, would be $,. This will allow Timberline to both pay its tax obligations and remain current going forward. additionally ---. As in the account? Any reason to believe this money will be

10 We do believe it will be in the account. This is --- the reason we structured it in this manner and that we are --- and that the payment was amenable, because people start paying their monthly obligations around the th. And they then pay them intermittently through the end of the month. So we accept the th, the th and the 0th. available. We do believe there's money We also have an agreement that --- that Canaan Valley Public Service District will have access to our old bank records at the Grant County Bank, which was recently closed, along with the new bank account that is for at First United. That is a Maryland bank corporation, which I understand does have operations in West Virginia as well. We are amenable to them allowing --- to allow Canaan Valley Public Service District to review those financial transactions and banking records. 0 Mr. Negley, just to clarify. The three payments made you described as November th, November th and November 0th, that will occur in the same manner for December and January. Is that correct? The idea there over a three-month period

11 is to pay three-month obligations, August, September and October. So if, in fact --- well, when that is completed, then Canaan Valley Public Service District will retain the ability to sweep the account on the 0th for the outstanding $,.0. This will allow that --- take the --- will allow Canaan Valley the opportunity to, as they set forth in their request for interim relief --- first payment of funds due. Until there's a further order directing the sweep stop. Is that ---? Well, at this point we don't --- we're not 0 sure. We'd have to come back and seek relief. Now, wait a minute. Yeah. My understanding is that this will continue until such time as we have a final order in the other proceeding. Because that isn't --- the hearing's not until December the th. And then I think it's going to be March

12 before Judge George is required to put his --- and then the Commission's going to have to take action, if they decide to grant the petition. So I would say that our understanding is this would go forward continuously until such time as further order from Judge George or from the Commission. I think that's what I just --- I think that's what I was saying. I think it's --- it's a lot clearer after Mr. Cooper spoke. I wasn't absolutely sure when you 0 spoke, but I think it's a lot clearer. So ---? The sweep will continue until some other relief is entered. Okay. Mr. Herz is the vice president of the utility. He is prepared to --- to sit and go under oath and discuss this as advised by the Administrative Law Judge. Okay. The parties feel that to be

13 necessary. Right? What did you say? Do the parties believe it necessary to call Mr. Herz? Staff would recommend that he be sworn, just as we recommend --- have a sworn witness to --- Okay. Very well. --- verify the agreement. We'll call Mr. Herz to the witness stand and we'll put him under oath. COURT REPORTER: Right here. 0 Would you please raise your right hand? FREDERICK HERZ, HAVING FIRST BEEN DULY SWORN, TESTIFIED AS FOLLOWS: Okay. DIRECT EXAMINATION Mr. Negley.

14 BY Q. Mr. Herz, could you identify yourself for the record? A. Frederick Herz. Q. And are you an officer of Timberline Four Seasons Utilities, Incorporated? A. Yes, I'm the vice president. Q. And do you have the authority to bind Timberline Four Season Utility, Incorporated? Q. You know we're present here on a request for interim relief filed by Canaan Valley Public Service District? Q. And what you've heard, what I just explained on the record that Canaan Valley Public Service District has filed for interim relief regarding several months of 0 outstanding payments that are due to the utility. you --- Q. --- you're aware of that? A. Yes, I am. Do Q. You're aware that the August payment was not made? Q. You're aware the September payment was not made?

15 Q. You're aware the October payment has not been made? Q. Okay. I presented an agreement in principle to Chief Judge George a few minutes ago. And I'm going to outline that to --- for you. And I want you to tell me whether you're in agreement with it on behalf of the utility. A. Okay. Q. Can we do that? All right. We have outlined a three --- three-part payment plan per month, in order to pay back principle and to make sure that you keep payments going forward. Are you familiar with that? 0 Q. All right. You are understanding that on the th of each month, beginning in November of 0, you have --- the utility has granted Canaan Valley Public Service District the ability to sweep the account for the payment of $,000? Q. Are you aware --- do you agree that on the th of each month, beginning in November of 0, continuing until the back payments are --- the back three payments are completed, that you're authorizing, on behalf of the --- your company a sweep amount of $,000 payable to Canaan Valley Public Service District?

16 0 Q. And on the 0th, beginning on November 0th, 0, continuing forth until the back payments are finished, you are authorizing, on behalf of your utility, a payment of $,.0 to be swept from your account to Canaan Valley Public Service District? Q. And also on that date, November 0th, and continuing until some such order is entered, that --- that discontinues this practice, you're authorizing the payment of $,.0 to be swept from your account and paid to Canaan Valley Public Service District? Q. And do you understand that you are agreeing on behalf of your utility to provide access to records from the Grant County Bank to the Canaan Valley Public Service District? Q. And do you understand and agree that you are authorizing the Canaan Valley Public Service District the authority and the ability to review financial records associated with the First United Bank? A. Pertaining to the utility ---? Q. Pertaining to the utility operations.

17 Q. Yes. And I don't think I have any further questions for him. I'll give the parties an opportunity to inquire. So my understanding of this is basically you're going to keep him current on payments, but we're not --- we're not addressing the three-month arrearage. correct? Is that No, Your Honor. The three-month arrearage will be an $,000 payment on the th, $,000 payment on the th. the 0th. And then an $,.0 payment on the --- on That's payments on the arrears. not payments on the current bill? That's 0 No, the current bill will also be paid, beginning November 0th, of $,.0. So in essence, we're going to have an $,000 ACH withdrawal on the th --- th, an $,000 ACH withdrawal on the th, and a $, withdrawal on the 0th.

18 Okay. I was misunderstanding that. Thank you. Oh. And, Ms. Anderson, that --- that will be for the three months. After the three months are 0 over, then it will be a payment of $,.0, which is the monthly obligation of the utility to the District. Okay. So I think I understand now. Mr. Cooper, you may inquire. Yeah. CROSS EXAMINATION BY Q. With respect to the access to records, and with respect to the sweep, you understand that there will have to be a written document prepared by your attorney and by me allowing both the Grant County Bank, as far as the records are concerned, and First United National Bank, as far as the records, and as far as the sweep of the payments that you will have to sign on behalf of Timberline Four Seasons Utilities? A. Authorize the First United Bank to release the --- the ---? Q. The records --- that will also have to take place.

19 0 A. Yes, yes. Q. And they will not change banks in the interim. That's agreeable? A. No. No, they won't. No further questions. Ms. Anderson? I have no questions for him. Anything further? No, Your Honor. Okay. You may step aside. Thank you very much. And I call Mr. Metzger. Okay. COURT REPORTER: Can you raise your right hand? ROBERT METZGER, HAVING FIRST BEEN DULY SWORN, TESTIFIED

20 0 0 AS FOLLOWS: DIRECT EXAMINATION BY Q. For the record, sir, please state your name. A. My name is Robert J. Metzger. Q. And are you the chairman of the Board of Canaan Valley Public Service District? A. I am. Q. And are the other two Board members seated beside me here in this courtroom? A. They are. Q. And have you all heard the terms of what was expressed by Mr. Negley just a few moments ago? A. We have. Q. And based upon those representations, is it the position of the Canaan Valley Public Service District Board that you're agreeable to that arrangement on this interim basis? A. It is. That's all the questions I have. Very well. Mr. Negley?

21 Just one question. CROSS EXAMINATION BY Q. Mr. Metzger, you understand that the --- the question of late fees is not a part of the agreement that we've set forth in front of the Administrative Law Judge? A. We understand that the late fees will be looked at at a later date. All right. That's all the questions I have. Ms. Anderson? I have no questions for this witness. Okay. You may step aside. 0 THE WITNESS: Thank you, Your Honor. So ---? I would like to make a statement on behalf of Staff, if ---

22 Okay. --- you're ready. Certainly. On behalf of Staff, we believe that an emergency interim --- the Commission has authority to grant emergency interim relief, based on the blackwater tests that we set forth at our reply that we filed last week. And we recommend that emergency interim relief be granted in the form that the parties have agreed to. We believe that's in the public interest on an interim basis. And believe it's in the interest of Canaan Valley PSD, as well as an interest of Timberline Four Seasons Utilities' customers, so they can get caught up without it being too far behind and impossible to catch up. And we recommend the Judge issue an order as 0 soon as possible adopting it. I appreciate the parties negotiating and coming to terms on this agreement. Mr. Cooper, would it be a problem for you to submit some kind of proposed order to me tomorrow?

23 I'll be happy to do that, Your Honor. Okay. And you can fax it to the Executive Secretary's Office and then I'll have an order issued by Friday. I'd be happy to. Anything else we need to do today? And I'll copy Mr. Negley with that as well, Your Honor. And Ms. Anderson, I suppose, yeah. since the terms are all agreed, it shouldn't be controversial and I ---. So Wait. What's this? 0 I said also include you. send a copy to him. Thank you. I said I would

24 Anything else we need to do today? No, Your Honor. Okay. Hearing's adjourned. Thank you very much. * * * * * * * * HEARING CONCLUDED AT : A.M. * * * * * * * * 0

25 CERTIFICATE I hereby certify, as the stenographic reporter, that the foregoing proceedings were taken stenographically by me, and thereafter reduced to typewriting by me or under my direction; and that this transcript is a true and accurate record to the best of my ability. I certify that the attached transcript meets the requirements set forth within article twenty-seven, chapter forty-seven of the West Virginia Code. Aliana Vignali, Court Reporter 0