20090716order_no_30865.pdf

Office of the Secretary
Service Date
July 16 2009
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 IN THE STATE OF )IDAHO. CASE NO. UWI-09-
ORDER NO. 30865
On June 22, 2009, United Water Idaho Inc. filed a Notice ofIntent to File a General
Rate Case. On July 2, 2009, the Company filed a Motion for Order Waiving Requirement for
Cost of Service Study. See IPUC Rule of Procedure 121(e).
The Company states that a complete cost of service study was submitted for the
Company s 2004 rate case and, based on that study and no proposed change in rate design, the
Commission waived the requirement for the Company s 2006 rate case. United Water maintains
that there is no compelling need for a cost of service study to be included with its current rate
case Application.
The Company s Motion states that it does not intend to propose a change in its
current rate design. Furthermore, because the composition of the Company s physical system
has not changed substantially from the last rate case, cost of service study results and allocations
would not be materially different from the 2004 results. Finally, the Company estimates that
preparing and submitting a cost of service study would cost the Company approximately $60 000
to $75 000 - a cost that would be passed on to customers.
The Company requests that the Commission issue an Order waiving the requirement
for a cost of service study. Staff supports United Water s Motion, provided the Company does
not propose a change to the current rate design including the current 25% seasonal differential
between summer and non-summer rates.
FINDINGS AND CONCLUSIONS
The Commission last reviewed and approved United Water s cost of service and rate
design during the Company s 2006 rate case. Because the composition of its physical system has
not changed substantially since the 2006 rate case, cost of service study results and allocations
would not be materially different. Moreover, the Company intends to propose a uniform
percentage increase to rates without any change in rate design, further negating the need for a
cost of service study. Therefore, the Commission finds it appropriate to waive Rule 121(e)'s
ORDER NO. 30865
requirement to file a cost of service study provided the Company does not propose a change to
the current rate design including the current 25% seasonal differential.
ORDER
IT IS HEREBY ORDERED that United Water s Motion requesting a waiver of Rule
121 (e)' s requirement to file a cost of service study with its Application and testimony is granted
on the condition that United Water does not propose a change to the current rate design including
the current 25% seasonal differential.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of July 2009.
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D. KEMPTON, B SIDENT
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MARSHA H. SMITH, COMMISSIONER
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ATTEST:
fktle D. Jewell
mission Secretary
O:UWI-09-
ORDER NO. 30865