20060814Application.pdf

BATT&FISHER
A LIMITED LIABILITY PARTNERSHIP
RECE\VED
2000 AUG \ 4 PM 3: 26
(rfR'Mbi rMH31:\~ her. c
UTiLItiES COt'AMISSION
John R. Hammond Jr.
August 14, 2006
Idaho Public Utilities Commission
472 W. Washington Street
P. a.Box 83720
Boise, Idaho 83720-0074
Re:In the Matter of the Application of Spirit Lake East
Water Company, Inc.
Case No. SPL-06-
Dear Commission:
Enclosed are the original and seven copies of the Application of Spirit Lake East Water
Company, Inc. For Authority to Increase Its Rates and Charges for Water Service In the State of
Idaho, each complete with attached Exhibits, for filing in the above matter, together with a disk
containing the Application and attached Exhibits in PDF format.
I am also enclosing three separate binders of "Work Papers" for the Commission s use inthis matter.
If you need additional information or documentation, please do not hesitate to contact me.
Sincerely,
BATT & FISHER, LLP
JRH:hva
Enclosures
T 208.331.1000 . F 208.331.2400 . P.Box 1308 Boise, Id 83701 . Suite 500, US Bank Plaza 101 S. Capitol Blvd. Boise, Id 83702
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John R. Hammond, Jr., ISB No. 5470
BATT & FISHER, LLP
u.S. Bank Plaza, 5th Floor
101 S. Capitol Boulevard
Post Office Box 1308
Boise, ID 83701
Telephone: [phone]
Facsimile: [phone]
20G6 P.UG 14 P!~ 3: 26
10,::0 FU:-
UTILI'iT.:8 COk\fAiSSiON
Attorneys for Applicant
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE
APPLICATION OF SPIRIT LAKE EAST
WATER COMPANY, INC., FOR
AUTHORITY TO INCREASE ITS
RATES AND CHARGES FOR WATER
SERVICE IN THE STATE OF IDAHO
Case No. SPL-O6-
APPLICATION
COMES NOW Spirit Lake East Water Company ("Spirit Lake
" "
Applicant" or
Company ) and hereby makes application to the Idaho Public Utilities Commission
Commission ) for an Order approving revisions to Applicant's schedules of rates and
charges for water service in the State of Idaho to become effective with service provided
on or after September 14, 2006. The Company requests the Commission s approval of an
increase in the rates it charges its water customers: 1) from $12.00 to $24.00 dollars for
the first 9000 gallons of water usage by a customer per month; and, 2) from $.10 to $.
for every 100 gallons of water used by a customer over 9000 gallons per month.
Additionally, the Company requests that the Commission approve an increase in the
amount of the connection fee for new service connecting to the water system from
200.00 to $2 500.00. In support ofthe Company s requests this Application shows:
APPLICA nON OF SPIRIT LAKE EAST WATER COMPANY, INc., FOR AUTHORITY TO
INCREASE ITS RATES AND CHARGES FOR WATER SERVICE IN THE STATE OF IDAHO - 1
Applicant is a public utility water corporation within the meaning of the Idaho
Public Utility Law, is duly organized and existing under the laws ofthe State ofldaho
and is engaged in conducting general water business in and about the Spirit Lake East
and Treeport Subdivisions in Kootenai and Bonner County, Idaho. The Applicant has its
principal office and place of business at 15807 E. Indiana Avenue, Spokane, Washington
99216-1814. The Applicant's current Certificate is Certificate No. 293.
II.
The Applicant has been providing service to its customers as a public utility for
nearly 23 years. Currently the Company provides service to 280 active service
connections within Kootenai County and Bonner County, Idaho. The Applicant's service
area is large, with the lots in the Spirit Lake East Subdivision averaging ten (10) acres in
size. The lots in the adjoining Treeport Subdivision are five (5) acres in size. The total
area served by the Company is over 3 300 acres. The Company owns one lot in Spirit
Lake East, where the well, pump house and storage tank are located. More than 80% of
the lots have active connections in the Spirit Lake East and Treeport Subdivisions with
residences and/or improvements located on them.
III.
During the 23 years the Company has provided its customers water service, the
rates for said service, as represented by the attached schedules, have not changed since
initially approved by the Commission in Order No. 18466, dated November 23, 1983.
During this time period, costs have changed and many improvements have been made to
the water system. Further, since Order No. 18466 was issued, Hanson Industries, Inc.
APPLICA nON OF SPIRIT LAKE EAST WATER COMPANY, INC., FOR AUTHORITY TO
INCREASE ITS RATES AND CHARGES FOR WATER SERVICE IN THE STATE OF IDAHO - 2
the parent corporation of the Company, has subsidized its operation. In 2005, Hanson
Industries wrote off (forgave) $370 000.00 of more than $475 000.00 the Company owed
the parent corporation. These liabilities represent the level of subsidy the parent
corporation has provided the water system since its inception. Hanson Industries is
unwilling, and it is unreasonable to expect it, to continue to subsidize the Company.
IV.
In presenting this Application to the Commission, the Applicant has used a recent
Commission Staff audit ofthe Company s books and records as guidance in filing this
Application. The audit which was performed in conjunction with the Company s last
case, Case No. SPL-04-, dealt only with new service connections and was critical of
the Company s record-keeping procedures. In an effort to show good faith and
cooperation, the Company has used the information provided in the audit as the
beginning point for restating its financial records. It is the Company s desire upon
completion of this case to be in complete agreement with the Commission and its Staff
regarding its financial position.
CONNECTION FEES
On June 7, 2004, the Commission issued Order No. 29513 in Case No. SPL-
04-, approving an increase in the Company s connection fees from $650.00 to
200., effective June 9, 2004. The Company initially requested an increase in the fee
to $2 500.00. The Company and the Staff ultimately agreed on the $1 200.00 fee based
upon Staff assisting the Company with finding a licensed, qualified contractor to perform
the work. Shortly after the Order was issued, this contractor performed one connection at
APPLICA nON OF SPIRIT LAKE EAST WATER COMPANY, INc., FOR AUTHORITY TO
INCREASE ITS RATES AND CHARGES FOR WATER SERVICE IN THE STATE OF IDAHO - 3
the $1 200.00 rate and then withdrew from the agreement, leaving the Company back in
its pre-Order dilemma of finding a qualified contractor. The Company did locate a new
qualified contractor, which again charged $2 500.00 for performing each main tap and
service line to the property line. This cost is mainly due to the very large size of the
subdivisions and the distances to bring service lines to the lots. This cost does not
include any administrative costs or direct labor by the Company. The Company is
therefore requesting that the new service connection fee be increased by an amount equal
to the actual cost paid to the outside contractor. The Company is prepared to provide
invoices to the Commission Staff to support these costs. At the proposed rate of
500., the Company will recover only its direct costs.
VI.
WATER SERVICE RATES
The Company s request to increase its water service rates and charges equates to
approximately a 100% increase, representing approximately a 3.2% increase per year
over the 23 year period since the Company s existing rates were established. This
request is supported by the attached Exhibit Nos. 1 - 5.
VI. (A)
Rate Base:
Exhibit No.Schedules "
, "
B" and "" develop the Company s Rate Base.
Schedule "A" presents the total plant in service shown on line 29, Column (G) of
$961 201.00. This schedule was begun, as shown in Column (A), utilizing the data the
PUC Staff found appropriate in its audit of the Company s 2001 financial records, which
produced a total plant in service amount of $820 232.00. Columns (B) and (C) show
APPLICATION OF SPIRIT LAKE EAST WATER COMPANY, INc., FOR AUTHORITY TO
INCREASE ITS RATES AND CHARGES FOR WATER SERVICE IN THE STATE OF IDAHO - 4
additions to the Company s plant accounts for the years 2004 and 2005 respectively.
These additions result in a total plant in service investment of $866 630.00 at the end of
the Company s 2005 fiscal year.
The Company was required by the Idaho Department of Environmental Quality
(DEQ) to make additional improvements to its system in the years 2005 and 2006. These
improvements were required by the DEQ to protect the quality of water delivered to
customers on the system. These improvements do not generate any additional revenues
to the Company. In Column (E), the Company has recognized these additional non-
revenue producing investments as proforma adjustments to the Company s fiscal year
2005 Rate Base.
Due to the disparity between the Company s approved connection fees ($650.
prior to June 9, 2004, and $1 200.00 subsequent to that date) and the actual cost of
contracting for the installation of customer service connections, the Company has
between 2001 and 2005, invested $61,417.00 more in these connections than it has
collected in connection fees. In Column (F) of Exhibit No.Schedule "" the
Company has capitalized these costs to its plant in service accounts. The detail of the
yearly costs and fees collected are shown on Exhibit No., Column (G).
The Company s total adjusted plant in service amount of$961 201.00 is shown on
Exhibit No.Schedule "" Column (G). This amount is carried forward to the Rate
Base Exhibit No.Schedule "" line 1.
Schedule "B 1" of Exhibit No.1 details the Company s accumulated depreciation.
This Schedule was prepared in conformance with the Plant in Service Exhibit No.
Schedule ". Column (A) ofthis schedule ties to the Commission Staffs 2001 audit of
APPLICATION OF SPIRIT LAKE EAST WATER COMPANY, INc., FOR AUTHORITY TO
INCREASE ITS RATES AND CHARGES FOR WATER SERVICE IN THE STATE OF IDAHO - 5
the Company, producing a total accumulated depreciation of$732 003.00. Each of the
Columns (B) through (E) detail the additions to accumulated depreciation for the plant
added between 2001 and 2005 , as well as adjustments to depreciation contained in the
Staff audit. The changes to accumulated depreciation shown here are directly related to
the detail of depreciation expense presented on Exhibit No.Schedule "B2"
Depreciation expense, as presented on Exhibit No., Schedule "" Column (I)
carries forward to fiscal year-end 2005 the annual depreciation expense found reasonable
in the Commission Staffs 2001 audit and adds depreciation for new plant additions for
the years 2002 through 2005. Column (J) of this Schedule reflects the proforma
depreciation expense the Company will experience for the year 2006 to recognize the
additional plant placed in service in compliance with DEQ requirements. Total
depreciation expense for the year 2006 will be $6 885.00. This expense amount is carried
forward to Exhibit No., Schedule "" and is utilized in determining the Company
total revenue requirement on Exhibit No.
Exhibit No.Schedule "" is the Company s calculation of its rate base. This
rate base utilizes the plant in service (line 1) developed on Exhibit No.Schedule "
and accumulated depreciation (line 2) developed on Exhibit No.Schedule "" to show
a net plant in service amount of$220 451.00 on line 3. On line 5 , the Company has
added $3 055.00 for a spare parts inventory (spare pump) and $7 073.00 on line 9 for a
working capital allowance equal to one-eighth (118) of annual operating expenses.
Contributions in aid of construction of $70 050.00 (consistent with PUC Staff audit) have
been deducted on line 8. The total rate base for the Company is $160 529., as shown
on line 11.
APPLICATION OF SPIRIT LAKE EAST WATER COMPANY, INC., FOR AUTHORITY TO
INCREASE ITS RATES AND CHARGES FOR WATER SERVICE IN THE STATE OF IDAHO - 6
VI. (B)
Results of Operations
Exhibit No., Schedules "A" through "" present the Company s operating
income results. Schedule "A" details the revenues actually realized during fiscal year
2005 by the Company in Column (A). These revenues are as reported by the Company in
its annual report to the Commission. Included in these revenues is $18 000.00 of Hook-
up fees collected during the year 2005. These connection fee revenues represent 15 new
services connected to the system during the year. Column (B) ofthis schedule removes
the hook-up fees collected during the year to produce Column (C) that is the $47 903.
of revenues collected under current tariff rates from customers for the supply of water
service to their homes. These revenues are carried forward to the Income Statement
Exhibit No., Schedule "
Exhibit No., Schedule "" itemizes the Company s expenses incurred to
operate and maintain the water system. Column (A) of this exhibit reflects the expenses
as reported to the Commission in the Company s fiscal year 2005 annual report.
Columns (B), (C) and (D) are corrections to the annual report to properly classify several
expense items that were incorrectly recorded. Column (E) sets forth the corrected
expenses of the Company as they should have been reported to the Commission. In
Column (F), the Company has eliminated the cost incurred to connect new customers to
the system. This adjustment is necessary to be consistent with the elimination of
connection fees discussed earlier regarding Exhibit No., Schedule "" Elimination of
both the revenues collected in hook-up fees, and the costs incurred to complete those
collections, produces an income statement that is representative of the Company s water
APPLICATION OF SPIRIT LAKE EAST WATER COMPANY, INC., FOR AUTHORITY TO
INCREASE ITS RATES AND CHARGES FOR WATER SERVICE IN THE STATE OF IDAHO - 7
service operations. Column (G) of this exhibit is an adjustment required to normalize the
Company s water testing expenses. The Company must complete a number of different
water tests to comply with DEQ requirements. The frequency of these tests varies. Some
are required monthly and some annually. Others are required on a 3 , 4, 6 and 9 year
frequency schedule. The adjustment in this column spreads the costs of these tests on a
normalized basis over the frequency period between tests.
Column (H) of this exhibit presents the corrected and normalized expenses for the
Company of$56 580.00 for the test year 2005. These expenses are carried forward to
Exhibit No., Schedule "" that shows the Company s corrected and normalized
income statement.
Exhibit No., Schedule "" summarizes the income statement for the
adjustments previously discussed. As shown on line 19 of this exhibit, the adjusted test
year results in a net loss to the Company of$17 887.00.
VI. (C)
Cost of Capital (Return on Rate Base)
Exhibit No.3 shows the Company s capital structure. Other than the debt the
Company owes its parent, Hanson Industries, the Company has no debt. Initial
Capitalization ofthe Company valued its capital stock at $296 434.00. The Company has
accumulated negative retained earnings over its lifetime of $382 000.00. The liability of
$249 102.00 that the Company owes its parent is shown on line 3 of this exhibit. As
mentioned earlier, Hanson Industries wrote-off (forgave) $370 000.00 ofthis liability in
2005. The $249 102.00 is the remainder of the amount carried on the Company s books
after recognition ofthe debt forgiveness. This amount is carried as a liability on the
APPLICATION OF SPIRIT LAKE EAST WATER COMPANY, INC., FOR AUTHORITY TO
INCREASE ITS RATES AND CHARGES FOR WATER SERVICE IN THE STATE OF IDAHO - 8
Company s books as a mechanism to track the amount of additional capital Hanson
Industries has provided to the Company. Hanson Industries would like to some day
recover some or all of this additional capital. In the meantime, it is appropriate to treat
this item as "Additional Paid-In Capital". Therefore, the entire capital structure of the
Company is composed of owner s equity in the amount of$163 204., as shown on line
7 of this exhibit.
The Company requests a 12% return on its equity capital equal to the returns the
Commission has allowed other small water companies for several years. Given the 100%
equity capital structure, this return on equity translates to an overall rate-of-return on rate
base of 12%. This return is utilized on Exhibit No.4 to determine the Company
revenue requirement.
VI. (D)
Revenue Requirement
Exhibit No.4 calculates the gross revenue deficiency of the Company. The rate
base from Exhibit No.Schedule "" is multiplied by the rate of return from Exhibit
No., line 7, to produce a net operating income requirement of$19 263.00. When the
net loss of$17 887.00 (From Exhibit No., Schedule ") is added to the net income
requirement, a net income deficiency for the Company of$37 151.00 is produced.
This net income deficiency must be grossed-up to recognize additional revenue-
sensitive costs the Company will incur as a direct result ofthe increased revenues. The
detail ofthe calculated gross-up factor of 128.84% is shown in the lower portion of this
exhibit. Applying the gross-up factor to the net income deficiency results in a gross
revenue increase requirement of $47 866.00. The Company actually billed customers
APPLICATION OF SPIRIT LAKE EAST WATER COMPANY, INC., FOR AUTHORITY TO
INCREASE ITS RATES AND CHARGES FOR WATER SERVICE IN THE STATE OF IDAHO - 9
$47 903.00 during the test year. The requested revenue increase represents an increase of
99.92% in those customers' bills, which is the first and only increase in the Company
rates and charges for water service being initially established in 1983.
Although not included in the Company s calculated increase in this Application
the Company requests authorization to recover its rate case expenses through an
amortization schedule over a 3 year period. Exhibit No.6 shows the calculation and
effect on the Company s revenue requirement assuming total rate case expense of
000.00. The actual costs the Company will incur are an unknown at this time. The
actual cost will depend upon the procedure the Commission determines is appropriate and
any additional information required from the Company and its legal and financial
consultants. The Company will provide actual expense information upon completion of
the Commission s investigation and prior to the Commission s order in this case.
VII.
Adiusted Balance Sheet
Exhibit No.5 is provided to the Commission for its information and to help the
Commission Staff understand the Company s desire to restate its financial position. The
Balance sheet presented in Column (H) incorporates the adjustments discussed earlier in
this application. The Company proposes that this balance sheet will be the basis for
going forward in compliance with the Commission s accounting procedures.
APPLICATION OF SPIRIT LAKE EAST WATER COMPANY, INc., FOR AUTHORITY TO
INCREASE ITS RATES AND CHARGES FOR WATER SERVICE IN THE STATE OF IDAHO - 10
VIII.
TARIFFS OF RATES AND CHARGES
Attached as Exhibit No.7 is a marked-up copy of the Company s existing tariff
rates showing the existing rates and proposed rates in legislative format.! Exhibit No.
is a clean copy of the Company s proposed new tariff sheets for the Commission
approval. The Applicant alleges that the proposed changes in rates and charges set forth
on Exhibit No.8 are just and reasonable, and that the proposed rate of return as discussed
above is a fair rate of return on the Applicant's investment in property used and useful in
rendering water service. The Company proposes an effective date of September 14
2006, for the new rates.
IX.
NOTICE TO CUSTOMERS
Notice to the Applicant's customers is being accomplished by news media
releases simultaneously with the filing of this Application and by an individual notice
mailed to each of the Applicant's customers. See Exhibit No.9. In addition, a copy of
the Application and Applicant's present and proposed Tariffs are available for public
inspection at its office located at 15807 E. Indiana Avenue, Spokane, Washington
99216-1814, during office hours, and at the offices ofthe Commission during its office
hours.
I The Company is also proposing to update the version of the General Rules and Regulations for Small
Water Utilities contained in its Schedules with the more recent version which has been produced by the
Commission.
APPLICATION OF SPIRIT LAKE EAST WATER COMPANY, INc., FOR AUTHORITY TO
INCREASE ITS RATES AND CHARGES FOR WATER SERVICE IN THE STATE OF IDAHO - 11
COMMUNICA nONS
Communications in reference to this Application should be addressed to:
John R. Hammond, Jr.
Batt & Fisher, LLP
101 S. Capitol Blvd., Suite 500
O. Box 1308
Boise, Idaho 83701
Ph: (208)-331-1000
Fax: [phone]
irh~battfisher.com
and
Robert J. Boyle
15807 E. Indiana Avenue
Spokane, Washington, 99216-1814.
Ph: (509)-922-5252
Fax: [phone]
admin~hansonind.com
XI.
The Applicant stands ready for an immediate consideration of its Application and
respectfully requests that it be processed by modified procedure under the Commission
Rules of Procedure. IDAPA 31.01.01.201-.204. In the event the Commission decides
that a technical hearing is necessary, the Company stands ready to prepare and file direct
testimony in support of its Application.
WHEREFORE, the Applicant respectfully requests of the Commission:
That this Application be heard and acted upon at the earliest possible date;
That this Application be processed by modified procedure under the
Commission s Rules of Procedure;
APPLICATION OF SPIRIT LAKE EAST WATER COMPANY, INC., FOR AUTHORITY TO
INCREASE ITS RATES AND CHARGES FOR WATER SERVICE IN THE STATE OF IDAHO - 12
That the Commission find that the Applicant's existing rates are unjust
unreasonable and insufficient to provide the Applicant with a fair rate of
return, and that the revised rates and charges proposed in the proposed Exhibit
No.8 of this Application are just and reasonable, and that Applicant be
permitted to charge said rates to its customers effective September 14 2006.
That the Commission allow the Company to update the General Rules and
Regulations for Small Water Utilities contained in its Schedules with the
Commission s most recent version of the same.
That the Commission allow the Company to recover its rate case expenses
resulting from the preparation, filing and prosecution of its Application
through an amortization schedule over a 3 year period.
That the Commission grant such other and further relief as the Commission
may determine proper in the circumstances.
JL
. ~
DATED THIS day Of~2006.
SPIRIT LAKE EAST WATER COMPANY
By:
APPLICATION OF SPIRIT LAKE EAST WATER COMPANY, INC., FOR AUTHORITY TO
INCREASE ITS RATES AND CHARGES FOR WATER SERVICE IN THE STATE OF IDAHO - 13
EXHIBIT NO.
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Company Name:SQirit Lake East Water Co,
PUC Case Number SPL-06-
Test Year Ended October 31 , 2005
RATE BASE SUMMARY
1 Total Plant in Service (Ex 1 , Sch A, Line 29)
2 Accumulated Depreciation (Ex 1 , Sch B , Line 26)
961 201
740 750
3 Net Plant in Service (Line 1 less Line 2)220,451
4 Add Utility Plant Acquisition Adjustment
5 Add Materials & Supplies Inventories (Spare Parts)
6 Less Accum Amortization Util Plant Acq Adj
7 Less Customer Advances for Construction
8 Less Contributions in Aid of Construction
9 Add Working Capital (1/8 Operating Expenses)
(Exhibit No, 2 , Sch B, Line 22 / 8)
10 Add Deferred Charges
055
050
073
TOTAL RATE BASE 160 529
Exhibit No, 1
Schedule C
EXHIBIT NO.
Schedule A
Company Name:Spirit Lake East Water Co,
PUC Case Number SPL-06-
Test Year Ended October 31 , 2005
OPERATING REVENUES COLLECTED
(A)(B)(C)
Test Year Remove Pro Forma
Actual Hook-up (A + B)
Per PUC Report Fees
Water Revenues:
Unmetered
Metered-Residential 903 903
Metered-Commercial & Industrial
Fire Protection Revenue
Other Water Sales Revenue
Irrigation Sales Revenue
Sales for Resale
8 Total Water Revenue (Add Lines 1-903 903
9 DEQ Fees Billed Separately to Customers
10 Hook-up or Connection Fees Collected 000 (18 000)
11 Commission Approved Surcharges Collected
12 Total Revenue (Add Lines 8-11)903 (18 000,00) $903
Exhibit No, 2
Schedule A
EXHIBIT NO.
Schedule B
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Company Name:SQirit Lake East Water Co,
PUC Case Number SPL-06-
Test Year Ended October 31 , 2005
COST OF CAPITAL AND RATE OF RETURN
(A)(8)(C)(D)
Deferred Liability Owed Parent ~10-31-2005 Weighted
Amount Ratio Cost Cost
1 Common Stock 296,434
2 Retained Earnings (382 332)
3 Liability Owed Parent (Additional Paid-in Capital)249 102
4 Total Common Equity 163 204 100%12%12%
5 Short Term Debt
6 Long Term Debt
7 Total Capital 163 204 12%
Exhibit No, 3
EXHIBIT NO.
Company Name:Spirit Lake East Water Co,
PUC Case Number SPL-06-
Test Year Ended October 31 , 2005
REVENUE REQUIREMENT
1 Rate Base (Ex #1 , Sch C, Line 11)
Required Rate of Return (Ex 3, Line 7)
3 Income Required (Line 1 X Line 2)
Income (Loss) Realized (Ex 2, Sch C, Line 32)
5 Income Deficiency (Line 3 less Line 4)
6 Net to Gross Multiplier
7 Gross Revenue Deficiencey
Actual Revenue Billed
9 Revenue Increase Percentage Required
Gross-up Factor Calculation10 Net Deficiency11 PUC Fees12 Bad Debts
100,0000%
2486%
5000%
99,2514%
9401 %
91,3113%
13,6967%
77,6146%
128,8417%
State Tax (fY 8%
Federal Taxable
Federal Tax (fY 15%
Net After Tax
Net to Gross Multiplier
Adjusted
Test Year
160 529
12%
263
(17 887)
151
128,84%
866
903
99,92%
Exhibit No, 4
EXHIBIT NO.
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Company Name:
PUC Case Number
Test Year Ended
SQirit Lake East Water Co,
SPL-06-
October 31 , 2005
Rate Case Expense Amortization
Calculation of Amortization ExQense
1 Rate Case Expense 000,
12%
128,84%
15.46%
($2 206,64)
2 Period (Months)
3 Rate of Return
4 Gross-up to Revenue
5 Required Amortization Rate
6 Annual Amortization
Amortization Schedule
Return and Unamortized
Year Amortization Taxes Balance
000,
One ($2 206,64)773,566.40
two ($2 206,64)551,911,
three ($2 206,64)295.48
Exhibit No, 6
WATER TESTING SCHEDULE
AND COST WORKSHEET
Type of Test
Total Coliform Bacteria
Nitrate
Nitrite
Sodium
Arsenic
Radionuclides
laC's (Asbestos)
laC's (Cyanide)
sac'
sac Dioxin
VOC'
Lead & Copper
Water Testing Schedule and Cost Worksheet
Updated June 2006
Frequency
Annualized/Normalized
Cost Per Test Cost
12,144,
16,16,
15,
19,
25,
250,83,
45,15,
100,366,
550,183,
160,26,
20,33,
885,
Monthly / Water Source
Annual/ Water Source
9 yrs / Water Source
3 Yrs / Water Source
3 Yrs / Water Source
4 Yrs / Water Source
3 Yrs / Water Source
3 Yrs / Water Source
3 Yrs / Water Source
3 Years
6 Years
5 samples/3 years
EXHIBIT NO. 7-
Tariff No.
C. No.
Schedule No.
Name of Utility
SPIRIT LAKE EAST WATER COMPANY
Rates:
$24.00 $12.minimum monthly charge
$.20 $-;-W for each 100 additional gallons used after 9 000 gallons used per month
$16.00 Reconnect Fee
$2,500.00 $1 200.Hook-" to the System Charge
Meter Readings:
Meters are read on the last day of each quarter, except on December 31 S
when an estimate is made. Note that we read the actual meter and not the
digital remote readout. . .which is connected to the meter by a wire.
There is excellent drainage at Spirit Lake East. Water drains rapidly.
When you are running water, it can be misleading as the water does not
collect on the surface. A standard % inch garden hose of 100' length will
flow 1 000 gallons in one hour at Spirit Lake East.
The Company shaH follow the "Rules and Regulations of the Idaho Public Utilities Commission Goveming
Customer Relations of Natural Gas, Electric, and Water Public Utilities Under the Jurisdiction of the Commission
I Issued:
August 14, 2006 JW1S 9, 2004 Effective September 14, 2006 JtillS 9
Issued By
Title
Exhibit No. 7-
EXHIBIT NO. 7-
Tariff No. 2
D.C. No.
Schedule No.
Name of Utility
SPIRIT LAKE EAST WATER COMPANY
ATTACHMENT
Special Provisions
These special provisonsapplvin place of the same numbered sections contained in the
General Rules and Regulations for Small "Vater Utihties.
6.3 All bills shall clearly indicate the balance due and
shall be due and payable within 30 days ofthe date
rendered. All bills not paid within 30 days shall
be considered delinquent and service may be disconnected
subject to the provisions ofthe IPUC Rules Governing Customer
Relations.
6.4 The Company has instituted a policy regarding customers who
fl.a.:ve paid the old hook up rate of $650 during application 8PL W
04 1. 1'\ny customer who paid the $650 hook up fee before the
service date of Order No. 29513 must be connected to the system
before December 31 , 2004 , to avoid being subj ect to the nev,
higher fee. An exception to this policy '",ill be made only if an
affected customer requests colmection before the end of 2004 but
the Company is unable to complete the \vork due to inclement
vieather or other reasons beyond the Company s control. l\ny
affected c'..lstomer \,;110 does not request connection prior to the
end of 2004 vdll be required to pay the difference bet'Neen the
amount already paid ($650) and the fee in effect at the time of the
customer s request. /\ffected customer~; who do not 'yi~;h to
connect service prior to the end of 2004 may request a refund.
The Company shall follow the "Rules and Regulations of the Idaho Public Utilities Commission Governing
Customer Relations of Natural Gas, Electric. and Water Public Utilities Under the Jurisdiction of the Commission
I Issued:
August 14 2006 Julle 9, 2004 Effective September 14, 2006 fu:oo-9-,
Issued By
Title
Exhibit No. 7-
EXHIBIT NO. 8-
Tariff No.
I.P.c. No.
Schedule No.
Name of Utility
SPIRIT LAKE EAST WATER COMPANY
Rates:
$24.00 minimum monthly charge
$.20 for each 100 additional gallons used after 9 000 gallons used per month
$16.00 Reconnect Fee
500.00 "Hook-" to the System Charge
Meter Readings:
Meters are read on the last day of each quarter, except on December 31 s
when an estimate is made. Note that we read the actual meter and not the
digital remote readout. . .which is connected to the meter by a wire.
There is excellent drainage at Spirit Lake East. Water drains rapidly.
When you are running water, it can be misleading as the water does not
collect on the surface. A standard % inch garden hose of 100' length will
flow 1 000 gallons in one hour at Spirit Lake East.
The Company shall follow the "Rules and Regulations of the Idaho Public Utilities Commission Governing
Customer Relations of Natural Gas, Electric, and Water Public Utilities Under the Jurisdiction ofthe Commission
Issued:August 14 2006 Effective September 14 2006
Issued By
Title
Exhibit No, 8-
EXHIBIT NO. 8-
Tariff No.
C. No.
Schedule No.
Name of Utility
SPIRIT LAKE EAST WATER COMPANY
ATTACHMENT
Special Provisions
These special provisons apply in place of the same numbered sections contained in the
General Rules and Regulations for Small Water Utilities.
6.3 All bills shall clearly indicate the balance due and
shall be due and payable within 30 days ofthe date
rendered. All bills not paid within 30 days shall
be considered delinquent and service may be disconnected
subject to the provisions of the IPUC Rules Governing Customer
Relations.
The Company shall follow the "Rules and Regulations of the Idaho Public Utilities Commission Governing
Customer Relations of Natural Gas, Electric, and Water Public Utilities Under the Jurisdiction of the Commission
Issued:August 14 2006 Effective September 14 2006
Issued By
Title
Exhibit No. 8-
EXHIBIT NO.
SPIRIT LAKE EAST WATER COMPANY NOTICE OF
APPLICATION TO INCREASE RATES
Spirit Lake East Water Company ("Company ) filed an application with the Idaho Public Utilities
Commission ("Commission ) on September 14, 2006, Case No. SPL-06-, asking for
authority to increase the Company s rates and charges for water service. The Company
application represents its first request to increase rates in almost 23 years,
In its Application, the Company proposes an overall increase in rates of 100%, If granted by the
Commission, the water rates would be $24,00 for the first 9 000 gallons of water used per month
and then $.20 for every 100 gallons used thereafter per month, Current rates are $12,00 for the
first 9 000 gallons of water used and then $,10 for every 100 gallons used thereafter. Further, if
the Company s Application is granted, the first time connection fee would increase to $2 500.
from the current rate of $1 ,200.00. The connection fee applies only to new services that are not
culTently connected to the Company s system.
The proposed increase is necessary so that the Company can recover its costs and provide it with
an opportunity to earn a return on its investments in water facilities which are providing service to
customers. The Company has made many improvements to the system, undertaken on its own or
as agreed on or mandated by the Idaho Department of Environmental Quality. Further, the
Company has inculTed increased costs of doing business, including but not limited to costs related
to regulatory compliance, and labor and materials for connections, To this point, these costs have
not yet been allowed for recovery in the Company s rates. An increase in revenue is necessary to
support the Company s investments and to cover its increasing costs, This is necessary for the
Company to maintain a sound fmancia1 position so that it can provide safe and reliable service.
The proposed increases in rates are proposals subject to public review and a Commission
decision, which may accept, modify or reject, in whole or in part, the proposed increases, A copy
of the Application is on file and available for inspection at the Idaho Public Utilities Commission
472 W. Washington Street, Boise, Idaho, and the Company s offices located at 15807 E. Indiana
Avenue, Spokane Valley, Washington. The Application is also available on-line at the
Commission s website: http://www.puc,state,id.us/FILEROOMIwater/water,htm
You can also file a comment on the Application via the Commission s website at:
http://w,",v'w.puc.state.id,us/scripts/polyform.dlllipuc, Additionally, you can mail comments to:
Idaho Public Utilities Commission
O. Box 83720
Boise, Idaho 83720-0074; or
Spirit Lake East Water Company
15807 E, Indiana Avenue
Spokane Valley, Washington 99216.
In any comments filed with the Commission and also sent to the Company the Case No. of this
matter, Case No, SPL-06-, should be included.
Sincerely,
Spirit Lake East Water Company, Inc.
Exhibit No.