HomeMy WebLinkAbout20130726Decision Memo.pdfDECISION MEMORANDUM 1
DECISION MEMORANDUM
TO: COMMISSIONER KJELLANDER
COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM: KARL KLEIN
DEPUTY ATTORNEY GENERAL
DATE: JULY 26, 2013
SUBJECT: TROY HOFFMAN WATER CORPORATION’S APPLICATION TO
INCREASE RATES AND CHARGES,
CASE NO. TRH-W-13-01
On July 5, 2013, Troy Hoffman Water Corporation applied to the Idaho Public
Utilities Commission for authority to increase its rates and charges for water service. On July
26, the Company filed corrected Application pages that reduce the amount of the proposed
increase from 72% to 34%. The Company asks that the Commission process its Application by
Modified Procedure, and that the new rates take effect on January 1, 2014.
THE APPLICATION
Troy Hoffman Water Corporation provides water service to 146 residential
customers and 1 commercial customer in Coeur d’Alene, Idaho. The Company has applied for a
34% increase in water rates as follows:
Current Rates Proposed Rates
The Company bills customers on a bi-monthly basis.
DECISION MEMORANDUM 2
The Company says it did not seek a rate increase between 1996 and 2011 even
though its operating expenses increased during that period. The Company then increased its
rates in January 2011. See Order No. 32152. The Company says the January 2011 increase
partially bridged the gap between its operating expense and income, but the Company needs
another increase because operating expenses continue to exceed income.
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Application that suspends the
proposed, January 1, 2014 effective date to ensure that the Commission has adequate time to
process the case. A Notice of Modified Procedure setting comment deadlines, workshops, and a
public hearing can be issued at a later time. Staff will endeavor to complete its work so the
Commission may issue an Order as close to the originally proposed effective date as is
practicable.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and suspend the proposed
effective date?
M:TRH-W-13-01_kk