20041203Press Release.pdf

IDAHO PUBLIC UTILITIES COMMISSION
Case No. UWI-04-, Order No. 29654
December 2, 2004
Contact: Gene Fadness [phone]
Website: www.puc.state.id.
Intervenor deadline set in United Water case
Boise - The Idaho Public Utilities Commission has set Dec. 22 as the deadline for parties who
want to formally intervene in United Water s recently filed rate case.
Persons or organizations that choose to intervene in a case do so by presenting evidence and
cross-examining witnesses. Later in the process, the commission will set deadlines for public
comment and set dates for technical and public hearings. The company sought an effective date
for new rates of Dec. 30. The commission suspended the effective date for six months to allow
time to investigate the company s request.
United Water is seeking an average 21.46 percent rate increase. The utility, which provides water
to 75,400 customers in Ada and Canyon counties, wants to increase revenues by nearly $6.
million to recover the cost of capital improvements and to meet the demands of a growing
customer base.
The company is seeking an 8.93 percent rate of return. In its last rate case in 2000 , United Water
was granted an 8.843 percent rate of return on a rate base of$98.8 million. Rate base is the
utility s capital investment from which rates are calculated. The revenue realized under its
present authorized rates produces a rate of return of 6.06 percent as of July 31.
Since the 2000 rate case, the company claims its rate base has increased by $41.2 million and is
thus seeking approval of a $140 million rate base. United Water claims the number of customers
has increased by 10 000 and its operating costs by $4.7 million.
The increase in rate base is attributed 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 that replaces all liquid chlorine gas operations and replacement of aging
infrastructure that includes 16 miles of water mainline, 2 900 water services and 22 000 meters.
The rate increase requested by the company varies by customer class. If approved in full, the
residential rate would increase by 22.35 percent, the commercial rate by 19.56 percent, public
authority (public entities like local governments and schools) by 19 percent and private fire by
21.5 percent. The private fire class includes customers who have sprinkler systems and/or inside
hose connections for fire fighting purposes.
The commission has the authority to accept, reject or modify the company s proposal.
The company s application and direct testimony is available for public inspection at commission
offices at 472 W. Washington St. in Boise and at United Water s headquarters at 8248 West
Victory Road in Boise.
The application and testimony can also be viewed from the commission s Website at
www.puc.state.id.. Go to "Hot Items " in the upper right-hand comer of the page and click on
UWI Rate Case.
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