20060303notice_of_application_order_no_29988.pdf

Office of the Secretary
Service Date
March 3 , 2006
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
NOTICE OF APPLICATION
CASE NO. UWI-O6-
NOTICE OF INTERVENTION
DEADLINE
ORDER NO. 29988
On February 10 2006, United Water Idaho Inc. filed a general rate case Application
seeking authority to increase its rates an average of 17.91%. If approved the Company
revenues would increase by $5 921 691 annually. United Water Idaho provides service to
approximately 79 000 customers, or a population of about 225 000, in Boise and the surrounding
areas. The Company s Application includes proposed tariffs and requests an effective date of
March 13, 2006. In this Order the Commission suspends the effective date of the proposed rate
increase, establishes the deadline to petition for intervention, and grants the Company s Motion
requesting a waiver of Rule 121 (e).
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that United Water s Application states that since
the entry ofthe final Order in its last rate case, Order No. 29838 in Case No. UWI-04-, it has
been unable to earn its allowed return on investment, and that the primary purpose of this
Application is to update the Company s ratemaking calculations to conform to the requirements
of Order No. 29838. Application at 4-5. The Company requests expedited treatment of the
Application because the primary purpose is to update the ratemaking calculations to conform to
the requirements of the last rate case Order.
YOU ARE FURTHER NOTIFIED that the Application requests a revenue increase
of $5 921 691 resulting in a uniform percentage increase in rates of 17.97%. Application at 2.
The Company proposes an increase in rate base of $14 190 462 (from $126 824 685 to
$141 015 147), and increased operating costs of $2 764 530 (from $20 144 532 to $22 909 062).
Wyatt Direct at 4-5. The Application states that the revenue realized under the presently
NOTICE OF APPLICATION
AND INTERVENTION DEADLINE
ORDER NO. 29988
authorized rates produces a rate of return of 5.929% based on a test year ending April 30, 2006.
Application at 3. The proposed increase would provide a rate of return of 8.427%. Application
at 2. The Company states that the two biggest drivers for this rate increase filing are to capture
its investments using a 13-month average rate base, and a $1.7 million increase in the
Company s pension expense obligation under ERISA. Wyatt Direct at 4.
YOU ARE FURTHER NOTIFIED that the Company filed, along with its
Application, a Motion for Waiver of Rule 121 (e) which requires the filing of cost of capital and
cost of service studies. The Company states that because of the relatively short amount of time
that has passed since its last rate case, where the Commission accepted and approved the
settlement regarding the overall weighted cost of capital between Staff and the Company, it is
proposing to carry forward the results and methods contained in that settlement. Additionally,
because of the short amount of time that has passed since the last rate case where the Company
cost of service and rate design were reviewed, the Company is not presenting a new cost of
service study or a separate cost of service witness. The Company proposes a uniform percentage
increase to rates without any change in rate design.
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
Commission s website www.puc.idaho.gov.
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, ID 83702
i oe~mcdevitt -miller. com
Walton Hill
United Water
200 Old Hook Road
Harrington Park, NJ 07640-1738
W a1ton.Hill~UnitedW ater.com
NOTICE OF APPLICATION
AND INTERVENTION DEADLINE
ORDER NO. 29988
All communications with reference to this Application should be served upon the
above named representatives of United Water.
YOU ARE FURTHER NOTIFIED that United Water s Idaho 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.
IDAP A 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, reject 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, reject 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. IDAP A 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.IDAPA
31.01.01.124.02.
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
NOTICE OF APPLICATION
AND INTERVENTION DEADLINE
ORDER NO. 29988
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
must file a Petition to Intervene on or before March 21, 2006. 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 March 13 , 2006. Pursuant to Idaho Code ~~ 61-622 and 61-623 , the
Commission hereby suspends the proposed rates for a period of thirty (30) days plus five (5)
months from March 13 , 2006, or until such time as the Commission enters an Order accepting,
rej ecting or modifying the request in this matter.
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 March 13, 2006, 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 March 21 , 2006.
NOTICE OF APPLICATION
AND INTERVENTION DEADLINE
ORDER NO. 29988
IT IS FURTHER ORDERED that the Company s Motion requesting a waiver of
Rule 121(e)'s requirement to file a cost of capital and cost of service study with its Application
and testimony is granted.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this .3
rrfl.
day of March 2006.
PAUL KJELLA ER, PRESIDENT
MARSHA H. SMITH, COMMISSIONER
ATTEST:
ission Se retary
O:UWI-06-02 dw
NOTICE OF APPLICATION
AND INTERVENTION DEADLINE
ORDER NO. 29988