SEQUIM — State regulators have issued a fine against a Sequim water company for $10,500, charging it with 105 violations including unauthorized services and billing practices.
Owned by David Dorland of Seattle, Lowper Inc.’s water system serves seven customers on Elk Pass Road and Chelsamish Drive in Happy Valley.
A violation was issued for each customer billing, Utilities and Transportation Commission officials said.
Administrative Law Judge Gregory J. Kopta last Monday ordered Lowper to appear before the commission at 1:30 p.m. April 27 in Olympia to give testimony and evidence under oath regarding its operations.
Kopta, on behalf of the commission, also ordered Lowper to bring documents including water service invoices or billings and customer notices regarding rates and services.
The company has 15 days from Feb. 14 to pay the fine or request an appeal hearing.
The agency’s investigation found the water utility should have filed an initial tariff Oct. 4, 2009.
“They haven’t registered their water company under the purview of the commission,” said commission spokeswoman Marilyn Meehan.
“He should be registering with the commission and filing a price list.”
Jim Ward, regulatory analyst with the commission, said the company had not filed a tariff, or price list, with the agency to show the rates the company is charging customers.
The commission officials also said Dorland has maintained that the company was in the process of selling the water system to the Clallam County Public Utility District.
However, the staff investigation found that the PUD is not purchasing the system, Meehan said.
Attempts to contact Dorland at his Lowper office in Seattle on Friday were unsuccessful.
The commission became aware of the unregulated water utility when customers complained about high water bills, Meehan said.
The average monthly customer water bill, based on June data, was more than $81 a month, plus charges for usage.
The UTC regulates private water companies operating within the state that have 100 or more connections or if the utility charges more than $471 a year per customer.
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Sequim-Dungeness Valley Editor Jeff Chew can be reached at 360-681-2391 or at jeff.chew@peninsuladailynews.com.