20070112Decision memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:WELDON STUTZMAN
DATE:JANUARY 12,2007
SUBJECT:CASE NO. UWI-06-
UNITED WATER COMPANY'S APPLICATION FOR APPROVAL OF
ITS WATER CONSERVATION PLAN AND APPROVAL OF A
SURCHARGE
On December 1 , 2006, United Water Idaho Inc. filed an Application requesting
approval of an updated water conservation plan, along with implementation of a surcharge to pay
for implementation of the plan. In the Company s last rate case, UWI-04-, the Commission
directed the Company to update its conservation plan and file it with the Commission on or
before April 1 , 2006. Prior to that deadline, United Water asked for an extension, and the
Commission subsequently approved a new filing date of December 1 , 2006. Rather than merely
filing the plan for the Staff and Commission to review, the Company filed its Application
requesting authority to implement its plan and charge customers a surcharge to pay for its
implementation.
United Water s Application states that it evaluated 91 potential conservation
measures, selecting 17 for further study and evaluation. This analysis produced a list of seven
conservation measures the Company believes are cost effective. United Water currently spends
approximately $124 200 per year on conservation measures. If the seven additional programs
become part of its conservation plan, those costs would increase to approximately $244 000 per
year. The Company proposes to implement the changes over the next three years.
United Water asks that its Application be processed by Modified Procedure. Staff
recommends that United Water s Application for approval of its water conservation plan and
request for surcharge be processed by Modified Procedure, but with a 30-day comment period
DECISION MEMORANDUM
rather than the normal 21-day comment period. Staff believes a 30-day comment period will
enable it to complete its analysis and file comments in a timely manner.
COMMISSION DECISION
Should the Application of United Water for approval of its water conservation plan
and implementation of a water conservation surcharge be processed by Modified Procedure with
a 30-day comment period?
Weldon B. Stutzman
bls/M:UWI-O6-05 ws
DECISION MEMORANDUM