20040409Press Release.pdf

IDAHO PUBLIC UTILITIES COMlVllSSION
For Immediate Release
Case No. UWI-04-, Order No. 29455
April 9, 2004
Contact: Gene Fadness [phone]
Website: www.puc.state.id.
PUC denies United Water level-pay plan
Boise - Citing conservation and cost issues, the Idaho Public Utilities Commission today denied
United Water s request to implement a budget-billing program that would allow residential
customers to volunteer to pay level monthly payments.
United Water s 74 000 customers in the Boise metropolitan area now receive six bi-monthly
statements a year, two during the summer months that include rates 25 percent higher than the
rest of the year.
The higher summer rate, when use is at peak demand, sends appropriate pricing signals to
customers and encourages responsible water use, the commission said. "The company
proposed budget bill proposal would diminish that water pricing signal and conservation
message. "
Unlike electric and natural gas utilities that have level-pay programs, United Water is dependent
on local water supply from the aquifer and surface water, the commission noted. "We must
encourage good stewardship of the potable waters United Water customers rely on and use for
discretionary summer irrigation and sprinklers.
Level-pay plans take a customer s previous 12 months' history of payments , totals them and
spreads them over 12 monthly budget bills.
Commissioners noted that United Water s estimate of $72 000 for program costs during the fIrst
year is not a one-time expense, but represents the estimated annual cost of running the program
assuming just 15 percent of customers agreed to participate. The actual cost of the pro gram and
the amount of customer participation is not known, the commission said. "In addition to all that
uncertainty, we fmd the estimated program costs to be costly.
United Water asked that the $72 000 be deferred for recovery from all customers in a future rate
case. The commission noted comments :trom some customers who supported the level-pay
program, but only if those who volunteer to participate bear the program costs.
Interested parties have until April 30 to file for reconsideration. Petitions for reconsideration can
be mailed to commission offices at 472 W. Washington St., Boise, 83720, or faxed to 208-334-
3762.
A complete copy of the order and other documents related to this case are available for public
inspection at the commission s offices or can be accessed :trom the commission s Web site at
www.puc.state.id.. Click on "File Room " then on "Water Cases " and scroll down to Case No.
UWI-04-
END