Commission probes discrepancy after purchase of service connections; seller had reported 53 customers, staff counts fewer

Commission staff reported a discrepancy in a recent purchase of customer connections: the seller represented 53 customers, but staff’s mapping and discussion with an engineer indicate roughly 46–48 customers were transferred.

Staff described checking assessor maps and counting buildings, and they said an in-person review and a map from the seller’s representative produced different counts. An engineer (Mark Cook) said his counts matched 46–48, while Cheryl Garner (identified in the discussion as real estate agent for Jacob Burton) pulled maps showing a different result. Staff said the seller had represented 53 customers when the utility relied on that number for valuation.

Commissioners discussed options including testing the seller’s upgraded pumps to verify available capacity, reviewing the contract terms about customer counts and pipe valuation (staff explained pipe was prorated over a 40-year useful life), and possibly renegotiating if contractual obligations were not met. Staff suggested scheduling a capacity test in spring or fall to confirm the seller’s deliverable supply.

Why it matters: The discrepancy affects revenue and asset valuation tied to a purchase of customers and may require contract follow-up or financial adjustments if the representation was incorrect.

Next steps: Staff will pursue additional verification (maps and on-site checks), arrange pump-capacity testing, and bring results back to the commission for potential contract action or financial reconciliation.