20130410notice_of_application_order_no_32783.pdf

Office of the Secretary
Service Date
April 10, 2013
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF SPIRIT LA= EAST WATER COMPANY ) CASE NO. SPL-W-13-01
FOR AUTHORITY TO INCREASE ITS )
U T E S AND CHARGES FOR WATER ) NOTICE OF APPLICATION
SERVICE 1
) NOTICEOF
) MODIFIED PROCEDURE
1
) ORDER NO. 32783
YOU ARE HEREBY NOTIFIED that Spirit Lake East Water Company ("Spirit
Lake" or "Company") is a water corporation with offices in Coeur d'Alene, Idaho.
YOU ARE FURTHER NOTIFIED that on March 5, 2013, Spirit Lake filed an
Application requesting authority to increase its rates and charges for water service. The
Company has not proposed an effective date for the proposed changes to its rates.
YOU ARE FURTHER NOTIFIED that Spirit Lake proposes to increase its minimum
monthly charge for water service. The base rate for water service would rise from $12.50 to
approximately $24.75 per month for usage up to 9,000 gallons. The Company proposes to
institute a rate of 12 cents per 100 gallons consumed for all usage in excess of 9,000 gallons
during each monthly billing period.
YOU ARE FURTHER NOTIFIED that Spirit Lake's Application and workpapers
utilize a 201 1 historical test year. The Company's rate base calculations reveal a current rate
base of $232,750. The Company's 201 1 income statement discloses test year revenues of
$72,870 less total expenses of $1 14,830 for a net income of -$41,961.
YOU ARE FURTHER NOTIFIED that the Company alleges that, based upon an
11.42% allowed rate of return, it is operating under a total revenue deficiency of $77,544.
Combining the Company's test year revenue with its estimated total revenue deficiency results in
a total revenue requirement of $1 50,414, or an approximately 106% overall increase from its
current rates.
YOU ARE FURTHER NOTIFIED that the Company requests authority to change its
billing and meter reading procedure from a quarterly to monthly meter reading schedule. The
Company included an estimate of the future costs of this new billing procedure in its attached
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 32783 1
workpapers. The Company asserts that a more frequent meter reading has been requested by
many of the Company's customers and the Company believes that it would be in the best interest
of the public to convert to a program of monthly billing.
YOU ARE FURTHER NOTIFIED that Spirit Lake requests that this case be
processed through Modified Procedure.
YOU ARE FURTHER NOTIFIED that Spirit Lake'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 3 1.0 1.01.124.0 1.
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.
IDAPA 3 1 .O1 .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 3 1.0 1.0 1.124.02.
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 ("Staff') shall conduct
an audit of the Company's Application, workpapers and all documents and files relevant to this
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDERNO. 32783 2
matter. Following such audit, 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 case.
YOU ARE FURTHER NOTIFIED that the Idaho Public Utilities Commission has
jurisdiction over Spirit Lake, its filing and the issues pertaining to this case pursuant to Title 61
of the Idaho Code and specifically Idaho Code $5 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, IDAPA 3 1 .O 1.0 1.000 et seq.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the Company's
filing, Case No. SPL-W-13-01, 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, IDAPA 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 Spirit Lake's Application in Case No. SPL-W-13-01 may file a written comment in
support or opposition with the Commission no later than July 31, 2013. 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
filing should be mailed to the Commission and Spirit Lake at the addresses reflected below:
Commission Secretary Leslie Abrams
Idaho Public Utilities Commission OwnerIOperator
PO Box 83720 Spirit Lake East Water Company
Boise, ID 83720-0074 PO Box 3388
Coeur d'Alene, ID 838 16
Street Address for Express Mail:
472 W. Washington Street
Boise, ID 83702-591 8
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 w&7w.puc.idaho.gov. Click the "Comments and Questions"
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 32783 3
icon, and complete the comment form, using the case number as it appears on the front of this
document.
YOU ARE FURTHER NOTIFIED that Spirit Lake's filing can be viewed at
wuu-.puc.idaho.aov 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
St., Boise, Idaho.
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.
O R D E R
IT IS HEREBY ORDERED that the Application of Spirit Lake East Water Company
for authority to increase its rates and charges for water service shall be suspended for a period of
30 days plus 5 months pursuant to the Commission's authority under Idaho Code S; 61-622.
IT IS FURTHER ORDERED that the Application of Spirit Lake East Water
Company shall be processed through Modified Procedure, IDAPA 3 1 .O1 .01.201-204. Persons
interested in submitting written comments in this matter must do so no later than July 31,2013.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 32783 4
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this /cfh
day of April 20 13.
MACK A. REDFORD, COMMISSIONER
MARSI-IA H. SMITH, COMMISSIONER
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDlJRE
ORDER NO. 32783 5