20140103press release.pdf

Idaho Public Utilities Commission
Case No. TRH-W-13-01, Order No. 32958
January 3, 2014
Contact: Gene Fadness [phone], 890-2712

Commission OKs average 7.6% increase
for Troy Hoffman Water customers

The Idaho Public Utilities Commission granted an average 7.6 percent increase for the
approximate 146 customers of the Troy Hoffman Water Company in Coeur d’Alene.

The increase, which became effective Jan. 1, increases a winter residential bill to about
$13.75, up from $11.80 for a customer who uses the system’s average of 5,000 gallons
per month. During the summer, when the average residential use is 38,000 gallons per
month, the average bill increases to $50.71, up from $48.10.

Customers will pay a base fee of $13.75 per month for the first 5,000 gallons of use and
a commodity charge of $1.12 for every 1,000 gallons above 5,000 gallons. The company
proposed a monthly fee of $17.76 and a commodity rate of $1.47 for every 1,000
gallons above 5,000 gallons. The former rate was $11.80 per month and $1.10 for every
1,000 gallons above 5,000 gallons.

Troy Hoffman Water claimed its operating expenses continued to exceed income, due
primarily to the fact there were no rate increase requests from 1996 through 2011. In
2011, the company increased its monthly base rate from $5.50 to $11.80.
The commission approved an annual revenue requirement for the company of $43,541,
which is an increase of 14.88 percent over the previous revenue requirement. The
commission approved an overall rate of return of 8.47 percent and a return on equity of
up to 12 percent.
###