20110818notice_of_application_order_no_32333.pdf

Office of the Secretary
Service Date
August 18,2011
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF UNITED WATER IDAHO INC.FOR )CASE NO.UWI-W-1l-02
AUTHORITY TO 1NCREASE ITS RATES )
AND CHARGES FOR ELECTRIC SERVICE )NOTICE OF APPLICATION
IN IDAHO
)NOTICE OF
)INTERVENTION DEADLINE
)
_________________________________
)ORDER NO.32333
YOU ARE HEREBY NOTIFIED that on August 3,2011,United Water Idaho Inc.
filed an Application to increase its rates and charges for water service effective September 2,
2011.United Water provides water service to business and residential customers in Boise,and
currently provides service to approximately 85,000 customers.United Water proposes to
increase its rates an overall average of 19.89%,resulting in an annual revenue increase of
$7,616,015.The Company proposes to increase the bi-monthly customer charge from $18.10 to
$23.20 for customers served by a 5/8-inch and 3/4-inch service line.Customers served by a 1-
inch service line would see an increase in their customer charge from $23.79 to $29.70.
YOU ARE FURTHER NOTIFIED that United Water also proposes increases in its
usage rates.Specifically,the volumetric charge for water used during the winter would increase
from $1.3521 to $1.5710 per CCF.A CCF is 100 cubic feet of water and equals 748 gallons.
The volumetric charge for water used during the summer would increase to $1.57 10 per CCF for
consumption less than 3 CCF and increase to $1.9639 for all water use greater than 3 CCF.The
Company estimates that these rates would increase the water bill for an average residential
customer by $5.82 per month.
YOU ARE FURTHER NOTIFIED that United Water states it has invested more than
$20 million in its system since its last rate case.These capital improvements include a new well
supply treatment facility at the Hilton well,a new 600,000-gallon water storage facility serving
the Warm Springs Mesa area,installation of 1.7 miles of new 24-inch water main along Hill
Road to improve pressure and fire protection,and replacing water mains,service lines and
meters throughout the system.United Water is also investing $5.5 million in a new customer
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.32333 1
information system.In addition,the Company asserts that average water consumption per
metered customer has declined significantly over the past several years resulting in lower annual
revenues to the Company.This reduction in annual revenue makes up roughly 38%of the
Company’s overall rate request.
YOU ARE FURTHER NOTIFIED that the Company’s proposed rate increases
include a proposed return on equity of 10.50%,resulting in an expected overall rate of return of
8.43%.The Company asserts its current rate structure results in a rate of return of 5.64%based
on a test year ending April 30,2011.
YOU ARE FURTHER NOTIFIED that the Commission finds it appropriate to
suspend the proposed effective date of September 2,2011,for a period of thirty (30)days plus
five (5)months,or until such time as the Commission may issue an Order accepting,rejecting or
modifying the Application in this matter.
YOU ARE FURTHER NOTIFIED that United Water’s intrastate revenue
requirement,and every component of it,both rate base and expense,are at issue.The
Commission may grant,deny,or modify the revenue requirement requested and may find a
revenue requirement different from that proposed by any party to be just,fair,and reasonable.
YOU ARE FURTHER NOTIFIED that the rates and charges of all United Water
retail customers,both recurring and non-recurring,including those of any special contract
customers are at issue,and every component of every existing and proposed rate and charge is at
issue.The Commission may approve,reject,or modify the rates and charges proposed and may
find that rates and charges different from those proposed by any party are just,fair,and
reasonable.
YOU ARE FURTHER NOTIFIED that the tariffs,practices,rules and regulations,
services,instrumentalities,equipment,facilities,classifications,and customer relations of the
utility are at issue,and the Commission may address any of these issues in its Order.
YOU ARE FURTHER NOTIFIED that the Company’s Application,supporting
workpapers,testimonies,and exhibits can be reviewed at the Commission’s office in Boise,
Idaho during regular business hours.The Application and supporting documents are also
available for public inspection on the Commission’s website at www.puc.idaho.gov by clicking
on “File Room”and then “Water Cases”and scrolling down to the case number that appears on
the first page of this Order.
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NOTICE OF INTERVENTION DEADLINE
ORDER NO.32333 2
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission’s jurisdiction under Title 61 of the Idaho Code and specifically
Idaho Code §61-502,61-503,61-507,61-520,61-523,and 61-622.The Commission may
enter any final Order consistent with its authority under Title 61.
NOTICE OF INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this matter
for the purpose of presenting evidence or cross-examining witnesses at hearing must tile a
Petition to Intervene with the Commission pursuant to this Commission’s Rules of Procedure
72 and 73,IDAPA 31.01.01.072 and -.073.Persons intending to participate at the hearing must
file a Petition to Intervene on or before September 1,2011.Persons desiring to present their
views without parties’rights of participation and cross-examination are not required to intervene
and may present their comments without prior notification to the Commission or the parties.
YOU ARE FURTHER NOTIFIED that once the deadline for intervention has
passed,the Commission Secretary will prepare and distribute a Notice of Parties.The
Commission anticipates that the parties will subsequently convene an informal prehearing
conference to determine the scheduling of discovery,testimony,technical hearings,and other
matters.The Notice of Parties shall also assign exhibit numbers to each party in this proceeding.
YOU ARE FURTHER NOTIFIED that the following persons are designated as
United Water’s representatives in this matter:
Dean J.Miller Kevin H.Doherty
McDevitt &Miller,LLP Director of Rates
420 E.Bannock (83702)United Water Management and
P0 Box 2564 Services Company
Boise,ID 8370 1-2564 200 Old Hook Road
E-mail:[e-mail] Harrington Park,NJ 07640-1799
[e-mail] E-mail:[e-mail]
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted according to the Commission’s Rules of Procedure,IDAPA 3 1.01.01.000 etseq.
YOU ARE FURTHER NOTIFIED that all hearings and prehearing conferences in
this matter will be held in facilities meeting the accessibility requirements of the Americans with
Disabilities Act (ADA).Persons needing the help of a sign language interpreter or other
assistance in order to participate in or to understand testimony and argument at a public hearing
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may ask the Commission to provide a sign language interpreter or other assistance at the hearing.
The request for assistance must be received at least five (5)working days before the hearing by
contacting the Commission Secretary at:
IDAHO PUBLIC UTILITIES COMMISSION
P0 BOX 83720
BOISE,IDAHO 83720-0074
[phone] (Telephone)
[phone] (FAX)
E-Mail:secretary(dpuc,idaho.gov
ORDER
IT IS HEREBY ORDERED that the proposed rates in this case are suspended for a
period of thirty (30)days plus five (5)months from the proposed effective date of September 2,
2011,or until such time as the Commission may issue an Order accepting,rejecting or modifying
the Application in this matter.
IT IS FURTHER ORDERED that persons desiring to intervene in this matter shall
file a Petition to Intervene no later than September 1,2011.
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NOTICE OF INTERVENTION DEADLINE
ORDER NO.32333 4
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of August 2011.
PAUL JELL ,PRESIDENT
MACK A.REDF D,CO I ONER
tL/ISA
MARSHA H.SMITH,COMMISSIONER
ATTEST:
.&n D.Jewel
Commission Secretary
bis/O:UWI-W-1 1-O2ws
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.32333 5