20090903Application.pdf

McDevitt & Miller LLP
Lawyers
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-3 PM 3~ S\innqSEP Chas. F. McDevitt
D~HO P\JBl'i~S\&tan J. (Joe) Miler\í\t:S cnMM\"
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[phone]
[phone] (Fax)
420 W. Bannock Street
P.O. Box 2564-83701
Boise, Idaho 83702
September 3, 2009
Via Hand Delivery
Jean Jewell, Secreta
Idaho Public Utities Commssion
472 W. Washigton St.
Boise, Idaho 83720
Re: Case No. UWI-W-09-01
General Rate Case Fili
Dear Ms. Jewell:
Enclosed for fig, please fid an origial and nie (9) copies of United Water Idaho's Application
for authority to increase its rates and charges for water servce to customers in the State of Idaho,
effective October 3, 2009.
Enclosed are nie (9) copies of the testiony and exhbits of Gregory P. Wyatt, Scott Rhead,
Charles Low and Kevi H. Dohert that are submitted in support of the Application, with one copy
each desigated as the "Reporter's Copy." A compact disk contag the diect testiony and
exhibits of the above-named witnesses is also enclosed.
Three (3) copies of the Company's workpapers regadig the General Rate Filg are also enclosed,
along with the Company's press release and notice to customers.
Kidly retu a fie staped copy to me.
Very Truy Yours,
eDevitt & Mier LLP~r
DJM/hh
End.
Dean J. Miler (ISB # 1968)
McDEVITT & MILLER LLP
420 West Banock Street
P.O. Box 2564-83701
Boise,ID 83702
Tel: [phone]
Fax: [phone]
joecmmcdevitt -miller. com
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ORIGINAL
Attorneys for Applicant
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN TH MATTER OF THE APPLICATION Case No. UW-W-09-01
OF UNITED WATER IDAHO INC. FOR
AUTHORITY TO INCREASE ITS RATES APPLICATION
AND CHAGES FOR WATER SERVICE IN
THE STATE OF IDAHO
COMES NOW United Water Idaho Inc., ("United Water", or "Applicant") and hereby
makes application to the Idaho Public Utilties Commission ("Commission") for an Order
approving revisions to Applicant's schedules of rates and charges for water service in the State of
Idaho to become effective with service provided on or afer October 3,2009, and in support
thereof respectfully shows as follows:
i.
Applicant is a public utilty water corporation within the meanng of the Idaho Public
Utilty 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 offce and place of business at 8248 West Victory Road, Boise, Idaho. A certified copy
of Applicant's Aricles of Incorporation, together with all amendments to date, is on fie with the
Commssion. Applicant's curent Certificate is Amended Certificate No. 143.
APPLICA TION-1
II.
United Water has been providing water service to the public in Boise City and
surounding areas for more than 100 years. Curently, United Water provides service to
approximately 83,900 customers withn Ada County, Idaho.
III.
The operations of United Water have been reviewed in several rate proceedings before the
Commission, most recently in Case No. UWI-W-06-02.
IV.
Attached hereto as Attchment 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 Sprinking, Schedule Number 3, Private Fire Sprinking and Service, Schedule Number
4, Private Fire Hydrant Service, contaning the rates under which water service is curently
rendered and charged to Applicant's customers.
V.
Attched hereto as Attachment 2 are copies of Applicant's new proposed Schedules
Numbers 1, 1B, 2, 3 and 4 setting fort charges to be made to Applicant's customers on and afer
October 4,2009.
As shown by Attchment 2, Applicant proposes to increase rates by a unform percentage
increase of 15.1%.
Applicant alleges that the proposed changes in rates and charges set forth on Attchment 2
are just and reasonable and that the rate of retu expected to be provided to the Applicant there
APPLICA TION-2
under will be 8.49%, which is a fair rate of retu on Applicant's investment in propert used and
useful in rendering water service.
VI.
The revenue realized by Applicant under its presently authorized rates produces a rate of
retu of 6.32% based on a test year ending December 31,2009. Applicant seeks additional
revenues to recover increased operating expenses and costs associated with plant additions, and to
produce a fair rate of retur, thereby enabling it to continue to provide adequate and reliable
service to its customers.
VII.
Applicant is filing concurently herewith direct testimony of Gregory P. Wyatt, Scott
Rhead, Kevin Doherty and Charles Loy and Exhibits 1--13 including financial statements, and
revenue analysis, along with supporting workpapers, to justify and support the proposed increase.
VIII.
Notice to Applicant's customers is being accomplished by news media releases
simultaeously with the filing of this Application and by an individual notice mailed to each of
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 offce at 8248 West Victory
Road, Boise, Idaho at any time during offce hours.
IX.
Applicant stands ready for an immediate hearng on this Application and requests that a
hearg be held as soon as possible.
APPLICA TION-3
x.
Communications in reference to ths Application should be addressed to:
Dean J. Miler, Esq.
McDEVITT & MILLER LLP
420 E. Banock
Boise, Idaho 83702
P.O. Box 2564
Boise, Idaho 83701
208-343-7500
208-336-6912 (fax)
joecmmcdevitt -miler.com
heathercmmcdevitt -miler .com
and
Kevin H. Dohert
Director of Rates
United Water Management and Services Company
200 Old Hook Road
Harngton Park, New Jersey 07640-1799
Kevin.Dohertycmunitedwater.com
WHEREFORE, Applicant respectfully requests of the Commssion:
1. That ths Application be heard and acted upon at the earliest possible date;
2. That the Commission find that the Applicant's existing rates are unjust, uneasnable
and insuffcient to provide Applicant with a fair rate of retu and tht the revised rates
and charges proposed in Atthment 2 of this Application are just and reasonable and
that Applicant be permitted to charge said rates to its customers, effective October 3,
2009.
3. That the Commission grant such other and fuer relief as the Commission may
determine proper in the circumstaces.
APPLICA TION-4
DATED this 3rd day of September, 2009.
UNITED WATER IDAHO INC.
BY:~~
.,
Attorney for Applicant
APPLICA TION-5
STATE OF IDAHO )
: S8Couny of Ad )
GRGORY P. WYATT, be first duy swo~ de an sly th he is the Vice
Prdent of Unite Water Ida Inc., Applicat herin; that he ha re the foregoin Applicaon
an knows th conts thereof an th th sae ar tre to the bes of his knowledge an belief.
~~dr~fatt .
SUBSCRIBED AND SWORN to befor me this 3rd day of Septeber. 2009.
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Commission Ex:I2-
APPLICATION.6
Sheet NO.3
Replacing all Previous Sheets
UNITED WATER IDAHO INC.
SCHEDULE NO.1
GENERAL METERED SERVICE
Availability:
To all metered customers not served under a separate schedule.
Customer Charges:
Meter Size
5/8"
3/4"
1"
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
Bi-Monthly
Per Meter
Charge
$ 16.21
16.21
21.31
34.53
49.85
91.58
145.76
280.52
423.17
591.57
Volume Charge: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
$1.2112
$1.2112
$1.2112
$1.5141
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 billng 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 biling
period.
Summer Period:
The summer rate wil 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 i
PAGE i OF5
Sheet NO.5
Replacing all Previous Sheets
UNITED WATER IDAHO INC.
SCHEDULE NO.1 B
FLAT RATE SERVICE
Availabiliy:
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 Charges:
Based on United Water Idaho residential consumption for the year ending June
1998 of 208.75 cd, the average residential bill, assuming a %" meter and 65%/
35% summer/winter split, is $388.92. Biled bi-monthly, equals $64.82.
Bi-monthly Charge:$64.82
Conditions of Contract:
The bi-monthly charge will be prorated whenever the customer has not been a
customer for the entire biling 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
ATfACHMENT 1
PAGE20F5
Sheet NO.6
Replacing all Previous Sheets
UNITED WATER IDAHO INC.
SCHEDULE NO.2
PUBLIC HYDRANTS AND STREET SPRINKLING
Availability:
To the City of Boise and Ada County Highway District.
Rates:
Street Sprinkling Service
Flat Charge $214.98/Month
Miscellaneous:
Bils 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 1
PAGE30F5
Sheet NO.7
Replacing all Previous Sheets
UNITED WATER IDAHO INC.
SCHEDULE NO.3
PRIVATE Fl 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
$ 14.19
21.51
53.42
87.77
136.88
205.02
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 wil not apply unless improper use of water is disclosed, and if such be the
case, usage wil be biled to the consumer under Rate Schedule NO.1.
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 1
PAGE40F5
Sheet NO.8
Replacing all Previous Sheets
UNITED WATER IDAHO INC.
SCHEDULE NO.4
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 $8.60
Miscellaneous:
Service pipe from the fitting on the company water main to the fire hydrant is to be
installed and maintained by the customer.
UNITED
Issued Per IPUC Order No.
Effective -
Issued by UNITED WATER IDAHO INC.
Gregory P. Wyatt, Vice President
8248 West Victory Road, Boise, Idaho
ATTACHMENT 1
PAGE50F5
Sheet NO.3
Replacing all Previous Sheets
UNITED WATER IDAHO INC.
SCHEDULE NO.1
GENERAL METERED SERVICE
Availabilty:
To all metered customers not served under a separate schedule.
Customer Charges:
1"
Bi-Monthly
Per Meter
Charge$ ~18.69~18.69~24.57
d4 39.81~57.47
91.58 105.59
145.76 168.05
280.52 323.43
423.17487.89
591.57 682.02
Meter Size
5/8"
3/4"
1-114" 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 Charge:Winter
Rates
Summer
Rates
For all water used less than 3CCF (100 cubic
Feet)(CCF)(1 CCF=748 gallons): $1.2112 1.3965 $1.2112 1.3965
For all water used greater than 3CCF $1.2112 1.3965 $1.5141 1.7457
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 billng 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 wil be
prorated whenever the customer has not been a customer for the entire billing
period.
Summer Period:
The summer rate wil apply to water consumed between May 1 and September 30. Meter
readings straddling these dates wil 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
PAGE10F5
Sheet No.5
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 Charges:
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 $388.92 448.38. Biled bi-monthly, equals $~
74.73.
Bi-monthly Charge:$64.8274.73
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.
Effective -
Issued by UNITED WATER IDAHO INC.
Gregory P. Wyatt, Vice President
8248 West Victory Road, Boise, Idaho
ATTACHMENT 2
PAGE20F5.
Sheet NO.6
Replacing all Previous Sheets
UNITED WATER IDAHO INC.
SCHEDULE NO.2
PUBLIC HYDRANTS AND STREET SPRINKLING
Availabiliy:
To the City of Boise and Ada County Highway District.
Rates:
Street Sprinkling Service
Flat Charge $214.9a/Month 247.86
Miscellaneous:
Bils wil 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
PAGE30F5
Sheet NO.7
Replacing all Previous Sheets
UNITED WATER IDAHO INC.
SCHEDULE NO.3
PRIVATE -F 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
$ 14.1916.36
21.51 24.80
53.4261.59
87.77 101.19
136.88157.82
205.02 236.38
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 wil be biled to the consumer under Rate Schedule NO.1.
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
PAGE40F5
Sheet NO.8
Replacing all Previous Sheets
UNITED WATER IDAHO INC.
SCHEDULE NO.4
PRIVATE FIRE HYDRANT SERVICE
Availabilty:
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 $&09.92
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
PAGE50F5