20110803Application.pdf

McDevitt & Miller LLP
Lawyers
[phone]
[phone] (Fax)
RECEIVED
420 W. Bannock Street 101 i AUG - ~ PH I: 49
P.O. Box 2564-83701 v
Boise, Idaho 83702 IDAHO
UTILITIES
Chas. F. McDevitt
Dean J. (Joe) Miler
August 3, 2011
Via Hand Delivery
Jean Jewell, Secreta
Idaho Public Utities Cotnssion
472 W. Washigton St.
Boise, Idaho 83720
Re: Case No UWI-W-ll-02/General Rate Case Filng
Dear Ms. Jewell:
Enclosed for fig are an orial and nie (9) copies of United Water Idaho Inc.'s (United Water)
Application for authority to increase its rates and charges for water servce to its customers in the
State of Idaho.
The taff schedules that United Water proposes to become effective on September 2,2011, are
attached to the Application. In addition, copies of United Water's press release and customer notice
are also attached to the Application.
Also enclosed for fig are the orial and nie (9) copies of the Testiony and exhbits of
Gregory P. Wyatt, Scott Rhead, Jeremi Healy, Jar Car, Kevi Dohert, Paul Herbert Paule
Ahren and Bruce Hawtorne. One copy of each of these Testionies has been desigated as the
"Reporter's Copy." In addition, a disk contag MS Word versions of the Testionies is enclosed
for the Reporter.
Also enclosed are thee (3) copies of work papers showig adjustments to the Company's revenue
requiements. These are also provided in electronic formt on an enclosed disk.
If you have any questions, please do not hesitate to contact me.
Kidly retu a stamped copy.
Very Truy Yours,
McDevitt & Mier ll~~DJM/hh
ORIGINAL
Dea J. Miller (lSB No. 1968)
Chas. F. McDevitt (ISB No. 835)
McDEVITT & MILLER LLP
420 West Banock Street
P.O. Box 2564-83701
Boise, il 83702
Tel: [phone]
Fax: [phone]
joe(lmcdevitt -miller. com
REC VED
iû\ip.UG-3 Pr~ \:49
Attorneys for Applicant
BEFORE TH IDAHO PUBLIC UTILITIES COMMSSION
IN THE MATTER OF TH APPLICATION Case No. UW-W-ll-02
OF UNTED 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 ("Commssion") 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 September 2, 2011, and in support
thereof respectfully shows as follows:
i.
Applicant is a public utilty water corporation withn the meanng of the Idaho Public
Utilty Law, is duly organzed and existing under the laws of the State of Idao 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 ofIncorporation, together with all amendments to date, is on file with the
Commission. Applicant's curent Certificate is Amended Certificate No. 143.
APPLICA TION- i
~ t f " , .,..; : ¡
s'~
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 85,000 customers with 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-09-0L.
IV.
Attched hereto as Attachment 1 are copies of Applicant's Schedule Number 1, General
Metered Service; Schedule Number IB, Flat Rate Service; Schedule Number 2, Public Hydrants
and Street Sprinking; Schedule Number 3, Private Fire Sprinking and Service; and Schedule
Number 4, Private Fire Hydrant Service, contaning the rates under which water service is
curently rendered and charged to Applicant's customers.
v.
Attached hereto as Attchment 2 are copies of Applicant's new proposed Schedules
Numbers 1, IB, 2, 3 and 4 setting forth charges to be made to Applicant's customers rates on and
afer September 2, 2011.
Applicant proposes to increase rates by $7,616,015, an overall average increase of
19.89%.
Applicant alleges that the proposed chages in rates and charges set fort on Attchment 2
are just and reasonable and that the rate of retu expected to be provided to the Applicant there
under will be 8.43%, which is a fair rate of retu on Applicant's investment in propert used and
usefu in rendering water service.
APPLICA TION-2
Vi.
The revenue realized by Applicant under its presently authorized rates produces a rate of
retur of 5.64% based on a test year ending April 30, 2011. Applicant seeks additional revenues
to recover increased operating expenses and costs associated with plant additions, and to produce
a fair rate of retu, thereby enabling it to continue to provide adequate and reliable service to its
customers.
VII.
As discussed in the testimony of Gregory P. Wyatt and Jeremiah Healy, Applicant is also
proposing to implement a mechansm for an anua rate adjustment to reflect changes in expense
accounts relating to purchased electrc power, propert taation and pension contrbution.
VIII.
Applicant is filing concurently herewith Direct Testimony of Gregory P. Wyatt, Scott
Rhead, Jeremiah Healy, Jarila Car, Kevin Dohert, Paul Herbert, Pauline Ahem and Bruce
Hawthorne and Exhibits 1-12 including fiancial statements, and revenue analysis, along with
supportng workpapers, to justify and support the proposed increase.
IX.
Notice to Applicant's customers is being accomplished by news media releases
simultaeously with the filing of ths Application and by an individual notice mailed to each of
Applicant's customers. Copies of the press release and customer notice are attached to ths
Application. 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 office hours.
APPLICA TION-3
x.
Applicant stands ready for an imediate hearg on ths Application and requests that a
hearing be held as soon as possible.
XI.
Communcations 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)
joe(lmcdevitt -miler .com
heather(lmcdevitt-miler.com
and
Kevin H. Dohert
Director of Rates
United Water Management and Servces Company
200 Old Hook Road
Harngton Park, New Jersey 07640-1799
Kevin.Doherty(lunitedwater.com
WHEREFORE, Applicant respectfuly requests of the Commssion:
1. That ths Application be heard and acted upon at the earliest possible date;
2. That the Commssion find that the Applicant's existing rates are unjust, uneasonable
and insuffcient to provide Applicant with a fair rate of retu and that the revised rates
and charges proposed in Attchment 2 of ths Application are just and reasonable and
that Applicant be permitted to charge said rates to its customers, effective September
2,2011.
APPLICA TION-4
3. That the Commission grant such other and fuher relief as the Commission may
determine proper in the circumstaces.
DATED ths 3rd day of August, 2011.
UNITED WATER IDAHO INC.
By:~U1L
Dean J. Milerv
Attorney for Applicant
APPLICA TION-5
ATTACHMENT 1
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:
1"
Bi-Monthly
Per Meter
Charge
$18.10
$23.79
$38.55
$55.65
$102.23
$162.71
$313.15
$472.39
$660.37
Meter Size
5/8"-3/4
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
Volume Charge:
For all water used less than 3CCF (100 cubic
Feet) (CCF)(1 CCF=748 gallons):
Winter
Rates
$1.3521
For all water used greater than 3CCF $1.3521
Volume Charge:
For all water used less than 3CCF (100 cubic
Feet) (CCF)(1 CCF=748 gallons):
Summer
Rates
$1.3521
For all water used greater than 3CCF $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 biling 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 Per IPUC Order No.
Effective -September 2,2011
Issued by UNITED WATER IDAHO INC.
Gregory P. Wyatt, Vice President
8248 West Victory Road, Boise, 10
ATrACmø 1
PAGE10FS
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 cet, the average residential bil, assuming a %" meter and 65% I
35% summerlwinter split, is $434.16. Biled bi-monthly, equals $ 72.36.
Bi-Monthly Charge:$ 72.36
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 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 -September 2,2011
Issued by UNITED WATER IDAHO INC.
Gregory P. Wyatt, Vice President
8248 West Victory Road, Boise, Idaho
ATtACHM 1
PAGE20P5
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 $239.98/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 -September 2,2011
Issued by UNITED WATER IDAHO INC.
Gregory P. Wyatt, Vice President
8248 West Victory Road, Boise, Idaho
ATTACHMNT 1
PAGE 3 OF 5
Sheet NO.9
Replacing all Previous Sheets
UNITED WATER IDAHO INC.
SCHEDULE NO.3
PRIVATE FIRE SPRINKLER AND SERVICE
Availabilty:
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
$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 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 billed to the consumer under Rate Schedule NO.1.
UNITED
Issued Per IPUC Order No.
Effective -September 2, 2011
Issued by UNITED WATER IDAHO INC.
Gregory P. Wyatt, Vice President
8248 West Victory Road, Boise, Idaho
ATtACHMNT 1
PAGE40F5
Sheet No. 10
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 $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 -September 2,2011
Issued by UNITED WATER IDAHO INC.
Gregory P. Wyatt, Vice President
8248 West Victory Road, Boise, Idaho
ATtACHMNT 1
PAGE50F5
ATTACHMENT 2
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
Per Meter
Charge
$18.10
$23.79
$38.55
$55.65
$102.23
$162.71
$313.15
$472.39
$660.37
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
Volume Charge:Winter
Rates
$1.3521For all water used less than 3CCF (100 cubic
Feet) (CCF)(1 CCF=748 gallons):
For all water used greater than 3CCF $1.3521
Volume Charge:Summer
Rates
$1.3521For all water used less than 3CCF (100 cubic
Feet) (CCF)(1 CCF=748 gallons):
For all water used greater than 3CCF $1.6902
$23.20
$29.70
$50.80
$78.70
$153.60
$286.50
$478.40
$625.80
$900.61
$1.5710
$1.5710
$1.5710
$1.9639
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 Per IPUC Order No.
Effective - September 2,2011
Issued by UNITED WATER IDAHO INC.
Gregory P. Wyatt, Vice President
8248 West Victory Road, Boise, ID
A'IACaMENT 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 bil, assuming a %" meter and 65% /
35% summer/winter split, is $434.16. Biled bi-monthly, equals $ 72.36.
Bi-Monthly Charge:$ 72.36 $86.75
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 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 -September 2,2011
Issued by UNITED WATER IDAHO INC.
Gregory P. Wyatt, Vice President
8248 West Victory Road, Boise, Idaho
ATIACHMNT 2
PAGE2oF5
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 $239.98/Month $311.97/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 -September 2,2011
Issued by UNITED WATER IDAHO INC.
Gregory P. Wyatt, Vice President
8248 West Victory Road, Boise, Idaho
ATlACll 2
PAGE 3 O:P 5
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
$15.84
$24.01
$59.63
$97.98
$152.80
$228.87
$20.59
$31.21
$77.52
$127.37
$198.64
$297.53
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 -September 2,2011
Issued by UNITED WATER IDAHO INC.
Gregory P. Wyatt, Vice President
8248 West Victory Road, Boise, Idaho
AITACHMNT 2
PAGE4oF5
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 $12.48
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 -September 2,2011
Issued by UNITED WATER IDAHO INC.
Gregory P. Wyatt, Vice President
8248 West Victory Road, Boise, Idaho
ATTACHMNT 2
PAGE50F5