20240723Decision Memo.pdf

DECISION MEMORANDUM
TO: COMMISSIONER ANDERSON
COMMISSIONER HAMMOND
COMMISSIONER LODGE
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM: ADAM TRIPLETT
DEPUTY ATTORNEY GENERAL
DATE: JULY 23, 2024
SUBJECT: IN THE MATTER OF CAPITOL WATER CORPORATION'S
APPLICATION TO INCREASE ITS RATES AND CHARGES FOR
WATER SERVICE IN THE STATE OF IDAHO; CASE NO. CAP-W-24-01.
On March 1, 2024, Capitol Water Corporation ("Company") applied to increase its
rates and charges for water service.
While examining the Company's financial records as part of this general rate case,
Staff discovered that the Company had, since at least 2022, incorrectly billed metered customers
who consumed more water than their monthly minimum allotment of water. This billing issue
could have affected up to approximately 277 customers in 2022, with some accounts being
underbilled approximately $0.26 or overbilled by approximately $3 to $43 in a month depending
on the size of the customer's meter. Although Staff s investigation of the billing issue is ongoing,
it has verified that at least one customer who experienced the same overbilling issue in June
2024.
Staff has notified the Company of the billing issue and is arranging for additional
discussions and further investigation with a site visit. To ensure that the billing issue does not
persist, Staff recommends the Commission issue an order directing the Company to take steps to
ensure that all its customers are charged the rates set forth in its Commission approved tariff.
After completing its investigation and engaging in further discussions with the Company
regarding the billing issue, Staff will recommend further corrective action to the Commission, if
necessary.
DECISION MEMORANDUM 1

STAFF RECOMMENDATION
Staff recommends the Commission issue an interlocutory order directing the
Company to ensure that all its customers are properly charged the rates set forth in its
Commission approved tariff.
COMMISSION DECISION
Does the Commission wish to issue an interlocutory order directing the Company to
ensure that all its customers are properly charged the rates set forth in its Commission approved
tariff?
Adam Triplett
Deputy Attorney General
I:\Lega1\WATER\CAP-W-24-01_rates\memos\CAP W2401_Dec3_at.doc
DECISION MEMORANDUM 2