20041201Gradilone Exhibits.pdf

Dean J. Miller
McDEVITT & MILLER LLP
420 West Bannock Street
O. Box 2564-83701
Boise, ill 83702
Tel: [phone]
Fax: [phone]
loe(g) mcdevitt -miller .com
Idaho Public Utilities Commission
Office of the SecretaryRECEIVED
NOV 3 0 2004
Boise, Idaho
Attorneys for Applicant
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF UNITED WATER IDAHO INC. FOR
AUTHORITY TO INCREASE ITSRA TES
AND CHARGES FOR WATER SERVICE IN
THE STATE OF IDAHO
Case No. UWI..O4-
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
EXHIB IT 6 TO THE
DIRECT TESTIMONY OF FRANK GRADILONE III
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REPORT ON
WATER SERVICE REVEN UES FOR
UNITED WATER IDAHO
FOR TH E TEST YEAR
August 1 , 2003 through July 31 , 2004
INTRODUCTION
This report assesses historical water consumption use patterns for United Water
Idaho (United or Company), and derives pro forma: (1) billed water consumption and
revenues; (2) fire protection service revenues; and (3) other miscellaneous revenues, for
the test year defined as the period from August 1 , 2003 through July 31 , 2004. Since
the capital projects in this case are projected through May 2005, the analysis was
extended to account for expected growth from the end of the test year through May 31
2005. The 12-month period ending May 31 , 2005 is referred to as the pro forma year
herein.
For this assessment, the historical record for the period January 1986 through
July 2004 was analyzed. The data, which came from the Company s billing system
and other records, included: monthly-billed consumption and customers served by
class data, for each of the three sectors in the United Water Idaho system-residential
commercial and public; fire service counts by size and type; and, customer service fees
and other miscellaneous revenue sources.
Linear regression models were developed to assess residential, commercial and
public sector water consumption patterns. Trending analysis was employed to project
fire protection services and other revenues. These were combined to produce the total
Exhibit No.
Case No. UWI~O4~O4
F. Gradilone, United Water
Schedule 2, Page 1 of 19
pro forma water consumption and revenue estimates for the test year and the pro forma
period.
Before reporting the results of these analyses, the following section will describe
the linear regression modeling technique, and why it was used in the analysis.
LINEAR REGRESSION MODELING
Multiple linear regression analysis is a statistical data modeling technique that
used to describe in mathematical terms the relationships between variables. In this
case a regression model was developed to assess the relationship between the amount
of water consumed by customers in each sector, and a number of factors that are
known to affect water use. The result of a regression analysis is an equation that
defines the relationship between the variable the analyst wishes to predict (in this case
water consumption) and other variables that are correlated in a systematic way to that
variable (in this case, weather conditions, seasonal patterns, and the addition of new
customers to the system). These correlated variables are also known as explanatory
variables.
A multiple linear regression equation is expressed in general form as:
Y = a + bX + cZ +
... +
An example of a simple equation that could be used to predict water consumption as
explained by the number of customers and the average daily temperature in the system
area wou Id be expressed in the form:
Consumption = a + b * number of customers + c * average temperature
The regression analysis provides values for ", which is a constant (a fixed number),
and "b" and ", which are known as coefficients (there is one coefficient generated for
each variable that is correlated to the variable that is being modeled). Coefficients can
be positive or negative depending upon the relationship between the variable one
predicting and the explanatory variables.To use this equation to predict water
consumption for any month , the number of customers to be served in the month
multiplied by the coefficient ", and the temperature in the month is multiplied by "
Exhibit No.
Case No. UWI,W,O4,
F. Gradilone, United Water
Schedule 2, Page 2 of 19
and then this result is added to the value for the constant ". For example, if the actual
regression equation was:
Consumption (ccf) = 10 000 + 20 * number of customers - 50 * average
temperature
Then consumption for a month in a system that has 50 000 customers and the average
temperature was 70 degrees would be predicted to be 006 500 CCF (i., 10 000 +
(20 * 50 000) - (50 * 70) ).
The first step in regression analysis is the creation of a database of historical data
that accurately reflects the phenomenon the analyst would like to model.In the
process of developing a regression model database, the analyst may use the data in its
raw form (for example, the number of customers served), may transform it (for
example, take the log of the variable), or may find that it is necessary to add extra
variables (referred to as dummy variables) to take into account events or patterns in the
time series that are known to have affected the data, but that are not readily
quantifiable (such as a recession, or, changes in non-weather related water use
patterns). The data included in the database used in the analysis of billed consumption
are described below.
Variables Included in Modeling Database:A primary determinant of water demand
the number of customers served. Hence the first variable assessed was the number of
customers served in United's service area.
Weather conditions have been shown to effect water consumption patterns in
numerous studies of water demand behavior. Based on the underlying climatic regime
in an area, and the nature of the customer base, a number of weather related variables
have been fou nd to be correlated with water consumption; these include: average
temperature, cooling degree days, number of days over 90 degrees Fahrenheit, total
rainfall , number of days with rainfall , amount of rain per rainfall event. These weather
data for the official U.S. Weather Service station for Boise, Idaho (Station CXUS56
KBOI 010933) was obtained for this analysis.
Exhibit No.
Case No. UWI,W,O4,
F. Gradilone, United Water
Schedule 2, Page 3 of 19
Substantial changes in the underlying characteristics of the customer base also
affect water use patterns. Since 1980 a key factor that has been effecting water use in
the UWID service area, and indeed across the nation, was the passage of Federal
Standards that mandated lower water use for all water using fixtures in households.
These standards, affecting toilets, faucets and showerheads, have resulted in a long run
decrease in the amount of water used per customer across the U.S. The customers
United's service area have also been subject to this trend. In addition , one other factor
has resulted in a more pronounced downward pressure on use per customer in the
residential sector; the passage of regulations in the mid-1990s that required all new
construction to use alternate lawn water supplies if such supply was available.
Customers that must use available irrigation water for lawn watering clearly do not use
as much water during the summer months as customers that rely on United Water
Idaho s supply. For the purposes of this analysis it was assumed that 750/0 of all new
customers added to the system during the tear year and through the pro forma period
had access to, and are using alternate water supply for lawn watering.
Finally, the changing seasons and economic activity patterns also need to be
accounted for. For example, in the summer months, warmer temperatures and drier
conditions in general, result in higher water use due to increased lawn watering,
outdoor activities and business uses-for example, air conditioning make-up water and
evaporative cooling systems.(Specific weather conditions in a month will either
suppress or enhance the basic pattern, hence monthly weather data is included in the
analysis to help develop a better predictive model of water demand behavior.) The
specific months included in the database to measure these pattern effects was
determined by an indexing procedure. The indices were developed using a medial
averaging methodology.
Arithmetic averages are sensitive to outliers; that is, extreme data points either
on the high or low end. The medial average is the arithmetic average of a data set
excluding the high and low values in it. Using a medial average is a systematic way to
remove extremes from a data set, thus yielding more stable results.The month
Exhibit No.
Case No. UWI~O4~
F. Gradilone, United Water
Schedule 2, Page 4 of 19
pattern index developed for each sector is shown in Exhibit 6, Schedule 3 , Page 1 of
25.
Model Verification Regression analysis provides the analyst with measures of how
good the model is at explaining the variable the analyst is trying to project, and defines
in statistical terms how accurate the model is.
The first step in verifying the validity of a regression model is to determine the
goodness-of-fit of the equation as defined by the statistics generated in the process. The
overall goodness of fit is represented by a statistic called R-squared. R-squared is a
measure of the total variance explained by the regression equation. If there were no
relationship between the explanatory variables and the predicted variable, then R-
squared would be 0%; if there were a perfect relationship between the variables, then
R-squared would be 100%. In general, higher r-squares are associated with better
predictive ability, although a high R-squared is no guarantee of absolute predictive
ability.
In any regression analysis there remains a danger that the R-squared value may
reflect nothing more than spurious correlation. For this reason, in addition to
determining the "goodness-of-fit", as measured by the R-squared statistic, it is necessary
to test the logic and believability of the regression equation both as to the size and the
direction of any apparent causality, and to verify the accuracy of the model
comparing actual consumption in past periods against the estimates generated by the
model.
The second step in the verification process is therefore to determine if the
equation makes intuitive sense. For example, the coefficient representing the number
of days over 90 degrees Fahrenheit should be positive, confirming the intuitive notion
that as the temperature increases, so to does water consumption. Likewise, the number
of days with precipitation, as logically expected, should be negatively correlated with
water demand.
The final step in the verification process is USIng the model to estimate
consumption over the same time period as the original database. The model, while
Exhibit No.
Case No. UWI,O4,O4
F. Gradilone, United Water
Schedule 2, Page 5 of 19
showing variances in each year, on an average basis for the entire base period should
yield low absolute total and percentage variances
The regression modeling was performed on an IBM PC compatible computer
using the Microsoft Excel 2000 Version of the software package. A number of
iterations and combinations of weather variables were tried; the results here represent
the best.;fit models for each sector.
METERED SALES CONSUMPTION ANALYSIS
Residential Sector Consumption Analysis: Exploratory data analysis revealed
that weather conditions, as expected, affected water use in the United Water Idaho
service territory. The residential sector also exhibited a strong seasonal pattern, with
consumption in the summer months being up to four times as high as the winter
months. Therefore, regression models were developed that took into account the
impact of weather conditions and the change in the seasons.
Given the large difference in the demand patterns between the summer and
winter seasons, and the fact that weather variables have a negligible impact on water
use patterns in the winter (and that therefore weather fluctuations are not highly
correlated with water use in the winter), it was also decided to assess water
consumption separately for the winter and summer periods.Based on an analysis of
water use patterns over the course of the year, the months of December through May
were established as the winter/base period, while June through November was
established as the summer/peak period (Exhibit 6, Exhibit 3 , Page 1 of 25). The evident
shifting forward in time of the periods is the result of the lag in billing customers every
two months.For example, this results in including months such as May in the
winter/base period, even though intuitively one would think it should be included in
the summer/peak period. And, vice versa November is in the summer/peak period
rather than the winter/base period.
WINTER PERIOD ANAL YSIS: The number of residential customers served by month in
United's service area is shown in Exhibit 6, Schedule 3, Page 2 of 25. As shown on
Exhibit No.
Case No. UWI, W ,04,
F. Gradilone, United Water
Schedule 2, Page 6 of 19
this table, number of residential customers has been exhibiting a steady upward trend
with the trend being disturbed on three occasions due to recoding of customers and
acquisitions.
In early 1989 apartment buildings in the service area were reclassified as
commercial customers resulting in a loss of 897 "residential" customers in the dataset
resulting in "negative" growth in the sector for that year. In the 1996-97 period about
000 customers in Garden City, Warm Springs Mesa, Redwood Creek, Island Woods
and Banbury were added to the system , bumping up the growth for that year. The
recoding of customers in 1989 and the addition of customers in the 1996-97 period did
not seem to appreciably affect the amount of water used per customer; use per
customers continued to decrease at about the same rate as it had been since the early
1990s, owing to the introduction of water saving plumbing fixture standards at the
Federal level.
In 1999, South County, Barber and Raintree were added. These systems added
800 customers to the system, representing a large one-time increase of over 9% in
the residential customer base, and more importantly induced a further decrease in the
trend in the amount of water used per customer (see Exhibit 6, Schedule 3, Page 3 of
25).
In the end it was found that for the winter period, a regression of residential
water use per customer versus time and a dummy variable to account for the addition
of the 4 800 customers in 1999, resulted in the best fit, even though the R-squared for
the equation representing residential water use for the winter season was a relatively
low 18.5% (Exhibit 6, Schedule 3 , Page 4 of 25). On closer examination it was found
that in this case, the low R-squared was to be expected because the trend in residential
water use per customer in the winter/base months in the system was virtually flat. (In
regression analysis, the statistical goal is to minimize the squares of the differences
between the actual data and the trend line. In the case where the data and trend line
are essentially a flat line, the differences will sum to zero, yielding an R-squared of
zero, even if there is a perfect fit. This situation is illustrated in Exhibit 6, Schedule 3
Exhibit No.
Case No. UWI~O4~
F. Gradilone, United Water
Schedule 2, Page 7 of 19
Page 5 of 25.) In these cases the analyst relies on the general fit of the data to the line
and the magnitude of the standard error. The standard error should be low, and in this
case it is only 1.47.
SUMMER PERIOD: For the summer period, the number of customers, average monthly
temperature, total monthly rainfall and dummy variables to account for the monthly
pattern of use over the summer months, proved to be the best combination of
variables. The statistics for the regression analyses for the residential sedor are
summarized in Exhibit 6, Schedule 3, Page 4 of 25. The R-squared for the equation for
peak use per customer was quite good - 93.2%-particularly given the complexity of
the phenomena being measured.
While variances were of course greater in individual months, over the entire
period 1986 through 2004 (as shown in Exhibit 6 Schedule 3, Page 6 of 25) the
annual residential consumption estimated by the regression equation for winter period
varied by only 0.24%, while the variance for the summer period was only 1.75%. As
shown in Exhibit 6, Schedule 3, Page 6 of 25 the regression estimates of annual
residential water demand per customer has exhibited a steady downward trend , while
overall water demands have been increasing due to the underlying growth in the
number of customers served.
NORMALIZING ADJUSTMENTS: The next step in the analysis was to
normalize metered sales revenues for the weather conditions during the summer/peak
period and the change in the customers in the winter/base period. This normalization
was accomplished by continuing the dummy variable for the addition of customers
through the test year and computing the regression results for the summer/peak period
using the long run (1986-2003) average weather conditions for the months June
through November. The total normalizing adjustment as shown in Exhibit 6, Schedule
, Page 7 of 25, amounts to 144 922 units or $146 491 ; i., if the weather had been
normal" during the test year revenues would have been this much lower under the
existing rate structure.
Exhibit No.
Case No. UWI,O4,
F. Gradilone, United Water
Schedule 2, Page 8 of 19
GROWTH ADJUSTMENTS: During the test year the number of customers
served increased. In order to account for a full year of fixed service charges for these
customers it was assumed that these additional customers were added to the system in
the same proportion with respect to the size of the meter as customers in the existing
system (Exhibit 6, Schedule 3 , Page 9 of 25). The assessment of the amount of water
these customers used was complicated by the fact that a large proportion of new
customers that have been added to the system since 1997 have had use of alternate
irrigation water supplies; these customers clearly use less water than customers that use
United Water Idaho supply for irrigation purposes. To account for this bifurcation, it
was decided to assume that 25% of the customers added during the test year used
United Water Idaho supply for irrigation, and that 75% had access to, and used
alternate supply. For new customers that use United Water Idaho supply for irrigation
water use was assumed to be equivalent to the 5 year average of the United Water
Idaho system for the period 1992 to 1996; i.e., the 5 years before the rule was
changed. On average customers in the system before the rule changed, used 165
per year (Exhibit 6 Schedule 3, Page 7 of 25). To assess the amount of water for
customers that utilize alternative irrigation supplies the Company was able to identify
and isolate 5 areas in the system (based on meter reading books) that used alternate
supply exclusively for irrigation. As shown in Exhibit 6, Schedule 3 , Page 8 of 25, over
the past 4 years this group of customers consumed only 118 KG of water on average
per year.As also shown in the Exhibit, these customers also had a different seasonal
distribution of use from the customer bases as a whole. For this type of customer
nearly 42% of all water use occurred during the winter months (versus 35% for the
system as a whole). And conversely summer use for these customers only accounted
for 58% of total annual use, versus 66% for the system as a whole. So using a half year
convention to assess the use for the 1 841 customer added during the test year, a total
of 119 804 KG of water was consumed; and pricing this use out at the prevailing rates
results in an additional $135 525 in revenues. Adding this amount to the added fixed
Exhibit No.
Case No. UWI~O4~
F. Gradilone, United Water
Schedule 2, Page 9 of 19
service charges of $83 014 yields a total adjustment for customer growth in the test
year of $218 539 (Exhibit 6, Schedule 3, Page 7 of 25)
For the twelve months following the end of the test year (August 2004 through
July 2005) the number of customers added to the system was projected to total 1 800
, about the same as that which was added during the test year. To account for the
impact of this expected growth through May 2005 , 1 0/12ths of these customers were
added to the analysis (representing the number of months from August 2004 to May
2005) and since these customers represent the full count of customers expected at May
, 2005 for rate making purposes the expected revenues for these customers was
priced on a full year basis. As calculated on Exhibit 6, Schedule 3, Page 7 of 25 and
summarized in Exhibit 6, Schedule 3, Page 7 of 25 an adjustment of an additional
$356 120 was made to pro forma revenues to account for these customers.
Commercial Sector Consumption Analysis:In 1996 Micron Technologies
United's largest customer at the time informed the Company that it had embarked on a
major efficiency and water reuse program. Given the expected magnitude of the shift
in demand and the overall large size of Micron it was decided to treat Micron
separately from the rest of the commercial sector in the proir rate case. Micron no
longer is the single largest user in the system. Indeed in the test year its demand was
less than 15% of its peak demand of 451 ,000 KG in 1995-, and barely 1/3 of what it
was as recently as 2002-2003. During the test year Micron consumption amounted to
only 68 593 KG (Exhibit 6, Schedule 3, Page 10 of 25). While Micron would seem to
no longer require a separate analysis in order to make comparisons between the prior
case and this case easier, and leaving open the possibility that Micron s usage pattern
may yet change again, it was decided to continue to back out Micron s use from the
commercial sector s consumption history before the regression analysis proceeded.
(The consumption for Micron was added back into the commercial sedor, later in the
analysis.) The effect is to lease test year consumption unchanged.
The assessment of the commercial sector s consumption for the test year
showed that a regression model of total monthly consumption, versus the number of
Exhibit No.
Case No. UWI,W,O4,
F. Gradilone, United Water
Schedule 2, Page 10 of 19
commercial customers, average monthly temperature, total rainfall, and monthly
pattern variables to account for the variability in billing patterns and seasonal economic
activity for the months June through December, proved to be the best model (Exhibit 6
Schedule 3 , Page 11 of 25). The R-squared for this equation was just under 96%. On
an annual basis the regression estimates for the commercial sector were within 0.5% of
actual results on a normalized basis (Exhibit 6, Schedule 3, Page 12 of 25).
NORMALIZING ADJUSTMENTS: The next step in the analysis was to normalize
metered sales revenues for the weather conditions during the test year. This
normalization was accomplished by computing the regression results for the
summer/peak period using the long run average weather conditions for the months
June through December. The total normalizing adjustment as shown in Exhibit 6
Schedule 3 , Page 13 of 25, amounts to 30 253 KG or $34 213; i., if the weather had
been "normal" during the test year revenues would have been 0.38% lower in the test
year under the existing rate structure.
GROWTH ADJUSTMENTS: During the test year 130 new commercial
customers were added to the system. In order to account for a full year of fixed service
charges for these customers it was assumed that these additional customers were added
to the system in the same proportion with respect to the size of the meter as customers
in the existing system (Exhibit 6, Schedule 3, Page 9 of 25). On average commercial
customers in the system consumed 636 KG of water on a normalized basis during the
test year (Exhibit 6, Schedule 3, Page 14 of 25). The distribution of billed water use by
season for the commercial sector was 40% during the winter period and 60% for the
summer period. Using the half-year convention methodology to assess the water use
for the 130 commercial customers added during the test year, yields a total of
additional 41 351 KG of water use for the sector. Pricing this use out at the prevailing
rates results in an additional $46 764 in revenues. Adding this mount to the added
fixed service charges of $10 004 yields a total adjustment for customer growth in the
test year of $56 768 (Exhibit 6, Schedule 3, Page 13 of 25)
Exhibit No.
Case No. UWI~O4~
F. Gradilone, United Water
Schedule 2, Page 11 of 19
For the twelve months following the end of the test year (August 2004 through
July 2005) the number of customers added to the system was projected to total the
same as during the test year, Le., 130 customers. T 0 account for the impact of this
expected growth through May 2005, 1 0/12ths of these customers (108) were added to
the analysis (representing the number of months from August 2004 to May 2005) and
since these customers represent the full count of customers expected at May 31 , 2005
for rate making purposes the expected revenues for these customers was priced on a
full year basis. As calculated on Exhibit 6, Schedule 3 , Page 13 of 25 and summarized
in Exhibit 6, Schedule 1 , Page 2 of 2 an adj ustment of an additional $94 613 was made
to account for this growth through May 2005.
Public Sector Consumption Analysis:The analysis of the public sector
paralleled the analysis of the residential and commercial sectors. Again , a regression
equation that incorporated the average daily temperature and the total rainfall, and
monthly pattern variables for the months of May through December, were included in
the model (Exhibit 6, Schedule 3, Page 15 of 25). The R-squared for the public sector
model was also quite good at just over 87%. On average the regression estimates of
annual public sector consumption were within two-tenths of a percent of actual
consumption on a normalized basis. The total weather normalization for the public
sector amounted to -119 CCF (Exhibit 6, Schedule 3, Page 16 of 25). Based on the
distribution of use by billing period (summer versus winter) this results in a revenue
adjustment of ($3 650) for the sector in the test year. No change in the number of
public sector customers occurred during the test year, and no changes are expected
through May 2005, so there was no need to make adjustments for growth.
PRIVATE FI RE PROTECTION SERVICES REVEN UE
Private Fire Protection revenues at current rates collected during the test year
totaled $495 741 , as shown in Exhibit 6, Schedule 3, Page 17 of 25. Due to growth in
the number of private fire services during the year and anticipated through May 2005
Exhibit No.
Case No. UWI,O4,
F. Gradilone, United Water
Schedule 2, Page 12 of 19
an additional $22 920 in revenues were added to the total to derive annualized private
fire revenues of $518 661 for the pro forma year (Exhibit 6, Schedule 3, Page 18 of 25).
OTHER REVENUES
The Company receives revenues from a number of customer service related
charges (including miscellaneous service revenues, rents for construction meters, and
other water revenue). During the test year these revenues totaled $143 690, or less
then 0.50% of total revenues. In addition , $95 542 in unbilled revenues was recorded
on the books during the test year.
The first adjustment to other revenues was to eliminate unbilled revenues, since
the analysis for the test year assumes that all fixed service charges and consumption for
all customers were billed and collected.
Other Revenues for the test year were adjusted upwards by $1 329 to account
for customer growth during the test year. In addition United Water Idaho proposes to
increase a number of customer service charges to bring them more in line with the
actual cost to deliver the service and the pricing of such fees of other utilities in the
State. These additional charges are projected to increase customer service fees by
$15 685 going forward (Exhibit 6, Schedule 3 , Page 19 of 25).
Bill ANALYSIS AND PRO FORMA REVENUE ESTIMATE FOR TEST YEAR:
Total revenue for metered sales booked during the test year for the basic United
Water Idaho system amounted to $30 270 932 (Exhibit 6, Schedule 1 Page 1 of 2).
One adjustment was made to these revenues for the test year to account for the
pending sale of Carriage Hills to the City of Nampa, IPUC Order No. 29625. During
the test year these Carriage Hills customers generated $5 605 in revenues that will not
be realized going forward. Subtracting these revenues yields an adjusted test year
billed revenue total of $30 265 327. Revenues as per the determinants in the bill
analysis for the test year as billed amounted to $30 241 069; $24 258 or 0.08% less
than the book total (Exhibit 6, Schedule 1 , Page 1 of 2). The bill analysis determinants
(Exhibit 6, Schedule 3, Page 20 of 25) were thus established as the basis for the pro
Exhibit No.
Case No. UWI~O4~
F. Gradilone, United Water
Schedule 2, Page 13 of 19
forma analysis (Exhibit 6, Schedule 1 , Page 1 of 2, Column 7). (Exhibit 6, Schedule 4
Pages 1-4 show the derivation of the bill determinants for each subsystem and the
system as a whole.
Fire protection revenue as per the books amounted to $490 058 (Exhibit 6
Schedule 1 , Page 1 of 2, Column 1). Revenues as per the determinants (Exhibit 6
Schedule 3 , Page 17 of 25) in the bill analysis were slightly higher at $495 741 or
16% (Exhibit 6, Schedule 1 , Page 1 of 2, Column 6). The bill determinants as per the
bill analysis were used moving forward (Exhibit 6, Schedule 1 , Page 1 of 2, Column 7).
Four adjustments were made to metered sales revenues for the test year. First
an adjustment was made to account for the increase in revenues that would have been
realized if the customers in South County that were under the last step of a rate phase-
in for part of the test year, were priced at United's existing rate structure. As shown in
Exhibit 6, Schedule 3, Page 21 of 25 pricing all customers at the prevailing United rates
for the test year would have yield an additional $88 397 in revenues; $79 126 in the
residential sector and $9 270 in the commercial sector. Second, the decrease
consumption indicated by the weather normalization was deducted from the bill
determinants. Next, the increase in the number of customers served by meter size and
the amount of additional consumption calculated for the annualization adjustment for
customer growth during the test year and to account for growth in the system through
May 2005 were added to the bill determinants. The resulting bill determinants for
United through May 2005 are shown in Exhibit 6, Schedule 3, Page 22 of 25. These
adjustments (which are summarized in Exhibit 6, Schedule 1 , Page 2 of 2) result in net
metered sales revenue of $31 389 812 for the United system for the adjusted test year.
Exhibit No.
Case No. UWI,O4,
F. Gradilone, United Water
Schedule 2, Page 14 of 19
REVENUE ANALYSIS SUMMARY & PROPOSED RATE SCHEDULE CHANGES
The test year in this case has been established as August 1 , 2003 through July
, 2004. Total pro forma revenues for United Water Idaho for the test year after
annualizing for growth were $31 634 797 (Exhibit 6, Schedule 1 , Page 2 of 2). Based
on this filing the Company is asking for an increase in revenues of $6 767 870, for a
total revenue requirement of $38 302 702 , or an overall increase of 21.46%.
Based on the results of the cost of service study conducted in conjunction with
this case, the Company proposes to increase rates to meet its revenue requirements on
the following manner:
Fixed service charges, plus 36.4%: The cost of service study found that fixed
charges should be increased by 51.1 %. It was decided that making such a
large change in this component of the rate structure at one time would be
too disruptive. Hence, it was decided to split the difference between the
51.1 % increase as called for in the cost of service study, and the overall
increase required.
Fire protection charges, plus 21.5%: The cost of service study found that
fire protection charges could be decreased. However, it was decided to not
move rates in this direction at this time, but simply to increase the fire
protection sector approximately the same amount as the overall Increase
req uested.
Water Use / commodity charges, plus 16.9%: Based on the decision to
increase fixed service charges by 36., and fire protection charges by
21., water use charges would need to be increase by 16.9% to meet the
revenue requirement.In terms of rate design it was also decided to
maintain the summer/winter rate structure and keep the differential at 25%.
Exhibit No.
Case No. UWI~O4~
F. Gradilone, United Water
Schedule 2, Page 15 of 19
In order to generate the revenue requirement tariffed rates would have to be
increased by 21.51 % (this is slightly higher than the overall increase to compensate for
the categories of other revenues- Rents and Other Revenue-that will not be affected by
the tariff change.) The derivation of the proposed rate schedule is shown in Exhibit 6
Schedule 3 , Page of 23 of 25. The rate proof for the residential, commercial and public
sectors for the United Water Idaho service area is shown in Exhibit 6, Schedule 3 , Page
24 of 25. And finally, the proof of fire rates is shown in Exhibit 6, Schedule 3 , Page 25
of 25. Total revenues generated by the proposed tariffs are $38 302 699, $3.00 less
than the revenue requirement. The proposed tariff schedule is included as Exhibit 7 of
the filing.
TARIFF CHANGES
Upon review of the United Water Idaho tariff, it was decided to take the
opportunity presented by this proceeding to update the tariff to conform to current
IPUC standards, and remove a number of tariff pages associated with the phase in of
rates for a number of system that were acquired in prior years. Most of the changes
were cosmetic in nature and/or involve correcting grammatical or unclear language.
The only change made to the tariff that is of substance is in Section 71 of the Rules and
Regulations. The words "and/or Commercial" was inserted after "Industrial" on the
fourth line of the section in reference to situations where developers of subdivisions
pay for services when the size and location of the service cannot be initially
determined. We believe the rule should also include the commercial sector because
this is the most common type of development after residential; we do not typically see
any purely industrial developments. In the past we were not collecting service line
cost CIAC on commercial developments where the service size and location could not
be determined up front and thus we were paying to install them later. This change in
the tariff will insure that developers of both industrial and commercial projects pay this
cost.
The remaining changes made and the reasons for the change are as follows:
Exhibit No.
Case No. UWI,O4,
F. Gradilone, United Water
Schedule 2, Page 16 of 19
Table of Contents: Updated and renumbering to reflect changes made elsewhere in
the tariff
Schedule 1: Proposed changes to tariff rates
Schedule 1 A: Change in wording to conform to IPUC standards
Schedule 1 B: Deletion of a page that referred to a page that had previously been
withdrawn
Schedule 1 C: Deletion of a page that referred to a page that had previously been
withdrawn
Schedule 1 D: Deletion of tariff page for a rate schedule no longer in effect
Schedule 1 E: Renumbering of page due to changes elsewhere
Schedule 1 F: Deletion of a page that referred to a page that had previously been
withdrawn
Schedule 1 G: Deletion of tariff page for a rate schedule no longer in effect
Schedule 1 H: Deletion of tariff page for a rate schedule no longer in effect
Schedule 2: Deletion of a page that referred to a page that had previously been
withdrawn
Schedule 3: Renumbering of page and proposed changes to tariff rates
Schedule 4: Renumbering of page and proposed changes to tariff rates
Schedule 4A: Deletion of tariff page for a rate schedule no longer in effect
Schedule 5: Deletion of a page that referred to a page that had previously been
withdrawn
Schedule 6: Renumbering of page and proposed changes to tariff rates
Schedule 7: Consolidation of all Miscellaneous Service fees into one schedule in
the tariff. In the existing tariff a number of miscellaneous charges were specified
within a number of Rules and Regulations. To improve the clarity of the tariff and
to facilitate simpler updates in the future, the numeric fees in the Rules and
Regulations were eliminated and moved to Schedule 5.
Schedule 8: Renumbering of page and proposed changes to tariff rates
Rules and Regulations 1: Rewording of tariff to enhance clarity and readability
Rules and Regulations 4: Deletion of numeric miscellaneous charge in Rule and
note of move of numeric charge to Schedule 5
Exhibit No.
Case No. UWI,O4,
F. Gradilone, United Water
Schedule 2, Page 17 of 19
Rules and Regulations 8: Correction in references to Rules and Regulations in the
City of Boise Municipal and the Uniform Plumbing Codes
Rules and Regulations 9: Rewording of tariff to enhance clarity and readability
Rules and Regulations 10: Deletion of numeric miscellaneous charge in Rule and
note of move of numeric charge to Schedule 5
Rules and Regulations 15: Change in wording to clarify or reflect changes made
elsewhere in the tariff
Rules and Regulations 17: Change in wording to clarify or reflect changes made
elsewhere in the tariff
Rules and Regulations 28: Deletion of numeric miscellaneous charge in Rule and
note of move of numeric charge to Schedule 5
Rules and Regulations 30: Correction in reference tolPUC Rules and Regulations as
revised
Rules and Regulations 32: Rewording of tariff to enhance clarity and readability
Rules and Regulations 33: Rewording of tariff to enhance clarity and readability
Rules and Regulations 35: Correction in reference to IPUC Rules and Regulations as
revised
Rules and Regulations 39: Deletion of numeric miscellaneous charge in Rule and
note of move of numeric charge to Schedule 5
Rules and Regulations 42B: Deletion of numeric miscellaneous charge in Rule and
note of move of numeric charge to Schedule 5
Rules and Regulations 42E: Rewording of tariff to enhance clarity and readability
Rules and Regulations 43: Change in wording to clarify or reflect changes made
elsewhere in the tariff
Rules and Regulations 45: Rewording of tariff to enhance clarity and readability
Rules and Regulations 46: Correction to office hours to reflect change in opening
time, from 9:00 AM to 8:00
Rules and Regulations 49: Correction company name form Boise Water
Corporation to United Water Idaho
Rules and Regulations 61: Increase in the number of days developers have to adjust
any difference between the amount deposited and the actual cost of relocating
facilities, from ten to thirty days.
Exhibit No.
Case No. UWI,O4,
F. Gradilone, United Water
Schedule 2, Page 18 of 19
Rules and Regulations 63: Rewording of tariff to enhance clarity and readability
Rules and Regulations 73: Change in internal reference to reflect renumbering of
the tariff
Exhibit No.
Case No. UWI,O4,O4
F. Gradilone, United Water
Schedule 2, Page 19 of 19
UNITED WATER IDAHO
ndex of Use by Month
BOLD
SEASONAL
MONTHS Residential Commerial
August 188%166%
September 211%157%
October 159%162%
November 114%110%
December 60%83%
January 45%58%
February 39%61%
March 46%59%
April 46%68%
May 49%58%
June 89%99%
July 155%120%
Public
237%
228%
231%
124%
58%
14%
34%
74%
180%
250%
200%
150%
100%
50%
Base Months
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Exhibit 6
F. Gradilone
Schedule 3
PaQe 1 of 25
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UNITED WATER IDHAO
SIMULATION OF ROTATING A DATASET
TIME ACTUAL ROTATIONAL ROTATED
PERIOD DATA SET FACTOR DATA SET
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ROTATED DA ASET
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ORIGINAL DA ASET
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y = 0.0009x + 9.992
2 = 0.0159
1 2 3 4 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
- 5 . 0 j""~W_---'-'-'-----'
Exhibit 6
F. Gradilone
Schedule 3
Paqe 5 of 25
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-
81
2
68
8
99
9
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58
7
57
5
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7
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8
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7
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0
%
22
5
,
11
3
14
1
35
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,
54
9
13
1
43
6
52
%
14
5
92
3
,
55
8
11
0
87
0
1.6
3
%
18
7
87
-
16
3
,
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5
71
9
19
0
65
6
,
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2
59
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86
7
58
,
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55
%
50
6
,
77
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14
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41
0
,
13
7
96
,
63
6
75
%
14
3
00
8
,
00
4
15
5
,
4
6
1
17
%
18
5
88
-
10
5
,
59
9
38
,
17
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18
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61
8
,
61
0
59
8
,
59
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20
,
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1.
2
4
%
48
6
,
98
9
14
3
44
8
,
49
6
49
3
70
%
14
2
04
7
,
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58
,
50
5
-0
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82
%
18
4
89
-
9
0
48
9
,
16
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38
,
77
5
16
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64
8
,
28
0
63
1
08
3
19
7
1.
0
4
%
84
0
,
88
9
12
5
48
1
,
52
1
-6
4
0
,
63
2
13
.
23
%
14
2
11
2
60
3
62
3
,
43
4
61
%
18
4
90
-
9
1
57
1
45
4
20
3
16
3
62
4
,
88
3
68
8
,
78
1
-6
3
,
89
8
93
%
94
6
,
57
1
12
4
58
6
,
99
3
-6
4
0
,
42
2
12
.
95
%
13
9
27
5
,
77
4
70
4
32
0
10
.
72
%
18
1
91
-
9
2
81
1
17
1
55
7
18
8
91
9
,
86
2
74
6
,
20
0
17
3
66
2
05
%
89
1
,
30
9
14
2
68
9
,
25
9
20
2
05
0
43
%
13
7
43
5
,
45
9
37
5
,
71
2
-4
.
81
%
17
9
92
-
9
3
96
0
90
3
01
6
16
2
68
1
,
29
8
80
3
,
33
8
12
2
,
04
0
26
%
27
9
,
60
5
12
3
79
9
,
46
6
51
9
,
86
1
85
%
13
5
60
2
80
4
64
1
90
1
22
%
17
7
93
-
9
4
52
8
,
30
3
51
4
16
9
98
8
,
11
2
86
0
19
7
12
7
,
91
5
6.4
3
%
54
0
,
19
1
12
5
90
9
,
50
9
36
9
31
8
-6
.
67
%
13
3
76
9
,
70
6
24
1
40
3
21
%
17
5
94
-
9
5
84
9
,
80
7
46
,
08
8
17
0
78
2
,
00
5
90
7
01
3
12
5
,
00
8
02
%
06
7
80
2
13
2
03
0
,
62
3
37
,
17
9
61
%
13
1
93
7
63
7
83
0
1.1
2
%
17
3
95
-
45
9
,
09
0
47
,
16
7
15
8
87
0
,
98
0
94
7
75
0
77
0
-4
.
10
%
58
8
,
11
0
11
9
11
4
,
50
5
52
6
39
5
9.4
2
%
13
0
06
2
25
5
60
3
,
16
5
09
%
17
1
96
-
9
7
13
0
,
55
1
48
,
52
0
16
8
94
9
,
32
5
99
4
,
61
1
-4
5
,
28
6
32
%
18
1
,
22
6
12
8
21
4
22
9
33
,
00
3
-0
.
53
%
12
8
20
8
,
84
0
78
,
28
9
96
%
17
0
97
-
57
3
09
6
50
,
22
1
15
1
02
4
,
36
7
06
7
,
98
3
-4
3
,
61
6
15
%
54
8
,
72
9
11
1
34
1
00
4
79
2
,
27
5
14
.
28
%
12
7
40
8
98
7
83
5
,
89
1
11
.
0
4
%
16
8
98
-
83
2
,
92
4
53
,
76
0
16
4
24
1
,
46
6
12
8
,
60
7
11
2
85
9
04
%
59
1
.
4
5
8
12
5
53
4
,
47
9
56
,
97
9
86
%
12
5
66
3
08
6
16
9
,
83
8
92
%
16
4
99
-
0
0
86
0
,
85
4
78
2
17
1
42
5
,
08
8
22
5
,
51
9
19
9
,
56
9
23
%
43
5
,
76
6
13
0
87
9
,
08
6
55
6
,
68
0
7.
4
9
%
12
0
10
4
60
6
75
6
,
24
9
67
%
15
9
00
-
0
1
33
3
,
01
3
60
,
23
3
15
5
17
1
,
00
8
28
2
24
9
11
1
,
24
1
12
%
16
2
,
00
5
11
9
08
7
,
10
1
90
4
05
%
11
8
36
9
,
35
0
33
7
39
%
15
6
01
-
67
9
,
80
7
61
,
89
5
15
6
31
6
,
82
1
34
0
,
19
0
23
,
36
9
1.0
1
%
36
2
,
98
6
11
9
21
2
,
89
9
15
0
,
08
7
04
%
11
7
55
3
,
08
9
12
6
,
7
1
8
31
%
15
5
02
-
35
8
,
55
5
63
,
17
2
14
8
24
0
,
70
2
40
3
,
31
1
16
2
60
9
26
%
11
7
,
85
3
11
3
31
5
,
70
4
19
7
,
85
1
78
%
11
6
71
9
,
01
5
36
0
,
46
0
85
%
15
4
03
-
0
4
10
,
08
3
,
85
7
65
,
21
0
15
5
60
7
64
3
47
9
,
43
7
12
8
,
20
6
92
%
47
6
,
21
4
11
5
45
9
,
49
8
16
,
71
6
22
%
11
5
93
8
,
93
5
14
4
92
2
1.4
4
%
15
3
Av
e
r
a
g
e
03
3
,
57
3
96
4
15
1
95
9
,
43
0
72
0
.
24
%
06
9
,
42
2
12
7
21
5
,
05
9
14
5
,
63
7
2.4
0
%
17
4
,
48
9
14
0
,
91
6
1.7
5
%
ADJUSTMENT FOR WEATHER & USE PATTERN CHANGES
ACTUAL NORMALIZED NORMALIZING TARRIFF REVENUE
CONSUMPTION CONSUMPTION ADJUSTMENT RATE ADJUSTMENT
WINTER 607 643 479 437 (128 206)$ 0.9825 ($ 125 962)
SUMMER 476 214 459 498 (16 716)$ 1.2281 ($ 20 529)
TOTAL 083 857 938 935 (144 922)($ 146,491)
ADJUSTMENT FOR GROWTH DURING TEST YEAR
TOTAL BASE ALTERNATE
CUSTOMERS CUSTOMERS SUPPLY TOTAL
NEW CUST ADDED 841 25%75%
1/2 YEAR CONVENTION 921 230 690
USE PER CUST (Avg 92-93 to 96-97)165 118 (Exh)
TOTAL USE 062 742 119 804
WINTER SUMMER
PERIOD PERIOD
UWID BASE S/W SHARE 34.29%65.71%
UWID BASE USE 052 010
AL TERNA TE S/W SHARE 41.84%58.16%
AL TERNA TE USE 201 541 (Ex h)
TOTAL USE 253 551
T ARRIF RATES $ 0.9825 $ 1.2281
REVENUE $ 46 426 $ 89 099 $ 135,525
TOTAL FIXED CHARGES $ 83,014
TOTAL ADJUSTMENT $ 218 539
ADJUSTMENT FOR GROWTH THROUGH MAY 2005
TOTAL BASE AL TERNA TE
CUSTOMERS CUSTOMERS SUPPLY
NEW CUST ADDED (Aug-May)500 25%75%
CUSTOMER BY TYPE 375 125
USE PER CUST 165 118
TOTAL USE 023 133 203
WINTER SUMMER
PERIOD PERIOD
UWID BASE S/W SHARE 34.29%65.71%
UWID BASE USE 268 755
AL TERNA TE S/W SHARE 41.84%58.16%
AL TE RNA TE USE 733 77,470
TOTAL USE 001 118 225
T ARRIF RATES $ 0.9825 $ 1.2281
REVENUE 653 145 192 $ 220 845
FIXED CHARGES $ 135 275
TOTAL ADJUSTMENT $ 356 120
UNITED WATER IDAHO
Residential Customer Sector Adjustments
Exhibit 6
F. Gradilone
Schedule 3
Page 7 of 25
UN
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UNITED WATER IDAHO
BillS RENDERED & FIXED SERVICE CHARGES
RESIDENTIAL COMMERCIAL PUBLIC
FIXED SERVICE CHARGES Bill IN DlSTRI-Bill IN DlSTRI-Bill IN DlSTRI-
TEST YEAR BUTION TEST YEAR BUTION TEST YEAR BUTION
5/8"540 20.29%919 23%70%
3/4"273 960 70.77%332 26.32%10.65%
33,540 66%113 30.12%152 28.63%
1/2"679 18%796 18.77%105 19.86%
384 10%885 16.83%202 38.06%
00%593 27%10%
00%201 43%00%
00%04%00%
00%01%00%
TOTAL 387,110 46,863 531
FIXED SERVICE CHARGES FOR CUSTOMERS ADDED DURING YEAR
New services in test year 841 130
1/2 year convention 921
Added bills rendered 523 390
BILLS FIXED BillS FIXED BILLS FIXED
SIZE RATE RENDERED REVENUE RENDERED REVENUE RENDERED REVENUE
5/8"$ 14.121 $ 16326 $ 354 $ 0
3/4"$ 14.909 949 103 1,495
$ 19.479 183 117 254
11/2"$ 31.301 273
$ 44.246 945
$ 82.407
$ 131.219
$ 252.
$ 381.
Total 523 $ 83,014 390 $ 10 004 $ 0
TOTAL ANNUALIZED BILLS RENDERED
BILLS BillS BillS
SIZE RENDERED RENDERED RENDERED
5/8"79,660 943
3/4"277 869 435
018 231 152
1/2"689 869 105
389 951 202
598
202
Total 392 633 253 531
FIXED SERVICE CHARGES FOR CUSTOMERS ADDED THRU 5/05
New services test year + 1 800 130
New services thru 5/05 500 108
Added bills rendered 000 650
BILLS FIXED BILLS FIXED BillS FIXED
SIZE RATE RENDERED REVENUE RENDERED REVENUE RENDERED REVENUE
5/8"$ 14.826 605 590
3/4"$ 14.369 802 171 492
$19.780 964 196 756
1/2"$ 31.05 490 122 788
$ 44.401 109 909
$ 82.679
$ 131.28 365
$ 252.
$ 381.
Total 000 135,275 650 673
TOTAL BILLS RENDERED THRU 5/05
BILLS BillS BILLS
SIZE RENDERED RENDERED RENDERED
5/8"486 931 984 944
3/4"284 239 149,752 606 988
34,798 147 426 011 152
1/2"705 791 991 061 105
398 647 060 854 202
606 086
205 585
Total 401 633 47.903 531
Exhibit 6
F. Gradilone
Schedule 3
PaQe 9 of 25
UNITED WATER IDAHO
Micron Industries Water Sales
Period from
August to July
86-
87 -
88-
89-
90-
91-
92-
93-
94-
95-
96-
97 -
98-
99-
00 -0 1
01-
02-
03-
04-
Water Sales to
Micron in
952
140 289
208 444
343 943
265 503
126 869
352
111 661
246 804
451 025
439 347
283 595
180 978
251 647
303 747
204 543
1 21 ,143
68,593
593
Exhibit 6
F. Gradilone
Schedule 3
Pa!:je 10 of 25
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UNITED WATER IDAHO
Commercial Customer Sector Adjustments
ADJUSTMENT FOR WEATHER & USE PATTERN CHANGES
USAGE
ADJUSTMENT
AOUAL USE 074 861
NORMALIZED USE 044 608
ADJUSTMENT 253
SHARE USE BY TARIFF REVENUE
OF USE PERIOD RATE ADJUSTMENT
WINTER 39.58%973 $ 0.9825 ($ 11 763)
SUMMER 60.42%18,280 $ 1.2281 ($ 22 450)
TOTAL 253 ($ 34 213)
ADJUSTMENT FOR GROWTH DURING TEST YEAR
AN N UALIZA TION
OF USE
NEW CUSTOMERS ADDED 130
1/2 YEAR CONVENTION
USE PER CUST 636
ADDED BILLED USE 351
SHARE USE BY TARIFF REVENUE
OF USE PERIOD RATE ADJUSTMENT
WINTER 39.58%365 9825 16,079
SUMMER 60.42%986 2281 30,685
TOTAL 46,764
TOTAL FIXED CHARGES 10,004
TOTAL ADJUSTMENT 56,768
ADJUSTMENT FOR GROWTH THROUGH MAY 2005
USAGE
ADJUSTMENT
NEW CUST THRU 5/05 108
USE PER CUST 636
ADDED BILLED USE 918
SHARE USE BY TARIFF REVENUE
OF USE PERIOD RATE ADJUSTMENT
WINTER 39.58%275 9825 798
SUMMER 60.42%41.643 2281 51 142
TOTAL 940
TOTAL FIXED CHARGES 16,673
TOTAL ADJUSTMENT 613
Exhibit 6
F. Gradilone
Schedule 3
PaQe 13 of 25
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Exhibit 6, Schedule 3, Page 23 of 25
UNITED WATER IDAHO
Existing & Final Tariffs
METER EXISTING NOMINAL PROPOSED PERCENT
SIZE CHARGE CHARGE CHARGE CHANGE
METERED SERVICE TARIFFS
Fixed Service Charges
5/8"$ 14.19.8647 $ 19.36.31 %
3/4"$ 14.19.8647 $ 19.36.31 %
$ 19.26.1636 $ 26.36.32%
1 1/4"$ 31.42.3336 $ 42.36.46%
1 1/2"$ 31.42.3336 $ 42.36.46%
$ 44.61.1894 $ 61.36.45%
$ 82.112.4669 $ 112.36.39%
$ 131.178.9872 $ 179.36.37%
$ 252.344.4357 $ 344.36.35%
$ 381.519.7281 $ 519.36.35%
10"$ 532.726.4877 $ 726.36.35%
Street Sprinkler Rate $ 179.244.3622 $ 244.39 36.36%
Flat Rate Service $ 54.74.0190 . $ 74.05 36.40%
Commodity Rates (CCF)
WINTER PERIOD $0.9825 1 .148837 $1.1487 16.92%
SUMMER PERIOD $1.2281 1.436047 $1.4360 16.93%
Commodity Rates (KG)
WINTER PERIOD $1.3134 535759 $1.5358 16.93%
SUMMER PERIOD $1.6418 919698 $1.9197 16.93%
PRIVATE FIRE PROTECTION TARIFFS
Fixed Service Charges
$ 11.14.3735 $ 14.21.47%
$ 17.21.7850 $ 21.21.47%
$ 44.54.1040 $ 54.1 0 21.49%
$ 73.88.9016 $ 88.21 .50%
10"$114.138.6437 $ 138.21.50%
12"$ 170.207.6800 $ 207.21 .50%
Private Hydrant $ 7.6994 $ 8.21.51 %
Exhibit 6 \i
F. Gradilone
Schedule 3
Paoe 23 of 25
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Dean J. Miller
McDEVITT & MILLER LLP
420 West Bannock Street
O. Box 2564-83701
Boise, ill 83702
Tel: [phone]
Fax: 208,336.6912
ioe (g) mcdevitt-miller .com
Attorneys for Applicant
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF UNITED WATER IDAHO INC. FOR
AUTHORITY TO INCREASE ITS RATES
AND CHARGES FOR WATER SERVICE IN
THE STATE OF IDAHO
Case No. UWI - W -04-
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
EXHIBIT 7 TO THE
DIRECT TESTIMONY OF FRANK GRADILONE III
Sheet No.
Replacing all Previous Sheets
UNITED WATER IDAHO INC.
SCHEDULE NO.
GENERAL METERED SERVICE
Availabili ty:
To all metered customers not served under a separate schedule.
Customer Charges:
Meter Size
5/8"
3/4"
1 "
1-1/4" and 1-1/2"
2" or multiple meters
3" or multiple meters
4" or mul tiple meters
6" or multiple meters
8" or multiple meters
1 0" or mul tiple meters
of equivalent
of equivalent
of equivalent
of equivalent
of equivalent
of equivalent
capaci ty
capaci ty
capaci ty
capaci ty
capaci ty
capaci ty
Volume Charge:Winter
Rates
For all water used per 100 cubic
feet (CCF): $0.9825
For all water used per 1 000 gallons $1.3134
Bi-Monthly
Per Meter
Charge
$14.
14.
19.
31.
44.
82 .
131.
252.
381.
532.
S umme
Ra te s
$1.2281
$1.6418
Condi tions of Contract:
The customer shall pay the total of the customer charge plus
the volume charge. The volume charge 1S based on all metered
Water for the billing period. Consumption 1S expressed 1n 100
hundred cubic foot uni ts or one thousand gallon uni ts as
determined by the meter installed by the Company. The customer
charge will be prorated whenever the customer has not been a
customer for the entire billing period.
Summer Per iod:
The summer rate will apply to water consumed between May
September 30. Meter readings straddling these dates willrated.
Issued: September 5, 2000 Effective:
2000
Under authority of I.C. Order No. 28505
Issued by:UNITED WATER IDAHO INC.
By:
Benj amin Hepler, Vice President
1 and
be pro
September 5,
Exhibit No.
Case No. UWI-O4-
F. Gradilone, United Water
Schedule 1 , Page 1 of 6
Sheet No. 40
Replacing All Previous Sheets
UNITED WATER IDAHO INC.
SCHEDULE NO. lE
FLAT RATE SERVICE
Availability:
To non-metered residential customers pursuant to Residential or
Multi-Family Housing Non-Contiguous Water Systems Agreement
Paragraph 11 (a) addressing flat rate systems.
Customer Charges:
Based on Uni ted Water Idaho residential consumption for the
year ending June 1998 of 208.75 ccf, the average residentialbill, assumlng a ~" meter and 65%/35% summer/winter split, lS
$325.74. Billed bi-monthly, equals $54.29.
Bi-monthly Charge:$54.
Condi tions of Contract:
The bi-monthly charge will be prorated whenever the customer
has not been a customer for the entire billing period. The
Company or the customer may convert to metered serVlce pursuant
to Subparagraphs (b) or (c) of Paragraph 11 as follows:
(b)If Company should determine that a flat rate customer
using water In excess of the average residential customer,
the Comp~ny will provide a m~ter setting and meter.
Customer will then pay Company s metered tariff rates as
approved by the IPUC, which rates may be amended from time
to time.
(c)If a customer prefers to pay Company s approved meteredtariff rates, the customer shall pay the installation and
material costs associated wi th the installation of a metersetting.
Issued:September 5, 2000 Effecti ve:September 5, 2000
Under Authority of I.C. Order No. 28505
Issued by:UNITED WATER IDAHO INC.Exhibit No.
Case No. UWI-O4-
F. Gradilone, United Water
Schedule 1 , Page 2 of 6By:Benj amin Hepler , Vice President
Sheet No.
Replacing all Previous Sheets
UNITED WATER IDAHO INC.
SCHEDULE NO.
PUBLIC HYDRANTS AND STREET SPRINKLING
Availabili ty:
To the Ci ty of Boise and Ada County Highway District.
Rates:
Street Sprinkling Service
Flat Charge $179.23/Month
Miscellaneous:
Bills will be rendered monthly, bi-monthly, or at other
intervals upon mutual agreement of the Company and the
customer.
Hydrants and serVlce pipes from the fi tting on the Company maln
to the hydrants are to be installed and maintalned by and at
the expense of the Ci ty of Boise or Ada County HighwayDistrict.
Issued: September 5, 2000 Effective: September 5, 2000
Under Authority of I.C. Order No. 28505
Issued by:UNITED WATER IDAHO INC.
By:
Benj amin Hepler, Vice President
Exhibit No.
Case No. UWI-O4-
F. Gradilone, United Water
Schedule 1 , Page 3 of 6
Sheet No.
Replacing all Previous Sheets
UNITED WATER IDAHO INC.
SCHEDULE NO.
PRIVATE FIRE SPRINKLER AND SERVICE
Availabili ty:
To all customers who have sprinkler systems and/or inside hose
connections for fire fighting purposes.
Rate:
For serVlce through a separate line for fire fighting purposes.
For 3" serVlce or smaller,
For 4" serVlce per monthFor 6" serVlce per month
For 8" serVlce per month
For 10" service per month
For 12" service per month
per month $ 11.
17.
44.
73.
114.
170.
Miscellaneous:
Provided that if the installation of a private fire serVlce shallrequlre an extension of the existing malns of the company, the
cost of such extension shall be borne by the customer.
All private fire serVlces shall be
valves or thermal automatic openlngs.
equipped wi sealed gate
Meters may be placed on fire serVlces by the utility at any time;
however, metered rates will not apply unless lmproper use of
water lS disclosed, and if such be the case, usage will be billed
to the consumer under Rate Schedule No.
Issued: September 5, 2000
2000
Effective:September 5,
Under Authority of I.C. Order No. 28505
Issued by:UNITED WATER IDAHO INC.
By:
Benjamin Hepler, Vice President Exhibit No.
Case No. UWI-O4-
F. Gradilone, United Water
Schedule 1 , Page 4 of 6
Sheet No.1 0
UNITED WATER IDAHO INC.
SCHEDULE NO.
PRIVATE FIRE HYDRANT SERVICE
Availabili ty:
To all customers hav1ng private fire hydrant installations.
Rate:
For fire hydrants installed and ma1ntained by the customer athi s expense:
Each fire hydrant, per month $7.
Miscellaneous:
Service p1pe from the fi tting on the company water main to the
fire hydrant 1S to be 1nstalled and ma1ntained by the customer.
Issued:September 5, 2000 Effective: September 5, 2000
Under Authority of I.C. Order No. 28505
Issued by:UNITED WATER IDAHO INC.
By:
Benj amin Hepler, Vice President
Exhibit No.
Case No. UWI-O4-
F. Gradilone, United Water
Schedule 1 , Page 5 of 6
Sheet No.1 OA
Replacing all Previous Sheets
UNITED WATER IDAHO INC.
SCHEDULE NO.
MISCELLANEOUS FEES AND CHARGES
1 .Return Check Charge
Application:
This charge lS applicable to all customers where the customer
check or bank draft lS returned by the Bank for insufficientfunds, closed account, or some other appropriate reason.
Ra te:
Returned check charge
Each Occurrence
$15.
2 .Reconnection Charge for Nonpayment Terminations
Application:
This charge lS applicable to all customers where water has been
physically turned off for nonpayment of a delinquent bill.
Ra tes :
Each Occurrence
Reconnection Charge
(during normal business hours)
Reconnection Charge
(other than normal business hours)
$20.
$30.
3 .FIELD COLLECTION TRIP CHARGE:
APPLICATION:
This charge lS applicable to all customers who pay outstanding
bills for serVlce at the time that Company personnel arrlve at
the customers ' premlses to terminate serVlce.
Rates:
Field Collection Trip Charge
Each Occurrence
$15.
Issued:July 6, 1998 Effecti ve:July 6, 1998
Under Authority of I.C. Order No. 27630
Issued by:UNITED WATER IDAHO INC.
By:William C. Linam, Vice President
Exhibit No.
Case No. UWI-O4-
F. Gradilone, United Water
Schedule 1 , Page 6 of 6
Sheet No.
Replacing all Previous Sheets
UNITED WATER IDAHO INC.
SCHEDULE NO.
GENERAL METERED SERVICE
Availability
To all metered customers not served under a separate schedule.
Customer Charqes
Meter Size
5/8"
3/4"
1 "
Bi-Monthly
Per Meter
Charqe
$ 19.
19.
26.
42.
61.
112.
179.
344.4 7
519.
726.
1/4" and 1-1/2"
2" or multiple meters of equivalent capacity
3" or multiple meters of equivalent capacity
4" or multiple meters of equivalent capacity
6" or multiple meters of equivalent capacity
8" or multiple meters of equivalent capacity
10" or multiple meters of equivalent capacity
Volume Charqe Wi nter
Rates
Summer
Rates
For all water used per 100 cubic
feet (CCF)(1 CCF=748 gallons):
For all water used per 1 000 gallons
$1.1487
$1.5358
$1 .4360
$1.9197
Conditions of Contract:
The customer shall pay the total of the customer charge plus the volume charge.
The volume charge is based on all metered water for the billing period.
Consumption is expressed in hundred cubic foot units or thousand gallon units as
determined by the meter installed by the Company. The customer charge will be
prorated whenever the customer has not been a customer for the entire billing
period.
Summer Period
The summer rate will apply to water consumed between May 1 and September 30.
Meter readings straddling these dates will be prorated.
UNITED
Issued Per IPUC Order No.
Effective -
Issued by UNITED WATER IDAHO INC.
Gregory P. Wyatt , Vice President
8248 West Victory Road , Boise, Idaho Exhibit No.
Case No. UWI-O4-
F. Gradilone, United Water
Schedule 2, Page 1 of 8
Sheet No.
Replacing all Previous Sheets
UNITED WATER IDAHO INC.
SCHEDULE NO.
FLAT RATE SERVICE
Availability
To non-metered residential customers pursuant to Residential or Multi-Family
Housing Non-Contiguous Water Systems Agreement Paragraph 11 (a)
addressing flat rate systems.
Customer Charqes
Based on United Water Idaho residential consumption for the year ending June
1998 of 208.75 ccf, the average .residential bill , assuming a %" meter and
650/0/350/0 summer/winter split, is $444.30. Billed bi-monthly, equals $74.05.
Bi-monthly Charqe $74.
Conditions of Contract:
The bi-monthly charge will be prorated whenever the customer has not been a
customer for the entire billing period. The Company or the customer may convert
to metered service pursuant to Subparagraphs (b) or (c) of Paragraph 11 as
follows:
(b)If Company should determine that a flat rate customer is using water in
excess of the average residential customer, the Company will provide a
meter setting and meter. Customer will then pay Company s metered tariff
rates as approved by the IPUC, which rates may be amended from time to
time.
(c)If a customer prefers to pay Company s approved metered tariff rates, the
customer shall pay the installation and material costs associated with the
installation of a meter setting.
UN ITED
Issued Per IPUC Order No.
Effective -
Issued by UNITED WATER IDAHO INC.
Gregory P. Wyatt, Vice President
8248 West Victory Road, Boise, Idaho Exhibit No.
Case No. UWI-O4-
F. Gradilone, United Water
Schedule 2, Page 2 of 8
Sheet No.
Replacing all Previous Sheets
UNITED WATER IDAHO INC.
SCHEDULE NO.
PUBLIC HYDRANTS AND STREET SPRINKLING
Availability
To the City of Boise and Ada County Highway District.
Rates:
Street Sprinklinq Service
Flat Charge $244.39/Month
Miscellaneous:
Bills will be rendered monthly, bi-monthly, or at other intervals upon mutual
agreement of the Company and the customer.
Hydrants and service pipes from the fitting on the Company main to the hydrants
are to be installed and maintained by and at the expense of the City of Boise or
Ada County Highway District.
UNITED
Issued Per IPUC Order No.
Effective -
Issued by UNITED WATER IDAHO INC.
Gregory P. Wyatt, Vice President
8248 West Victory Road , Boise , Idaho Exhibit No.
Case No. UWI-O4-
F. Gradilone, United Water
Schedule 2, Page 3 of 8
Sheet No.
Replacing all Previous Sheets
UNITED WATER IDAHO INC.
SCHEDULE NO.
PRIVATE FIRE SPRINKLER AND SERVICE
Availabilitv
To all customers who have sprinkler systems and/or inside hose connections for
fire fighting purposes.
Rate:
For service through a separate line for fire fighting purposes.
For 3" service or smaller, per month
For 4" service per month
For 6" service per month
For 8" service per month
For 10" service per month
For 12" service per month
$ 14.
21.
54.
88.
138.
207.
Miscellaneous:
Provided that if the installation of a private fire service shall require an extension of
the existing mains of the company, the cost of such extension shall be borne by the
customer.
All private fire services shall be equipped with sealed gate valves or thermal
automatic openings.
Meters may be placed on fire services by the utility at any time; however, metered
rates will not apply unless improper use of water is disclosed , and if such be the
case , usage will be billed to the consumer under Rate Schedule No.
UNITED
Issued Per IPue Order No.
Effective -
Issued by UNITED WATER IDAHO INC.
Gregory P. Wyatt, Vice President
8248 West Victory Road , Boise, Id~ho Exhibit No.
Case No. UWI-O4-
F. Gradilone, United Water
Schedule 2 , Page 4 of 8
Sheet No.
Replacing all Previous Sheets
UNITED WATER IDAHO INC.
SCHEDULE NO.
PRIVATE FIRE HYDRANT SERVICE
Availability:
To all customers having private fire hydrant installations.
Rate:
For fire hydrants installed and maintained by the customer at customer
expense:
Each fire hydrant, per month $8.
Miscellaneous:
Service pipe from the fitting on the company water main to the fire hydrant is to be
installed and maintained by the customer.
UNITED
Issued Per IPUC Order No.
Effective -
Issued by UNITED WATER IDAHO INC.
Gregory P. Wyatt, Vice President
8248 West Victory Road , Boise, Idaho Exhibit No.
Case No. UWI-O4-
F. Gradilone, United Water
Schedule 2, Page 5 of 8
Sheet No.
Replacing all Previous Sheets
UNITED WATER IDAHO INC.
SCHEDULE NO.
MISCELLANEOUS FEES AND CHARGES
Return Check Charqe
Application
This charge is applicable to all customers where the customer s check or bank
draft is returned by the bank for insufficient funds, closed account, or some other
appropriate reason.
Rate:
Returned check charge
Each Occurrence
$20.
Reconnection Charqe for Nonpavment Terminations
Application
This charge is applicable to all customers where water has been physically
turned off for nonpayment of a delinquent bill.
Rates:
Each Occurrence
Reconnection Charge
(during normal business hours: 8:00 AM to 4:30 PM)
Reconnection Charge
(other than normal business hours)
1: 4:31 PM to 8:00 PM
2: 8:01 PM to 7:59 AM
$22.
$40.
$80.
Field Collection Trip CharQ&
Application
This charge is applicable to all customers who pay outstanding bills for service at
the time that Company personnel arrive at the customers' premises to terminate
servIce.
Rate:
Field Collection Trip Charge
Each Occurrence
$20.
UNITED
Issued Per IPUC Order No.
Effective -
Issued by UNITED WATER IDAHO INC.
Gregory P. Wyatt, Vice President
8248 West Victory Road, Boise, Idaho Exhibit No.
Case No. UWI-O4-
F. Gradilone, United Water
Schedule 2, Page 6 of 8
Sheet No.
Replacing all Previous Sheets
UNITED WATER IDAHO INC.
MISCELLANEOUS FEES AND CHARGES (cont'
Service Connection Chan~:Je for Other Than Normal Business Hours
Application
This charge is applicable to all customers who request service after regular office
hours, weekends or holidays.
Rate:
Service Charge
Each Occurrence
$25.
Temporary Disconnection at Customer Request Charq~
Application
This charge is applicable when the Company is requested by customer to shut
off the water at the meter for repairs to customer s plumbing.
Rates:
Water Disconnection at Customer Request
(during normal business hours)
Water Disconnection at Customer Request
(other than normal business hours)
Each Occurence
$15.
$25.
Meter Test at Customer Request Charqe
Application
This charge is applicable when the customer requests the Company to test the
accuracy of a meter in the case of a disputed bill.
Rate:
Error in registration of 1-1/20/0 or less
Each Occurrence
$10.
UNITED
Issued Per IPUC Order No.
Effective -
Issued by UNITED WATER IDAHO INC.
Gregory P. Wyatt, Vice President
8248 West Victory Road , Boise , Idaho Exhibit No.
Case No. UWI-O4-
F. Gradilone, United Water
Schedule 2 , Page 7 of 8
Sheet No.
Replacing all Previous Sheets
UNITED WATER IDAHO INC.
MISCELLANEOUS FEES AND CHARGES (cont'
Meter Rental CharQe for Construction
Application
This charge is applicable when contractors , builders , or others request temporary
service from a fire hydrant.
Rate:
Temporary Meter Charge
Each Occurrence
$20.
UNITED
Issued Per IPUC Order No.
Effective -
Issued by UNITED WATER IDAHO INC.
Gregory P. Wyatt, Vice President
8248 West Victory Road , Boise , Idaho Exhibit No.
Case No. UWI-O4-
F. Gradilone, United Water
Schedule 2, Page 8 of 8