20070917Application.pdf

McDevitt & Miller LLP
Lawyers
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[phone]
[phone] (Fax)
420 W. Bannock Street
O. Box 2564-83701 ZUni SEP 17 Pt1 3: 52 Chas. F. McDevittBoise, Idaho 83702 ".-
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, C'UP! If-Dean J. (Joe) Miller
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September 17,2007
Via Hand Delivery
Jean J ewell, Secretary
Idaho Public Utilities Commission
472 W. Washington St.
Boise, Idaho 83720
Re:Case No. UWI~W~07~
Dear Ms. Jewell:
Enclosed for filing, please find the original and seven (7) copies of United Water Idaho
Application and Request for Modified Procedure. Also enclosed are nine (9) copies of the Direct
Testimony and exhibits of Gregory P. Wyatt, with a copy designated as "Reporter s Copy . A
computer disc containing the testimony and exhibits is also enclosed.
Supporting documentation regarding the Exhibits attached to Mr. Wyatt s Testimony is available
for Staff Review and audit by contacting Mr. Jeremiah Healy, 382~7337.
Kindly return a file stamped copy of this letter and Application.
Very Truly Yours
\SrUL
LLP
Dean J. Miller
DJMlhh
Enclosures
OR\G\NAL
Dean J. Miller (ISB No. 1968)
McDEVITT & MILLER LLP
420 West Bannock Street
O. Box 2564-83701
Boise, Idaho 83702
Tel: [phone]
Fax: [phone]
ioe(iV,mcdeviti-miller .com
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Attorneys for United Water Idaho Inc.
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF UNITED WATER IDAHO INc., TO
IMPLEMENT A PROGRAM OF MONTHLY
BILLING AND FOR RECOVERY OF COSTS
AS SOCIA TED THEREWITH and
REQUEST FOR MODIFIED PROCEDURE
CASE NO. UWI-O7-
APPLICATION AND REQUEST
FOR MODIFIED PROCEDURE
COMES NOW United Water Idaho Inc.
, ("
United Water" the "Company ) and applies to
the Commission for authority to implement a program of monthly billing to its customers and for
authority to implement rates and charges to recover the increased cost of converting from bi-
monthly to monthly billing. In support thereof, United Water respectfully shows as follows, to
wit:
Historically, United Water has rendered bills to its customers on a bi-monthly basis,
discussed in the Direct Testimony of Gregory P. Wyatt, filed herewith, United Water believes it
would be in the public interest to convert to a program of monthly billing for, among others, the
following reasons:
APPLICATION AND REQUEST FOR MODIFIED PROCEDURE - 1
A monthly bill should be easier for customers to budget for and to pay than a bi-
monthly bill, especially in the summertime.
Monthly billing can enhance water conservation and lower bills by sending a
more timely price signal to customers and providing more timely information to
customers regarding their consumption thus giving customers a better opportunity
to adjust their consumption;
Monthly billing would reduce the incidence of "high-bill" complaints from
customers that result from bills that reflect charges for two months of water
usage;
Monthly billing would double the number of visits to customer premises by meter
readers, enabling quicker detection and troubleshooting of customer leaks or
meter problems.
II.
Attached hereto as Exhibit A, in clean and legislative format, are revisions to the
Company s Tariff Schedules Nos. 1 , lA, and 1B showing changes to convert from bi-monthlyto
monthly billing.
IlL
As discussed in more detail in the Testimony of Mr. Wyatt United Water estimates the
additional annual cost of monthly billing will be $1 125 905, reflecting the cost of additional
personnel for meter reading, preparation and mailing of bills on a more frequent basis, increased
collections processing, and administrative expense.
APPLICATION AND REQUEST FOR MODIFIED PROCEDURE - 2
IV.
Traditionally and currently, costs associated with customer billing are included in
Customer Charges in the Company s rate schedules. Shown on Exhibit A are the changes
Customer Charges required to collect the increased cost of monthly billing.
United Water estimates that it will require a minimum of five (5) months to hire and train
additional personnel and make operational adjustments to implement a program of monthly
billing. The Company therefore respectfully requests that the Commission, after appropriate
process and consideration, enter its order approving this Application on or before December 1
2007 with the Tariff changes proposed herein to be effective five (5) months thereafter on
approximately May 1 , 2008.
V1.
Attached hereto as Exhibit B is a customer notification letter which is being mailed to
United Water s customers contemporaneously with the filing ofthis Application notifying
customers of the proposed change in billing frequency.
VII.
Pursuant to RP 201 et. Seq. United Water believes that a hearing is not necessary to
consider the matters presented herein and requests that this Application be processed by
Modified Procedure. If, however, the Commission determines that a hearing is required, United
Water stands ready for immediate hearing based on the Direct Testimony of Mr. Wyatt.
WHEREFORE United Water respectfully requests:
That the Commission enter its order determining that this matter may be processed by
Modified Procedure;
APPLICATION AND REQUEST FOR MODIFIED PROCEDURE - 3
That the Commission enter its order approving the requested conversion to a program of
monthly billing;
That the Commission enter its order approving the changes to rates and charges proposed
herein with an effective date of May 1 , 2008.
That the Commission grant such other and further relief as is appropriate in the
circumstance.
DATED this day of September, 2007.
UNITED WATER IDAHO INC.
\~ --,
Dean J. Miller
McDevitt & Miller LLP
420 West Bannock
Boise, Idaho 83702
P: 208.343.7500
F: 208.336.6912
Attorney for United Water
APPLICATION AND REQUEST FOR MODIFIED PROCEDURE - 4
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
Meter Size
5/8"
3/4"
1 "
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
Monthly
$ 9.
11.
18.42
26.
46.
74.
141.41
212.
296.
Winter
Rates
$1.2112
$1.2112
B-i-Monthly
Per Meter
Charqe
145.
280.
423.
591.
Summer
Rates
$1.2112
$1.5141
For all water used less than 3CCF (100 cubic
Feet) (CCF)(1 CCF=748 gallons):
For all water used greater than 3CCF
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. 30104
Effective !\ugust 1 , 2006
Issued by UNITED WATER IDAHO INC.
Gregory P. Wyatt, Vice President
8248 West Victory Road , Boise , Idaho
EXHIBIT A
PAGE 1 oF6
Sheet No.
Replacing all Previous Sheets
UNITED WATER IDAHO INC.
SCHEDULE NO. 1A
DEQ FEE
Purpose:
The Idaho Department of Environmental Quality (IDEQ) assesses a fee to fund its
drinking water program.
Applicability All Customers
Rate
State Drinking Water Program 50 bi monthly 25 monthly per customer
Since this fee is not recovered in tariffed water rates, the cost will be passed along to
customers as a fixed charge appearing as a separate item on each bill.
UNITED
Issued Per IPUC Order No. 30104
Effective August 1 , 2006
Issued by UNITED WATER IDAHO INC.
Gregory P. Wyatt, Vice President
8248 West Victory Road , Boise , Idaho
EXHIBIT A
PAGE 2 OF 6
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 June
1998 of 208.75 ccf, the average residential bill , assuming a %" meter and 65% /
35% summer/winter split, is $ 402.75 388.. Billed monthly bi monthly, equals $
33.56
Monthly Bi montAtv Charae 33.
Conditions of Contract:
The monthly 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
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. 301 O~
Effective AUgUEt 1 , 2006
Issued by UNITED WATER IDAHO INC.
Gregory P. Wyatt, Vice President
8248 West Victory Road, Boise, Idaho
EXHIBIT A
PAGE 3 oF6
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
1 "
Monthly
Per Meter
Charqe$ 9.
11.
18.42
26.
46.
74.
141.41
212.
296.
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
$1.2112
$1.2112
Summer
Rates
$1.2112
$1.5141
For all water used less than 3CCF (100 cubic
Feet) (CCF)(1 CCF=748 gallons):
For all water used greater than 3CCF
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
EXHIBIT A
PAGE 4 OF 6
Sheet No.
Replacing all Previous Sheets
UNITED WATER IDAHO INC.
SCHEDULE NO.
DEQ FEE
Purpose:
The Idaho Department of Environmental Quality (IDEQ) assesses a fee to fund its
drinking water program.
Applicability All Customers
Rate
State Drinking Water Program 25 monthly per customer
Since this fee is not recovered in tariffed water rates, the cost will be passed along to
customers as a fixed charge appearing as a separate item on each bill.
UNITED
Issued Per IPUC Order No.
Effective -
Issued by UNITED WATER IDAHO INC.
Gregory P. Wyatt, Vice President
8248 West Victory Road, Boise, Idaho
EXHIBIT A
PAGE50F6
Sheet No.
Replacing all Previous Sheets
UNITED WATER IDAHO INC.
SCHEDULE NO.1 B
FLAT RATE SERVICE
A vailabilitv
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 June
1998 of 208.75 ccf, the average residential bill, assuming a %U meter and 65% /
35% summer/winter split, is $ 402.75. Billed monthly, equals $ 33.56.
Monthlv Charae $ 33.
Conditions of Contract:
The 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.
Effective -
Issued by UNITED WATER IDAHO INC.
Gregory P. Wyatt, Vice President
8248 West Victory Road , Boise , Idaho
EXHIBIT A
PAGE 6 OF 6
Dear United Water Idaho Customer:
This is to notify you that on September 24, 2007 United Water Idaho filed an Application with
the Idaho Public Utilities Commission (IPUC) asking for authority to convert to a monthly
meter reading and billing cycle for all customers. Currently, water meters are read every two
months, and bills are sent according to that same bi-monthly schedule.
There are a several benefits of monthly billing, including:
A monthly bill should be easier to budget for and to pay than a bi-monthly bill;
Enhanced water conservation and lower bills by providing more timely information on
consumption , enabling customers time to make changes in water use practices during
the irrigation season, thus saving money;
More frequent visits to your premises by United Water Idaho personnel, enabling
quicker detection and troubleshooting of customer leaks or meter problems.
In the Application United Water Idaho is proposing a revenue increase of $1 125,905, which
represents an overall increase in rates of 3.75% for the typical residential customer. Under
the proposed Application the increase will be applied to the fixed Customer Charge portion of
your bill which is not be affected by how much water you use, The requested increase would
raise rates for all customers by about $1,15 a month (about 4 cents a day), bringing the
average annual residential customer bill from $368.61 to $382.44.
The proposed increase is necessary to cover the increased costs of additional personnel
billing, and collections attributable to the conversion to a monthly meter reading and billing
frequency.
To learn more about the company s Application please visit the company s website at
http:/ /www.unitedwateridaho.com
The proposal to convert to monthly billing and the proposed increase in rates are subject to
review and approval by the IPUc. A complete copy of the proposal is available at the
company s office at 8248 W. Victory Road , Boise, ID and at the Commission s office at 472
Washington, Boise, ID, It is also available on-line at the IPUC website:
http: / /www. puc. state. id. us/ FI LEROOM/water /water. htm
You can also file a comment on the Application via the IPUC website at:
http:/ /www.puc.state.id.us/scripts/polvform.dll/ipuc.
Or mail comments to:
Idaho Public Utilities Commission
O. Box 83720
Boise, ID 83720-0074
Sincerely,
United Water Idaho EXHIBIT - B