20100219Decision Memo.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER KEMPTON
COMMISSIONER SMITH
COMMISSIONER REDFORD
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: NEIL PRICE
DEPUTY ATTORNEY GENERAL

DATE: FEBRUARY 19, 2010

SUBJECT: APPLICATION OF MURRAY WATER WORKS SYSTEMS,
CASE NO. MUR-W-10-01

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 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, as attachments. The Application did not include a proposed effective
date for these changes.
THE APPLICATION
The Applicant, Company President Arlen Lish, states in the Application that certain
capital improvements (e.g., new water meters) are needed in order to isolate water leakage and
control summer water usage. Mr. Lish states that he was compelled to “hire a leak detector from
Spokane, Washington to find a leak that a customer knew was leaking at a cost of $1,000.00 to
the company.” Specifically, the Applicant claims that a general increase in rates and charges is
needed in order to “invest in machinery and do upkeep on the system.” Mr. Lish also estimates
that he has invested $15,000 and 360 hours of labor installing a new water main through the
town of Murray, Idaho.
The Applicant made the following requests regarding rate design and structure:
1. Schedule 1 and Schedule 3 – Rates for residential water use to be
increased from $26.00 per month to $40.00 per month. Rates for
commercial customers to be increased from $24.00 per month for all
commercial customers to $60.00 per month for a 1″ service line and to
DECISION MEMORANDUM 2
$75.00 per month for a 2″ service line. The Company is also asking for an
increase in hookup fees from $800.00 to $2,000.00 plus parts and labor;
and a new charge of $5.00 monthly charge for inactive customers.

2. Schedule 2 – An increase in the turn on/turn off fee for March 1 to
October 1 from $25.00 to $50.00, and an increase in the turn on/turn off
fee for October 1 to March 1 from $50.00 to $75.00.

The proposed rates represent an increase of 54% for residential customers and an
increase of 131% for commercial customers with a 1″ service and 188% for commercial
customers with a 2″ service line effective January 10, 2010.
STAFF RECOMMENDATION
Staff has reviewed Murray’s Application and has prepared a Customer Notice. As
stated above, the Applicant has not submitted a proposed effective date for the proposed rate
increase. However, Staff recommends that the Application be processed through Modified
Procedure and believes that a 45-day comment period would provide adequate time for notice of
the Company’s Application, investigation and public comment.
COMMISSION DECISION
Does the Commission wish to process Murray’s Application through Modified
Procedure and issue a Notice of Application and Modified Procedure with a 45-day comment
period?

M:MUR-W-10-01_np