20040409Notice of Application.pdf

Office of the Secretary
Service Date
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
April 9, 2004
IN THE MATTER OF THE APPLICATION OF
PICABO LIVESTOCK COMPANY, INC. FOR
AUTHORITY TO INCREASE RATES AND
CHARGES FOR THE PICABO WATER
SYSTEM.
CASE NO. PIC-O4-
NOTICE OF APPLICATION
NOTICE OF MODIFIED
PROCEDURE
NOTICE OF COMMENT/
PROTEST DEADLINE
YOU ARE HEREBY NOTIFIED that on March 25 , 2004, Picabo Livestock
Company, Inc. filed an Application for a rate increase for the Picabo Water System (Picabo;
Company). Nick Purdy, Manager of the Picabo Water System, reports that it has been ten years
since Picabo asked for a rate increase (Case No. PIC-94-, Order No. 25447) and in the
meantime expenses for power, maintenance, materials and water testing have increased
dramatically.
To make the system more dependable, Mr. Purdy reports that a well was drilled in
2000 at a cost of over $50 000 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 operating expenses several thousand dollars a year. As reflected in the Company
2003 Annual Report, Mr. Purdy reports that income from the system was $6 182 and expenses
were $8 283. Expenses do not include any labor to operate the system or any depreciation to
replace the equipment at the end of its life.
The Company s survey of a water system similar to Picabo in the town of Carey,
Idaho, revealed that the minimum payment for a hydrant is $50 a month and that an average
monthly bill for a household of four that waters their lawn is $70. Picabo provides water at an
un-metered flat rate. Picabo s rate for a single hydrant is a minimum of $12. Residential rates
for Picabo are $14/month year-round plus an additional $12/mo for sprinkling (April 1-
September 30), for an annual charge/residential customer of $240. Commercial rates are $24/mo
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/ PROTEST DEADLINE 1
year-round plus an additional $21/mo for sprinkling (ApriI1-September 30), for an annual
charge/commercial customer of$456.
The Picabo Water System has 26 residential customers and 2 commercial customers.
To bring expenses in line with revenues, Mr. Purdy contends that it would take about $6 a month
increase in water rates to make the system break even; however, at that amount there still would
not be any money to cover depreciation or labor. The Company anticipates additional increases
in electric bills and water sampling costs in the next several years. The Company is therefore
requesting an $8 per month increase in its published water rates. This increase would equate to
an annual water charge for residential customers of $336 and for commercial customers of $552.
The Company requests that the proposed increase in rates take effect no later than
July 1 , 2004.
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the filings of
record in Case No. Picabo-04-1. The Commission has preliminarily found that the public
interest in this matter may not require a technical hearing to consider the issues presented, and
that the issues raised by the Company s filing may be processed under Modified Procedure, i.
by written submission rather than by hearing. Reference Commission Rules of Procedure
IDAPA 31.01.01.201-204.
YOU ARE FURTHER NOTIFIED that the deadline for filing written comments or
protests with respect to Picabo s Application and the use of Modified Procedure in Case
No. PIC-O4-1 is Friday, May 28, 2004.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the deadline, the Commission may consider the issue on its merits and enter its
Order without a formal hearing. If comments or protests are filed within the deadline, the
Commission will consider them and in its discretion may set the matter for hearing or may
decide the matter and issue its Order based on the written positions before it. Reference IDAP A
31.01.01.204.
YOU ARE FURTHER NOTIFIED that written comments concerning Case No. PIC-
04-1 should be mailed to the Commission and the Company at the addresses reflected below.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/ PROTEST DEADLINE
COMMISSION SECRETARY
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
PICABO LIVESTOCK CO, INC.
NICK PURDY
PO BOX 688
PICABO, ID 83348
npurdyCfYearthlink.net
Street Address for Express Mail:
472 WWASHINGTON ST
BOISE, ID 83702-5983
All 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.state.id.. Click the "Comments and Questions
icon, and complete the comment form, using the case number as it appears on the front of this
document. These comments must also be sent to the Applicant at the e-mail address( es) listed
above.
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 the Application in Case No. PIC-04-1 may
be viewed www.puc.state.id.by clicking on "File Room" and "Water Cases " or can be viewed
during regular business hours at the Idaho Public Utilities Commission, 472 West Washington
Street, Boise, Idaho and at the general business office of Picabo Livestock Co, Inc.
DATED at Boise, Idaho this
'j f'h day of April 2004.
€t=Co ission Secretary
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NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF COMMENT/ PROTEST DEADLINE 3