20090710Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KEMPTON
COMMISSIONER SMITH
COMMISSIONER REDFORD
COMMISSION SECRETARY
COMMISSION STAFF
FROM:KRISTINE A. SASSER
DEPUTY ATTORNEY GENERAL
DATE:JUL Y 8, 2009
SUBJECT:UNITED WATER IDAHO'S APPLICATION FOR AUTHORITY TO
INCREASE ITS RATES AND CHARGES, CASE NO. UWI-09-
On June 22, 2009, United Water Idaho filed a Notice of Intent to File a General Rate
Case. On June 30, 2009, United Water representatives met with Commission Staff to discuss the
filing of the Company s Application. Based on the content of discussions at the informal
meeting, the Company filed a Motion for Order Waiving Requirement for Cost of Service Study
on July 2, 2009. 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 the recent 2004 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 remains no compelling need for a cost of service study to be included
with its current rate case Application.
The Company 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. 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.
Therefore, the Company requests that the Commission issue an Order waiving the
requirement for a cost of service study.
DECISION MEMORANDUM
STAFF RECOMMENDATION
Staff supports United Water s motion requesting waiver of the requirement to submit
a cost of service study provided the Company does not propose a change to the current rate
design including the current 25% seasonal differential.
COMMISSION DECISION
1. Does the Commission wish to waive the requirement of IPUC Rule of Procedure
121(e) for a cost of service study for United Water s general rate case?
4i::/1.
~A.
Deputy Attorney General
M:UWI-O9-01 ks
DECISION MEMORANDUM