20090911Decision Memo.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER KEMPTON
COMMISSIONER SMITH
COMMISSIONER REDFORD
COMMISSION SECRETARY
COMMISSION STAFF

FROM: KRISTINE SASSER
WELDON STUTZMAN
DEPUTY ATTORNEYS GENERAL

DATE: SEPTEMBER 9, 2009

SUBJECT: UNITED WATER IDAHO INC.’S APPLICATION TO INCREASE ITS
BASIC RATES AND CHARGES, CASE NO. UWI-W-09-01

On September 3, 2009, United Water Idaho Inc. filed an Application for authority to
increase rates by a uniform percentage increase of 15.1%. The Company requests that its
proposed changes become effective October 3, 2009.
THE APPLICATION
United Water currently provides water service to approximately 83,900 customers
within Ada County, Idaho, and has been providing service to the public in Boise City and the
surrounding area for more than 100 years. Application at 2. The Company last increased its
basic rates and charges in August 2006. Order No. 30104.
United Water claims that it has made numerous major capital investments since the
last rate case in order to continue to provide quality service to its customers. The Company
asserts that it has invested $2 million in treatment facilities, more than $12 million in replacing
aging infrastructure, almost $1.4 million in booster station improvements, and over $700,000 in
auxiliary power generators at various sites throughout the water system. Wyatt Direct at 4.
The Company proposes to increase its rates by a uniform percentage of 15.1%.1
United Water maintains that it seeks additional revenue to recover increased operating expenses
and costs associated with plant additions and to produce a fair rate of return, thereby enabling it
to continue to provide adequate and reliable service to its customers. Application at 3. The
1 The Company is not proposing a change to the current tariff design and intends to maintain the 25% differential
between winter and summer volumetric rates. Wyatt Direct at 5.
DECISION MEMORANDUM 2
Company’s Application states that the proposed changes in rates and charges would produce a
rate of return of 8.49%. Id.
The Company requests that its tariff changes become effective October 3, 2009.
STAFF RECOMMENDATION
Staff has reviewed the Application and recommends that the proposed effective date
for new rates of October 3, 2009, be suspended to allow adequate time for a hearing and
processing of the case. Staff further recommends that the Commission issue a Notice of
Application and establish an intervention deadline.
COMMISSION DECISION
1. Does the Commission wish to suspend the Company’s proposed new rates for a
period of 30 days plus 5 months from the proposed October 3, 2009 effective date, pursuant to
Idaho Code §§ 61-622 and -623, to allow adequate time for a hearing and processing of the case?
2. Does the Commission wish to issue a Notice of Application establishing a 21-day
deadline for intervention?

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