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HomeMy WebLinkAbout20100127Settlement Stipulation.pdfMcDevitt & Miller LLP Lawyers REeE! (208) 343.7500 (208) 336-6912 (Fax) 420 W. Bannock Street P.O. Box 2564.83701 Boise, Idaho 83702 2010 JAN 27 PM /2: 02 Chas. F. McDevitt Dean J. (Joe) Miler Januar 27,2010 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 Filng Dear Ms. Jewell: Enclosed for fig, please fid the origial and seven (J) copies of the Settement Stipultion regardig the above referenced matter. Also enclosed are nie (9) copies of the Supplementa Testiony of Gregory P. Wyatt, with a copy desigated as "Reporter's Copy". A computer disc contag the testiony is also enclosed. Kidly retu a fie stamped copy to me. Very Truy Yours, McDevitt & Mier lL ~.LDJM/hh EneL. ORIGINAL Dean J. Miler (lSB No. 1968) McDEVITT & MILLER LLP 420 West Banock Street P.O. Box 2564-83701 Boise, Idaho 83702 Tel: 208-343-7500 Fax: 208-336-6912 joe($mcdevitt-miller.com ,- r" r: R"-" ¡¡~, it.."'..'1.....- ..- 21 ~t1 \\: 2 \iO\û J~N - Attorneys For United Water Idaho Inc. Weldon Stutzan (lSB No. 3283) Kristine Sasser (ISB No. 6618) DEPUTY ATTORNYS GENERAL IDAHO PUBLIC UTILITIES COMMISSION P.O. Box 83720 Boise, ID 83720-0074 Telephone: (208) 334-0318 (208) 334-0357 Fax: (208) 334-3762 Email: weldon.stutzman(ipuc.idaho.gov kristine.sasser(ipuc.idaho. gov Attorneys For Commission Staff 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 ) ) CASE NO. UWI-W-09-1 ) ) SETTLEMENT STIPULATION ) ) Ths Settlement Stipulation (Stipulation) is entered into by and among United Water Idaho Inc, (United Water, Company), the Staf of the Idaho Public Utilties Commission (Sta and the Community Action Parnership Association of Idaho (CAP AI), the sole intervenor in this case (collectively, Paries). SETTLEMENT STIPULATION i INTRODUCTION 1. The Paries agree the Stipulation represents a fair, just and reasonable compromise of the issues raised in United Water's Application for an increase in water service rates, and the Stipulation is in the public interest. The Pares believe the Stipulation and its acceptace by the Idaho Public Utilities Commission (Commssion) represents a reasonable resolution of the several issues identified in ths matter. The Paries, therefore, recommend that the Commission, in accordance with Rule of Procedure (RP) 274, approve the Stipulation and all of its terms and conditions without material change or condition. BACKGROUND 2. On September 3,2009, United Water fied an Application seeking authority to increase the Company's rates for water service in the State ofIdaho an average of 15.21 %. If approved, the Company's revenues would increase approximately $5.6 milion anualy. The Company proposed that the rate increase be spread equaly across all rate elements and customer classes. The Company requested that new rates become effective October 3, 2009. Previously, on July 16,2009, the Commission issued Order No. 30865 approving the filing of the Application without an accompanying cost of service study. 3. On September 13,2009, the Commission issued Order No. 30901 suspending United Water's proposed effective date for a period of30 days plus 5 months from October 3, 2009. 4. On October 27,2009, the Commssion issued Order No. 30933 granting CAPAI's Petition for Intervention. On the same day, the Commission issued Order 30934 establishing a procedural schedule, including a techncal hearng to commence on March 4, 2010. SETTLEMENT STIPULATION 2 5. After the fiing of the Application, Commission Sta conducted a thorough audit and investigation of the Company's Application. In addition to numerous audit requests, Commission Stafpropounded to United Water almost 250 Production Requests, to which United Water provided timely responses. CAPAI also propounded to United Water several Production Requests, to which United Water provided timely responses. 6. On Janua 11 and 12,2010, representatives of the Paries met to engage in settlement discussions in accordance with RP 272 with a view toward resolving the issues in ths case. 7. Based on the settlement discussions, as a compromise of the positions in ths case, and for other considerations as set forth below, the Paries agree to the following terms. TERMS OF THE STIPULATION 8. Fair Resolution. The settlement is reached as a fair resolution to several disputed issues between the paries, recognzing that neither pary was likely to prevail on every issue at hearng. The settlement results in a revenue increase that is reasonable, but without resolving specific issues which were in dispute between the Company and Staf. 9. Revenue Requirement. Regarding United Water's revenue requirement, the Paries agree that United Water should be allowed to implement revised taff schedules, in the form attched hereto as Exhibit A, to recover $3,660,000 in additional revenue effective March 1, 2010, which is an overall increase of 9.9%, and to recover an additional $640,000 effective Februar 1, 2011, which is an additional increase of 1.7%. The Paries have agreed to this phased-in recovery of the total agreed increase, taing into account unortate economic conditions curently prevailng in Ada County, Idao. SETTLEMENT STIPULATION 3 10. Rate Spread and Rate Design. As reflected by Exhbit A, the Paries agree that the additional revenue requirement should be recovered by implementing taffs which increase rates and charges (except incidental service charges) for all customers by a uniform percentage amount. The unform percentage increase shall apply equally to the customer charge and volume charge as contained in United Water's taffs. 11. Rate Case Moratorium. United Water agrees that it will not fie a general revenue requirement rate case Application prior to June 1, 2011. 12. Idaho Power Company Power Cost Recovery (PCA) deferral. The Paries agree \ that until March 1, 2010, United Water will continue its curent method to account for Idaho Power PCA costs. Amounts deferred as of March 1,2010, shall then be amortized over a thee year period. From and afer March 1,2010, the Company shall defer for later amortization all amounts biled by Idao Power Company under its PCA. The caring charge on the unamortized balance shall be the interest rate determined by the Commssion as the interest rate on customer deposits pursuant to Rule 106 of the Commission's Customer Relations Rules, IDAPA 31.01.21. 13. Other Deferrals. The Paries agree that the Commssion's Final Order in ths matter may also approve the following deferrals and amortization periods: a. Rate Case Expense: The Company's actu rate case expense incured in this case may be deferred and amortized over a thee year period beginning March 1, 2010; b. Tan Paintings: Expense incured by the Company for the painting and rehabiltation of the Ustick, Crestline and Steelhead water storage reservoir may be deferred and amortized over a twenty year period beginnng March 1,2010; SETTLEMENT STIPULATION 4 c. Conservation Plan and Implementation Expense: Until March 1, 2010, United Water shall continue to defer expenses associated with implementation of its Commission approved Conservation Plan and may thereafter amortize the deferred balance over a three year period. The Pares agree that the Commission's Final Order in this matter may recognze that expenses associated with the Conservation Plan and its implementations were reasonably incured; d. Other Deferrals: Except as modified by ths Stipulation, the Company may defer and amortize other deferrals previously authorized in Case No. UWI - W -04-04 and Case No. UWI-W-06-02. 14. Budget Bil. The Paries agree that United Water may amend its Rules and Regulations by adding thereto Sheet 17a, "Budget Bil Plan" in the form attached hereto as Exhbit B. The Company agrees to continue encouraging customers to establish e-biling when Budget Biling is established. 15. Private Fire Service Line Connections. The Paries agree that United Water may amend Paragraph 44, Sheet 18 of its Rules and Regulations, as set fort in Exhbit C, to clarfy its rules on Private Fire Service Line Connections. 16. Informal Workshop. Within a reasonable time afer entr of the Final Order in this matter, the Paries will convene an informal workshop. Topics for discussion shall include potential modification to the UW Cares Program which is tageted at low-income customers and other issues affecting the low-income communty. The Paries also agree to informally discuss additional efforts to improve paricipation in conservation programs. SETTLEMENT STIPULATION 5 17. Just and Reasonable: Best Efforts. The Paries agree that ths Stipulation is in the public interest and that all of its terms and conditions are fai, just and reasonable. The Paries agree to use their best effort to obtan Commission approval of the Stipulation in order to have new rates implemented by March 1,2010. 18. No Acknowledgement. No Par shall be bound, benefited or prejudiced by any position asserted in the negotiation of this Stipulation, except to the extent expressly stated herein, nor shall ths Stipulation be constred as a waiver of the rights of any Pary unless such rights are expressly waived herein. Execution of ths Stipulation shall not be deemed to constitute an acknowledgement by any Par of the validity or invalidity of any paricular method, theory or principle of reguation or cost recovery. No Par shall be deemed to have agreed that any method, theory or priciple of regulation or cost recovery employed in arving at this Stipulation is appropriate for resolving any issues in any other proceeding in the futue. No findings of fact or conclusion of law other than those stated herein shall be deemed to be implicit in ths Stipulation. 19. Commission Approval. The obligations of the Paries under this Stipulation are subject to the Commission's approval of ths Stipulation in accordance with its terms and conditions. 20. Confidentiality. The Paries agree that ths Stipulation represents a compromise of the positions of the Paries. Therefore, other than any testimony filed in support of the approval of ths Stipulation, and except to the extent necessar for a Par to explain before the Commssion its own statements and positions with respect to the Stipulation, all statements made and positions taen in negotiations relating to ths Stipulation shall be confdential and will not be admissible in evidence in this or any other proceeding. SETTLEMENT STIPULATION 6 21. Best Efforts. The Paries submit this Stipulation to the Commission and recommend approval in its entirety. Paries shall support this Stipulation before the Commission, and no Par shall appeal a Commission Order approving the Stipulation or an issue resolved by the Stipulation. If this Stipulation is challenged by any person not a par to the Stipulation, the Paries to this Stipulation reserve the right to fie testimony, cross-examine witnesses, and put on such case as they deem appropriate to respond fully to the issues presented, including the right to raise issues that are incorporated in the settlements embodied in this Stipulation. Notwthstading this reservation of rights, the Parties to this Stipulation agree that they wil continue to support the Commission's adoption of the terms of this Stipulation. 22. Right to Withdraw. If the Commission rejects any par or all of ths Stipulation, or imposes any additional material conditions on approval of ths Stipulation, each Pary reserves the right, upon wrtten notice to the Commssion and the other Paries to this proceeding, with foureen (14) days of the date of such action by the Commission, to withdraw from this Stipulation. In such case, no Par shall be bound or prejudiced by the terms of this Stipulation, and each Part shall be entitled to seek reconsideration of the Commission's Order, fie testimony as it chooses, cross-examine witnesses, and do all other things necessar to put on such case as it deems appropriate. 23. Counte:rars. This Stipulation may be executed in counterpars and each signed counterpar shall constitute an original document. SETTLEMENT STIPULATION 7 Respectfuly submitted this Qll~ day of January, 2010. Idaho Public Utilties Commission By Weldon B. Stutzman Kristine Sasser Deputy Attorneys General Attorneys for Commission Staf Brad Purdy Law Office BYI3~Q*Brad M. Purdy ~ Attorney for Community Action Parership Association of Idao SETTLEMENT STIPULATION 8 Respectfully submitted this.- day of Januar, 2010. Idaho Public Utilties Commission BY~~~4ui W on B. Stutzman Krstine Sasser Deputy Attorneys General Attorneys for Commission Staff McDevitt & Miler, LLP By Dean J. Miler Attorne ys for United Water Idaho Inc. Brad Purdy Law Offce By Brad M. Purdy Attorney for Communty Action Parership Association of Idaho SETTLEMENT STIPULATION 8 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:Bi-Monthly Bi-Monthly Per Meter Per Meter Meter Size Charge Charge 5/8"-3/4 $16.21 $17.81 1"$21.31 $23.42 1"-1/4" and 1-1/2"$34.53 $37.95 2" or multiple meters of equivalent capacity $49.85 $54.78 3" or multiple meters of equivalent capacity $91.58 $100.65 4" or multiple meters of equivalent capacity $145.76 $160.19 6" or multiple meters of equivalent capacity $280.52 $308.29 8" or multiple meters of equivalent capacity $423.17 $465.06 10" or multiple meters of equivalent capacity $591.57 $650.13 Volume Charge:Winter Winter Rates Rates For all water used less than 3CCF (100 cubic $1.2112 $1.3311 Feet) (CCF)(1 CCF=748 gallons): For all water used greater than 3CCF $1.2112 $1.3311 Volume Charge:Summer Summer Rates Rates For all water used less than 3CCF (100 cubic $1.2112 $1.3311 Feet) (CCF)(1 CCF=748 gallons): For all water used greater than 3CCF $1.5141 $1.6640 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 billng 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 by UNITED WATER IDAHO INC. Issued Per IPUC Order No. Gregory P. Wyatt, Vice President Effective -March 1,2010 thru January 31,2011 8248 West Victory Road, Boise, ID Stipulation Exhibit A Page 1 of 10 Sheet NO.5 Replacing all Previous Sheets UNITED WATER IDAHO INC. SCHEDULE NO.1 B FLAT RATE SERVICE Availabilty: 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 bil, assuming a %" meter and 65% I 35% summerlwinter split, is $388.92. Billed bi-monthly, equals $ 64.82. Bi-Monthly Charge:$64.82 $ 71.24 Conditions of Contract: The monthly charge wil be prorated whenever the customer has not been a customer for the entire billng 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 wil 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 - March 1, 2010 thru January 31, 2011 Stipulation Exhibit A Page 2 of 10 Issued by UNITED WATER IDAHO INC. Gregory P. Wyatt, Vice President 8248 West Victory Road, Boise, Idaho Sheet NO.3 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 $214.981Month $236.26/Month 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 - March 1, 2010 thru January 31, 2011 Stipulation Exhibit A Page 3 of 10 Issued by UNITED WATER IDAHO INC. Gregory P . Wyatt, Vice President 8248 West Victory Road, Boise, Idaho Sheet NO.4 Replacing all Previous Sheets UNITED WATER IDAHO INC. SCHEDULE NO.3 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 $ 4424ãMg: 136.88 205.02 $15.59 $23.64 $58.71 $96.46 $150.43 $225.32 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 - March 1, 2010 thru January 31, 2011 Stipulation Exhibit A Page 4 of 10 Issued by UNITED WATER IDAHO INC. Gregory P. Wyatt, Vice President 8248 West Victory Road, Boise, Idaho Sheet NO.5 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 $& $9.45 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 - March 1,2010 thru January 31,2011 Stipulation Exhibit A Page 5 of 10 Issued by UNITED WATER IDAHO INC. Gregory P. Wyatt, Vice President 8248 West Victory Road, Boise, Idaho 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:Bi-Monthly Bi-Monthly Per Meter Per Meter Meter Size Charge Charge 5/8"-3/4 $17.81 $18.10 1"$23.42 $23.79 1-1/4" and 1-1/2"$37.95 $38.55 2" or multiple meters of equivalent capacity $54.78 $55.65 3" or multiple meters of equivalent capacity $100.65 $102.23 4" or multiple meters of equivalent capacity $160.19 $162.71 6" or multiple meters of equivalent capacity $308.29 $313.15 8" or multiple meters of equivalent capacity $465.06 $472.39 10" or multiple meters of equivalent capacity $650.13 $660.37 Volume Charge:Winter Winter Rates Rates For all water used less than 3CCF (100 cubic $1.3311 $1.3521 Feet) (CCF)(1 CCF=748 gallons): For all water used greater than 3CCF $1.3311 $1.3521 Volume Charge:Summer Summer Rates Rates For all water used less than 3CCF (100 cubic $1.3311 $1.3521 Feet) (CCF)(1 CCF=748 gallons): For all water used greater than 3CCF $1.6640 $1.6902 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 biling 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 -February 1,2011 Stipulation Exhibit A Page 6 of 10 Issued by UNITED WATER IDAHO INC. Gregory P. Wyatt, Vice President 8248 West Victory Road, Boise, ID 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 bil, assuming a %" meter and 65% I 35% summerlwinter split, is $388.92. Biled bi-monthly, equals $ 64.82. Bi-Monthly Charge:$71.27 $ 72.36 Cond itions of Contract: The monthly charge wil 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 wil provide a meter setting and meter. Customer wil 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 - February 1,2011 Stipulation Exhibit A Page 7 of 10 Issued by UNITED WATER IDAHO INC. Gregory P. Wyatt, Vice President 8248 West Victory Road, Boise, Idaho Sheet NO.8 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 $236.26/Month $239.98/Month Miscellaneous: Bills 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 - February 1,2011 Stipulation Exhibit A Page 8 of 10 Issued by UNITED WATER IDAHO INC. Gregory P. Wyatt, Vice President 8248 West Victory Road, Boise, Idaho Sheet NO.9 Replacing all Previous Sheets UNITED WATER IDAHO INC. SCHEDULE NO.3 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 $~~ã&~ 150.43 225.32 $15.84 $24.01 $59.63 $97.98 $152.80 $228.87 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 utilty 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 - February 1, 2011 Stipulation Exhibit A Page 9 of 10 Issued by UNITED WATER IDAHO INC. Gregory P. Wyatt, Vice President 8248 West Victory Road, Boise, Idaho Sheet No. 10 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 ~ $9.60 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 - February 1,2011 Stipulation Exhibit A Page 10 of 10 Issued by UNITED WATER IDAHO INC. Gregory P.. Wyatt, Vice President 8248 West Victory Road, Boise, Idaho Sheet No. 17A Replacing all Previous Sheets UNITED WATER IDAHO INC. BUDGET BILL PLAN 41. Residential Budget Bil Plan: A Budget Bil Plan is available to Residential Customers, as defined in paragraph 51 of these Rules, desiring to levelize payments for water service. A Residential customer may enroll in the Budget Bill Plan at any time during the year. To be eligible for the Budget Bill Plan, the customer must have a minimum of 12 consecutive months of service at the current location and have no past due balance owing at the time of enrollment. Residential Budget Bill Plan participants wil receive monthly billng statements, though their meters will continue to be read on a bi-monthly basis. The levelized monthly payment wil approximate the 12 month average of the most current 6 bi-monthly bils. Budget Bill Plan a mounts wil be recalculated annually at the 12-month anniversary of the date the customer began paying the most current Budget Bil amount. The new monthly payment wil be the recalculated Budget Bill amount. A customer's Budget Bil amount may decrease, increase, or remain the same from year to year. Customers with a negative (underpaid) balance in their Budget Bill Plan account at the time of recalculation will have new monthly Budget Bil Plan charges equal to the recalculated Budget Bil amount plus one-twelfth of the negative balance. At the customer's option, a negative balance may be paid in full and disregarded for purposes of calculating the next period's Budget Bil amount. If the negative balance exceeds 25% of the estimated annual bil for the ensuing annual period, the Company may request that the negative balance be paid in full. Customers with a positive balance exceeding $25 in their Budget Bill Plan account at the time of recalculation may be refunded at the customer's request. If no request for refund is made, the monthly Budget Bil Plan charge wil be equal to the recalculated Budget Bill Plan amount reduced by one-twelfth of the positive balance. Upon termination of the Budget Bil Plan agreement, after all charges for services are paid, positive balances will be refunded at the customer's option. Estimates of future costs based on historical charges furnished by the Company with such Budget Bil Plan should not be construed by the customer as a guarantee that the total actual charges wil not exceed the estimates. In the event of a significant change in rates for water service or substantial deviation from the customer's historical water consumption, the Company may at any time submit a revised estimate to the customer and require that the customer pay the revised monthly Budget Bil installment amount as a condition of continuation in the Budget Bil Plan. The Budget Bil amount wil be biled monthly. Once established, the Budget Bil Plan will remain in effect from year to year until the customer notifies the Company not less than 30 days prior to the desired date of cancellation or unless the customer fails to pay the Budget Bill amount. UNITED Issued Per IPUC Order No. Effective -March 1, 2010 Issued by UNITED WATER IDAHO INC. Gregory P. Wyatt, Vice President 8248 West Victory Road, Boise, Idaho Stipulation Exhibit B Sheet No. 18 Replacing all Previous Sheets UNITED WATER IDAHO INC. RULES AND REGULATIONS GOVERNING THE RENDERING OF SERVICE (contd) E. Return the meter to the Company in the time frame outlined in the permit and agree that the customer is responsible for any damage to the meter or fire hydrant resulting from misuse or negligence on their part. FIRE PROTECTION 43. Water from fire hydrants or other fire fighting facilities shall be used only for fire fighting purposes and for water sold pursuant to Rule No. 42. 44. All private fire service connections from the main to inside the curb line or Company right-of-way the propert line, including all valves, shall be furnished and installed by the Company. 45. The Company reserves the right to require a meter and appropriate backfow prevention device to be furnished and installed by the customer on any fire service connection. The meter and required backflow prevention device shall be inspected and approved by the Company prior to providing service. MISCELLANEOUS 46. The authorized employees and agents of the Company shall have the right . of access, between the hours of 8:00 a.m. and 4:30 p.m., Monday through Friday, and with approval of the customer, to the premises supplied with water for the purpose of reading meters, examining pipes and fixtures, observing manner of using water, and for any other purpose which is proper and necessary in the conduct of the Company's business. Such employees and agents shall carry proper credentials evidencing their employment by the Company. 47. Except in case of an emergency, no one other than Company personnel shall open or close any of the Company's curb stops or valves in any public or private line. 48. The Company reserves the right to alter or amend these Rules and Regulations in the manner provided by law. DEFINITIONS 49. The word "Company" as used herein shall mean United Water Idaho Inc. acting through its properly authorized officers, agents or employees, each acting within the scope of the particular duties entrusted to them. 50. "Customer" shall be the party contracting for a supply of water through a single meter and service through each meter shall be considered, for billng purposes, as service to a separate customer. UNITED Issued Per IPUC Order No. Effective -March 1, 2010 Issued by UNITED WATER IDAHO INC. Gregory.P. Wyatt, Vice President 8248 West Victory Road, Boise, Idaho Stipulation Exhibit C