20060210Application.pdf

McDevitt & Miller LLP
Lawyers
[phone]
[phone] (Fax)
420 W. Bannock Street r ' n , I q
O. Box 2564-83101
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Boise, Idaho 83702
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February 200'6'
, ,
Chas. F McDevitt
Dean 1. (Joe) Miller
Via Hand Delivery
Jean Jewell, Secretary
Idaho Public Utilities Commission
472 W. Washington St.
Boise, Idaho 83720
Re:United Water Idaho Inc., General Rate Case Application
Case No. UWI-06-
Dear Ms. Jewell:
Enclosed please find the original and seven (7) copies of United Water Idaho s Application to
Increase Rates and Charges, effective March 13, 2006. Also enclosed are nine (9) copies of the
testimony and exhibits of Gregory P. Wyatt, Frank Gradilone III, Jeremiah J. Healy and Scott
Rhead, with one copy of each designated as "Reporter s Copy . A computer disc containing the
testimony and exhibits is also enclosed.
Also enclosed are the original and three copies of the tariff schedules that the Company proposes
become effective on March 13 , 2006. A copy of the proposed tariff schedules in legislative format
is also enclosed.
Three (3) copies of the Company s workpapers are also enclosed.
Also enclosed are copies of the Company s press release and customer notice which will be mailed
to customers.
Also enclosed is the Company s Motion for Waiver of Rule 121(e).
Kindly return a file stamped copy of this letter and Application.
Very Truly Yours
McDevitt & Miller LLP
~UL-
Dean J. Miller
DJM/lc
Enclosures
" ," '"..
Dean J. Miller (ISB #1968)
McDEVITT & MILLER LLP
420 West Bannock Street
O. Box 2564-83701
Boise, ID 83702
Tel: [phone]
Fax: [phone]
i oe~mcdevi tt -miller . com
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' ir!Uj ,:~~; CO:~;S.
Attorneys for Applicant ORIGINAL
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICA nON
OF UNITED WATER IDAHO INC. FOR
AUTHORITY TO INCREASE ITS RATES
AND CHARGES FOR WATER SERVICE IN
THE STATE OF IDAHO
Case No. UWI-06-
APPLICATION
COMES NOW United Water Idaho Inc.
, ("
United Water
" "
Applicant" or "Company
and hereby makes application to the Idaho Public Utilities Commission ("Commission ) for an
Order approving revisions to Applicant's schedules of rates and charges for water service in the
State ofIdaho to become effective with service provided on or after March 13 , 2006 and in
support thereof respectfully shows as follows:
Applicant is a public utility water corporation within the meaning of the Idaho Public
Utility Law, is duly organized and existing under the laws of the State ofIdaho and is engaged in
conducting a general water business in and about Boise City, Ada County, Idaho, having its
principal office and place of business at 8248 West Victory Road, Boise, Idaho. A certified copy
of Applicant's Articles ofIncorporation, together with all amendments to date, is on file with the
Commission. Applicant's current Certificate is Amended Certificate No. 143.
APPLICA TION-
II.
United Water has been providing water service to the public in Boise City and
surrounding areas for more than 100 years. Currently, United Water provides service to
approximately 79 000 customers within Ada and Canyon Counties, Idaho.
IlL
The operations of United Water have been reviewed in several rate proceedings before
the Commission, most recently in Case No. UWI-04-04.
IV.
Attached hereto as Attachment 1 are copies of Applicant's Schedule Number 1 , General
Metered Service, Schedule Number 1B, Flat Rate Service, Schedule Number 2, Public Hydrants
and Street Sprinkling, Schedule Number 3 , Private Fire Sprinkling and Service, Schedule
Number 4, Private Fire Hydrant Service, containing the rates under which water service is
currently rendered and charged to Applicant's customers.
Attached hereto as Attachment 2 are copies of Applicant's new proposed Schedules
Numbers 1 , 1B, 2, 3 and 4 setting forth charges to be made to Applicant's customers on and after
March 13, 2006.
As shown by Attachment 2, Applicant proposes to increase rates by a uniform percentage
increase of 17.97%. No other changes to Applicant's Schedules of Rates and Rules and
Regulations are proposed in this Application.
Applicant alleges that the proposed changes in rates and charges set forth on Attachment
2 are just and reasonable and that the rate of return expected to be provided to the Applicant
there under will be 8.427%, which is a fair rate ofreturn on Applicant's investment in property
used and useful in rendering water service.
APPLICATION-
V1.
The revenue realized by Applicant under its presently authorized rates produces a rate of
return of 5.929%, based on a test year ending April 30, 2006. Applicant seeks additional
revenues to recover increased operating expenses and costs associated with plant additions, and
to produce a fair rate of return, thereby enabling it to continue to provide adequate and reliable
service to its customers.
VI1.
Applicant is filing concurrently herewith direct testimony of Gregory P. Wyatt, Frank
Gradilone III , Jeremiah J. Healy, and Scott Rhead, and Exhibits 1 through 10 including financial
statements, and revenue analysis, along with supporting workpapers, to justify and support the
proposed increase.
VII1.
Because Applicant is proposing that increased revenues be recovered through a uniform
percentage increase and because the Company s cost of service was recently reviewed in Case
No. UWI- W -04-, Applicant is not submitting a cost of service study with this Application.
Similarly, because the Company s cost of capital was recently reviewed and resolved by
settlement in Case No. UWI-04-, Applicant is proposing that the Company s cost of equity
established in that case be used in this Application. Cost of debt would be the actual cost, as
determined by the same methodology in the UWI-04-04 case. Applicant therefore
respectfully requests that the Commission enter its Order waiving the requirement ofRP 121(e)
which otherwise requires the filing of cost of service and cost of capital studies.
IX.
Notice to Applicant's customers is being accomplished by news media releases
simultaneously with the filing of this Application and by an individual notice mailed to each of
APPLICATION-
Applicant's customers. In addition, a copy of the Application and Applicant's present and
proposed rate schedules are available for public inspection at its office at 8248 West Victory
Road, Boise, Idaho at any time during office hours.
Applicant stands ready for an immediate hearing on this Application and requests that a
hearing be held as soon as possible.
Communications in reference to this Application should be addressed to:
Dean 1. Miller
McDEVITT & MILLER LLP
420 West Bannock Street
O. Box 2564-83701
Boise, ill 83702
Fax: [phone]
i oe~mcdevitt - miller.com
and
Walton Hill
UNITED WATER
200 Old Hook Road
Harrington Park, NJ 07640-1738
Fax: [phone]
W alton.Hill~UnitedW ater.com
XII.
The Company requests expedited treatment of the Application because the primary
purpose of this Application is to update the Company s rate making calculations to conform to
the requirements of Order No. 29838, although the Company is not waiving its objections to that
Order set forth in Case No. SUP- W -05-1. Specifically, rate base is calculated using a 13 month
average method with a six month actual and six month projected test year as directed by Order
No. 29838. Additionally, only limited adjustments to revenue and expense are proposed.
APPLICA TION-4
Additionally, since the entry of Order No. 29838 the Company has been unable to earn its
allowed return on investment.
Accordingly, the Company respectfully requests that this Application be processed on
an expedited basis, to the extent that can be accomplished consistent with the Commission
audit and public participation responsibilities.
WHEREFORE, Applicant respectfully requests of the Commission:
That the Commission enter its Order determining that neither a cost of service study
nor a cost of capital study is required.
That this Application be heard and acted upon at the earliest possible date;
That the Commission find that the Applicant's existing rates are unjust, unreasonable
and insufficient to provide Applicant with a fair rate of return and that the revised
rates and charges proposed in Attachment 2 of this Application are just and
reasonable and that Applicant be permitted to charge said rates to its customers
effective March 13 , 2006.
That the Commission grant such other and further relief as the Commission may
determine proper in the circumstances.
DATED this 10th day of February, 2006.
UNITED WATER IDAHO INC.
APPLICA TION-
STATE OF IDAHO
: ss
County of Ada
GREGORY P. WYATT, being first duly sworn, deposes and says that he is the Vice
President of United Water Idaho Inc., Applicant herein; that he has read the foregoing
Application and knows the contents thereof and that the same are true to the best of his
knowledge and belief.
SUBSCRIBED AND SWORN to before e this
APPLICA TION-6
Notary Public for Idaho
Residing at: S~~
Commission Exp: -.:r- OJ - O~
SCHEDULE NO.
GENERAL METERED SERVICE
Availability
To all metered customers not served under a separate schedule.
Bi-Monthly
Per Meter
CharQe
$ 14.
14.
19.
31.
44.
82.
131.
252.
381.
532.
Customer CharQes
Meter Size
5/8"
3/4"
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 Winter
Rates
Summer
Rates
For all water used less than 3CCF (100 cubic
Feet) (CCF)(1 CCF=748 gallons):
For all water used greater than 3CCF
$1.0912
$1.0912
$1.0912
$1.3641
Conditions of Contract:
The customer shall pay the totalof 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. 29871
Effective - September 28, 2005
Issued by UNITED WATER IDAHO INC.
Gregory P. Wyatt, Vice President
8248 West Victory Road , Boise, Idaho
ATTACHMENT 1
SCHEDULE NO.1 B
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
65%/35% summer/winter split, is $350.43. Billed bi-monthly, equals $58.40.
Bi-monthly CharQe $58.40
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.
UNITED
Issued Per IPUC Order No. 29871
Effective - September 28 2005
Issued by UNITED WATER IDAHO INC.
Gregory P. Wyatt, Vice President
8248 West Victory Road , Boise, Idaho
ATTACHMENT 1
SCHEDULE NO.
PUBLIC HYDRANTS AND STREET SPRINKLING
Availability
To the City of Boise and Ada County Highway District.
Rates:
Street SprinklinQ Service
Flat Charge $193.66/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. 29871
Effective - September 28 2005
Issued by UNITED WATER IDAHO INC.
Gregory P. Wyatt, Vice President
8248 West Victory Road, Boise, Idaho
ATTACHMENT 1
SCHEDULE NO.
PRIVATE FIRE SPRINKLER AND SERVICE
Availability
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
$ 12.
19.
48.
79.
123.
184.
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 IPUG Order No. 29871
Effective - September 28, 2005
Issued by UNITED WATER IDAHO INC.
Gregory P. Wyatt, Vice President
8248 West Victory Road, Boise, Idaho
ATTACHMENT 1
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 $7.
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. 29871
Effective - September 28, 2005
Issued by UNITED WATER IDAHO INC.
Gregory P. Wyatt, Vice President
8248 West Victory Road , Boise, Idaho
ATTACHMENT 1
Sheet No. 12
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 Charaes
1 "
Bi-Monthly
Per Meter
CharQe
$ 17.
17.
22.
36.
52.
97.
154.
298.
449.
628.
Meter Size
5/8"
3/4"
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 Charae Winter
Rates
Summer
Rates
For all water used less than 3CCF (100 cubic
Feet) (CCF)(1 CCF=748 gallons):
For all water used greater than 3CCF
$1.2872
$1.2873
$1.2872
$1.6090
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
ATTACHMENT 2
Sheet No. 13
Replacing all Previous Sheets
UNITED WATER IDAHO INC.
SCHEDULE NO.1 B
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
October 2005 of 186ccf, the average residential bill , assuming a %" meter and
55% / 45% summer/winter split, is $ 374.76. Billed bi-monthly, equals $ 62.46.
Bi-monthly CharQe $ 62.46
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:
(d)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.
(e)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.
UNITED
Issued Per IPUC Order No.
Effective -
Issued by UNITED WATER IDAHO INC.
Gregory P. Wyatt, Vice President
8248 West Victory Road, Boise, Idaho
ATTACHMENT 2
Sheet No. 14
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 $228.45/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
ATTACHMENT 2
Sheet No. 15
Replacing all Previous Sheets
UNITED WATER IDAHO INC.
SCHEDULE NO.
PRIVATE FIRE SPRINKLER AND SERVICE
Availability
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
$ 15.
22.
56.
93.
145.45
217.
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 IPUC Order No.
Effective -
Issued by UNITED WATER IDAHO INC.
Gregory P. Wyatt, Vice President
8248 West Victory Road , Boise, Idaho
ATTACHMENT 2
Sheet No. 16
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 s expense:
Each fire hydrant, per month $ 9.
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
ATTACHMENT 2
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 Bi-Monthly
Per Meter
CharQe
$ 44:00 17.
44:00 17.
19.2022.
31.1036.
44:QQ 52.
97.
131.30 154.
252.70298.
381.20 449.
532.628.
Meter Size
5/8"
3/4"
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
For all water used less than 3CCF (100 cubic
Feet) (CCF)(1 CCF=748 gallons):
For all water used greater than 3CCF
Winter
Rates
1 .2872
0912
0912
2873
Summer
Rates
2872
0912
3641
6090
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. 29871
Effective September 28,2005
Issued by UNITED WATER IDAHO INC.
Gregory P. Wyatt, Vice President
8248 West Victory Road, Boise, Idaho
Sheet No.
Replacing all Previous Sheets
UNITED WATER IDAHO INC.
SCHEDULE NO.1 B
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 Charaes
Based on United Water Idaho residential consumption for the year ending
4-QQ8 October 2005 of 208.75 186 ccf, the average residential bill, assuming a %"
meter and 65%/35% 55% / 45%summer/winter split, is $350.43 374.. Billed bi-
monthly, equals $WAG 62.46.
Bi-monthly CharQe $WAG 62.46
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.
UNITED
Issued Per IPUC Order No. 29871
Effective September 28, 2005
Issued by UNITED WATER IDAHO INC.
Gregory P. Wyatt, Vice President
8248 West Victory Road, Boise, Idaho
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
228.45
1 93./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. 29871
Effective September 28 , 2005
Issued by UNITED WATER IDAHO INC.
Gregory P. Wyatt, Vice President
8248 West Victory Road, Boise , Idaho
Sheet No.
Replacing all Previous Sheets
UNITED WATER IDAHO INC.
SCHEDULE NO.
PRIVATE FIRE SPRINKLER AND SERVICE
A vaila bility
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
15.
WZ7 22.
4S.4-2 56.
79.0693.
123.145.45
For 12" service per month 184.217.
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 IPUC Order No. 29871
Effective September 28 2005
Issued by UNITED WATER IDAHO INC.
Gregory P. Wyatt, Vice President
8248 West Victory Road, Boise, Idaho
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 s expense:
Each fire hydrant, per month ~9.
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. 29871
Effective September 28, 2005
Issued by UNITED WATER IDAHO INC.
Gregory P. Wyatt, Vice President
8248 West Victory Road , Boise , Idaho
1 1) p;,; z: ! B
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; . ~ :, ' '' '' '('~; '
Jf\L!T:;.-..~) L!:; -News
For Immediate Release
Contact: Mark Snider
208.362.7328
mark. snider~unitedwater. com
UNITED WATER IDAHO FILES RATE CASE
Company seeks increase to recover investments in facilities and rising costs
BOISE, ID, February 10, 2006 -- United Water Idaho today filed an application with the Idaho
Public Utilities Commission (IPUC) requesting a revenue increase of $5 921 691 , which represents
an overall rate increase of 17.91 %. The filing requests the increase be allocated equally across
each class of customers. If approved , the average residential bill would increase $4.89 a month
from $327.19 to $385.90 a year.
The company last filed a rate case in November 2004, and in August 2005 the Commission granted
a much smaller increase than the company had requested. United Water filed a request for
reconsideration and in September the IPUC denied most of the request, but did grant a minor
increase, bringing the total rate award to 8.08%.
We are seeking recovery on investments the company made in the system to improve service to
our customers," said Greg Wyatt, vice president and general manager of United Water. "The
recovery of these improvements was excluded in last year s rate case. Additionally, we ll be
seeking recovery of new investments in infrastructure we ve made during the past year and
recovery of the increase in operations and maintenance costs since the last case was filed.
Examples of United Water Idaho s investments include more than $2 million in wellhead
treatment at two locations in its system, approximately $1.5 million in water storage facilities to
provide fire protection and sustainable pressure to customers, most notably in the South County
area. The company has also replaced about $4.8 million worth of aging infrastructure, including
about seven miles of water mains, 700 water services and 12 000 meters.
Wyatt added that the largest area of increased operating expense in the case is the cost to fund
the company s pension plan, followed by rising depreciation expenses related to capital
investments.
United Water Idaho is the state s largest municipal water system, serving approximately 79 000
customers, or a population of about 225,000 , in Boise and the surrounding areas. Customers
interested in learning more about the company can visit www.unitedwateridaho.com.
WWW. UNITEDWATER.COM
" '..,
Notice of Application to Increase Rates
, ,
?: ! 8i U
This is to notify you that on February 10, 2006 United Water Idaho fileq:anAppl\cil,t!9JJ. with the
Idaho Public Utilities Commission (IPUC) asking for authority to iI),cr~~~~ithe compaii)e;sirates
and charges.
In the Application United Water is proposing a revenue increase of$5 921 691 , which represents
an overall increase in rates of 17.91 %, to be applied equally to all classes of customers. The
requested increase would raise rates for a typical residential customer by about $4.90 a month
bringing the average annual residential bill from $327 to $386.
The proposed increase is necessary so that United Water will have an opportunity to earn a return
on its investments in water facilities which are providing service to customers. United Water has
invested more than $14 million in source, treatment and distribution facilities that have not yet
been allowed for recovery in the Company s rates. An increase in revenue is necessary
support these investments and to maintain a sound financial position. Additionally, on going
costs of operations have increased since United Water s last general rate case.
The proposed increase in rates is subject to review and a decision by the IPUC, which may
accept, modify or reject in whole or in part the proposed increase. A complete copy of the
proposal is available at the company s office at 8248 W. Victory Road, Boise, Idaho and at the
Commission s office at 472 W. Washington, Boise, Idaho. It is also available on-line at the
IPU C website: http://www.puc.state.id.us/FILEROOM/water/water.htm
You can also file a comment on the Application via the IPUC web site at:
http://www.puc.state.id.us/scripts/polvform.dll/ipuc
Or mail comments to:
Idaho Public Utilities Commission
O. Box 83720
Boise, Idaho 83720-0074
United WaterIdaho Inc.
O. Box 190420
Boise, Idaho 83719-0420
Sincerely,
United Water Idaho