20040203Application.pdf

ORIGINAL
Dean J. Miller
McDEVITT & MILLER LLP
420 W. Bannock
O. Box 2564-83701
Boise, ID 83702
208.343.7500
208.336.6912 (Fax)
i oe(Q!mcdevi tt - miller. com
F(ECEIVEO II)LEO
20H!i FEa -3 PM I: 52
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UTILITIES cor'n-1ISSION
Attorneys for United Water Idaho Inc.
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
UNITED WATER IDAHO INC., TO AMEND
ITS RULES AND REGULA nONS TO
IMPLEMENT A BUDGET BILL OPTION
Case No. UWI-O4-
APPLICATION AND REQUEST
FOR MODIFIED PROCEDURE
COMES NOW United Water Idaho Inc.
, ("
United") and, pursuant to IPUCRP 52
applies to the Commission for an Order approving the attached amendments to United'
Rules and Regulations, the effect of which is to establish a "Budget Bill" payment
program for its residential customers, and in support thereof respectfully shows as
follows, to wit:
United is a public utility corporation duly organized and existing under the laws
of the state ofIdaho and is subject to the jurisdiction of the Commission. United
provides service pursuant to Certificate of Public Convenience and Necessity Number
143 as amended. A copy of United's Articles of Incorporation, together with all
amendments, is on file with the Commission. United is a subsidiary of United
APPLICATION AND REQUEST FOR MODIFIED PROCEDURE-
Waterworks Inc., a Delaware corporation, and has been providing water service to the
public in Boise City and the surrounding areas for more than lOO years.
II.
United provides water service to approximately 74 000 customers (65 000
residential) within Ada County, Idaho, in and around Boise City. United also provides
service to two subdivisions in Canyon County, Idaho.
III.
United believes providing a "Budget Bill" program to its residential customers
would be in the public interest for the following reasons:
~ United's customer service representatives routinely and frequently
receive inquiries from residential customers asking about the availability of a
budget bill payment program. United is of the opinion that there is significant
customer demand for such an option.
The single greatest category of calls received from residential
customers by United's customer service representatives is customers requesting to
make payment arrangements. The volume of these requests increases significantly
during the irrigation season with its consequent higher bills. A Budget Bill
program would address the need expressed by residential customers of having
available the option to, on an annual basis, levelize payments for water service.
For many residential customers, over 60% ofthe annual bill is
comprised of the two summer period bi-monthly bills. This can lead to customer
hardship. A Budget Bill program will allow customers a significantly less
burdensome method to deal with seasonal fluctuation of their water bill.
APPLICATION AND REQUEST FOR MODIFIED PROCEDURE-
~ United's rates for water service have, for approximately ten (10) years
contained a summer consumptive rate (from May 1 through September 30) that is
25% higher than the winter rate. In United's opinion, the residential customers
understand and react to the price signal inherent in the seasonal rate design.
United believes a Budget Bill program would not significantly dampen such a
signal, while providing the residential customer flexibility to levelize their
payments as they are permitted to do with energy providers.
United currently reads meters and renders bills on a bi-monthly basis.
Conversion to actual monthly reading and billing for all customers would ease the
burden of high bi-monthly summer bills; however, the expense is prohibitive.
United estimates monthly reading and billing would involve an increase in
operating expense of approximately $1 100 000 annually. This expense increase is
due to additional labor and labor overhead expense, transportation needs, billing
and postage expense, as well as payment processing expense. A Budget Bill
program provides a significantly lower cost alternative to monthly reading and
billing.
A Budget Bill program allows residential customers to plan and budget
water usage more effectively than the current "pay as you go" basis. Instead of
being faced with a large summer bill that may be extremely burdensome
customers will be able to make less stressful, longer term decisions about water
consumption and how it fits into their personal budget.
APPLICATION AND REQUEST FOR MODIFIED PROCEDURE-
Iv.
United's proposed Budget Bill program is more fully described in the attached
proposed amendments to its Rules and Regulations (Exhibit A). Exhibit B illustrates two
consecutive monthly bill presentations for a fictional residential customer. In general the
program has the following features:
The program will be available to all residential customers residing in a
premise that has six (6) actual historical bills. Customers must be in current
account status with no past due amounts;
Enrollment would be permitted at the convenience of the residential
customer with no set enrollment period;
~ No interest will accrue on positive or negative balances;
Residential customers may be removed from the Budget Bill program
for failure to timely pay the agreed budget bill amount;
United may perform mid-term adjustments to the amount of the budget
bill payment due to rate changes, extreme weather impact or other significant
unforeseen circumstances (major leak, etc).
Upon enrollment the customer s payment amount under the Budget Bill program
will be calculated based on twelve (12) months history (6 bi-monthly reads) of
consumption at the premises. The history may be based upon the usage of a prior
customer at the location. The customer will receive a budget bill monthly. An annual
reconciliation will be performed with negative or positive balances, within limits, rolled
forward into the next Budget Bill period.
APPLICATION AND REQUEST FOR MODIFIED PROCEDURE-4
VI.
United will advertise the availability of the Budget Bill program through news
releases, bill messages, bill stuffers, publication of information on United's website, the
on hold" telephone message and through direct customer service representative contact.
Residential customers will be permitted to enroll in person at United's office, by
telephone, bye-mail to a dedicated address or by voice mail to a dedicated voice-mail
box.
VII.
United desires to implement the Budget Bill program as soon as practicable.
There will, however, be certain costs associated with implementation. United estimates
those costs to be approximately $72 000, assuming that 15% of its residential customer
base enrolls in the program. The $72 000 represents the annual costs of the program and
is composed of additional billing, postage and payment processing expenses associated
with the Budget Bill program. Exhibit C, attached, illustrates this calculation.
United therefore requests an accounting order permitting the deferral ofthese
additional costs for recovery in United's next general rate case, subject to audit and
review for reasonableness. In the absence of deferral, United will likely defer
implementation of the Budget Bill program to coincide with the next general rate case.
By allowing deferral of additional costs now, and later recovery, United will have actual
customer participation rate data to pro forma these costs into the next general rate case.
APPLICATION AND REQUEST FOR MODIFIED PROCEDURE-
REQUEST FOR MODIFIED PROCEDURE
VIII.
United submits that the public interest requires expeditious review of this
Application, and that the public interest does not require a hearing to consider the issues
presented herein. Accordingly, United requests that this Application be processed under
Modified Procedure pursuant to Commission Rules 201-204.
Ix.
United requests that all communications and documents filed in this matter be
served on United and United's counsel at the following addresses:
Gregory P. Wyatt
United Water Idaho Inc.
O. Box 190420
Boise, Idaho 83719-0420
208-362- 7325; 208-362-7069 (fax)
greg. wyatt(Q?uni tedwater. com
Dean 1. Miller
McDevitt & Miller LLP
420 West Bannock Street
O. Box 2564-83701
Boise, Idaho 83702
208-343- 7500; 208-336-6912 (fax)
i oe(Q?mcdevi tt - miller. com
WHEREFORE, United respectfully requests that the Commission:
Enter its order determining that this matter may be processed by Modified
Procedure;
Enter its order approving the revisions to United's Rules and Regulations
as herein requested;
Enter its order approving the accounting treatment as herein requested;
APPLICATION AND REQUEST FOR MODIFIED PROCEDURE-
Grant such further relief as is appropriate in the circumstance.
Respectfully submitted this day of ~lO ~II\, 2001.
UNITED WATER IDAHO INc.
\~
\lQ
Dean J. Miller
McDevitt & Miller LLP
Attorneys for United Water Idaho Inc.
-...
APPLICATION AND REQUEST FOR MODIFIED PROCEDURE-
Sheet No.1 7A
Replacing All Previous Sheets
UNITED WATER IDAHO INC.
BUDGET BILL PROGRAM
41. Residential BudQet Bill ProQram : A Budget Bill Program is available to Residential
Customers , as defined in paragraph 51 of these Rules, desiring to levelize payments for water
service. A residential customer may enroll in the Budget Bill Program at any time during the
year. To be eligible for the Budget Bill Program , the customer account must not be in arrears
and the Company must have a minimum of 12 months of usage history at the premises.
Residential Budget Bill Program participants will receive monthly billing statements , though
their meters will continue to be read on a bi-monthly basis.
The levelized monthly payment will approximate the 12 month average of the most current 6
bi-monthly bills. Budget Bill Program amounts will be recalculated annually at the 12-month
anniversary of the date the customer began paying the most current Budget Bill amount. The
new monthly payment will be the recalculated Budget Bill amount. A customer s Budget Bill
amount may decrease , increase, or remain the same from year to year.
Customers with a negative (underpaid) balance in their Budget Bill Program account at the
time of recalculation will have new monthly Budget Bill Program charges equal to the
recalculated Budget Bill amount plus one-twelfth of the negative balance. At the customer
option , a negative balance may be paid in full and disregarded for purposes of calculating the
next period's Budget Bill amount. If the negative balance exceeds 25% of the estimated annual
bill for the ensuing annual period , the Company may request that the negative balance be paid
in full. Customers with a positive balance exceeding $25 in their Budget Bill Program account
at the time of recalculation may be refunded at the customer s request. If no request for refund
is made , the monthly Budget Bill Program charge will be equal to the recalculated Budget Bill
Program amount reduced by one-twelfth of the positive balance. Upon the customer s request
a positive balance for one Budget Bill Program water service account may be transferred to the
balance of another Budget Bill Program water service account. Upon termination of the Budget
Bill Program agreement , after all charges for services are paid , positive balances will be
refunded at the customer s option.
Estimates of future costs based on historical charges furnished by the Company with such
Budget Bill Program should not be construed by the customer as a guarantee that the total
actual charges will not exceed the estimates. The Company, because of rate changes, weather
extremes or other significant circumstances, may at any time submit a revised estimate to the
customer and require that the customer pay the revised monthly Budget Bill installment
amount as a condition of continuation in the Budget Bill Program.
The Budget Bill amount will be billed monthly. Once established , the Budget Bill Program will
remain in effect from year to year until the customer notifies the Company not less than 30
days prior to the desired date of cancellation or unless the customer fails to pay the agreed
upon amounts in a timely manner.
Issued:February ---' 2004 Effective:February ---' 2004
Under Authority of I.C. Order No.
Issued by:UNITED WATER IDAHO INC.
Gregory P. Wyatt, Vice President
UWI-O4-
EXHIBIT A
Page 1 of
By:
PLEASE DIRECT ALL
INQUIRIES ORCORRESPONDENCE TO:
UNITED WATER IDAHOPO BOX 1904208248 WEST VICTORY RD
BOISE, ID 83719-0420
PHONE: [phone]
METER READINGS
** BUDGET BILL **-----------B I LL ING SUMMARY---------_.PRIOR BILL AMOUNT $45.PAYMENTS THRU 11/13/03 $45. OOCIBALANCE FORWARD $0.
CURRENT BILL CHARGES:
CONSUMPTION CHARGE $99.
MTA TAXVILLAGE TAX
TOTAL CURRENT CHARGES
$0.$0.$99.
08/09/03 112511/08/03 1153CONSUMPTION 28 CCF
TOTAL AMOUNT DUE $45.
YOUR CONSUMPTION FOR THE SAME PERIOD LAST YEAR WAS
YOUR CURRENT DEFERRED BALANCE -113.25 CCF
AmDlln1,1;).
11/13/03 29 PRIMROSE LA 05100999155731 45.
PLE\SE RETURN THIS PORTiO", OF BILL \\ITI-I YOUR PA\ MENT
0510099915573100000004500000000001
Make payment 10:lia
11/13/03 12/03/2003
1...11.1...11...1...1..11.1..1..1..1..1....111
UNITED WATER IDAHOPAYMENT CENTERPO BOX 371385PITTSBURGH, PA 15250-7385
,,\m nunt D12JO
45.
-------------.---.
DANIEL PERRELLA
29 PR IMROSE
NEW CITY NY 10956-6121
--------~-------
\mDU;): ',n::LJ!H d
1...1111...1...1..11...11.....11..1...11..11.1..1..
i__._
_--- -- -----.--
29 PRIMROSE LA 05100999155731 45.
EXHIBIT B
Page 1 of 2
** BUDGET BILL **
-----------B ILL ING SUMMARY---------PRIOR BILL AMOUNT $45.PAYMENTS THRU 12/19/03 $45.BALANCE FORWARD $0.
CURRENT B ILL CHARGES:
1 rp
PLEASE DIRECT ALLINQUIRIES ORCORRESPONDENCE TO:UNITED WATER IDAHOPO BOX 1904208248 WEST VICTORY RDBOISE, ID 83719-0420PHONE: [phone]
TOTAL CURRENT CHARGES
TOTAL AMOUNT DUE
YOUR CURRENT DEFERRED BALANCE - 68.
!3iP jjj) , C ,i C'' ,1 C
' ,
1 ,c'
12/19/03'29 PRIMROSE LA 05100999155731_H. -
- -
hc,,;,~;
!:-
,jJ'"' :,ii!
"L;,' R'
. ,"
ii;', Fi)RTIOl"; !)f BiL', WITH 'yo;;R Pp '-MEi'iT
0510099915573100000004500000000001 Fi'; ,
12/19/03
\ c" c'
1...11.1...11...1...1..11.1..1..1..1..1....111
UNITED WATER IDAHOPAYMENT CENTERPO BOX 371385PITTSBURGH, PA 15250-7385
DAN IEL PERRELLA29 PRIMROSE LA
NEW CITY NY 10956-6121
1...1111...1...1..11...11.....11..1...11..11.1..1..
H -
- --------
$0.
$45.
Amount due
45.
'i:
01/08/200ti
;- ----
~~~iD~~C-
I 45.
Amount enclosed
EXHIBIT B
Page 2 of 2
United Water Idaho Inc
Case No.UWI-04-
Budget Bill Program
Illustration of Calculation of Annual Estimate of Proposed Deferred Cost
Assuming 15% Residential Customer Participation
Residential Customers as of December 31 2003:948
Assume 15% Participation 15.00%
Participating Customers 742
Additional Billing Statements generated due to monthly
rendering:
453
0.23
897
= 9 742 X 6 additional statements
Billing expense per item to generate additional statement
Postage expense per item to mail additional statement
Payment processing expense assumming lockbox
Total Expense
Annual Estimated Proposed Deferred Cost
UWI-O4-
Exhibit C
Page 1 of 1