20100623notice_of_application_order_no_32012.pdf

Office of the Secretary
Service Date
June 23 , 2010
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATIONOF TROY HOFFMAN WATER
CORPORATION FOR AUTHORITY TO
INCREASE ITS RATES AND CHARGES FOR
WATER SERVICE IN THE STATE OF IDAHO
CASE NO. TRH-10-
NOTICE OF APPLICATION
ORDER NO. 32012
YOU ARE HEREBY NOTIFIED that on June 7, 2010, Troy Hoffman Water
Corporation (Troy Hoffman; Company) filed an Application with the Idaho Public Utilities
Commission (Commission) requesting authority to increase its rates and charges for water
service. Troy Hoffman provides water service to 146 residential customers and 1 commercial
customer in the City of Coeur d' Alene , Kootenai County, Idaho.
Troy Hoffman proposes a revenue increase of $34 262 (142%) for residential and
commercia1 water customers effective July 2010. The Company has not had a rate increase
for 14 years. Reference Case No. TRH-95-, Order Nos. 26545 and 28264. The Company
states it is necessary to raise the rates due to increased operating expenses along with costs
incurred from needed repairs and replacement of the main pump in 2009.
Troy Hoffman proposes the following increase in rates and charges:
Current Rates Proposed Rates
Residential $5.50 per month plus $.60 per $13.31 per month plus $1.45 per
000 gallons for all 000 gallons for all
consumption in excess of3 000 consumptIOn in excess of3 000
gallons per month gallons per month
Commercial $7.50 per month plus $.60 per $18.15 per month plus $1.45 per
000 gallons for all 000 gallons for all
consumption in excess of3 000 consumption in excess of 3 000
gallons per month gallons per month
Customers are billed for water service on a bi-monthly basis.
Additional charges (and changes) proposed by the Company are (1) changing the
current $10 fee for Turn On Terminated Service to a Reconnection Charge of $20 during office
hours (7-4 Monday thru Friday) and $40 after office hours; (2) imposing a Late Payment Fee of
$10; and (3) a Returned Check Fee of $20. Also proposed is a change in the Department of
NOTICE OF APPLICATION
ORDER NO. 32012
Environmental Quality (DEQ) Public Drinking Water Fee from a one-time $5.00 customer
charge to a $.42 per month assessment fee.
The Company requests that its Application be processed pursuant to Modified
Procedure.
YOU ARE FURTHER NOTIFIED that the following party has been designated as
the Company s representative in this matter:
Ron Stadley, President
Troy Hoffman Water Corporation
710 W. Dalton Avenue, Suite J
Coeur d'Alene, Idaho 83815
Telephone: [phone]
FAX: [phone]
E-mail: ron~al1servron.com
All communications with reference to this Application should be served upon the above named
representative of Troy Hoffman Water.
YOU ARE FURTHER NOTIFIED that Troy Hoffman Water 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. IDAP A 31.01.01.124.0 I.
YOU ARE FURTHER NOTIFIED that the recurring and non-recurring rates and
charges of all retail 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 fair
just, and reasonable. IDAP A 31.01.01.124.02.
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 groups and may approve, reject or modify existing or
proposed relationships among and between customer classes or rate groups.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 groups; and abolish, reduce
NOTICE OF APPLICATION
ORDER NO. 32012
or create absolute or relative differences among and between existing classes or rate groupings of
customers. IDAPA 31.01.01.124.02.
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.
31.01.01.124.02.
IDAPA
YOU ARE FURTHER NOTIFIED that the Company s Application and notice to
customers have been filed with the Commission and are available for public inspection during
regular working hours at the Commission offices, 472 West Washington Street, Boise, Idaho.
The Application is also available on the Commission s web site at www.puc.idaho.gov under
File Room" and then "Water Cases.
YOU ARE FURTHER NOTIFIED that the Commission has jurisdiction over this
matter pursuant to Title 61 of the Idaho Code, and specifically Idaho Code ~~ 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 31.01.01.000 et seq.
COMMISSION FINDINGS
The Commission has reviewed and considered the filings ofrecord in Case No. TRH-
IO-O1. Troy Hoffman Water has submitted a proposed schedule of rates and charges for
water service to become effective on and after July 2010. We find the Application is of
sufficient importance and complexity to require the Commission s investigation into the
reasonableness of the proposed rates and charges. The Commission is unable to consider the
proposed change in rates and charges before July I , 2010, and therefore finds it reasonable to
authorize a continuation of existing rates and to suspend the proposed change in rates and
charges for a period of thirty (30) days plus five (5) months from the proposed July 2010
effective date. This will provide time for Commission Staff to audit the Company s financial
books, inspect the Company s physical plant and complete its investigative report.
It is the further finding of the Commission that public interest in this case and the
interest of Troy Hoffman customers will be served by requiring the Company to provide
individual written notice to customers of all workshops or hearings scheduled by the
Commission in Case No. TRH-IO-O1.
NOTICE OF APPLICATION
ORDER NO. 32012
CONCLUSIONS OF LAW
The Idaho Public Utilities Commission has jurisdiction over Troy Hoffman Water
Corporation and its Application for approval of proposed rates and charges, and the issues
involved in this case by virtue of Title 61 , Idaho Code, and the Commission s Rules of
Procedure, IDAPA 31.01.01.000 et seq.
The Commission has the authority under Idaho Code ~ 61-622 to suspend the rates
and charges that are the subject of the Application for a period of thirty (30) days plus five (5)
months, or less if the Commission acts sooner, from the proposed effective date of July 2010.
It is necessary to suspend the rates proposed in the Application for a period of five (5)
months, or less if the Commission acts sooner, from the effective date of July I , 20 I 0, to permit
the Commission Staff to audit the Company s financial records and inspect the Company
physical plant, to provide sufficient time to calendar further procedure, to receive customer and
Staff comments and to consider and determine the issues presented in this Application.
ORDER
In consideration of the foregoing and as more particularly described above, IT IS
HEREBY ORDERED that the proposed schedule of rates and charges for water service in Case
No. TRH-IO-OI is suspended for a period of thirty (30) days plus five (5) months from July I
20 I 0 , or until such earlier time as the Commission may issue an Order accepting, rejecting, or
modifying the Application in this case.
NOTICE OF APPLICATION
ORDER NO. 32012
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this ;(3 ;-.l
day of June 2010.
~~~
. KE PTO , P IDENT
5SLJL.
MARSHA H. SMITH, COMMISSIONER
MACK A. RED , COMMISSIONER
ATTEST:~D~
D. Jewe .
Commission Secretary
bls/O:TRH-IO-
NOTICE OF APPLICATION
ORDER NO. 32012