28291.phg.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION OF UNITED WATER IDAHO INC. FOR AUTHORITY TO REVISE AND INCREASE RATES CHARGED FOR WATER SERVICE.
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) CASE NO. UWIW001

NOTICE OF APPLICATION

NOTICE OF INTERVENTION DEADLINE

NOTICE OF PREHEARING CONFERENCE

ORDER NO. 28291

On February 2, 2000, United Water Idaho Inc. (United Water; Company) filed an Application with the Idaho Public Utilities Commission for authority to increase its rates and charges for water service in its Boise service area. United Water serves approximately 65,000 residential and commercial customers within Ada and Canyon Counties, Idaho. The Companys sources of supply consist of the Marden Water Treatment Plant and 85 deep wells. The combined capacity of all wells and the treatment plant is approximately 100.3 million gallons per day.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that United Water requests an overall increase in its annual revenue of $3,057,100, or an increase of 11.57% over current rates. United Water seeks additional revenues to recover increased operating expenses and costs associated with plant additions, and to produce a fair rate of return. United Water requests a rate of return of 9.15% on the Companys investment in property used and useful in rendering water service. The Companys present authorized return was set in July 1998 at 9.12%. Order No. 27630. United Water claims current rates produce a rate of return of 7.31%, based on a test year ending September 30, 1999, adjusted for known and measurable changes.
The Company reports that its rate base of $80,424,286, as allowed in its last general rate proceeding has increased to $98,992,133 as a result of capital investments in utility plant. The Company contends that the proposed changes in its rates and charges are just and reasonable and are necessary for the Company to continue to provide adequate and reliable service to its customers.
The Company proposes to recover its requested revenue increase through uniform percentage increase (11.57%) to all customer rates. If approved, the proposed increase would raise annual rates for a typical residential customer from $323 to about $360 (or $3.10 increase per month). The uniform increase for business customers would raise from an average of $1,134 per year to about $1,265 (or $11.00 increase per month).
YOU ARE FURTHER NOTIFIED that the Company’s Application in this Case No. UWI-W-00-1 is accompanied by supporting testimony and exhibits including financial statements, cost of capital and revenue analysis, and supporting workpapers. The Company’s Application and supporting documents can be reviewed at the Commissions office and at the general office of United Water Idaho Inc. (8248 West Victory Road, Boise, Idaho) during regular business hours.
YOU ARE FURTHER NOTIFIED that the Company has requested that its proposed rates become effective on or after March 3, 2000. The Company requests a Commission finding that its existing rates are unjust, unreasonable and insufficient to provide it with a fair rate of return, and that the revised rates and charges proposed are just and reasonable.
YOU ARE FURTHER NOTIFIED that because the Company’s cost of service and rate design issues were recently examined in Case No. UWI-W-98-3 (final Order No. 28043 issued May 26, 1999), the Company contends that it would be unproductive to re-examine those issues in this proceeding. Accordingly, the Company has not filed a Cost-of-Service Study as required by Commission Rules of Procedure. IDAPA 31.01.01.121.01(e).
YOU ARE FURTHER NOTIFIED that the Company’s proposal to increase its revenues and rates for monthly service is subject to the Commission’s approval. The Commission may approve, reject or modify the requested revenue increase and proposed rates. The Commission may determine United Water’s revenue level in an amount other than proposed by the Company and/or the spread or allocation or relative increase or decrease in any rate or charge may be other than that proposed by the Company. The rates of all customers of United Water in the state of Idaho, including those governed by special contract, are at issue and subject to change in this proceeding.
YOU ARE FURTHER NOTIFIED that the Company has issued a press release to media outlets in accordance with the Commission’s Customer Information Rules, IDAPA 31.21.02.102.04. The Company has also indicated that it has prepared individual customer notices to be included with the customer’s bills over the course of the next 60-day billing cycle. IDAPA 31.21.02.102.03.
DEADLINE FOR INTERVENTION
YOU ARE FURTHER NOTIFIED that any person desiring to intervene in Case No. UWI-W-00-1 for the purpose of becoming a party, i.e., to present evidence, to acquire the rights of cross-examination, to participate in settlement or negotiation conferences, and to make and argue motions must file a Petition to Intervene with the Commission pursuant to Rules 72 and 73 of the Commission’s Rules of Procedure, IDAPA 31.01.01.072-073. The deadline for filing a Petition to Intervene in this case is March 7, 2000.
YOU ARE FURTHER NOTIFIED that persons desiring to present their views without parties’ rights of participation and cross-examination are not required to intervene and may present their comments without prior notification to the Commission or to other parties.
NOTICE OF PREHEARING CONFERENCE
YOU ARE FURTHER NOTIFIED that a prehearing conference in Case No. UWIW-00-1 for the purposes of reviewing case status, identifying issues and establishing further procedure is scheduled for TUESDAY, MARCH 14, 2000, COMMENCING AT 10:00 A.M. IN THE COMMISSION HEARING ROOM, 472 WEST WASHINGTON STREET, BOISE, IDAHO [phone].
YOU ARE FURTHER NOTIFIED that discovery is available in Case No. UWIW00-1 pursuant to the Commission’s Rules of Procedure, IDAPA 31.01.01.221-234.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held pursuant to the Commission’s jurisdiction under Title 61 of the Idaho Code and that the Commission may enter any final Order consistent with its authority under Title 61. All proceedings in this matter will be conducted pursuant to the Commission’s Rules of Procedure, IDAPA 31.01.01.000 et seq.
YOU ARE FURTHER NOTIFIED that all hearings and prehearing conferences in this matter will be held in facilities meeting the accessibility requirements of the Americans with Disabilities Act. Persons needing the help of a sign language interpreter or other assistance of the kind that the Commission is obligated to provide under the Americans with Disabilities Act in order to participate in or to understand the testimony and argument at a public hearing may ask the Commission to provide a sign language interpreter or other assistance at the hearing. The request for assistance must be received at least five (5) working days before the hearing by contacting the Commission Secretary at:
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone] (TELEPHONE)
[phone] (TEXT TELEPHONE)
[phone] (FAX)

YOU ARE FURTHER NOTIFIED that all communications with reference to this Application should be served upon the following representatives of United Water:
DEAN J. MILLER MARK A. GENNARI
McDEVITT & MILLER, LLP UNITED WATER MANAGEMENT
537 WEST BANNOCK, SUITE 215 & SERVICES, INC.
PO BOX 2564-83701 200 OLD HOOK ROAD
BOISE, ID 83702 HARRINGTON PARK, NJ 07640

DISCUSSION AND FINDINGS OF FACT
In it Application, United Water has requested that its proposed schedule of rates and charges for water service become effective on or after March 3, 2000. Idaho Code § 61-307 prohibits a public utility from making any change in its rates except after 30 days notice to the Commission and to the public. In addition, Idaho Code § 61-622 authorizes the Commission to suspend a proposed rate increase past the 30-day notice period if necessary to investigate the proposed rate increase.
The Commission finds that the Application is of sufficient importance and complexity to require the Commission’s investigation into the reasonableness of the proposed changes in revenues and rates. Because of the complexity of the issues presented and because of previously scheduled demands upon the Commission’s time, the Commission will be unable to consider the Application before March 3, 2000. In addition, the Commission notes that not all of the Company’s customers will receive their billing notices within 30 days. Accordingly, the Commission finds that it is reasonable to suspend the Application for a period of thirty (30) days plus five (5) months from March 3, 2000.
O R D E R
In consideration of the foregoing and as more particularly described above, IT IS HEREBY ORDERED and the Commission in Case No. UWI-W-00-1 does hereby approve the intervention deadline and prehearing conference dates as set out above.
IT IS FURTHER ORDERED that the proposed schedules and charges for water service in this case should be, and hereby are suspended for a period thirty (30) days plus five (5) months from March 3, 2000, or until such time as the Commission may issue an Order accepting or rejecting or modifying the Application.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho, this
day of February 2000.

DENNIS S. HANSEN, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

PAUL KJELLANDER, COMMISSIONER

ATTEST:

Myrna J. Walters
Commission Secretary

vld/O:UWI-W-00-1_.sw_dh

NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
NOTICE OF PREHEARING CONFERENCE
ORDER NO. 28291 -1-

Office of the Secretary
Service Date
February 23, 2000