20040325Application.pdf

PICABO LIVESTOCK CO., INC.
Box 688
PICABO, IDAHO 83348
Tel [phone]
fax [phone]
npurdy~earthlink.net
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March 22, 2004
Water Utilities Supervisor
Idaho Public Utilities Commission
O. Box 83720
Boise, ID 83720~0074
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RE: Proposed Rate Increase for Picabo Water System
Dear Supervisor:
It has been a number of years since the Picabo Water System asked for a rate increase and in the
meantime expenses for power, maintenance, materials and water testing have increased
dramatically.
To make the system more dependable a well was drilled in 2000 for a cost of over $50 000 dollars
and a variable speed booster pump was installed to make the pressure in town more stable. The
added expenses for power and interest on the well investment has raised the expenses several
thousand dollars a year. In 2003 the income from the system was $6 182 and the expenses were
$8,283. The expenses do not include any labor to operate the system or any depreciation
replace the equipment at the end of its life.
A survey of a system similar to ours in the town of Carey Idaho, determined that the minimum
payment for a hydrant is $50.00 a month and an average bill for the month for a household of four
that waters their lawn is $70.00. Our rate for a single hydrant is a minimum of$12 and for
household wintertime use a rate of $14 and for a summer time household irrigation rate of $26.
The Picabo System has about 26 customers and to bring the expenses in line with the revenues, it
would take about $6 a month to make the system break even, however there still would not be
any money to cover depreciation and labor. Therefore, we are respectfully requesting an $8.
per month increase for the three rates we publish, since we are faced with additional increases in
our electricity bills and our water sampling costs in the next several years.
Please consider this request so that we could raise rates by July 1st of2004. If you have any
questions please contact me at 208~ 788-3530 or at the address above.
Sincerely,
~~~
NIck Purdy
Manager