HomeMy WebLinkAbout20151216press release.pdf
Case No. UWI-W-15-01, Order No. 33436
Contact: Gene Fadness (208) 334-0339, 890-2712
www.puc.idaho.gov
Commission approves United Water Idaho rate case settlement
BOISE (December 16, 2015) – The Idaho Public Utilities Commission is adopting a settlement to
the United Water Idaho* rate case. The settlement increases rates by 6% effective Dec. 22 and
another 1.4% on Dec. 22, 2016.
For a residential customer who uses the company’s average consumption the 6% increase is
about $1.25 every two months, from $20.80 to $22.05.
Last May, United Water Idaho proposed a one-year, 13.2% increase, raising an additional $5.88
million in annual revenue. The settlement approved today reduces the revenue increase by
57%, to $2.73 million in 2016 and $670,000 in 2017.
Parties to the settlement included United Water, commission staff and the Community Action
Partnership Association of Idaho (CAPAI), which represents primarily customers on low- and
fixed-incomes.
The settlement also provides that United Water will increase its contribution to the “United
Water Cares” program from $65 to $75 per customer per year to provide financial assistance to
low-income customers. In future years, the company will increase its contribution by the same
percent as the rate increase it is granted. None of the program’s costs are included in customer
rates. United Water Idaho serves more than 90,000 customers in Ada County.
Commission staff supported the settlement, stating it represents “a significantly better deal for
customers than could be achieved through either a one-year settlement or litigation of the
current rate case.” Staff said a “stay-out provision” that prevents another increase until
December 2017 at the earliest “provides rate stability for customers.”
United Water said the increase was needed to recoup more than $39 million of investment in
its water system since the last rate case in 2011. The capital improvements include $17.2
million to replace aging water mains and meters, $3.5 million to replace treatment facilities,
$900,000 for a replacement storage tank in the Bogus Basin Road area and $500,000 for
auxiliary power equipment to ensure uninterrupted water supply during electric outages.
The settlement reduced the company’s original revenue requirement considerably by
establishing deferrals and amortization periods for power costs, rate case expense, tank
paintings, pension expense, relocation expense and conservation expense.
The commission received 35 public comments before the proposed settlement, nearly all of
them opposed to the increase. After the settlement was announced and offered for public
comment, only one comment was received and that was in support of the settlement. A public
hearing was held at which no customer attended or testified.
The commission cannot, by state law, arbitrarily refuse to consider rate increase requests
without first considering the evidence presented by the utility, intervening parties and
customers. The burden of proof is on the utility to justify the expenses it seeks to recover as 1)
necessary to serve customers and 2) prudently incurred.
Interested parties may petition the commission for reconsideration by no later than Jan. 6,
2016. Petitions for reconsideration must set forth specifically why the petitioner contends that
the order is unreasonable, unlawful or erroneous. Petitions should include a statement of the
nature and quantity of evidence the petitioner will offer if reconsideration is granted.
Petitions can be delivered to the commission at 472 W. Washington St. in Boise, mailed to P.O.
Box 83720, Boise, ID, 83720-0074, or faxed to 208-334-3762.
The commission’s final order as well as other documents provided during the case are available
on the commission’s website at www.puc.idaho.gov. Click on “Open Cases” under the “Water”
heading and scroll down to Case No. UWI-W-15-01.
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(*During this rate case proceeding, United Water Idaho applied to the commission for a change to its name to SUEZ
Water Idaho. The commission authorized the name change in Order No. 33429. All future orders and press releases
will use the SUEZ Water Idaho name.)