20241009Application.pdf

RECEIVED
Wednesday, October 09, 2024
IDAHO PUBLIC
UTILITIES COMMISSION
H. Robert Price, President
Capitol Water Corporation
2626 N. Eldorado St,
Boise, Idaho 83704-5926
208-375-0931
infogcapitolwatercorp.com
www.capitolwatercorp.com
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION ) CASE NO. CAP-W-24-02
OF CAPITOL WATER CORP. TO )
CHANGE ITS SCHEDULE NO.3 ) APPLICATION
PURCHASED POWER ADJUSTMENT RATE )
COMES NOW Capitol Water Corporation("Company"),holder of Certificate of
Convenience and Necessity Number 239, and files this Application to change its Schedule No. 3
Purchased Power Cost Adjustment("PPCA")rate to recover the Company's cost of electricity
related to Idaho Power Company's electric rate schedules that have been approved by the Idaho
Public Utilities Commission("Commission"). The Company requests that the new PPCA rate be
effective coincident with the effective date of the new rates determined in the current general rate
case, CAP-W-24-01.
The Company's current base rates were established by Order No. 30762 in Case No.
CAP-W-08-02. In that order the Commission adopted a three (3)year average of 1,454,401 kWh
of electricity consumption at an average cost of 5.19¢ to establish rates for the Company.
Together these produce a total cost of electric power for Capitol Water Corporation of
$75,483.41. This amount has been the benchmark for determining the incremental cost of power
used to calculate the PPCA rate.
Initially when the Commission approved the PPCA for Capitol Water Corporation, it
adopted a three(3)year average of power consumption, as proposed by the Staff of the
Commission(Staff), as more indicative of what to expect in the future. In Case CAP-W-17-01
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CAP-W-24-02
Capitol Water Corporation's PPCA Annual Rate Adjustment

the Commission adopted the most recent twelve months of power costs as a better and more
efficient method for the Company to recover its increased electric power costs.
The Company's actual power costs in calendar year 2023 were $102,919. This is
$27,436 more than the power cost embedded in the Company's current base rates, and $1,957
less than the current PPCA rate of 4.51% is designed to recover. Computing the reduced cost
requires a decrease to current customer rates of 0.30%to bring the PPCA rate to 4.21% as
reflected in Exhibit No. 1 attached to this Application. The Company has provided workpapers
showing the details of the Company's electric power bills used to develop the proposed PPCA
rate for Commission Staff s review. The Company has also included the well logs for 2023 for
Commission Staff s review.
The Company would usually recover these additional electric power costs by replacing
the currently approved Schedule No.3 Purchased Power Cost Adjustment of 4.51%with a new
Purchased Power Cost Adjustment of 4.21%. This percentage increase is based on its current
total cost of electric power built into rates, and its current base revenue of$651,738. However,
since the Company has filed for a rate increase, and it is anticipated that new rates will go into
effect on or around December 1, 2024,the Company requests that its new PPCA rate go into
effect at the same time as the new rates. The new PPCA rate would be determined by using the
Incremental (power) Cost of$27,436 from Line 4 of Exhibit 1, divided by the new base revenue
determined in Case No. CAP-W-24-01.
A new Schedule No. 3, with the proposed power cost adjustment rate,will be submitted
to the Commission for approval with the new tariffs at the conclusion of the general rate case,
CAP-W-24-01.
Capitol Water Corporation will inform its customers of this application through a
customer notice that will be included with customer bills to be mailed November 1, 2024, and by
a news release that is being sent to the Idaho Statesman and the Idaho Business Review
newspapers coincident with this filing. Copies of the customer notice and news release are
enclosed as Exhibit Nos. 2 and 3 respectively.
Capitol Water Corporations system consists of seven wells. Well No. 1 is a standby well,
and generally is not used. Well No. 2 is inoperative. Well Nos. 3 and 6 are used during the
summer months. Well No. 6 is the Aquifer Storage Recovery ("ASR")well. Well Nos. 5 and 7
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CAP-W-24-02
Capitol Water Corporation's PPCA Annual Rate Adjustment

are the primary wells for the water system. These wells run year-round. Well No. 7 is also the
source for the ASR well, with water being pumped into Well No. 6 over the winter. Well No. 4
generally does not run during winter and is on standby during the summer. The Company strives
to maintain its system for safe,efficient, and cost-effective operations. To that end, the
Company monitors the wells daily, and as well as performing periodic maintenance on the wells.
Capitol Water Corporation requests that the Commission process this Application under
its rules of modified procedure and approve the new PPCA rate of 4.21%(using current rates)
with the actual PPCA rate to be determined at the conclusion of Case No. CAP-W-24-01, with
effective date coincident with new rates in Case No. CAP-W-24-01, on or about December 1,
2024.
CONTACT INFORMATION:
Questions regarding this Application should be addressed to:
H. Robert Price, President
Capitol Water Corporation
2626 N. Eldorado St,
Boise, Idaho 83704-5926
208-375-0931
info ,capitolwatercorp.com
www.capitolwatercorp.com
Please provide copies of all correspondence,notices, and orders to the above individual.
Respectfully submitted,
H. Robert Price, President
Capitol Water Corporation
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CAP-W-24-02
Capitol Water Corporation's PPCA Annual Rate Adjustment