20041202Notice of Application Order No 29654.pdf

Office of the Secretary
Service Date
December 2, 2004
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-O4-
NOTICE OF APPLICATION
NOTICE OF INTERVENTION
DEAD LINE
ORDER NO. 29654
On November 30, 2004, United Water Idaho Inc. filed an Application with the
Commission for authority to increase its rates and charges for water service in the State of Idaho.
The Application requests a 21.46% average increase in overall rates. If approved, Company
revenues would increase by nearly $6.8 million. United Water provides service to approximately
400 customers within Ada and Canyon Counties, Idaho. In this Order, the Commission
suspends the effective date of the proposed rate increase and establishes the deadline to petition
for intervention.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that on November 30, 2004, United Water Idaho
Inc. filed an Application for authority to increase its rates and charges for water service in the
State of Idaho by $6 767 867. The Company has requested that its proposed rates become
effective on or after December 30, 2004. 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 according to the Application the expected
rate of return with the Company s proposal would be 8.93%. The revenue realized under its
presently authorized rates produces a rate of return of 6.06%, based on a test year ending July 31
2004. In United Water s last rate case, the Commission authorized an 8.843% rate of return on
rate base of $98 862 937. Order No. 28505. The Company states that, since the last rate case, its
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 29654
rate base has increased by $41 199 609 to a total of $140 062 546, operating costs have increased
by $4 707 395, and the number of customers has increased by approximately 10 000.
YOU ARE FURTHER NOTIFIED that the Company attributes its increase in rate
base to major capital investments in: the Colombia Water Treatment Plant; wellhead treatment
for the Bali Hai and Maple Hills wells; water storage facilities to provide fire protection and
sustainable pressure to customers; a non-hazardous disinfection system to replace all liquid
chlorine gas operations, and replacement of aging infrastructure including approximately 16
miles of water mainline, 2 900 water services, and 22 000 meters.
YOU ARE FURTHER NOTIFIED that the Company proposes varying percentage
increases for different customer classes or groups. As a result the proposed increases for some
classes are lower than the proposed average rate increase of 21.46% while others are higher.
Under the proposed Application, residential customer rates would increase by 22.35%,
commercial by 19.56%, public authority by 19.01 %, and private fire by 21.55%.
YOU ARE FURTHER NOTIFIED that the Company has filed direct testimony of its
witnesses along with their exhibits and workpapers. These documents are on file with the
Commission Secretary at the Commission s office (472 West Washington Street, Boise, Idaho)
where they may be reviewed as a matter of public record during regular business hours. The
Company s proposed schedules of rates and charges will also be kept open for public inspection
at the office of United Water Idaho Inc. (8248 West Victory Road, Boise, Idaho) during regular
business hours. Interested persons may also view United Water s Application at the websites of
the Commission (www.puc.state.id.) and the Company (www.unitedwateridaho.com
YOU ARE FURTHER NOTIFIED that the following persons are designated as
United Water s representatives in this matter:
Dean J. Miller
McDevitt & Miller LLP
420 West Bannock Street
PO Box 2564-83701
Boise, ill 83702
Mark Gennari
United Water
200 Old Hook Road
Harrington Park, NJ 07640-1738
All communications with reference to this Application should be served upon the above named
representatives of United Water.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 29654
YOU ARE FURTHER NOTIFIED that United Water intrastate revenue
requirement, and every component of it, both rate base and expense, are at issue.The
Commission may grant, deny, or modify the revenue requirement requested and may find a
revenue requirement different from that proposed by any party is just, fair and reasonable.
IDAPA 31.01.01.124.01.
YOU ARE FURTHER NOTIFIED that the rates and charges of all Idaho retail
customers, both recurring and non-recurring, including those of special contract customers, are at
issue, and every component of every existing and proposed rate and charge is at issue. The
Commission may approve, rej ect or modify the rates and charges proposed and may find that
rates and charges different from those proposed by any party are just, fair and reasonable.
IDAPA 31.01.01.124.02.
YOU ARE FURTHER NOTIFIED that the Commission may approve, reject or
modify existing or proposed relationships between and among rates and charges within, between
or among customer classes or rate groupings and may approve, rej ect or modify existing or
proposed relationships among and between customer classes or rate groupings.IDAP A
31.01.01.124.02.
YOU ARE FURTHER NOTIFIED that the Commission may abolish, reduce or
create rate blocks or categories of rates and charges, abolish, create or reduce components of
rates and charges, abolish, reduce or create customer classes or rate groupings, and abolish
reduce or create absolute or relative differences among and between existing classes or rate
groupings of customers. IDAPA 31.01.01.124.02.
YOU ARE FURTHER NOTIFIED that the tariffs, practices, rules and regulations
servIce, instrumentalities, equipment, facilities, classifications, and customer relations of the
utility are at issue, and the Commission may address any of them in its order.
31.01.01.124.02.
IDAP A
NOTICE OF INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this
proceeding for the purpose of presenting evidence or cross-examining witnesses at hearing must
file a Petition to Intervene with the Commission pursuant to this Commission s Rules of
Procedure 72 and 73. IDAP A 31.01.01.072-073. Persons intending to participate at the hearings
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 29654
must file a Petition to Intervene on or before December 22, 2004. Persons seeking intervenor
status shall also provide the Commission Secretary with their electronic mail addresses to
facilitate future communication in this matter.
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 the parties.
YOU ARE FURTHER NOTIFIED that the Commission Secretary shall issue a
Notice of Parties after the deadline for intervention has passed. The Notice of Parties shall
assign exhibit numbers to each party in this joint proceeding. Depending on the number of
intervenors, the Commission may direct that testimony be filed electronically with the other
parties.
SUSPENSION OF PROPOSED EFFECTIVE DATE
Due to the complexities of this case and other constraints on the Commission s time
the Commission finds that it cannot resolve United Water s requested rate increase before the
proposed effective date of December 30, 2004. Pursuant to Idaho Code 99 61-622 and 61-623
the Commission hereby suspends the proposed rates for a period of thirty (30) days plus five (5)
months from December 30, 2004, or until such time as the Commission enters an Order
accepting, rejecting or modifying the request in this matter. Commission Staff is directed to
contact the parties after the intervention deadline to discuss a procedural schedule.
ORDER
IT IS HEREBY ORDERED that the proposed schedules of rates and charges
submitted by United Water in this matter are suspended for a period of thirty (30) days plus five
(5) months from December 30, 2004, or until such time as the Commission enters an Order
accepting, rejecting or modifying the request in this matter.
IT IS FURTHER ORDERED that persons desiring to intervene in this case for the
purpose of presenting evidence or cross-examination at hearing shall file a Petition to Intervene
with the Commission no later than December 22 , 2004.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 29654
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this J.- 1t
day of December 2004.
Out of the Office on this Date
MARSHA H. SMITH, COMMISSIONER
ATTEST:
O:UWIWO404 dw
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 29654