PHYLLIS HAYNES EDENS, CCR, INC.
Transcription
PHYLLIS HAYNES EDENS, CCR, INC.
BEFORE THE PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CASE NO. 98-1521-W-PC JEFFERSON UTILITIES, INC., ET AL. Petition for consent and approval to the purchase and sale of utility assets. VOLUME 111 Transcript of proceedings had and , testimony adduced at a hearing held, pprsuant to notice, on the 14th day of April, 1999 beginning at 2:OO p.m. and concluding at 3:40 p.m. in the Howard M. Cunningham Hearing Room, 201 Brooks Street, Charleston, Kanawha County, West Virginia before Philip S. Dye, Certified Court Reporter and Notary Public. BEFORE : CHARLOTTE LANE, CHAIRMAN RICHARD FRUM, COMMISSIONER OTIS CASTO, COMMISSIONER PHYLLIS HAYNES EDENS, CCR, I N C . C E R T I F I E D COURT REPORTERS Post O f f i c e Box 13337 C h a r l e s t o n , W e s t V i r g i n i a 25360 (304) 984-3531 WV (800) 248-3531 t f 2 I APPEARANCES : ON BEHALF OF THE PETITIONERS: E. DANDRIDGE McDONALD, Attorney at Law 1201 United Center P . O . Box 2189 Charleston, West Virginia 25238-2189 ON BEHALF OF THE INTERVENOR; JEFFERSON COUNTY PUBLIC SERVICE DISTRICT: ROBERT R. RODECKER, Attorney at Law 1210 Bank One Center P.O. Box 3713 Charleston, West Virginia 25337 ON BEHALF OF COMMISSION STAFF: JAMES V. KELSH, Attorney at Law Public Service Commission P.O. Box 812 Charleston, West Virginia 25323 3 I N D E X WITNESS DIR David Dove 4 CROSS REDIR RECROSS EXAM 8 19 20 17 36 31/35 William Nelson 22 26/29 Lee Snyder 38 43 47 EXHIBIT RECEIVED Staff Number One 5 8 Staff Number Two 6 8 Staff Number Three 24 54 Staff Number Four 24 54 Jefferson Campsites Twenty-two Pre-marked 43 Jefferson Campsites Twenty-two-A Pre-marked 43 Jefferson Campsites Twenty-three Pre-marked 43 Jefferson Campsites Twenty-three-A Pre-mrkd 43 Jefferson Campsites Cross Exam Two Pre-mrkd 43 Proceedings 1 4 CHAIRMAN LANE: Good afternoon. This is the 2 third day for the continuation of Case Number 98-1521-W-PC; 3 Jefferson Utilities, Inc. Are the parties re dy to 4 continue? 5 MR. McDONALD: The Applicant is ready to 6 proceed, Your Honor. 7 CHAIRMAN LANE: Thank you. 8 MR. KELSH: Staff will introduce its 9 witnesses. Our first witness is Staff Engineer David Dove. 10 THEREUPON 11 D A V I D D O V E , 12 having first been duly sworn by the Chairman, testified as 13 follows : 14 DIRECT EXAMINATION 15 BY MR. KELSH: 16 Q Could you state your name for the record? 17 A My name is David W. Dove. 18 Q Where are you employed? 19 A At the West Virginia Public Service 21 Q How long have you been so employed? 22 A Almost two years. 23 Q And you're a Licensed Professional 20 Commission. 5 1 Engineer? 2 A Yes, I am. 3 Q Did you prepare the direct testimony filed 4 on April 1st in this case? 5 A Yes, I did. 6 Q Let me hand you a copy of that document. 7 CHAIRMAN LANE: 8 the microphone? 9 10 Mr. Dove, can you speak into MR. KELSH: I'd like to have this marked as Staff Exhibit Number One. 11 CHAIRMAN LANE: It may be so marked. 12 (WHEREUPON the document referred to 13 was duly marked for identification 14 as Staff Exhibit Number One.) 15 MR. McDONALD: Is this different? 16 MR. KELSH: No. 17 BY MR. KELSH: 18 Q Mr. Dove, if I were to ask you the same 19 questions that are contained in this pre-filed testimony, 20 would you answers be the same? 21 A Yes. 22 Q Do you adopt this as your testimony in 23 this case? 6 A Yes, I do. Q Next I'm going to hand you a pre-filed rebuttal testimony which was filed in this case. Did you prepare the pre-filed rebuttal testimony? A Yes, I did. MR. KELSH: I'd like to have this marked as Staff Exhibit Number Two. 8 CHAIRMAN LANE: 9 It may be so marked. (WHEREUPON the document referred to 10 was duly marked for identification 11 as Staff Exhibit Number Two.) 12 BY MR. KELSH: 13 Q Except for question number 21, if I were 14 to ask you these same questions today would your answers be 15 the same? 16 A Yes, they would. 17 Q Let me read to you question number 21. 18 In your direct testimony, you stated that JUI, Jefferson 19 Utilities, Inc., had not furnished you with sufficient 20 information for you to make a recommendation regarding their 21 proposal to acquire and repair the water system of the 22 Campsites Homeowners' Association, Campsites. After 23 considering the direct testimony filed by Jefferson 7 Jtilities, is that still the case? A I have reviewed what they have submitted iere during the hearing, and my response would still be the same, that we have not received enough information to fully 5 6 7 Svaluate the proposal. Q Okay. You've been present in the hearing the last two days? 8 A Yes, I have. 9 Q At this juncture of the proceedings, given 10 that we're not -- we don't have a certificate application 11 3efore us, is the proposal put forth by Jefferson Utilities 12 sufficient for you to recommend approval of their petition 13 in this case? 14 A I could not recommend approval at this 15 time just because the lack of information that has been 16 submitted to determine that. 17 expenses, as far as conceptually, the idea seems to be 18 technically feasible. 19 20 MR. McDONALD: The cost estimates, the 0 Excuse me. & M Could I have that answer read back? 21 CHAIRMAN LANE: The question and the answer? 22 MR. McDONALD: No, just the answer. 23 (WHEREUPON the answer was read back 8 1 to the Court.) 2 BY MR. KELSH: 3 Q Mr. Dove, in your work do you regulate 4 publicly owned utilities, privately held private utilities 5 and publicly traded private utilities? 6 A Yes, I do. 7 Q Which type of utility do you see the 8 9 10 11 greatest problems with reliability and quality of service? A Typically we see most of the problems with small private utilities. MR. KELSH: Thank you. I'd l i k e to move 12 Staff Exhibit Numbers One and Two into evidence and I tender 13 the witness for cross examination. 14 CHAIRMAN LANE: The Exhibits, Staff Exhibit 15 One and Two may be admitted into the record. 16 (WHEREUPON Staff Exhibit Numbers One 17 and Two were duly received in 18 evidence.) 19 CHAIRMAN LANE: 20 CROSS EXAMINATION 21 BY MR. McDONALD: 22 Q 23 Mr. McDonald. Thank you, Your Honor. afternoon. My name is Dan McDonald. Mr. Dove, good 9 1 A Nice to meet you. 2 Q You stated in your testimony that you 3 evaluated the application in this case against the test in 4 West Vircrinia Code 24-2-12, is that correct? 5 A Yes. 6 (1 You understand, this is a petition for the 7 acquisition of utility assets? 8 A Yes, I believe it is. 9 Q I believe you concluded in your prepared 10 testimony that you did not have enough information to form 11 an opinion, but that in today's testimony you say you do 12 have enough information to form an opinion? 13 A No, I could not form a conclusive opinion. 14 Q Let me ask you this. 15 the -- have you read the purchase and sale agreement? 16 17 18 19 Do you believe that A I have read it briefly, yes. I reviewed Q Do you believe that the terms and it briefly. conditions of the transaction are reasonable? 20 A Yes, I believe they are. 21 Q Do you believe that either party to that 22 23 contract is given an undue advantage over the other? A It did not appear to be, no. 10 Q 1 2 Do you believe that the transaction will not adversely affect the public in West Virginia? 3 A I'm not sure, could you state that again? 4 Q Yes. The statutory language is that the 5 Commission may grant its consent to a transaction such as 6 this upon a proper showing that the terms and conditions are 7 reasonable. 8 That neither party thereto is given an undue advantage over 9 the other, and I believe you said that you thought that part And you've said you believe they're reasonable. 10 of the test was met, and the third part of the test is, and 11 do not adversely affect the public in this State. 12 question to you is, is there any part of this contract My 13 which, in your judgement, adversely affects the public in 14 this State? 15 A I would not think that it adversely 16 affects the people who are going to be directly connected to 17 the system. 18 there's a potential to pick up new customers and future 19 customers, how this proposal will address that. I'm not sure about future customers. Q 20 If So when you say you cannot recommend 21 approval at this time, is it because you believe that this 22 transaction may adversely affect the public in this State 23 somehow? 11 1 A I believe it has the -- well, one, since 2 we haven't had the opportunity to fully review all the plans 3 and specifications and the engineering design calculations, 4 I believe that the potential exists that some customers that 5 may be served by another proposal that might not be served 6 by this proposal could adversely be affected in the sense 7 that they may not receive water. Q 8 9 Let me be very clear. Do you reach the conclusion that the public may be adversely affected by this 10 transaction by comparing this proposed transaction, the 11 acquisition of the assets of one utility, with the Jefferson 12 County Public Service District's Blue Ridge Project? 13 14 A I would say that would be a fair statement, yes. Q 15 In fact, you have compared Mr. Snyder's 16 plans to improve the water systems at Campsites with the 17 Intervenor's plans to rebuild the water systems within 18 Campsites? 19 A Yes, sir. 20 (1 Isn't that true? 21 A Yes. 22 Q Now let me just ask you whether, in 23 comparison with the existing situation, you believe that the 12 1 transaction, both the acquisition of the assets by Mr. 2 Snyder and his plans to make improvements, offer a better 3 solution to the customers at Campsites than they have now? 4 5 A Yes, I'd say, than what they have now, I would agree, yes. 6 (1 You stated that you couldn't recommend 7 approval at this time just because there were incomplete 8 cost estimates, or you mentioned cost estimates and 0 & M 9 expenses. When you say cost estimates, do you mean capital 10 cost estimates of Mr. Snyder's Mountain Project? 11 i A Yes. In my review of the project, of 12 course, we didn't receive a lot of the information until the 13 hearing, what I typically looked at was the cost of 14 implementing these projects in addition to 0 & M costs that 15 will be incurred later on if these systems are constructed. 16 We did not have sufficient information to evaluate the 0 & M 17 costs. 18 costs off similar operations, so from that, we have no basis 19 on which to evaluate. I believe Mr. Snyder stated that he based his 0 Q 20 & M Did you evaluate -- did you l o o k at Mr. 21 Snyder's rebuttal testimony and Exhibits that were attached 22 to it? 23 A Yes. 13 Q You saw a proposed budget for improvements to the three areas that were attached to that testimony, did you not? A Yes. Q In what respect did you find those cost estimates incomplete? A Well, as far as -- I think he had 8 something like $173,000.00 estimated 0 9 just a number. Q 10 & M costs. That was There was no basis for that given. Let me tell you what I'm trying to do 11 here. 12 separately, and right now I'm looking at capital costs. 13 capital costs on Exhibit Two attached to his rebuttal 14 testimony. 15 costs incomplete or satisfactorily complete for your I'm trying to look at capital costs and 0 & M costs The Did you find that recitation of proposed capital 16 purposes? 17 May I see it again? 18 (WHEREUPON the witness was provided 19 the Exhibit.) 20 THE WITNESS: 21 BY MR. McDONALD: 22 Q 23 7 A They appear to be adequate. Okay, the capital costs appear to be adequate and satisfactorily complete? 14 1 2 extensive review of his estimates, but they appear to be 3 within reason. Q 4 5 , Yes, without a further review. An A estimates. Now he also presented some 0 & M cost Did you get copies of those? 6 A Yes, I believe I did. 7 Q I hand you Jefferson Exhibits Seventeen 8 and Eighteen. 9 incomplete? Is it those Exhibits that you feel are 10 A Yes, that ' s correct. 11 Q And in what respect do you find them A Well, Exhibit Number Seventeen, under 12 incomplete? 13 14 annual cost and profit, the annual 0 15 at $73,920.00. 16 that number. 17 point. 18 & M cost is estimated There's -- I'm not sure how he generated In other words, this is just a number at this I have no basis of how he came up with that number. It may be an accurate number, but I couldn't testify that it 19 was or wasn't. 20 Q Did Staff ask him that question when he 21 was on the stand? 22 23 A Yes, I believe the question was, and his response was that he based it off the operation of his other 15 1 systems. Q 2 3 And you believe that's an incomplete response for the purposes of your analysis? 4 I would not say it's an incomplete A 5 response. 6 accurate estimate without seeing some of the costs behind 7 that estimate. I would be unable to say that that was an 8 Q Would you say it's an inaccurate estimate? 9 A No, I would not. 10 Q Is the 0 & M cost estimate of Jefferson 11 Utilities more or less adequate than the 0 12 estimates of the Jefferson County PSD for its Blue Ridge 13 Project? & M cost 14 A I'd say they were just as adequate. 15 Q So would you say that the capital cost 16 estimates of Mr. Snyder are just as adequate as the capital 17 cost estimates of the Blue Ridge Project prepared by Mr. 18 Smith? 19 1 A Yes, I'd say they were. Q I was looking to see if you had made a 21 recommendation on the Blue Ridge Project. 22 whether you made a recommendation on the Blue Ridge Project 23 in your testimony? Do you recall 16 1 2 A technically feasible. 3 Q The same as Mr. Snyder' proposal? 4 A Yes, I believe so. 5 Both proposals would have to meet Health Department approval. 6 (1 Certainly. 7 A So there may be some adjustment for line Q Certainly. And they both have to get a 8 sizes. 9 10 i I believe I stated that it appeared to be certificate from this Commission? 11 A Exactly. 12 Q They have to get rates from this 14 A Yes. 15 MR. McDONALD : I believe that's all. 17 CHAIRMAN LANE: Mr. Rodecker. 18 MR. RODECKER: No questions, Your Honor. 19 CHAIRMAN LANE: Commissioner Casto? 20 COMMISSIONER CASTO: 21 CHAIRMAN LANE: 22 COMMISSIONER FRUM: 13 16 23 Commission. Thank you. No. Commissioner Frum? EXAMINATION No. 17 1 BY CHAIRMAN LANE: 2 Q Mr. Dove, I'm a little confused. This is 3 a proceec ing that was filed by Jefferson Utilities for a 4 transfer of assets and that proposal was to have been 5 evaluated by Staff. And then of course, we had the 6 intervention by Jefferson District for an alternative 7 proposal to serve the whole area. But that's a different 8 issue. 9 What is the Staff position on 10 whether or not this is a transfer of assets that you would 11 I 12 recommend or not recommend to the Commission? A My position is that we feel, or I feel, 13 after having talked with several of the Staff members, that 14 Mr. Snyder has a very good reputation and is possibly 15 capable of doing some things in a less affordable -- or less 16 expensive way than, perhaps, the District, however, my 17 concern is that in order to serve the larger community, his 18 ?roposal may not do that. 19 sssets goes, I think he's qualified to do that. 20 Q As far as the transfer of the So is it your testimony, based upon the 21 question of whether or not the proposed transfer of assets 22 neets 24-2-12 criteria, that it's the Staff recommendation :hat this transaction does meet the requirements set forth 18 1 in the Code? 2 A I believe that to be correct, yes. 3 (1 And that the public interest to be serve 4 by this transfer of assets from Campsites to Jefferson 5 Utilities? 6 A Well, the definition is in public, and as 7 far as the number of people that will be served, certainly 8 the immediate 385 customers would be served. As far as the 9 903 customers, I'm not sure that they would be. 10 (1 But the existing customers on the system, 11 and I'm talking about just the Campsites system, it's your 12 testimony that those customers, this is in their interests 13 for the transfer? 14 15 A with that. Well, there's still some questions that go Obviously, since Mr. Snyder's Jefferson 16 Utilities is a private utility, there is some long-term 17 viability that is questionable compared to this other 18 District. I feel that the residents of Campsites would 19 probably benefit from this more quickly, but I'm not sure 20 21 about the long-term effects. Q So is it your recommendation that the 22 Commission approve the transfer or is it your recommendation 23 that the Commission not approve the transfer of assets? 19 1 2 A At this time I would recommend that it not be approved. 3 CHAIRMAN LANE: Okay, I don't have any other 5 MR. McDONALD: May I inquire? 6 CHAIRMAN LANE: You certainly may. 7 MR. KELSH: May I go first? 8 MR. McDONALD: Sure. 4 questions. 9 REDIRECT EXAMINATION 10 BY MR. KELSH: 11 (2 Mr. Dove, in evaluating the public 12 interest in this case, do you think the Commission should 13 limit its focus to the existing customers of Campsites or 14 should it consider the other people, residents in the area 15 who could be served by this project or another project? 16 17 A Well, I think the Commission should evaluate the good of all of the people, not just 18 particularly Campsites, but all the communities, including 19 possibly Shannondale and some of the other outlying 20 21 22 23 communities. MR. KELSH: Thank you. RECROSS EXAMINATION BY MR. McDONALD: That's all I have. 20 Q 1 Mr. Dove, I hate to catch you in the 2 middle here, but when I took you through the statutory tests 3 for approval, I thought you agreed with me that all the 4 elements under Section 24-2-12 had been met, is that 5 correct? 6 MR. RODECKER: I object to that. Mr. 7 McDonald has characterized them as all of the statutory 8 requirements, but this witness is neither an attorney nor 9 does he speak for the Commission as to whether all of the I 10 statutory requirements have been met. 11 question, obviously, with regard to what he did answer, but 12 as to whether this application has met the requirements of 13 24-2-12 or not is another issue. 14 MR. McDONALD: He can answer the Let me change the f o c u s here. 15 Obviously, this is the key issue when the Commission 16 considers this case, what the public interest would be. 17 BY MR. McDONALD: 18 Q 19 Mr. Dove, the portion of the Code having to do with certificates o f public convenience and necessity 20 provide that no utility can make improvements other than 21 normal extensions in the ordinary course o f business unless 22 and until they get a certificate of public convenience from 23 the Public Service Commission which requires such 21 1 construction. 2 Commission can issue the certificate or refuse to issue the 3 certificate or issue the certificate in part and refuse to The statute goes on to say that the issue the certificate in part. 5 Now you review regularly, do you not, whether the Commission should issue certificates 6 where there are applications for certificates? 7 A Yes, I do. 8 Q And you make recommendations about whether 9 10 I a particular project is in the public interest and should be certificated or not, do you not? 11 A Yes, I do. 12 Q Now this is not a certificate case, is it? 13 A No sir, but I would say that some of the 14 same criteria that we review for a certificate case, I have 15 used to evaluate the two proposals. 16 8 Yes. 17 A Because I realized that in the end of 18 this, that whichever proposal is accepted would have to come 19 in for a certificate. Q 20 Sure. Sure. And even if Mr. Snyder were 21 to acquire the assets of Campsites, the District could still 22 apply for a certificate for its Blue Ridge Project, couldn't 23 it? 22 1 2 A I'm not sure how that would affect their proposal, since that's part of their Blue Ridge Project. 3 Q They can apply for a certificate? 4 A Sure. 5 Q Likewise, if Jefferson owned the assets of 6 Yeah. Campsites, it could apply for a certificate, could it n o t ? 7 A Sure. 8 Q And the Commission could refuse to issue 9 that certificate if they chose, in its discretion, could 10 I they not? 11 A 12 MR. McDONALD: Thank you, Your Honor. 13 CHAIRMAN LANE Any r direct? 14 MR. KELSH: No redirect. 15 CHAIRMAN LANE: You may be excused. MR. KELSH: Staff would next call William 16 Yes. Thank you. 17 18 Nelson. 19 THEREUPON 20 W I L L I A M N E L S O N , 21 having first been duly sworn by the Chairman, testified as 22 follows: 23 DIRECT EXAMINATION 23 1 BY MR. KELSH: 2 Q Would you state your name for the record? 3 A William A. Nelson. 4 Q Where are you employed? 5 A At the West Virginia Public Service 7 Q How long have you been so employed? 8 A Nine-and-a-half years. 9 Q In the course of your duties at the 6 Commission. 10 Commission did you prepare the pre-filed direct testimony 11 that was filed on April l? 12 A Yes. 13 Q If I were to ask you the same questions 14 that are contained therein today would your responses be the 15 same? 16 A Yes. 17 Q I'd like to have this marked as Staff 18 Exhibit Number One. 19 REPORTER: Number Three, sir? 20 CHAIRMAN LANE: Number Three. 21 MR. KELSH: I'm sorry, Number Three. 22 CHAIRMAN LANE: It may be so marked. 23 (WHEREUPON the document referred to 24 1 was duly marked for identification 2 as Staff Exhibit Number Three.) 3 BY MR. KELSH: 4 Q 5 You also prepared the rebuttal testimony which was submitted on April 8th? 6 A Yes. 7 Q If I were to ask you the same questions 8 today, would your responses be the same? 9 A Yes. 10 (1 Do you adopt these two documents as your 11 direct testimony in this case? 12 A 13 MR. KELSH: 14 15 Yes, I do. I'd like to have this marked as Staff Exhibit Number Four. CHAIRMAN LANE: It may be so marked. 16 (WHEREUPON the document referred to 17 was duly marked for identification 18 as Staff Exhibit Number Four.) 19 BY MR. KELSH: 20 Q Do you believe the terms of the agreement 21 between Jefferson Utilities and Campsites are reasonable? 22 A Yes, I do. 23 (1 And do you believe either party to that 25 1 agreement had an undue advantage over the other party? 2 A No, I do not. 3 Q Will you agree with me that this case 4 focuses on whether approval of that agreement is in the 5 public interest or not? 6 A That's correct. 7 Q Evaluating the District's -- I'm sorry, 8 Jefferson Utilities' petition standing alone, do you believe 9 that petition is in the public interest? 10 A Yes. 11 Q Do you believe that the Commission should 12 also consider the effect of that petition upon the proposal 13 of the Jefferson County Public Service District and its Blue 14 Ridge Pro] ect? 15 16 A Well, with the intervention of the District in this case, I'm assuming yes. 17 Q 18 current water operations? 19 A Actually, no. 20 Q Okay. 21 22 23 Are you familiar with the District's Do you know how many current water customers they have? A approximately 110. I think I've heard here in the hearing 26 1 Q Do you believe if the District were 2 obligated to pay Pentree $152,000.00, do you believe those 3 customers would have difficulty absorbing that expense? 4 A I'm sure it would require a rate increase; 5 as to the magnitude, I cannot be specific on that, but yes, 6 they would have to bear that cost. 7 MR. KELSH: 8 direct questions I have. Thank you. That's all the I tender the witness for cross 9 examination. 10 CHAIRMAN LANE: 11 Mr. McDonald? CROSS EXAMINATION 12 BY MR. McDONALD: 13 Q 14 you this question or not. 15 Jefferson Utilities project, standing alone, will adversely 16 affect the public in West Virginia and I believe your answer I don't remember whether Mr. K Ish ked He did ask you whether the 17 was, no, it would not? 18 A That's correct. 19 (1 Then I believe he asked you that if you 20 compared Jefferson's project with Jefferson County PSD's 21 project, what then, and you said the Commission should 22 compare both proposals, was that your response? 23 A I believe I stated, with the situation in 27 1 this case, with the intervention by the District, I'm 2 assuming that that has to be addressed. 3 (1 Have you made that analysis, then? 4 Do you believe that the approval of this transaction in this 5 case will adversely affect the public in West Virginia when 6 the Commission also has been advised that Jefferson County 7 PSD is planning another project? 8 9 , Okay. A I guess I can't say specifically what the -- I mean, like I say, as Jefferson Utilities' proposal 10 goes, it does not adversely affect, and it appears as though 11 if the District were to receive the project or do the 12 project as they propose, I don't believe it would adversely 13 affect the customers, either. 14 (1 There are assumptions associated with both 15 projects, are there not? 16 A That ' s correct, yes. 17 Q Construction rates and so on? 18 A My main concern at this point is the 19 funding, I believe, as far as rate impact and that sort of 20 thing. 21 Q Do you have an opinion on whether the 22 issue of which improvement project is better should be made 23 in an asset transfer case or a certificate of convenience 28 1 and necessity case? 2 MR. KELSH: 3 calls for a legal conclusion. 4 attorney. 5 CHAIEMAN LANE: 6 BY MR. McDONALD: 7 Q Objection, Your Honor, that The witness is not an Objection sustained. Have you made any inquiry, Mr. Nelson, 8 into where the proposed customers of the Blue Ridge Project 9 outside Keyes Ferry Acres, Campsites and West Ridge Hills 10 will come from? 11 MR. RODECKER: Objection, Your Honor. 12 There's no indication this accounting witness has done any 13 kind of investigation into source of customers or why he 14 would have any reason to do that. 15 16 19 That's the question, Your CHAIRMAN LANE: The witness may answer the THE WITNESS: Sir, just what I've heard in Honor. 17 18 MR. McDONALD: question. 20 the hearings in the last two days as far as there is, sir, 21 that's the first I've known about it. 22 analysis any further than that. 23 BY MR. McDONALD: I haven't done any 29 Q On page six of your direct testimony, you testified in response to question 17 that the Blue Ridge Project appeared to you to have a greater capability to add customers located outside of the three neighborhoods, do you 5 see that? 6 A Yes. 7 Q Why do you think that statement, Mr. A Well at the time Staff was just presented 8 9 Nelson? 10 with the proposed number of customers to be served by that 11 project, being approximately 903 customers. 12 Q So your answer is based on the 13 representation that the Blue Ridge Project would serve 900- 14 odd customers? 15 A Yes. 16 Q All right. You heard Mr. Snyder testify 17 that he intended to extend service under the Commission's 18 Rules if required -- if requested to do so, did you not? 19 A 20 MR. McDONALD: Thank you, Your Honor. 21 CHAIRMAN LANE: Mr. Rodecker? 22 23 I believe so, yes. CROSS EXAMINATION BY MR. RODECKER: 30 1 Q Good afternoon, Mr. Nelson. 2 A Good afternoon. 3 Q Mr. Nelson, in response to a question by 4 Mr. Kelsh, I believe you indicated that the issue of 5 repayment to Pentree would properly be included in the 6 Commission's purview in determining the public interest. Do 7 you recall that? 8 A Restate that again? 9 Q Do you recall telling Mr. Kelsh that it I'm sorry. 10 would be appropriate for the Commission to consider the 11 impact of the District having to repay or having to pay 12 Pentree for engineering services of 150-some thousand 13 dollars in the event the Blue Ridge Project was not 14 constructed? 15 16 17 18 A The impact on the existing 110 customers, Q Would you agree that it would also be yes. appropriate for the Commission to consider the impact of the 19 potential obligation of the District to have to repay 20 $145,000.00 to the Infrastructure and Jobs Development 21 Council if the Blue Ridge Project is not constructed and 110 22 customers have to pay that in addition? 23 A If the District had to repay that loan, 31 1 yes, there would be a definite impact to those 110 customers 2 in addition to the additional money that's owed currently to 3 Pentree. Q 4 Would you accept, subject to check, Mr. 5 Nelson, that a total of $297,000.00 at zero percent interest 6 over 20 years spread across 110 customers would amount to 7 1 $11.35 per month? 8 A 9 MR. RODECKER : No further questions. 10 CHAIRMAN LANE: Commissioner Casto? 11 COMMISSIONER CASTO: 12 CHAIRMAN LANE: 13 COMMISSIONER FRUM: 14 Subject to check, yes. No questions. Commissioner Frum? None. EXAMINATION 15 BY CHAIRMAN LANE: 16 Q Mr. Nelson, you may have answered this 17 question, but I forget. What is your recommendation to the 18 Commission on whether or not it should approve the transfer 19 of assets from Harper's Ferry Campsites to Jefferson 20 Utilities? 21 A It is my opinion or recommendation that it 22 meets the requirements as established in the Code that has 23 been discussed previously in the testimony, therefore as a 32 1 stand-alone transfer of assets, Staff, as far as me, my 2 opinion as Staff, I would recommend approval of that 3 transfer. 4 CHAIRMAN LANE: I don't have any other 6 MR. KELSH: I have no redirect. 7 CHAIRMAN LANE: If there are no further 5 8 questions. questions, then this witness may be excused. 9 10 11 1 Thank you. CHAIRMAN LANE: Does that conclude Staff's MR. KELSH: Yes, that concludes the case? 12 13 THE WITNESS: witness s Staff will present in this case? 14 CHAIRMAN LANE: Do any of the parties have any 15 additional witnesses that they wish to call? 16 MR. McDONALD: Your Honor, could I have a few 17 minutes to confer with my client? 18 CHAIRMAN LANE: Yes. 19 MR. McDONALD: Five or ten minutes would be CHAIRMAN LANE: Okay, we'll take a five minute MR. McDONALD: Thank you, Your Honor. 20 all right. 21 22 23 How long would you like? break. 33 (WHEREUPON a short recess was had.) MR. KELSH: Your Honor, I'd like to make a CHAIRMAN LANE: Wait just a minute. statement. have everybody present first. MR. KELSH: Let's Back on the record. Your Honor, if I could make a statement, your last conclusion of Staff witness Bill Nelson 8 asked whether he approved the project and his qualification 9 of the Jefferson Utilities' proposal, and his answer was 10 that he could approve that standing alone, and I just wanted 11 to make sure that you weren't led to believe that he was 12 recommending approval of Jefferson Utilities' proposal in 13 light of the participation of the District. 14 CHAIRMAN LANE: Mr. McDonald? 15 MR. McDONALD: Your Honor, I object to 16 Counsel's trying to change the testimony of the witness -- 17 MR. KELSH: I'm not trying to -- 18 MR. McDONALD: The witness' testimony will 19 20 speak for itself. MR. KELSH: I agree that Mr. Nelson's 21 testimony will speak for itself. 22 a possibility that you may have been misled. 23 trying to change his testimony at all. I'm just trying -- there's I am not I just want to make 34 1 sure that you understand the qualification of his testimony, 2 which is contained in his words. 3 CHAIRMAN LANE: I would suggest that we put 4 Mr. Nelson back on the stand, because I did understand him 5 to say that if he were just faced with the possibility of 6 this project, that he would recommend the transfer of those 7 assets. 8 MR. KELSH: Okay. 9 CHAIRMAN LANE: Mr. Nelson, would you come 10 back to the stand, please? I 11 (WHEREUPON Mr. Nelson resumed the 12 witness stand.) 13 MR. KELSH: Could we just have a minute? 14 CHAIRMAN LANE: Yes. 15 MR. McDONALD: Your Honor, this is bizarre. 16 CHAIRMAN LANE: Mr. McDonald, the Commission, 17 as you know, makes up its own mind and we view the testimony 18 independently of the Staff, and so -- 19 MR. McDONALD: I appreciate your comment, 20 Your Honor. 21 heavily on the recommendations of the Staff, and when the 22 Staff recommends -- agrees with what the Commission wants to 23 do, the Commission recites that fact prominently in its I also appreciate that the Commission relies 35 1 2 i Order. CHAIRMAN LANE: I feel it incumbent that I 3 state for the record that, at least as far as I am 4 concerned, Staff recommendations are in there and are given 5 the same weight that any of the other testimony that comes 6 into the record is given, no more and no less. 7 asked those questions because, from the testimony, I 8 couldn't tell what Staff was saying, and that's why I asked 9 the question. I merely It did appear that Mr. Nelson's testimony was 10 in direct conflict with Mr. Dove's testimony, and so if 11 Staff Counsel -- I heard what Counsel said, so I think we 12 want to ask Mr. Nelson. EXAMINATION 13 14 BY CHAIRMAN LANE: 15 Q 16 Mr. Nelson, you're still under oath. I asked you, I think, is it your recommendation that, being 17 we're here on a petition for the transfer of the assets of 18 Harper's Ferry Campsites to Jefferson Utilities, looking at 19 20 that, the proposed transfer, what is your recommendation? A Are you saying without intervention being 21 considered by the District in this case? 22 the case, then my response to that is, the agreement, as far 23 as I can -- you know, it's my opinion that it meets the I mean, if that's 36 1 criteria of 24-2-12 in the Code, but I guess the clarifier 2 being that we have intervention by another utility, and 3 possibly the long-term affect that may have been testified 4 to by Mr. Dove is a concern and may -- you know, needs to be 5 determined by the Commission, but as the agreement stands, 6 without the intervention by the other utility, yes, it meets 7 the requirements of the Code and Staff could recommend 8 approval of it. 9 or not. I didn't mean to confuse the Commission. Q 10 11 I 12 I don't know if that makes it any clearer Thank you. Okay. It doesn't take much to confuse us. Mr. McDonald, do you have questions now of -MR. McDONALD: Yes. RECROSS EXAMINATION 13 14 BY MR. McDONALD: 15 (2 Of course, the fact is, Mr. Nelson, that 16 we do have the intervention of the District and we still 17 have a petition pending before the Commission. 18 everything that you have read and seen in this case, 19 including the evidence of the Public Service District about 20 its plan, do you recommend approval of the petition in this 21 case or not? 22 23 A Given With respect to each party's project? don't think I can make that determination. I There's too many 37 1 uncertainties, Mr. McDonald. I mean, each party has 2 proposed various scenarios and rates to go along with them, 3 and I still believe there's uncertainties involved with both 4 of those, but as the agreement that was proposed and 5 submitted, as I've stated to the Commission, meets the 6 criteria. Whether -- without the intervention I believe it 7 would be recommended approval of, but we've got intervention 8 by another utility and what weight that has, honestly, I 9 can't make that determination. 10 MR. McDONALD: I appreciate your candor, sir. CHAIRMAN LANE: Any other questions of this MR. RODECKER: No further questions, Your 16 MR. KELSH: No questions. 17 CHAIRMAN LANE: You may be excused. 18 THE WITNESS: Thank you. 19 CHAIRMAN LANE: Do any of the parties have 11 Thank you. 12 13 witness? 14 15 Honor. 20 21 further witnesses? MR. McDONALD: Yes, Your'Honor. I'd like to 22 call Lee Snyder to briefly comment on some of the testimony 23 of Wilbur Smith that was introduced yesterday and also to 38 1 offer support for Jefferson Campsites Exhibits Twenty-two, 2 Twenty-two-A, Twenty-three and Twenty-three-A. 3 CHAIRMAN LANE: 4 oath. 5 THEREUPON 6 B. L E E Mr. Snyder, you're still under S N Y D E R , 7 having previously been sworn by the Chairman, testified as 8 follows: 9 DIRECT EXAMINATION 10 BY MR. McDONALD: 11 Q Mr. Snyder, yesterday Mr. Smith referred 12 to a map he put up on the board which I don't believe has 13 been marked as an exhibit or introduced into evidence, but 14 it's a map of the portion of Jefferson County, West Virginia 15 showing the Shenandoah River, Charles Town, the mountain 16 communities that we've been talking about, Harper's Ferry 17 and a community called Shannondale. 18 Among other things, Mr. Smith 19 testified that it was possible at some point in the future, 20 if a transmission line were built from the Charles Town 21 treatment plant to the Blue Ridge Project area, that water 22 service could be provided to the community called 23 Shannondale. 39 1 Does that give the Blue Ridge 2 Project an advantage over your project, in your mind? 3 offering something that you can't offer? 4 5 A Is he We are equally dedicated to extending service, and in that area near Mission Road called, 6 Mannings, is the Blue Ridge Elementary School and a fair 7 concentration of houses, and I was approached fairly 8 recently by a developer who plans a project there who asked 9 if we would partner with him in developing a water system in I assured him we would be, and if that comes to 10 that area. 11 fruition, that, coupled with the school would have the real 12 possibility of allowing us to start a system there that 13 could then grow and interconnect with the system that now 14 exists in the three mountain communities. Then the community of Shannondale is 15 16 just south of that area. As Mr. Smith pointed out, it's 17 approximately 4,000 feet to Route 9 at its closest point, so 18 if there's a -- if such an extension is feasible for the 19 District, I suspect it could be feasible for us as well, 20 given the right customer demand within those communities for 21 service. 22 23 (1 Mr. Smith also made some comments about fire protection, and he compared the fire protection 40 1 provisions in the testimony that you offered yesterday or 2 the day before with the fire protection provisions in the 3 so-called Blue Ridge Project, and he noted that you had 4 planned to put in two fire hydrants and his Blue Ridge 5 Project plans to install 95 fire hydrants. 6 clarification to make to the Commission, or observation on Do you have any 7 Mr. Smith's testimony? 8 9 I A I had reviewed a number of times his estimated construction costs, and he's perfectly correct 10 that the project does tabulate having 95 hydrants, but when 11 you look at the deducts for each of the developments that 12 were patterned to be eliminated in order to reduce the cost 13 and change the pro forma of the Blue Ridge system, what one 14 sees is that there were actually four fire hydrants in West 15 Ridge Hills on the Blue Ridge Project, four fire hydrants in 16 Keyes Ferry Acres and six fire hydrants in Harper's Ferry 17 Campsites. 18 Q Mr. Smith made a point, quite correctly 19 so, that the Blue Ridge Project proposes to replace all of 20 the lines in Keyes Ferry Acres because, in his opinion, the 21 lines needed replacement. 22 Utilities, with respect to its Mountain Project, to replace 23 mains in Keyes Ferry Acres as those replacements need to be Is it the plan of Jefferson , 41 1 made? 2 3 A Ultimately, as I've said, our plan would be to replace the vast majority 4 more familiar with it. 5 f th t lin as we b come Probably Keyes Ferry Acres I believe to be the worst line of the three communities. In other 6 cases I'm not at all sure that the two-and-a-half line needs ~ 7 to be replaced with new two-inch line, but certainly in 8 Keyes Ferry Acres, it's likely that all the line may be 9 replaced ultimately unless that 5,000 feet that I was told 10 had been replaced recently, in the last few years, unless 11 that's in locations and installed adequately to warrant its 12 continued use. Q 13 14 Is my answer, yes, you intend to replace lines if they need to be replaced? 15 A I'm sorry, I went kind of around the barn 16 on that, but yes, the answer is, yes. Q 17 18 All right. Now did you have prepared the cash flow analyses and the income statements showing 19 potential pro forma results for the Jefferson Utilities 20 proposa1 ? 21 A Yes, I had them prepared by Rod Laton. 22 Q Are you sufficiently conversant with them 23 to be able to sponsor them and to be able to verify to their 42 1 authenticity and accuracy? 2 A Yes, I believe so. 3 Q What did you ask Mr. Laton to do? 4 A I asked him to model the system and the 5 financing based on the assumptions that I had earlier 6 testified to that were reflected in the Exhibits that were 7 previously introduced. 8 these documents reflect the same numbers, or substantially 9 the same, they were. 10 product. I believe that these Exhibits, or I would suggest, however, they're work They weren't intended to be flawless, so with that 11 assumption, I believe that they're materially correct, 12 though. 13 Q 14 MR. McDONALD: All right, thank you. Your Honor, that completes my 15 redirect examination. 16 that have not previously been admitted, including Jefferson 17 Campsites Cross Examination Number Two and Twenty-Two 18 through Twenty-three-A. 19 20 I move the admission of any Exhibits CHAIRMAN LANE: Those may be admitted into the record. 21 (WHEREUPON Jefferson Campsites Cross 22 Exam Exhibit Number Two and 23 Jefferson Campsites Exhibits Twenty 43 1 two through Twenty-three-A were duly 2 received in evidence.) 3 MR. McDONALD: The witness is tendered. 4 CHAIRMAN LANE: Mr. Rodecker. 5 CROSS EXAMINATION 6 BY MR. RODECKER: 7 Q 8 Mr. Snyder, I just have a few brief questions about Exhibits Twenty-two through Twenty-three-A. 9 Do you have a copy of those Exhibits with you? 10 A 11 MR. RODECKER: 12 13 14 No. Counsel, could you provide your witness with those? MR. McDONALD: Mr. Rodecker, I've only got Perhaps -- could we go off the three of them, actually. 15 record for a moment? 16 (WHEREUPON the Exhibits were 17 provided to the witness.) 18 19 MR. RODECKER: with a copy of Exhibits Seventeen and Eighteen? 20 BY MR. RODECKER: 21 Q 22 23 Could you also provide him Do you have those documents in front of you, Mr. Snyder? A Yes. 44 Q 2 I just want to walk through this with you little bit to clarify information for me. I haven't had a Zhance to really delve into this in any respect, but I'd Like you to be able to explain it to me if you could. Looking at Exhibit Twenty-two, which appears to be the statement of Income and Expenses for Jefferson Utilities, I 7 2nd I'm looking under the pro forma at 385 customers. 8 take it that that is the figure or the column that would 9 reflect the same information that made up Campsite Exhibit 10 seventeen? 11 somehow? I In other words, the two ought to fit together 12 A Yes, that's true. 13 Q So that Seventeen, which tells us the 14 costs that you have represented would be associated with 15 your Mountain Project and assuming $1,020,000.00 loan at 16 zero percent interest from the Housing Development Fund, is 17 that correct? 18 A Yes. 19 Q And that carries with it a 37.50 rate? 20 A Yes. 21 Q Now will you tell me, if we look on 22 Statement A, your J . C . 23 the operating revenues, if I were to multiply out 385 times Exhibit Twenty-two, I take it that 45 1 37.50 times 1 2 , I would come up with that amount? 2 correct? Is that 3 A I would think. 4 Q I'm asking you. 5 done this. I'm asking you. 6 A Quite honestly, I haven't done it either. 7 Q All right. 8 93,009 is the 0 9 at Exhibit Seventeen the 0 10 & I don't know, I have not We'll go to the next item. M expense which is shown. When I looked & M expense that I see there is $73,920.00. 11 A The -- it's my suggestion that the leak 12 repair is in the 0 13 thing that would come to mind. & M, I believe. That would be the first 14 Q Do you know that to be the case? 15 A Well, if I studied this long enough, and 16 by exclusion I might be able to conclude that. Q 17 Same thing with the amortization and 18 depreciation expense of $51,000.00, is there a like figure 19 for that over on Exhibit Seventeen? 20 A I believe it's probably -- as you know, 21 I'm not an accountant. 22 that amortization and depreciation is a function of debt 23 service. But I believe that probably it's 46 Q 1 Your Now correct me if I'm wrong. 2 assumptions here are that; one, you will have the zero 3 percent loan available; second, that your 0 4 will be similar to what your o 5 operations, is that how you arrived at your 0 & & M expenses M expenses are in other & M expenses? 6 A That's right. 7 Q Now if I were to walk through the Exhibit 8 Twenty-three in the same fashion and compare that with 9 Exhibit Eighteen, would that be the appropriate way to read 10 your documents to see if they in fact meet up with one another? I 12 A Yes. They're not -- I would think that 13 there may be s me reasons why things don't exactly match, 14 but I believe that -- here again, materially they represent 15 the same set of assumptions. Q 16 Now at the top of the page on Exhibit 17 Twenty-two, there is a bold entry, $10.00 per customer, DS, 18 that's $10.00 per customer, debt service? 19 stand for? 20 Or what does that A Yes, I believe that's the amount of debt 22 Q And is that beginning in the first year? 23 A I believe so. 21 service. 47 Q 1 And on the Exhibit Twenty-three, $20.54 2 per customer debt service, again, is that beginning the 3 first year? 4 A 5 MR. RODECKER: 6 I believe so. further of this witness. 7 Your Honor, I have nothing Thank you. MR. KELSH: Staff has no questions of this CHAIRMAN LANE: Commissioner Casto? 8 witness. 9 10 COMMISSIONER CASTO: 11 CHAIRMAN LANE: 12 COMMISSIONER FRTJM: 13 No. Commissioner Frum? No. EXAMINATION 14 BY CHAIRMAN LANE: 15 Q Mr. Snyder, I have a question, and you may 16 have answered it and it may be such a stupid question that I 17 shouldn't even ask it, but looking at the map, where is the 18 Walnut Grove area in conjunction with West Ridge, Campsites 19 20 and Keyes Ferry Acres? A This is Charles Town. This is the project 21 at the three developments. 22 the depression ridge extension, we have a water line to 23 right there. This is Walnut Grove, and with 48 Q 1 Okay. Stand right there. Is there any 2 possibility of, if the Commission approved this transfer, is 3 there any possibility that you would connect all of those four subdivisions together into one water system? A its possibilities. It has occurred to me. It's not without It is a pretty sizeable distance, but if there were some development in this area of Millville that facilitated the extension and, I might also say that the Meadowbrook system is right here, and these -- the 10 Meadowbrook and Walnut Grove systems will definitely grow 11 together, I'm all but certain of that because -- Q Now do you serve the Meadowbrook system 14 A Yes. 15 Q Do you own it or do you just operate it? 16 A We own it. 17 Q Okay. 18 A We have an agreement to extend service 12 13 now? Go ahead. 19 that is presently being -- it's in the stage of submission 20 to the Health Department -- to a subdivision that extends to 21 the southwest from Meadowbrook and between -- that makes the 22 properties contiguous. 23 right here that's being proposed for development, well it's That is, this piece of property 49 1 been proposed for years, but it's actively before the 2 Planning Commission at this moment. It is contiguous with 3 this land here that's checkered-looking, which is the 4 holdings of Breckenridge, which are within that area of 5 certificate allowed to service from Walnut Grove to serve 6 Brier Run, which is here, Cambridge, which is right here, 7 and Breckenridge, which extends from Walnut Grove over to 8 right here to become contiguous with the property that I was 9 speaking of at the project called, Gap Dew (sic) 10 11 I subdivision. So it is quite possible in the long 12 run, in fact, I would have some hopes that a project along 13 this Bakerton Road, if it ever comes back to life, was a 14 proposed to be converted to a subdivision. It already has a 15 water system that was used for a campgrounds. The 16 connection of that to Meadowbrook's extension, because 17 Meadowbrook's property has recently been proposed to also 18 extend to the east in this case, so we propose to be able to 19 tie that together to go that far. 20 Similarly, we proposed an extension 21 from Walnut Grove to Jefferson High School, which is 22 straight out this road, which will interconnect the system 23 at Shenandoah Junction to this system. Then it's a short 50 1 distance to the Bardane Industrial Park where we've recently 2 been notified that we're the successful proposer to acquire 3 that system. Q 4 5 Now while you're standing there, show me again where the Charles Town treatment plant is. 6 7 Okay. A It's right here near what's labeled, Oakland Church, but it's on Route 9 right there. Q 8 H o w far is that from the communities that 9 you're talking about in this case? 10 A Well, there versus the three communities 11 being right here. I 12 CHAIRMAN LANE: All right, thank you. 13 have any other questions. Any more questions of this 14 witness? 15 I don't (No response) 16 CHAIRMAN LANE: If not, Mr. Snyder, you may be 18 THE WITNESS: Thank you. 19 CHAIRMAN LANE: Off the record. 17 excused. 20 (WHEREUPON a discussion was had off 21 the record.) 22 23 MR. RODECKER: Your Honor, off the record I informed the Commission of the fact that during this 51 1 morning, the parties met and discussed the possibility of 2 resolution of differences in this matter. 3 obvious that there was a mutual interest in trying to 4 resolve differences rather than having the Commission 5 ultimately decide this case. 6 schedule that is currently in the Commission's Order would 7 require the submission of briefs by April 22nd. 8 length of the transcript and the shortness of time between It appeared That further, the procedural Given the 9 now and April 22nd, we felt that it would probably be an 10 unreasonable burden on both the Court Reporter and Counsel 11 to put together briefs at this time. 12 that we can ultimately resolve these matters, I would like 13 to request that the procedural schedule be continued so that 14 the record be closed at this point but that briefs -- 15 subject to the filing of briefs at a later date to be 16 established by the Commission following the best efforts of 17 the parties to make a resolution of the differences. 18 20 Your Honor, I agree to most of MR. McDONALD: 19 what Mr. Rodecker said. Therefore, in the hope I think it's dangerous to suspend a procedural schedule entirely. We do have an application 21 before the Commission and we do intend to pursue it. We I would like to 22 also intend to continue our discussions. 23 ensure that we not be writing briefs during August, and I 52 would suggest that the Commission establish a briefing schedule out somewhere in May or June or July which would ensure that, unless further extended because of the succe S of the talks, that this case would be concluded and decided. I don't have a specific recommendation, but typically, of course, the transcript takes two weeks and the Commission allows the parties 20 days after that. 8 aggressive. That may be a little I haven't discussed a specific schedule with 9 Mr. Rodecker or Mr. Kelsh, but it seems to me that an 10 initial brief sometime in perhaps June and a reply brief a 11 reasonable time thereafter would be more appropriate than 12 simply cancelling the procedural schedule. 13 CHAIRMAN LANE: Mr. Kelsh? 14 MR. KELSH: Staff would support a briefing 15 schedule scheduling briefings to be filed sometime during 16 the month of June. 17 ample time to see if this can be resolved amicably, yet 18 keeps a little pressure on them to see that that gets done. 19 That will give the parties, I think, CHAIRMAN LANE: The Commission will suspend 20 the briefing schedule for the time being but will issue an 21 Order setting forth a new briefing schedule, and so we will 22 have the transcript in two weeks time? 23 REPORTER: Yes, ma'am. 53 CHAIRMAN LANE: We will issue a further Order setting forth the briefing schedule. Anything further to come before the Commission? 4 MR. McDONALD: 5 of housekeeping matters, Your Honor. 6 asked for a copy of the Jefferson County County-wide 7 planning and zoning ordinance. 8 be provided? 9 MR. KELSH: I believe there are a couple I note that Mr. Kelsh Does he still wish that to Yes. If Counsel could provide 10 that to me, it does not have to be filed as a brief in this 11 case, but if it could just be available for examination, I 12 also requested that you submit as a post-hearing Exhibit -- 13 I -- 14 MR. McDONALD: The operating agreement 15 between Campsites and Snyder. 16 MR. KELSH: That -- Staff would request a 17 courtesy 18 you're done with your housekeeping -- 19 MR. McDONALD: 20 that need not be filed in this case. If I didn't have any other notes, Jim, anything else you wanted? 21 MR. KELSH: I believe I had Mr. Nelson's 22 testimony marked but I don't believe I moved it into the 23 record. I'd just like to move it into the record. 54 CHAIRMAN LANE: It may be moved into evidence. (WHEREUPON Staff Exhibit Numbers Three and Four were duly received in evidence.) CHAIRMAN LANE: Anything further? (No response) CHAIRMAN LANE: this hearing is adjourned. If there's nothing further, 55 REPORTER’S CERTIFICATE STATE OF WEST VIRGINIA PUBLIC SERVICE COMMISSION, to wit; I, the undersigned, Philip S. Dye, Certified Court Reporter, do hereby certify that the foregoing is, to the best of my skill and ability, a true and accurate transcript of all the testimony adduced or proceedings had in the aforementioned case, as set forth in the caption hereof. Given under my hand this 25th day of April, 1999. 6-4.”- *BOIc-rrln-.* OFFICIAL SEN. NOTARY PUDLiC STATE C C WET! t’iR2lNlA Pt :!!_IF s. CYE 910 F O R E 3 EDGE DR’YE SO. CHARLESTO?!, VJV 2349 fly EmmlssiLm Exgiw March 3, 2 dJ3 1 i Notary Public