PSC fines Helena area development for inadequate water service

The Montana Public Service Commission preliminarily fined a Helena Valley subdivision nearly $87,000 Tuesday after development owners failed to provide adequate water service to residents.

Additionally, commission staff concluded that North Star Development also failed to fully cooperate with the commission during its investigation into homeowner complaints about the disruptions in their utility services.

The preliminary fines are the most recent action the commission has taken to address customers’ complaints, which were initially filed last summer. The complaints alleged that, due to an insufficient water supply, North Star implemented emergency restrictions for lawn watering and a water boiling advisory. 

Commission staff recommended a $300 per day penalty for the 26 days — $7,800 total — that North Star failed to meet investigative deadlines before the subdivision switched legal representation.

Staff also used a $300 daily rate to calculate the fine for failing to provide water services for 263 days, resulting in a $78,900 penalty. 

The commission staff also recommended that the commission give North Star the option to negotiate with the commission, pay the total penalty or sue in district court. 

Public Service Commission attorney Laura Vachowski, who worked on the case, told the commission that if North Star were to pay the fines, the money would go directly into the state’s general fund, not to homeowners. 

Vachowski also informed the commission that it has no authority to manage how North Star chooses to address water service issues stemming from infrastructure failures.

Commissioner Randy Pinocci, who has been vocal in prior meetings about the suggested solutions the subdivision can make to fix the water issue, said during Tuesday’s meeting that constituents should request that the state Legislature give the PSC authority to mandate solutions.

Commission President Brad Molnar asked if there was a way to negotiate a lesser fine if North Star took steps to fix the water supply issue.

“We don’t want to penalize you. We want better service. We want better reliability,” Molnar said during the meeting. 

Vachowski said that the commission must establish the penalty amount before discussing an alternative solution with North Star.

Commission Vice President Jennifer Fielder asked if North Star had plans to negotiate with the commission. Vachowski said that she spoke with North Star’s lawyers Tuesday morning and was told that they would not be able to attend the meeting. Vachowski said North Star attorneys received a copy of the staff recommendation but didn’t comment further.

The commission unanimously approved establishing the penalty. North Star can explain why it shouldn’t be fined at a hearing on Sept. 16. It will have until Aug. 22 to enter negotiations. 

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