20100225notice_of_application_order_no_31013.pdf

Office of the Secretary
Service Date
February 25 , 2010
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF MURRAY WATER WORKS SYSTEMS
FOR AUTHORITY TO INCREASE ITS
RATES AND CHARGES FOR WATER
SERVICE
NOTICE OF APPLICATION
CASE NO. MUR-I0-
NOTICE OF
MODIFIED PROCEDURE
ORDER NO. 31013
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that on January 13 , 2010, Murray Water Works
Systems ("Murray" or "Company filed an Application requesting authority from the
Commission to increase its rates and charges for water service. The Application included, as
attachments, a copy of the Company s 2008 Annual Report and copies of water bills from other
water companies operating in the nearby area, including the East Shoshone Water District. The
Application did not include an effective date for the proposed increase in rates and charges.
YOU ARE FURTHER NOTIFIED that the Company s Application states that certain
capital improvements (e., new water meters) are needed in order to isolate water leakage and
control summer water usage. The Company claims that a general increase in rates and charges is
needed in order to invest in machinery and maintain the system.
YOU ARE FURTHER NOTIFIED that Murray estimates that it has invested $15 000
and 360 hours of labor installing a new water main through the town of Murray, Idaho (located
approximately 72 miles east of Coeur d' Alene, Idaho).
YOU ARE FURTHER NOTIFIED that the Applicant made the following requests
regarding rate design and structure:
1. Schedule 1 and Schedule 3 - Rates for residential water use to
increased from $26 per month to $40 per month. Rates for commercial
customers to be increased from $24 per month for all commercial
customers to $60 per month for a 1" service line and to $75 per month for
a 2" service line. The Company is also asking for an increase in hookup
fees from $800 to 000 plus parts and labor; and a new charge of $5.
monthly charge for inactive customers.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 31013
2. Schedule 2 - An increase in the turn on/turn off fee for March 1 to
October 1 from $25 to $50, and an increase in the turn on/turn off fee for
October 1 to March 1 from $50 to $75.
YOU ARE FURTHER NOTIFIED that the proposed rates represent an increase of
54% for residential customers and an increase of 131 % for commercial customers with a 1"
service line and 188% for commercial customers with a 2" service line effective January 10
2010.
YOU ARE FURTHER NOTIFIED that Murray has not been granted a rate increase
since July 15 2003.
YOU ARE FURTHER NOTIFIED that Murray s revenue requirement, and every
component of it, both rate base and expense, are at issue. The Commission may grant, deny, or
modify the revenue requirement requested and may find a revenue requirement different from
that proposed by any party is just, fair and reasonable. IDAPA 31.01.01.124.01.
YOU ARE FURTHER NOTIFIED that the rates and charges of all Idaho retail
customers, both recurring and non-recurring, including those of any special contract customers
are at issue, and every component of every existing and proposed rate and charge is at issue. The
Commission may approve, reject or modify the rates and charges proposed and may find that
rates and charges different from those proposed by any party are just, fair and reasonable.
IDAP A 31.01.01.124.02.
YOU ARE FURTHER NOTIFIED that the Commission may approve, reject or
modify existing or proposed relationships between and among rates and charges within, between
or among customer classes or rate groupings and may approve, reject or modify existing or
proposed relationships among and between customer classes or rate groupings.IDAPA
31.01.01.124.02.
YOU ARE FURTHER NOTIFIED that the Commission may abolish, reduce or
create rate blocks or categories of rates and charges, abolish, create or reduce components of
rates and charges, abolish, reduce or create customer classes or rate groupings, and abolish
reduce or create absolute or relative differences among and between existing classes or rate
groupings of customers. IDAPA 31.01.01.124.02.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 31013
YOU ARE FURTHER NOTIFIED that the tariffs, practices, rules and regulations
servIce, instrumentalities, equipment, facilities, classifications, and customer relations of the
utility are at issue and the Commission may address any of them in its order.IDAPA
31.01.01.124.02.
YOU ARE FURTHER NOTIFIED that the Commission Staff shall conduct an audit
of the Company s Application, work papers and all documents and files relevant to this matter.
Following such audit, the Staff shall present to the Commission its findings and
recommendations. After reviewing the Staff s audit and recommendations, the Commission will
issue an Order regarding the further processing of this rate case.
YOU ARE FURTHER NOTIFIED that the Idaho Public Utilities Commission has
jurisdiction over Murray, its filing and the issues pertaining to this case pursuant to Title 61 of
the Idaho Code and specifically Idaho Code 99 61-502, 61-622 and 61-623.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission s Rules of Procedure, IDAP A 31.01.01.000 et seq.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the Company
filing in Case No. MUR-10-01 and finds that the public interest may not require a formal
hearing in this matter and will proceed under Modified Procedure pursuant to Rules 201 through
204 of the Idaho Public Utilities Commission s Rules of Procedure, IDAP 31.01.01.201
through .204. The Commission notes that Modified Procedure and written comments have
proven to be an effective means for obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position
concerning Murray s request to increase its rates and charges may file a written comment in
support or opposition with the Commission within sixty (60) days from the date of this Order.
The comment must contain a statement of reasons supporting the comment. Persons desiring a
hearing must specifically request a hearing in their written comments.Written comments
concerning this Application should be mailed to the Commission and Murray at the addresses
reflected below:
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 31013
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
Arlen Lish, Owner
Murray Water Works
PO Box 11 7
Kingston, ID 83839
Street Address for Express Mail:
472 W. Washington Street
Boise, ID 83702-5918
These comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission s home page located at www.puc.idaho.gov. Click the "Comments and Questions
icon and complete the comment form using the case number as it appears on the front of this
document.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set, the Commission will consider this matter on its merits and
enter its Order without a formal hearing. If written comments are received within the time limit
set, the Commission will consider them and, in its discretion, may set the same for formal
hearing.
YOU ARE FURTHER NOTIFIED that Murray filing can be viewed at
www.puc.idaho.gov by clicking on "File Room" and then "Water Cases " or it can be viewed
during regular business hours at the Idaho Public Utilities Commission, 472 West Washington
Street, Boise, Idaho.
ORDER
IT IS HEREBY ORDERED that the Application of Murray Water Works Systems for
authority to increase its rates and charges for water service be processed by Modified Procedure
IDAPA 31.01.01.201-204. Interested persons may file written comments no later than sixty (60)
days from the service date of this Order.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 31013
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this d..St-~
day of February 2010.
d. 6m~.JI D. KEMP TO , PRE IDENT
MARSHA H. SMITH, COMMISSIONER
ATTEST:
~(:)~J~Je D. Je ell
mISSIon Secretary
O:MUR-IO-
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 31013