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OfBcc ofRegulatory StaKThe Consumer Services Division1441 Main StreetColumbia, SC 29201

October 16, 2006

Subject: An application by Wyboo UtiTities, Inc. for approval of a New Schedule ofCharges for Water and Sewer Rates, i.e. Docket No. 2005-13-WS,

I am submitting this letter to notify the Once of Regulatory Services (ORS) of two (2)speci5c problems that I have encountered withWyboo Plantation Utilities, lnc. (WPU)within the last few months, Both problems are service re1ated and are described brieflybelow as Incident No. 1 and Incident No.2:

Incident No. l occurred on May 30-31 of this year, after I was alerted by the alarm

system ot our (gray water) septic tanks that they were full a»d that their pote»tiallyimminent overflow would cause e81uent to back up into the ground level room of ourhome. Shortly thereafter, I was able to reach Mr. Mark Wrigley by telephone aud, aftersome dif5culty with him on the telephone, he agreed to come to my home to assess theproblem. Immediately upon his arrival, I took him to the site ofour septi: system tanks,which are located 24" to30" under the center ofa smaH grassy plot that is surrounded bya patio and a unique Charleston Garden at the rear ofour home. I cxplaumi to Mr.Wrigley that his instant proposal to bring in a piece of heavy equipment (backhoe) toexcavate the covers ofthe septic tanks was a totally unsatisfactory solution to ourproblem. I also explained to him, in detail, the reason why the introduction ofa largebackhoe to excavate in a small area —one that was interlaced extensively with an intricatematrix underground of drainage and sprinkler systems —would cause extensive damageto that infrastructure in w'hich we had invested many thousands of dollars, over a periodof5-6 years ofplanning and implementation. To my complete surprise IIQ greatdisappointment, Mr. Wrigley proved to be utterly intransigent to my counterproposal thatthe septic, tank covers be uncovered by hand-digging them —in the same manner as hadbeen done previously over the years at Wyboo Plantation —and that I would pay for anyadditional expense he might incur in doing so. To my consternation, Mr. Wrigley wasadamant that he wouhi neither 1.) have the area hand dug nor 2.) would he repair thedamage caused by using the backhoe to dig what amounted to three holes (using a sledgehammer to swat a Qy) in our yard. Despite my best e8brts, I was unable to persuade him

to assist us in protecting our property and our investraents in it including:

two (2) 4" Schedule 40 PYC pipes that connect gutters and downspout at the fourcorners of our house to carry rain water away &om the foundation ofour house,enabling us to maintain the integrity of our completely dry finished ground levelinterior space of approximately 1400 sq. 5.

~ two 4"-6ss perforated vinyl pipes and associated connectors to a system of in-

ground drain boxes that conduct excess water away f'rom our house and out ofour yard.

October ] 6, 2006

Office of Regulatory StaffThe Consumer Services Division

1441 Main Street

Columbia, SC 29201

Subject: An application by Wyb00 Utilities, Inc. for approval era New Schedule of

Charges for Water and Sewer Rates, i.e. Docket No. 2005-13-WS.

I am submitting this letter to notify the Office of Regulatory Services (ORS) of two (2)

specific problems that I have encouat rcdwith Wyboo Plantation Utiliti_.3, Inc. (WPU)within the last few months. Both problems are service rehted and are described briefly

below as Incident No.1 and Incident No.2:

Incident No.1 occurred on May 30-31 of this year, after I was alerted by the ahrm

system of 0ur-(gray water) septic tanks that they were full and that their potentiallyimminent overflow would cause effluent to back up into the ground level rooms of our

home. Shortly thereafter, I was able to reach Mr. Mark Wrigley by telephone and, after

some difficulty with him on the telephone, he agreed to come to my home to assess the

problem. Immediately upon his arrival, [ took him to the site of our sep_: system tanks,which are located 24" to30" under the center of a small grassy plot that is surrounded by

a patio and a unique Charleston Garden at the rear of our home. I explained to Mr.

Wrigley that his instant proposal to bring in a piece of heavy equipment (backhoe) toexcavate the covers of the septic tanks was a totally unsatisfactory solution to our

problem. I also explained to him, in detail, the reason why the introduction era largobackhoe to excavate in a small area - one that was interlaced extensively with an intricate

matrix underground ot_drainage and sprinkler systems - would cause extensive damageto that infl_structurc in which we had invested many thousands of doUars, over a period

of 5-6 years of planning and implementation. To my complete surpfi_ ee3d great

disappointment, Mr. Wrigley proved to be utterly intmmigent to my counterproposal that

the septic tank covers be uncovered by hand-digging them - in the same manner as had

been done previously over the years at Wyboo Plantation - and that I would pay for any

additional expense he might incur in doing so. To my consternation, Mr. Wrigley was

adamant that he would neither 1.) have the area hand dug nor 2.) would he repair the

damage caused by using the backhoe to dig what amounted to three holes (using a sledgehammer to swat a fly) in our yard. Despite my best efforts, I was unable to persuade him

to assist us in protecting our property and our investments in it including:

• two (2) 4" Schedule 40 PVC pipes that connect gutters and dowmpout at the fourcomers of our house to carry rain water away from the foundation of our house,

enabling us to maintain the integrity of our completely dry finished ground level

interior space of approximately 1400 sq. ft.

• two 4"-6" perforated vinyl pipes and associated connectors to a system of in-

ground drain boxes that conduct excess water away from our house and out of

our yard.

~ a professionally designed, instaUed and maintained imgation system, including

Schedule 40 PVC water pipes and numerous sprinkler heads.

~ two 2"Schedule 40 PVC pipes that are connected to three in4loor/ia carpet d ains

that axe installed in the ground-level floor ofour house, to keep that level Rom

wooding in the unhkely eveat ofa broken water supply line at the point of entry to

our house.

After concluding that an accord to protect our interests could not be reached with Mr.

Wrigley, I noti6ed him that I would make other arrangements to address our problem and

hc leit our property.

Immediately thereafter, I called James Septic Systems and they assured me that they

would come out to our house, pump out our tanks and put us in a position where we

could use water again (w/c's, kitchen, laundry, etc.).They were as good ss their word,

pumping the tanks ahngst immediately and mstalling a new pump within about 72 hours.

It should be noted that when they hand dug three small, neat straight-walled holes (aRer

carefully removing and putting aside the sod over the covers ofthe septic tanks) they did

so without damaging a siingle wire or pipe in our yard. Their mMlerstandng ofour plight

and the service they provided stood in sharp contrast to that ofMr. Wrigley.

g'jy j~ j (. report

Lake

healthI"g T(fi I ~ in our

I (AIp~

ut No.2 began when. approxhnately four months ago (circa May or Junc ofthai

I'M+ theWPU once m Sauhu; no staff were present, so I left

arne

to

a leak water main in)he median of thc roadway opposite . 5 Ridge

Drive. The leak caused a washout in the ground above that has 511ed in

water and xemaicmd ughout the summer .That water-Sled hole is alMmmi bemuse 1).it ls a '

lace for uitoes and 2). it iindicates a leak

water main that, in the event ofa dr essure, would provide an entry toria that couH contaminate the vtslter supp/ o ~boo Plantation. As no visible

actin was taken by WPU, I suhs8quentlynoti6ed the Bo ofDirectors and

Ahninistration hhmayr-of Cyboo Plantatlm of this hcaltht . t is my under-

standing that they-aotiled Mr. Wrigley, personaly, but still no visible appears to

have been. taken, As the "water hole" remained as ofOctober 5, almost two w ago, IMr. J.Petit ofDHEC's KQS; he assured me that he would look mto this miftm.

I hope that tlus and other constructive criticisms will lead soon to a less adversarial and

more constructive relationship between Mr. Wrigley/WPU and the homeowners at

Wyboo Phmtation.

ly,

ames L. Walsh

• a professionally designed, install©d and maintained irrigation system, includingSchedule 40 PVC water pipes and numerous sprinkler heads.

two 2" Schedule 40 PVC pipes that are connected to three in-floor/'m carpet d_mnsthat are installed in _ ground-level floor of our house,, to keep _s_ level _om

flooding in the unh3cely event of a broken water supply line st the point of entry to

our house•

After concluding that an accord to protect our interests could not be reached with Mr.

Wrigley, I notified him that I would make other arrangements to address our problem and

he left our property.

Immediately thereafter, I called James Septic Systems and they asmued r_© that they

would come out to our house, pump out our tanks and put us in a position where we

could use water again (w/c's, kitol_o, lamxlry, etc.). They were as good _s their word,

pumping the _ ahnost in_mcdia_y and installing a new pump within about 72 hours.It should be noted that when they hand dug three small, neat straight-walled holes (aftercarefully removing and putting aside the sod over the cove_s of the septic, tanks) they didso without damaging a single wire or pipe in our yard. Their _ig of our plight

and the service they provided stood in sharp contrast to t_t of Mr. Wrig|cy.

j ,_7---_, _nt No.2 began when. approximately four months ago (circa l_y o_ J_ of_/V / year), Fcall_ the WPU of_.e in S_, no staffwe_ In_..se_ so I le_ a me.to

_{ t_o report a leal_lh_ water ma_ m the median of tb¢ roadway opposite_l 5 Ridge

_ _ _ Lake Drive. The leak_nas..cansed a washout in the ground abo_ t.b_ has filled in

withwater hole a,_,: ._,_ , health hazard because 1). it is a bree_ing place _r_o_iuitoes and 2). it i_li_xtcs a leak

_ _ _ ( _ in our water main that, in the event of a_essure, would provide an en .l_y.to

_" acoon was taken by WPU, 1 is_luently notified the Bo_si_f Director,_ and

[ Adminkslxafion M_., ofWyboo Plantation of this hca_ _t_m my under-

/ -_ -__ standing that _..u6fifted Mr. Wrigley, pecsonally, but still no visible __ .pyars to,_---__.:2:_- have be__ As the "water hole" remained as of October. 5, almost two w-ee_ago, t

__tr. J. Petit ofDHEC'$ EQS; he assured me that he would look into this mat'ft_

_ I hope that flxis and other constructive criticisms--will lead soon to a less adversarial and

more constructive relationship between Mr. Wrigley/WPU and the homeowners at

Wyboo Plantation.

Account Number:

3AMES L WALSH TRUSTEE3AMES L WALSH REVOCaBLE TRUSTH RIDGE LAKE ORMANNING SC 29102-9S11

JAMKS L. WALSM, TRUSTERJAhIES L VfALSH REVOCASLF- YRUST14 RIPE LAKE OR VWQOO O'CANT'ATXXV

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EUs:-L ORNEOFFICE OF REGULATORY STAFF

John F. BeachDirect dial: StJ3/343-1269

Qc'2 iVE

JAN 2 2 2OO'I

January 19, 2007 'IJIIISUhtER ~IX& ilEH&rtTfNENT

VIA HAND-DELIVERYMr, Chad Campbe]1Investigator, Consumer Services0ffice of Regulatory Staff1441 Main Street, 3' FloorColumbia SC 29201

RE: Complaint of James Walsh (Your File No. 06-S-3678)Wyboo Plantation Utiliiies, Inc. , ELS File No. 1015-10306

Dear Mr. Campbell:

I am writing on behalf of Wyboo Plantation Utilities, Inc. ("Wyboo") in response to the above-

referenced customer inquiry. This letter mostly appears to be a protest on the rate case.

Mr. Walsh's letters are extrcme)y he)pfu) in graphically demonstrating the cost and difficultyassociated with maintaining the STEP systems within Wyboo.

, , r The first problem Wyboo had with Mr. Walsh's situation is that his step system was not installedin accordance with utility specifications. The major problem is that Mr. Walsh had the systeminstalled in his bacl& yard, rather than his front yard. Mr, Walsh's, decision to locate the STEPsysteni in his back yard actually created most of not all of the problems he experienced.

~Mr. Wa)sh located his STEP system "24" to 30"under the center of a small grassy plot that is

surrounded by a patio and a unique Charleston Garden." While Wyboo makes every effort to

address customer problems in a way that has abso)utely no adverse impact on customer

landscaping, Mr. Walsh's STEP system was located in a p)ace that made it practical)y difficultfor Wyboo to do so here.

Mr. Walsh's located the STEP system in the baclc of his yard, which was about 80 feet farther

away from the Wyboo main than appropriate. This placement added approximately 10 to ) 5

additional head feet pressure to the pump requirements. With the head and additional length ofpipe, Mr. Wa) sh's pump has to worl& extra hard to pump his grey water out. ldis baclcyard is also

soaked with water, which could be a source of water infiltration to the step system and thc

additiona) problems with electrical shortage, due to improper installation.

ElliS, LawhOme 1| Sine, P.A. , Attcn~ at Law

1501 Main Street, 5th FlOOr PO BOX 2255 COlumbia, SOuth CarOlina 29202 503 254 4&90 ~ 803 779 4749 FaX ~ eltralaWhOrne. COm

ELLIS ORNE

JohnF. B=achDirect dial.'803/343-1269Lb.e,acl_,ellislawhorne.com

January 19, 2007

OFFICEOF REGULATORYSTAFF

VIA HAND-DELIVERY

Mr. Chad CampbellInvestigator, Consumer Services

Office of Regulatory Staff1441 Main S_eet, 3r_ Floor

Columbia SC 29201

RE: Complaint of James Walsh (Your FileNo. 06-S-3678)

Wyboo Plm_tationUtilities,Inc.,ELS FileNo. 1015-I0306

Dear Mr. Campbell:

I am writing on behalf of Wyboo Plantation Utilities, Inc. ("Wyboo") in response to the above-

referencedcustomer inquiry,This lettermostlyappearstobe aproteston theratecase.

Mr. Walsh's letters are extremely helpful in graphically demonstrating the cost and difficulty

associated with maintaining the STEP systems within Wyboo.

The first problem Wyboo had with Mr. Walsh's situation is that his step system was not installed

in accordance with utility specifications. The major problem is that Mr. Walsh had the system

installed in his back yard, rather than his front yard. Mr. Walsh's_dccision to locate the STEPsystem in his back yard actually cieated most ofno_ all of the problems he experienced.

{Mr. Walsh located his STEP system "24" to 30" under the center of a small grassy plot that is

/ _ _ ,!_ surrounded by a patio mid a unique Charleston Oardcn." While Wyboo make, s every effort to'¢[ ,_ ....'..:._ _ address customer problems il_ a way that has absolutely no adverse impact on customer

4f• landscaping, Mr. Walsh s STEP system was located in a place that made it practically difficult

forWyboo todo so here.

Mr. Walsh's locatedthe STEP system infileback of hisyard,which was about 80 feet farther

away from theWyboo main than appropriate.Thisplacement added approximately 10 to 15

additionalhead feetpressuretothepump requirements.With the head and additionallengthof

pipe,Mr. Walsh's ptanp has towork extrahardto pump hisgreywater out. His backyardisalso

soakedwithwater,which could be a sourceofwater infiltrationtothe stepsystem and the

additionalproblems with electricalshortage,due to improper installation.

Ellis,Lawhome& Sims, RA., Atlon'leysat Law

1501 Main Street, 5lh Floor ,,= PO Box 2285 =- Columbia, SouthCarolina 29202 ,= 803 254 4190 m 803 779 4749 Fax m ollislawhorne.com

Mr. Chad CampbellJanuary 19, 2007Paa.2

Mr. Wrigley states that when he went to Mr. Walsh's house to look at and check for systembreakdown and probe his front yard for lus system, Mr. Walsh confronted him out in front of hishouse. When Mr. Wrigley asked Mr. Walsh where the tank was located, Mr. Walsh informedhim the taiN was in the back of the house and stated that Wyboo could not bring equipment inhis yard. Mr, Wrigley told Mr. Walsh that he may need to and wouId not be responsible for anytracks that might be leA. Mr. Walsh then reiterated that Wyboo was not to bring any equipmentinto his yard. Mr. Walsh then told Mr. Wrigley that the tank was located only 3"below ground.They both walked around and down the hill to the back of his house.

Mr. Wrigley reports that he was at Mr. Walsh's house approximately tlu ee hours that day,probing and hunting for his tanlc, but never could find the system. Mr. Wiigley could not verifythe depth and therefore, Mr. Walsh said not to worry, that he would find the tank and call Mr,Wrigley. Mr. Walsh then decided he would take care of the problem himself. Mr. Wiigleyreports that he never heard back from Mr. Walsh until receiving the December 2l, 2006 noticefrom the ORS.

Mr. Walsh brought this same issue up in the night hearing. 13e also read the v hole letter to theCoininission and then submitted same.

Mr, Walsh's service has been established and he is continuing to receive sewer service from theutility with no interruptions. It is Wyboo's hope that the explanation set forth in this letter willfully satisfy this customer's concerns. Wyboo is willing to continue these discussions in order tobring this matter to a final resolution.

With kind regains, I am

Yours truly,

cc: Florence Belser, EsquireMr. Mark S. Wrigley

J inF, Beach

Mr. Chad Campbell

January 19, 2007

hg _2

Mr. Wrigley states that when he went to Mr. Walsh's house to look at and check for systembreakdown and probe his front yard for his system, Mr. Walsh confronted him out in front of his

house. When Mr. Wrigley asked Mr. Walsh where the tank was located, Mr. Walsh informed

him the ta,_k was in the back of the house and stated that Wyboo could not bring equipment in

his yard. Mr. Wrigley told Mr. Walsh that he may need to mid would not be rosponsiblc for any

tracks that might be left'. Mr. Walsh then reiterated that Wyboo was not to bring any equipment

into his yard. Mr. Walsh then told Mr. Wrigley that the tank was located only 3" below ground.They both walked around and down the hill to the back of his house.

Mr. Wrigley reports that he was at Mr. Walsh's house approximately tlu'ee horn's that day,

probing and hunting for his tank, but never could find the system. Mr. Wrigley could not verifythe depth and therefore, Mr. Walsh said not to worry, that he would find the tm_k and call Mr.

Wrigley. Mr. Walsh allen decided he would take care of the problem himself. Mr. Wligleyreports that he never heard back from Mr. Walsh until receiving the December 2 ], 2006 noticefrom theORS.

Mr. Walsh brought this same issue up in the night hearing. He also read the whole letter to theCottunission and then submitted same.

Mr. Walsh's service has been established and h¢ is continuing to receive sewer service fTom the

utility with no interruptions. It is Wyboo's hope that the exp)m_ation set forth in fills letter will

fully satisfy this customer's concerns. Wyboo is willing to continue these discussions in order tobring this matter to a final resolution.

With kind regm_Is, I am

CC; Florence Belser, Esquire

Mr. Mark S. Wrigley

Yours truly,

ch

Clarendon CountyPlanning 8 Public Service Commission

Post Office Box 1250, Manning. SC 29102Telephone: (803) 435-8672 / 435-2105 Fax: (803) 435-2208

February 20, 2007

To: Mr. Jim Walsh14 Ridgelake DriveLot¹ 3Manning, S.C. 29102

From: William TaylorClarendon County

Mr. Walsh:On August 29, 1997, A Certificate of Occupancy was issued for this residence.

That indicates, that the residence met the requirements of Clarendon County to be in

compliance the current building codes adopted by the County. This includes the waterand sewer connections.

Ifyou have any questions, please call me.

Sincerely,

Building Official

/ Clarendon County

Plannin_ _ Public Service CommissionPost Office Box 1250, Manning. SC 29102

Telephone: (803) 435-8672/435-2105 Fax: (803) 435-2208

February 20, 2007

To: Mr. Jim Walsh

14 Ridgelake DriveLot# 3

Manning, S.C. 29102

From: William Taylor

Clarendon County

Mr. Waish:

On August 29, 1997, A Certificate of Occupancy was issued for this residence.

That indicates, that the residence met the requirements of Clarendon County to be in

compliance the current building codes adopted by the County. This includes the waterand sewer connections.

If you have any questions, please call me.

Sincerely,

William T_ylor

Building Official

DOCKET NO. 2005-13-WS —ORDER «'O. 2007-138FEBRUARY 26. 2007

out of time by John C. Bruffcy, Jr. and Deer Creek Plantation Properties, Inc, , but the

Corntnfssion denied this Petition as untimely.

The Commission held a local public hearing in this docket on Monday, October 30

06, at 6 p.m. in the Chrendon County Courthouse in lvfanning, South Carolina. at which

public iestimony relating to the requested rate increase was offered, Thereafter, a hearing

on the merits was held January 22 through January 24, 2007, in the offices of the

Commission. John F. Beach, Esquire appeared on behalf of WPV, Wendy Cartledge,

Esquire and C. Lessie Harnmonds, Esquire appeared on behalf of the Office of Regulatory

Staff ("ORS"). Robert E. Tyson, Jr. , Esquire appeared on behalf of intervenor The Villas

at Wyboo Property Owners Association ("The Villas"), ' Charles H. Cook, Esquire and

Scott Elliott, Esquire appeared on behalf of intervenor Wyboo Plantation Owners

Association, inc, ("Homeowners" ).

SUMMARY OF REQUESTED RELKF

The Commission, in Docket No. 96-227-W, Order No. 1996-757, previously

established a water rate of $1$.00 per month for all of WPU's customers, The Order

further approved a $10.X monthly irrigation charge, but it did not establish n water tap

fee. In Docket No. 97-391-S.Order No. 1998-33, the Commission established a sewer rate

of $20.00 per month for all of WPU's customers and established a sewer tap fee of

$500.00. In the application now before the Commission, WPU seeks to increase its

residential water rate to $67,00 per month and its residential irrigation rate to $25.00 per

' Prior to ihc hearing, counsel for WPU and the Villas advised thc Commission that they hsd reached a

stipuhsion with respect to the rates payable by the Vil!as. Generally, the stipulation provides that the Villss

at Wyboo condominium units, sales office. laundry. pool showers and restrooma would he billed at one

single. family equivalent' thc assembly hall »onld be billed at a rare af one and a half times a single. family

eaulvslen'. Tne snanager's residence would be billed ai a residential rate. The Commission memorializcs thc

s of the stipulation herein for «pp] ication to current and future rates.

DOCKET NO. 2005.13-WS - ORDER NO. 2007-138

FEBRUARY 26, 2007PAGE 2

out of time by John C. Bruffey, Jr. end Deer Creek Plantation Properties, Inc., but ,,he

Commission denied this Petition as untimely,

The Commission hem a local public hearing in this docket on Monday, O¢to_,._30|

_006, at 6 p.m. in the Clarendon County Courthouse in Manning, South Carolina. at whiqh

j)u'oli¢ testimony relating to zhe requested _te increase was offered., Thereafter, a hearing

on the meritswas held January22 thToughJanuary24, 2007, in the officesof the

Commission. John F. Beach,Esquireappearedon behalfof WPU. Wendy Cartledge,

Esquireand C.LessieHarnmonds,E_uirc appemed on behalfoftheO_ce ofRegulatory'

Staff("ORS"). RobertE.Tyson,Jr,,E_uire appearedon behalfofinlervenorThe Villas

atWyboo PropertyOwners Association("TheVillas").t CharlesFL Cook, Esquireand

ScottElliott,Esquireappeared on behalfof imervenorWyboo PlantationOwners

Association,Inc.("Homeowners").

SUMMARY OIFREQUESTED RELIEF

The Commission,in Docket No. 96.227-W, Order No. 1996-757,previously

establisheda waterrateof$18.00per month forallof WPU's customers.The Order

furtherapproveda $10.00monthlyirrigationcharge,butitdidnot establisha watertap

fee.InDocketNo. 97.391-S.OrderNo. 1998-33.theCommission establisheda sewerrate

of $20.00per month forallof WPU's customersand establisheds sewer tap fee of

$500.00. In the applicationnow beforethe Commission,WPU seeksto ittcrcaseits

resldcntlalwaterrateto$67.00permonth and itsresidentialirrigationrateto$25.00per

Priorto _heheating, counsel for WPU and the Villas advbed thQCommission that _y had reachedastlpu_ton with respectto the razespayable bydie Villas. Generally,the stipulationprovidesthatthe Villasat Wybooco_dominiemunits, sales office, laundr/, pool showerserd restrooma would be billed st oneslng|e.faml]yeqtfivalent;the assembly"hall w_3uldbe billed ata rateof one anda ha]ftimes e _i,g]e.familyeauh'alen:._qe menageT'iresidencewould bebilled ala residentialrate. TheCo._mi;sionmemorializesthete_s of the stipulation I_erein for eqTp]icat_n to current _md _tur¢ rates.

DOCKET NO. 2005-13-%S—ORDER NO. 2007-138FEBRUARY 26, 2007

3

inonth. In addition, the Company seeks to establish cornrnercial and mobile homes rates

together urith connection fees, a plant impact fee and a disconnection!reconnection fee.

WPU further seeks to increase its sewer service rate to $75.00 a month, establish

corntnercial and/or rnobilc home rates, increase its sewer service connection fec, establish a

plant impact fcc for new sever customers, establish swimming pool water fccs and

establish a disconnection/reccnnection fee. In addition. the Com anv seclcs to establish,

inter alia, fees for maintenance, repair and z.placement of certain of its wastevifater

SUMMARY OF TESTIMONY

itness

At the local public hearing in Manning„South Carolina on Monday, October 30,

2006, tbe Commission heard from a large number of public witnesses in opposition to

WPU's application for rate relief. At the beginning of -.he proceedings on January 22, the

Comtnission heard from two public witnesses, both customers of WPU residing in

Clarendon County. Thereafter, in the course of the hearing held January 22-24s 2007, the

Commission heard from witnesses presented by parties to the case. Mark S. Wrigleyr

President and sole owner of WVPU, testified for thc Company, WPU also called as

witnesses %illie J, Morgan, Christina L. Scale, and Douglas H. Carlisle, Jr. , all of the

ORS. Morgan, Scale, and Carl isle all appeared under compulsion of subpoena, Dwight D.

Samuels, Daniel L. McDonald, and Leo C. Gallagher testified on behalf of the

Homeowners. The ORS presented the testimony of Robert A. Stembcrg. a WPU customer

and a residential building contractor, and Morgan, Program Manag™r for the Water and

Wastewater Department of ORS,

DOCKET NO, 2005-13-WS - ORDER NO. 200%138FEBRUARY 26, 2007PAGE 3

month. Inaddition,theCompany seekstoestablishcommercialand mobilehomes rates

togetbet,x_thconnectivnfees,a plantimpactfeeand a disconnectiortPreconncctlonfee.

WPU furtherseeksto incrumscitssewer scrvlccrateto $75.00 a month, establish

commercialand'ormobilehome rates,increaseitssewerserviceconnectionfee,establisha

plantimpactfee for new sewer customers,establishswimming pool water feesand

establisha di_onnectiort/reccr_ectior_fee.Inaddition,theCompany seekstoestablish,

inter alia, fees for maintenance, reptfir and _placement of certain of its w,astewater&,. ,

treatment facilities.

SUMMARY OF TESTIMONY

Overvi .eyvof Wit.n.essgs

tAt the local public hearing in Manning, South Carolina on Monday, October 30,

2006. the Commission heard from a large number of public witnesses in opposition to

WPU's application for rate relief. At "the beginning of-he proceedings on January 22, the

Commission heard from two publicwlmemes, both customersof WPU residingIn

ClarendonCounty. Thereafter,inthecourseofthehearingheldJanua,5,22-24,2007,the

Commission heardfrom witnessespresentedby partiestothecase. Mark S. Wrigley,

Presidentand soleowner of WPU, testifiedforthe Company. WPU alsocalledas

witnessesWillieJ.Morgan, ChristinaL, Scale,and DouglasH. Carlisle,Jr,,allof the

ORS. Morgan,Seale_ andCarlisle allappearedundercompulsionofsubpoena,DwightD.

Samuels,Daniel L. McDonald, and Leo C. Gallaghertestifiedon behalfof the

Homeowners. The ORS presentedthe_esllmonyofRobertA. Steinberg,a WPU customer

and a residentialbuildingcontractor,and Morgan, Program Manager forthe Water and

Wastewater Department of ORS.

DOCKET NO, 2005-13-WS —ORDER NO. 2007-138FEBRUARY 26, 2007PAG 4

Discnsslo of Wltn s Testimony

The public witness testimony heard at the cominuation of the Commission's

hearmgs on January 22, 2007, was fairly representative of the testimony heard by the

Commission ai the October 30, 2006 hearing. The first public witness, James McBridc,

testified as to his poor customer service experience with WPU. Spcciflcally, McBridc

testified that when he called the Company to fix a malfunctioning sewer pump, it did not

supply the float needed for the repair for over onc month. In the meantime, McBride was

requhed to start and stop his sewer pump manually. After WPU delivered and installed the

part, thc Company rewed to perform the remaining electrical reps'irs required to make the

system fully operational and declined to reimburse McBridc for expenses associated with

finishing the repair to the systcrn and restoring his yard to its original condition. In support

of his assertion that the Com any should have been responsible for bearing all of the repair

costs, McBrtdc presented documentary evidence in the form of the s:ock purchase

greemeni by which the utility was purchased by the present owner. The document

indicated that the utili was to be res nsible for "the iliii $,

elis and lines, and sever lines, lift stations, treatment facilitics, and cv .. th r

corn nant of the systems o crated by 4'yboo Utilitics. " {I/22t07 Transcri

7), The parties declined to cross-examine McBride.

The next public witness, Mi. James Stites, testified that he had also observed poor

customer service by the Company, and suggested that no rate increase should bc perntined

until WPU had irnprovcd customer service and corrected any other deficiencies.

The first witness called by VPU to the stand was Mark wrigley, the President and

owner of the Company. Wrigley testified that he had purchased the utility in March 2001,

DOCKETNO. 2005-13-W8 - ORDER NO. 2007-138

FEBRUARY 26, 2007PAGE 4

/

Discussion of Wimua l"__timony

The public witness testimony he_d at the cominuatiou of the Commission's

hearings on January 22, 2007, was fairly representative of the testimony heard by the

Commission at the Octobgr 30, 2006 hatting. The first l:ubtie witness, James McBride,

testified as to his poor customer service experience with WPU. Speciflcal[y, McBride

testified that when he called the Company to fix a malfunctioning sewer pump, it did not

supply the float needed for the repair for over one month. In the meantime, McBride was

requ_ed to start and stop his sewer pump man_lly. After WPU delivered and installed the

part, the Company refused to perform the remaining electrical repa_.rs requized to make the

system fully operational and declined to reimburse McBride for expenses associated vdth

finishing the repair to the system avd restoring his yard to its original condition. In support

of his assertion that !he Company should have been responsible for bearing all ofth¢ r_air

costs, McBfldc presented documentaD' evidence in the form of the _ook purchaseL

_tgreement by which the utility was purchased by t_ present ow_. r.. The ¢loeumem

indicated that the utility was to be responsible for "the mainten_n__e _f _u ,,,_,.- l_tLrn_,

p_flls and lines, and sew¢r lines, lift stations, treatment facilities, end every other

component of the systems operated by Wyboo Utilities." (1/22/07 Transcript. p. 14: II 1._

7). The parties declined to eross-oxamine McBride.

The next publtc witness, Mr..;ames $tites, testified that he had also observed poor

customer service by the Company. attd st_ggested that no ra_e increase should be permitted

until WPU had improved customer service and corrected any other deficiencies.

The first witness callo:l by WPU to the stand was Mark Wrigley, the President and

owner of the Company. Wrigley tostiflP.d that be had purchased the utility in March 2001,

DOCKET NO. 2005-13-WS - ORDER NO. 2007-138FEBRUARY 26, 2007PAQE 8

increases, WPU moved to have the Commission admit Maready's prefilcd testimony into

evidence, but in response to the Homeowners' objection. the Conunission ruled that

Maready's testimony was inadmissible hearsay and denied WPU's motion to have it

admitted, To support ita case for a rate increase, WPU then elected to rely upon the

testimony of its owner, Wrigley, and the three ORS witnesses it had placed under

subpoena, rather than to retain a new expert te testify at trial following Maready's death.

The time constraints imposed upon both the parties and the Commission by the six-month

statutory deadline contained in S.C. Code Ann. p8-5-240(C) for issuance of the

Commission's order in the present docket undoubtedly would have hindered WPU's

efforts to retain and prepare a new expert witness for appcaI ce at trial. see S.C. Code

Ann. 5$-5-240(C).

Morgan, ORS' Water and Wastewater Department Program Manager, was called

by WPU to support its request to shi8, the burden of the operation, maintenance, repair and

replacentent of the Company's STEP system from WPU to its customers ~Mor 'rn,

however, testified to the fact that by virtue of its operating permit with the South Carolina

Department of Health and Environmental Control (DHEC), WPLr was responsible for the

operation, maintenance, repair and replacement of all system components of the STEP

s stems at WPU's expense. Morgan's testimony made clear that he and the ORS o sed

shiAin the burden of maintaining and re airi these s stems to the rate a ers refiled

testimon of Mor at Pa e 16, t. 3 —P 17, I. 12. Morgan further offered that the

evidence of record reflects that DHEC has rated WPU's water and wastewater systems as

unsatisfactory, and the Cornrnission finds that this testimony is

DOCKETNO.2005-13-WS - ORDER NO. 2007-138

FEBRUARY 26, 2007PAGE 8

irmmases. WPU moved to have the Commission admit Mamady's prefilcd *¢stimony into

evidence, but in response to the Homeowners' objection, the Commission ruled that

Mexeady's testimony was inadmi_l¢ he_y end denied WPU'z motion to have it

admired. To support its cane for a rote increase, WPU thep. clotted to rely upon the

t_stimony of its owner, Wrigley, and the three ORS witnesses it had placed under

subpoena, rather than to retain a new expert to testify at trial following Maready's death.

The time constraints imposed upon both the parties and the Commission by the six-month

statutory deadline contained in S.C. Code Ann. §58-5-240(C) for issuance of the

Commission's order in the present docket undoubtedly would have hindered WPU's

efforts to retain mad prepare a new ©Xl_rt witness for appearance at trial, see 8.C, Code

_. 5s.s-24o(c_.

Morgan, ORS' Water and Wab-tewamr Department Program Manager, was called

by WPU to support its request to shift the burden ofthe operation, msintenance, repair and

replacement of the Company's STEP system from WPU to its customet_ Mor_lan,

however, testified to the fact that by virtue of its operating permit with the South Carolinai

J

Department of Health and Enviroam_tel C_trol (DHEC), WPU was responsible for theII

operation, maintenance, repair and replacement of ell system ¢omponents of the STEPi I

t

ssvsteme at WPU's expense. Morgan's testimony made clee.r that he and the ORS opposed

-shiftinlilthe burden of maintaining and repaitir_ these systernsto the rate payers (ptefiled ..

Lestimon_, of Mor_m at Paf;e 16, [. 3 - Pase 17, 1. 12). Morgan further offered that the

evidence of record reflects that DHEC has rar.cd WPU's water and waatewater systems t,s

unmtisfactory, mad the Commission fmcb that this testimony is both _,_;hl_ :,,,4 ,,,t ....

J_its evaluation. (preffied testimony of Morg_, page 11, and Exhibit WJM-5).

/

DOCKET YO. 2005-13-WS —ORDER NO. 2007-138FEBRUARY 26, 2007PA F1

5, Customer account records ate maintained in both ledger fortns and

Quick3ooks software. ; he two accounting systems do not reconcile.

6, Cotnpla'. nt records do not have a resolution provided on the compla!nt form

as required pursuant to 26 S.C. Code Ann. Regs. l03-516, 103-538, 103-

716 and 103-738.

7. Complaint records ("Work Order System Report" ) show customers being

required to make an unauthorized payment to a Mr. Edd!e Barrett, not

WPU, for repair work on the Septic Tarmac Effluent Pump ("STEP") systems.

Mr. Barrett has been listed as an employee of WPU in its ftlings; however,

he has been treated as an independent contractor by the Company.

8. WPU does not maintain proper procedures to ensure complainants are

notified that O'Ptf is under Commission jurisd]etion as required by

Cornrnlssion regulations.

9. Customer billing format does not include a rate schedule as required by 26

SC Code Ann. Regs. 103-532,1(d) and 103-732.2(d),

10. 'PU has char ed rates e ttot authorized b the Commission.

During the ORS Business Audit, the followin una roved rates and

charges were discovered:

i, Overcharge of the tap fee for establishing sewer service;

ii. Tap fee charged fo. establishing water service;

iii. Cut-on fee;

iv Cut-oA' fee;

v. IHegal water use fee;

DOCKET NO. 2005-13-WS - ORDI_K NO. 2007-138

FEBRUARY 26,2007

P_A(}F._I5

p

,

_q

9.

Customer azcount r_ords are maintainedin both l_g_ forms and

QuickBookssoftware.The two aocountingsystemsdo notr_onoile.

Compiaintrecordsdo nothavea resolutionprovidedon thecomplaim form

asrequiredpursuantto26 $.C.Code Ann. Regs, 103-516,103-538,103-

716 _d I03-738.

Complaintrecords("Work Order SystemReport")show cus_ome,'sbeing

required to make an unauthorized payment to a Mr. Eddic Barrett, not

WPU, for repair work on t.hc Septic Tank E.ffluc_t Pump ("STEP") systems.

Mr. Barrett hasbeen list_Iasanemploy_ ofWPU initsfilings,however,

he hasbeentreatedasan independentcontra_.torby theCompany.

WPU do_ not mainlainproperp._oc_uresto ensurecomplainantsare

nolifiedthatWPU is under Commission jurisdictionas requiredby

Commissionregulations.

Customerbillingformatdoesnotincludea ratescheduleasrequiredl_y26

SC Code Ann. Regs.I03-532.I(d)and I03-732.2(d).

_TPU has chargedrates_d char__esnot authorizedby the Commission.

During the ORS BusinessAudit,the following_napprovcd rate_and

chargesweredlscov_ed:#,o

i. Oven'chargeoft_hetapfeeforestablishingscw_ _crvicc;

ii. Tap fccchargedfor establishingwater.sea:vice;

iii. Cut-onice;

iv Cm-offf_c;

v. Illegalwater us_f_e;

DOCKET NO. 2005-13-WS —ORDER NO. 2007-138FEBRUARY 26, 2007

6

vi. Water Service for Pool charges;

vii. Impact fee;

viii. DHEC sewer fee;

ix. Charges to customers for repair to sewer STEP system

Charges to customers for repair to utility water system; and

xi. Double charging of DHEC Safe Drinking Water Act ("SDWA") fec

for same location.

11. The SDWA fee authorized by DHEC and collected by WPU is not managed

properly. During the test year, WPU collected over $14,000 in SDWA fees

by bilhng customers at a rate of $3.50 per month per mobile home park

customer and $2.3$ per month per residential customer in the Manning area.

DHEC invoiced WPU in June 2005 for $9,852 for its SDWA fees. WPU

recorded a payment to DHEC in the amount of $9,$52. As set forth in S,C.

Code Ann. Section 44-55-120 (Supp. 2005), SDWA lies collected &om

customers can only bc used to pay DHEC for oversight of the drinking

water system. WPU did not provide support that the remaining balance of

$4, 148 was cscrowcd in a separate account for subscqucnt DHGC billings.

In addition, ORS could not determine if customer fees were subsequently

reduced to offset this ovcrwollcction.

12. Deposits are not refunded pursuant to 26 S.C. Code Ann. Regs. 103-531.5

and 103-731,5.

13. Interest payments on deposits are not made to customers pursuant to 26 S.C.

Code Ann. Regs. 103-531.2(B) and 103-731.2(8).

DOCKET NO. 2005- !3-WS - ORDER NO. 2007-138FEBRUARY 26, 2007PAGE 16

II.

12.

13.

vi.

vii.

viii.

ix.

X.

xi.

Water Service for Pool charges;

Impact fee;

DHEC sewer fee;

t Charges to customers for repair to sewer STEP sy_mi, r

Charges to customers for repair to utility water system; and

Double charging of DHEC Safe Drinking Water Act (**SDWA") fe¢

for same location.

The SDWA fee authorized by DHEC and collected by WPU is not managed

properly. During the test year, WPU collected over $14,000 in SDWA fees

by billing customers at a rate of $3.50 per month per mobile home perk

customer and $2.38 per month per residential customer in the Manning area.

DHEC invoiced WPU in June 2005 for $9,852 for its SDWA fees. WPU

recorded a payment to DHEC in the amount of $9,852. As set forth in S.C.

Code Ann. Section 44-55-120 (Supp. 2005), SDWA fees collected from

customers can only be used to pay DHEC for oversight of the drinking

water system. WPU did not provide support that the remaining balance of

54,148 was escrowed in a separate account for subsequent DHEC billings,

In addition, ORS could not determine if customer fees were subsequently

reduced to offset this over-collection.

Deposits are not refunded pursuant to 26 S.C. Code Ann. Kegs. 103-531.5

and 103-731.5.

Interest payments on deposits are not made to customers pursuemt to 26 S.C.

Code Ann. Regs. 103-531.2(B) and 103-731.2(B).

.o

DOCKET NO. 2005-13-WS —ORDER NO. 2007-138FEBRUARY 26, 2007

customer service; Wrigley offers little or no rebuttal to the customers' complaints. Due to

a lack of credible evidence to support a rate increase and insufficient credible data from

which we can calculate a true operating margin, the Commission readopts the operating

margins established in the prior rate proceeding and denies the requested rate increase.

Our decision in this proceeding does not in any way preclude WPU from again

seeking rate relief at a future time. However, it is imperative that WPU come into

compliance with all applicable regulations and correct any and all other deficiencies, and

such compliance would be of significant importance to the Commission in consideration of

any future request for rate relief.

The Commission takes notice, however, that no water tap fee has been previously

established for the Company. The Commission adopts in %is Order water tap fees as

follows: $825 for a '/i inch connecuon, $965 for a 1 inch connection, and $1,145 for a 2

inch connection. This tap fee shall cover all costs of material and cquiptnont, labor and

boring. The Commission further approves an increase in the authorize sewer connection

fce from the previously authorized $500 to $825. Thcsc fccs may only bc charged when

the Company physically connects a customer or developer to its water or wastewater

system. Tap fccs may only be collected once for each property, and either the builder or

the resident of the home may bc charged a tap fee, but not both, The Commission

emphasizes that these are the only fees associated with water or sewer connection which

are authorized. Similarly, with regard to WPU's request that it be rmitted to ass on the

costs of repairing STEP systems to the affected individual homeowners, the Commission

lines to authorize such a charge.

DOCKET NO. 2005-13-WS - ORDER NO. 2007-138

FEBRUARY 26, 2007PAGE 19

customer service; Wrigley offers liule or no rebutud to the customers' complaints. Due to

a lack of credible evidence to support a rate increase and insufficient credible data from

which wc can calculate a tru¢ operatin_ margin, the Commission readopts the operating

margins established in the prior rate proceeding and dei_ies the requested rate increa._.

Our decision in this proceeding does not in any way preclude WPU from again

seeking rate relief ax a furore time. However, it is imperaXive that WPU come into

compliance with all applicable regulations and correct any and all other deficiencies, and

such compliance would be of significant importance to the Commission in consideration of

any future request for rate relief.

The Commission takes notice, however, that no water tap fee has been previously

established for the Company. The Commission adopts in this Order water tap fees as

follows: $g25 for a ¾ inch connection, $965 for a 1 inch connection, and $1,145 for a 2

inch conneclion. This tap fee shall cover all costs of materlal and equipment, labor and

boring. The Commission further approves an increase in the authorized sewer connection

fee from the previously authorized $500 to $825. These fees may only be charged when

the Company physically connects a customer or developer to its water or wastewater

system. Tap fees may only be collected once for each propcr_y, and either the builder or

the resident of the home may be charged amp fee, but nox both. The Commission

emphasizes thal these are the only fees associated with water or sewer connection which

are authorized. Similarly, with regard to WPU's request that it be pertained Io pass on the ,

costs of repairing STEP systems to the affected individual homeowners, the CommissionW" _s

__leclines to authorize such a charge.

DOCKET NO. 2005-13-%S—ORDER NO. 2007-138FEBRUARY 26, 2007

IT IS THRREFORE ORDERED THAT:

1. The application of WPU for an increase in rates and charges for water and

wastewater services and for an extension of its service area is hereby denied and the

application dismissed.

2. The applicant WPU shall correct all violations of the statutes, rules and

regulations pertaining to water and sewer utilitics and shall bring itself into full compliance

with all applicablc statutes, rules and regulations.

3. The Commission adopts water tap fees as follows: $825 for a '/i inch

connection, $965 for a 1 inch connection, and $1,145 for a 2 inch connection. This tap fec

shall cover all costs of material and equipment, labor and boring. The Commission further

approves an increase in the authorized sewer connection fee from the previously authorized

$500 to $825. These fees may only be charged when the Company physically connects a

customer or developer to its water or wastewater system. Tap fees may only be collected

once for each property, and either thc builder or the resident of the home may be charged a

tap fee, but not both. The Commission emphasizes that these are the only fees associated

with water or sewer connection which are authorized.

4. The applicant WPU shall continue to owir, operate, maintain and repair all

STEP systems and all of its water and wastewater trcanncnt facilities at its o~~ cx use as

required herein.

5 As stipulated by the parties, thc Villas at Wyboo condominium units, sales

office, laundry, pool showers and restrooms shall be billed at one single-family equivalent;

the assembly hall shall be billed at a rate of one-and~half-times a single-family

equivalent; and the manager's residence shall be billed at a residential rate.

DOCKET Nro. 2005-13-WS - ORDER. NO. 2007.13gFEBRUARY 26, 2007PAGE 20,

IT IS THEREFORE ORDERED THAT:

l. The application of WPU for an increase in rates and charges for water and

wastewater services and for an extension of its service area is hereby denied and the

applicmion dismissed.

2. The applicant WPU shall correct all violations of the statutes, rules and

regulations pertaining to water and sewer utilities and shall bring itself into full compliance

with all applicable statutes, rules and regulations.

3. The Commission adopts water tap fees as follows: $825 for a 3/, inch

connection, $965 fora 1 inch connection, and $1,145 for a 2 inch connection. This tap fee

shall cover all costs of material and equipment, labor and boring. The Commission further

approves an increase in the authorized sewer connection fee from the previously authorized

$500 to $825. These fees may only be charged when the Company physically connects a

customer or developer to im water or wastewater system. Tap fees may only be collected

once for each property, and either the builder or the resident of the home may be charged a

tap fee, but not both. The Commission emphasizes thatthese are the only fe_ associated

with water or sewer connection which are authorized.

4. The applicant WPU shall continue to own, operate, maintain and repair all

STEP systems and all of its water and wastewater _reatrnem facilities at its o_a exj_en_ei

_quired hexein..

5 As stipulated by the parties, the Villas at Wyboo condominium units, sales

office, laundry, pool showers and restrooms shall be billed at one single-family equivalent;

the assembly hall shall be billed at a rate of one-and-one-half-times a single-family

equivalent; and the manager's residence shall be billed al a residential rote.

/