PENNSYLVANIA PUBLIC UTILITY COMMISSION Harrisburg, PA. 17105-3265

Public Meeting held May 22, 2003 Commissioners Present:

Terrance J. Fitzpatrick, Chairman Robert K. Bloom, Vice Chairman Aaron Wilson, Jr. Glen R. Thomas Kim Pizzingrilli

Application of Superior Water Company for Docket Number: Approval to Begin to Offer, Render, Furnish or A-212955 F0012 Supply Water Service to the Public in Portions of Douglass Township, Montgomery County, PA.

ORDER

BY THE COMMISSION:

By this Application filed on January 8, 2003, Superior Water Company (Superior), 2960 Skippack Pike, P.O. Box 127, Worcester, PA 19490, seeks a Certificate of Public Convenience pursuant to Section 1102(a)(1)(i) of the Public Utility Code, 66 Pa. C.S. §1102(a)(1)(i), evidencing Commission approval of the right for Superior to offer, render, furnish or supply water service to the public in an additional portion of Douglass Township, Montgomery County, PA.

Superior submitted proofs of service and publication. There were no protests filed and no hearing was held. There were no motions or petitions filed in this proceeding. Copies of this Application and the revisions were served on the appropriate township and county officials, and their planning commissions. Superior is a regulated public utility company, duly organized and existing under the laws of the Commonwealth of Pennsylvania and is engaged in the business of supplying and distributing water. It currently furnishes public water service to 12 commercial and 1,534 residential customers in portions of Douglass Township, New Hanover Township, Upper Pottsgrove Township, Worcester Township, Montgomery County, and in North Coventry Township, Chester County. Although Superior does not provide water service to any industrial customers, it is providing fire protection service to the public by means of some 320 fire hydrants connected to its distribution systems. In order to serve its certificated service territories, Superior operates a number of independent water supply and distribution systems. All of their individual systems/service territories are operated under the umbrella name of Superior Water Company.

The nature and character of the service to be provided by Superior is the furnishing of public water service. The location of the proposed service territory is an additional portion of Douglass Township, Montgomery County. This proposed service territory is adjacent to Superior’s existing certificated service territory in Douglass Township. The proposed service territory, along with the existing service territory in Douglass Township, is part of a larger contiguous territory that Superior presently services which includes areas in portions of neighboring New Hanover Township and Upper Pottsgrove Township, all within Montgomery County. Superior has the right to provide water service in Douglass Township pursuant to a certificate of public convenience issued by the Commission at Docket No. A-212955. The approximate number of acres for the proposed service territory is 750. The present land use is primarily open farm land with a scattered number of single-family homes on individual wells and on-lot wastewater disposal systems. A portion of the proposed service territory contains permanently preserved farmlands. Wastewater service within the proposed service territory will be provided by the Berks-Montgomery Area Sewer Authority. A

2 written description and a detailed map of the additional service territory were attached to the Application as Appendix B and C, respectively.

The Gambone Brothers Development Company requested Superior to provide public water service to an 85 acre portion of the proposed service territory, known as Donnelly Tract. The Donnelly Tract is an R-1 Residential zoning area requiring a minimum of 1-acre lots. A letter of request was attached to Appendix A of the Application. As for the remaining 665 acres of the proposed service territory, Superior indicated it will provide water service upon request of the next developer or bona fide applicant. At the present time, Superior does not anticipate any requests for service but expects the proposed service territory to be developed in due course.

The distribution facilities to be installed within the Donnelly Tract include 4,110-feet of 6 and 8-inch ductile iron, cement lined pipe, in addition to 47 customer service connections and several fire hydrants. Superior plans to have the needed water facilities constructed and ready to commence service by the fall of 2004.

Water to the Donnelly Tract will be supplied from the nearby Lohmiller water supply facilities in Superior’s Winding Creek System. The existing Lohmiller water facilities are approximately 1.25 miles from the Donnelly Tract. The construction of a main extension will be required to connect the existing Lohmiller system with the Donnelly Tract. The main extension will be constructed of 100-feet of 8-inch and 7,700-ft of 12-inch ductile iron, cement lined pipe. It is proposed that six fire hydrants will be installed.

The existing Lohmiller facilities to be used consist of a 25-gpm deep well, a 300,000-gallon storage tank, and a booster station containing three 750-gpm pumps. The Lohmiller supply and storage facilities have the capacity to service approximately 600 residential customers. Presently, these facilities are serving approximately 115 customers, leaving a net of 485 customers that could be supplied in the future. These future customers

3 may be added in Superior’s existing service territory as well as in the Donnelly Tract. Superior projects the number of new residential customers within the Donnelly Tract at the end of the summer of 2005 to be 10 and within five years 47, at its build out.

The estimated construction cost is $565,221 for the proposed main extension to and the distribution facilities within the Donnelly Tract. This project will be financed by the developer via a main extension agreement. Superior has not yet entered into an extension deposit agreement with the developer. Superior indicates that it will not initiate any physical extension of its facilities until such extension deposit agreement is executed and appropriate deposits have been made. There will be no grants involved with this project.

Superior has general permits from the Delaware River Basin Commission (DRBC) and will not need additional permits from the DRBC for this area. The Department of Environmental Protection (DEP) does not require Superior to obtain a permit for a main extension. The only permits that will be required are a highway occupancy permit(s) and perhaps a stream crossing permit. The DEP has reported that Superior is presently in compliance with its rules and regulations, and that there are no outstanding complaints or compliance issues associated with this system.

Superior will apply the rules and regulations of service as set forth in its currently effective Tariff.

To the best of Superior’s knowledge, no corporation, partnership or individual is now furnishing or has corporate or franchise rights to furnish water service, and that no competitive conditions will be created by its approval. Superior is current with its PUC assessments and the filing of its PUC Annual Reports.

4 This action is consistent with our Policy Statement on Local Land-Use Plans and Ordinances In Issuing Certificates of Public Convenience at 52 Pa. Code Sec. 69.1101, adopted January 11, 2001, effective February 17, 2001. No local planning/zoning authorities objected to the Application. Furthermore, since the area is zoned residential, we are not encouraging development in an area that the local planning/zoning authorities are trying to preserve.

Upon full consideration of all matters of record, we find that approval of this Application is necessary and proper for the service, accommodation and convenience of the public; THEREFORE,

IT IS ORDERED:

1. That the Application of Superior Water Company, at Docket No. A-212955 F0012 is hereby approved.

2. That a Certificate of Public Convenience be issued pursuant to Section 1102(a)(1)(i) of the Public Utility Code, 66 Pa. C.S. §1102(a)(1)(i), authorizing Superior Water Company the right to begin to offer, render, furnish or supply water service to the public in an additional portion of Douglass Township, Montgomery County, as described in Appendix B of the Application.

5 3. That the record at A-212955 F0012 be marked closed by the Secretary of the Commission following the completion of Ordering Paragraph No. 2.

BY THE COMMISSION,

James J. McNulty Secretary

(SEAL)

ORDER ADOPTED: May 22, 2003 ORDER ENTERED: June 4, 2003

6