20120113Petition for Funding.pdf

Brad M. Purdy
Attorney at Law
BarNo. 3472
2019 N. 17th S1.
Boise,ID. 83702
[phone] (Land)
[phone] (Fax)
bmpurdyWihotmail.com
Attorney for Petitioner
Communty Action Parership
Association of Idao
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BEFORE THE IDAHO PUBLIC UTILITIES COMMSSION
IN THE MATTER OF THE APPLICATION )
OF UNITED WATER IDAHO, INC. FOR )
AUTHORITY TO INCREASE ITS RATES )
ANDCHAGESFORWATERSERVICEIN )THE STATE OF IDAHO. )
)
)
CASE NO. UW-W-LL-02
COMMUNTY ACTION
PARTNERSHI ASSOCIA-
TION OF IDAHO'S PETITION
FOR INTERVENOR FUDING
COMES NOW, Applicant Communty Action Parership Association of Idao (CAP AI)
and, puruat to Idao Code § 61-617 A and Rules 161-165 of the Commssion's Rules of
Procedure, IDAPA 31.01.01, petitions ths Commssion for an award of intervenor fuding in the
above-captioned proceeding.
Rule 161 Requirements:
United Water Idao, Inc. ("United Water" or "Compay") is a reguated, water public
utility with gross Idao intrte anua revenues exceedig thee millon, five hundred
thousand dollars ($3,500,000.00).
Rule 162 Requirements:
(01) Itemizd list of Expenses
Consistent with Rule 162(01) of the Commssion's Rules of Procedur, an itemized list of
all expenses incurd by CAPAI in ths proceeding is attched hereto as Exhbit "A."
CAP AI APPLICATION FOR INRVENOR FUNING 1
(02) Statement of Proposed Findigs
The proposed fidings and recommendations of CAP AI are set fort in the testimony of
Teri Ottens previously filed in ths matter, and reflecte in the settement stipulation curently
before the Commssion to which CAPAI is a signatory.
CAP AI fuly parcipated in ever aspet of this case including an anysis of the
Company's requested impact on all residential customers, the merts or questionability of
numerous aspects of the application for a rate increase, the submission of discovery, parcipation
in several settlement conferences and, ultiately, the execution of a Settement Stipulation and a
Joint Motion for Approval of the Settlement Stipulation, along with the prefied direct testimony
of Teri Otens outlining the basis for CAP AI's support of the settlement now before the
Commission for consideration. Consistent with the Settlement Stipulation, CAP AI makes the
followig sumar of Ms. Otens' comments and presents its statement of proposed :fndings and
recommendations to the Commission. i
First, Ms. Ottens noted CAPAI's intial concern regardig the magntude of the rate
increase origily requested, nealy 20%, and the impact ths would have on the customers of
one of Idao's largest public water utilities. CAP AI believes that the reduced rate increase set
forth in the settlement by whch the Company receives roughy 10.5% spread over two years,
will have sign:fcantly less impact on the Company's cusomers and, in light of other offsetting
provisions in the Stipulation afecting low-income customers, represents a reaonable
compromise. As noted by Ms. Otens: "(t)his two-phae ageement lessens the impact of the rate
increase in the fit year and provides assuredess for a slightly expanded time and, even in total,
is considerably less than originally proposed." Ottens, at p. 4. Ms. Otens fuher notes that, by
i For the sake of
brvity, th list is not an exhausive sumation of villy ever issue resolved by the settlement
agreement and for which CAP AI had a position but focuses on those issues most importt and unque to United
Watets residential customers in general and low-income in parcular.
CAP AI APPLICATION FOR INTERVENOR FUNING 2
virte of the phaed-in rate increase, there would be no new rate increas effective for United
Water prior to Janua 1,2014.
Ms. Ottns also discussed the proposed changes to the Company's customer charge
testifyng that higher customer (fixed) chages provide utilty maagement and shaeholders with
greater predictabilty in terms of revenues and reduced risk in ters of not recovering their
revenue requirement. She fuer noted that any incree in ths charge affects a customer's
abilty to afect their own bil even though reduced consumption. Because of these factors, the
customer charge is an importt issue to CAP AI and, no doubt, to the Company. Although the
settlement does result in an increas to United Water's customer charge, Ms. Otens testi:fed that
this increase is justifiable in light of agreed upon "enhancements" to Unite Water's low-income
customers. There are severa such "enhcements" agreed upon in the settlement. Under the
:frst, United Water agreed (Settlement Stip, p. 15) to increase the cap on tota bene:fts available
under the Company's "United Water Cares" progr from $50 to $65 anualy? Ths chage
provides the Communty Action Agencies with greater latitude in determg the greatest level
of need among low-income customers and how best to address that need. Ottens, p.5.
Another enhancement to low-income assistce negotiated though settement was the
provision to remove the curently existg anua matchig cap of $20,000 contrbuted by United
Water to the United Water Cares progr.3 Previously, United Water's agreement was to match
fuds contrbuted by the Company's customers up to a maximum of $20,000 contrbuted by
United Water. Because customer contrbutions have unorttely been quite low, the Company
agreed to elimate ths cap. The consequence of this agreement by United Water is to open up
2 See, par 15(a) of Settlement Stiplation.
3 See, par 15(b) of Settlement Stipulaton.
CAP AI APPLICATION FOR INTERVENOR FUNING 3
the Company's United Water Cars progr bene:fts to provide more assistce to eligible
customers.
United Water fuer agreed to provide CAP AI with cert low-income data including
an analysis of data related to low-income cusomers' consumption of water by using United
Water Cares progr recipients as a "data proxy" for the Company's low-income customers in
general.4 Ironically, a signi:fcant problem that low-income advocates such as CAPAI often face
is the lack of usefu data concerng the utilty consumption habits of low-income customers.
This data can be surrisingly diffcult to obta. The reasons include, among others, the need to
protect the con:fdentiality of customers and the fact that the utility in question is often the only
par in possession of or with access to the needed data.
The opportties to mae productive use of ths tye of inormation is vared. One
example pert to the establishment or modification of tiered rates for any given utility. It is
tyically not known how much of a parcular utility commodty the average low-income
customer consumes, the time of day when such consumption taes place, seasonal varances of
said consumption, and so on. As Ms. Otens testified "CAP AI is oftn frstrated by a lack of
low-income consumption data when it considers positions to tae in proceedings before ths
utility on any number of issues on any number of issues for any utility from revenue allocation to
rate design. ,,5 It was agreed by the paries to the Settlement Stipulation tht the confdentiality of
any United Water customers whose consumption data is used for anysis puroses as previously
described shal remai confdentiaL.
This tye of data is helpfu whether one is dealing with kilowatts or cubic feet of water
and wil hopefuly prove usefu not only to CAP AI, but to the Commssion Sta and
4 See, par 15(c) of Settlement Stipulation.5 Test. T. Ottens, p.6.
CAP AI APPLICATION FOR INTERVEOR FUNING 4
Commissioners as well in reachig recommendations and decisions regardig both low-income
and non-low income issues. Furermore, at the time of the settement agreement, CAPAI had
pendig cert discovery responses that might also provide additional usefu information.
United Water ha agee to respond to ths discvery with a reasnable time frame.6
Finally, United Water has ageed to make available to requesting Communty Action
Agencies water conservation devices ("kits") for distbution to low-income customers which
should help to increase the dissemination of these importt water-saving measures. The paries
agreed to meet and confer to develop protocols for ensurg that conservation kits are delivered
only to United Water customers and that appropriate record keeping is maitaned.7
Ms. Ottens noted and expressed CAPAI's appreciation for United Water's history of
cooperation in workig with CAPAI to address the concern of the Company's low-income
customers. Ms. Otns noted that United Water's reasoned and cooperative approach to low-
income issues was a factor in CAP AI's decision to join in the settlement.
(03) Statement Showing Costs
CAPAI submits tht the costs and fees incured in ths case, and set fort in Exhbit "A,"
are reasnable in amount. Though ths matter was obviously settled, CAP AI had performed the
vast majority of the work needed to proceed to hearg, ha that been necessa, by the time the
case was settled.
CAP AI has historically made a concerted effort to minize its expenses and maximize
the effect that its efforts have in proceedings before ths Commssion. Though ths matter was
settled, it still requi the investment of considerable time and resources by CAP AI to
effectively paricipate and address issues of concern to the general body of ratepayers.
6 See, par 15(d) of Settlement Stipulation.7 See, par 15(e).
CAP AI APPLICATION FOR INTERVENOR FUNING 5
(04) Explanation of Cost Statement
CAP AI is a non-pro:ft corporation overeeing a number of agencies who :fght the causes
and conditions of povert thoughout Idaho. CAP AI's fuding, which comes from varous
private and governenta sources, is in a state of heightened uncertty and limtations.
CAP AI, therefore, ha an extrmely limted budget to parcipate in cas before the
Commission. Some matters that CAP AI parcipates in before ths Commission, fuermore, do
not quaify for intervenor fuding by vire of their natue, though they are stil quite importt
to low-income utility customers.
In light of the magntude of the rate increase origially requested by United Water,
CAP AI believed that its intervention in ths proceedig was necessar to advocate for the
interests of low-income customers. The outcome of that intervention, as reflected in the
Settlement Stipulation, was to enhce the assistace provided to United Water's low-income
customers though the settlement provisions outlined above. Were it not for the availability of
intervenor fuds and past awards by ths Commssion, CAP AI would not be able to paricipate in
cases before ths Commssion. Even with intervenor fudig, parcipation in Commssion cases
constitutes a signficant :fcial hardship because CAP AI must pay its expenses as they are
incured.
(05) Statement of Difference
Althoug Sta provided valuable input regarding most every issue to ths matter, CAP AI
is the only pa who represented the interests of United Water's low-income customers and
proposed the conditions aged to by United Water and describe herein.
CAP AI APPLICATION FOR INTERVENOR FUNDING 6
(06) Statement of Recommendation
CAPAI submits that providing assistace to a utility's low-income customers provides
system-wide benefits in numerous respects includig, but not limted to, the fact tht properly
crafted assistace reuces arearges, debt collection cost, and improves cash flow, among other
things. These are benefits enjoyed by all utility customers, not jus the poor. Therefore, the
proposals and recommendations made by CAP AI are "of concern to the genera body of utility
users or consumers."
(07) Statement Showing Class of Customer
t 6' the extent tht CAP AI represents a specific United Water customer class, it is the
residential class.
RESPECTFULLY SUBMITTD, ths 12th day of Janua, 2012.
,-/3~Bra M. Puy ~
CAP AI APPLICATION FOR INTERVENOR FUNING 7
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 13th day of September, 2012, I caus to be served on
the individuas listed below, the foregoing document via electronic tranmission and hard copy
via U.S. Mail, fit class.
Weldon Stutzan
Deputies Attorney General
Idaho Public Utilties Commission
472 W. Washington St.
Boise, ID 83702
weldon.stutzan~puc.idao.gov
Joe Miler
McDevitt & Miler
420 W. Banock Street
P.O. Box 2564-83701
Boise, ID 83702
joe~mcdevitt-miler.com
heather~mcdevitt-miller.com
Kevin H. Dohert
Director of Rates
United Water Mangement and
Services Company
200 Old Hook Road
Hargton Park, NJ 07640-1799
kevin.dohert~untedwater.com
~~s
CAP AI APPLICATION FOR INTERVEOR FUNING 8
EXHBIT" A"
ITEMIZED EXPENSES
Costs:
Photocopies/poste $32.43
Total Costs $32.43
Fees:
Legal (Brad M. Pudy -25 hours ~ $130.00/h.) $3,250.00
Expert Witness (Teri Ottens - 10.0 hours ~ $50.00/h.) $500.00
Total Fees $3,750.00
Total Expenses $3,782.43
CAP AI APPLICATION FOR INRVENOR FUNING 9