20241118News Release.pdf

Idaho Public Utilities Commission Brad Litile,Governor
P.O. Banc 83720. Boise, ID 83720-0074 Eric Anderson, President
John R.Mammo* Jr,Commissioner
Edward Lodge,Commissioner
Case No. CAP-W-24-02
Order No. 36391
Contact: Adam Rush
Office: [phone]
E-mail: [e-mail]
NEWS RELEASE: Commission is accepting written comments on water utility application to
recover electricity costs.
BOISE (Nov. 18, 2024) - The Idaho Public Utilities Commission is accepting written comments
on an application submitted by Capitol Water Corporation to recover electricity costs that
exceeded what it collected in rates.
In early October, the water utility applied for authority to change its Schedule No. 3 —Purchased
Power Cost Adjustment("PPCA")rate to recover those costs. The PPCA is a charge or credit
that reflects fluctuations in the cost of electricity a utility company buys. This allows the utility
to pass on those changing costs to customers on their monthly bills and appear as an additional
charge when the price is higher and a credit when it's lower.
Capitol Water's base rates were approved in a previous commission decision, which established
power consumption at 1,454,401 kilowatt-hours with a 5.19 cent average cost. This created a
benchmark of$75,483.41 for determining the incremental cost of power used to calculate the
PPCA rate. While initially approving a three-year average, the commission later adopted twelve-
month power costs. In 2023, actual costs reached $102,919 exceeding the base rate by
$27,436 but falling $1,957 below the current PPCA recovery.
Capitol Water said it intended to adjust its PPCA rate from 4.51 percent to 4.21 percent. Possible
rate changes may occur in December 2024 due to the utility's general rate case. Therefore,
Capitol Water requested implementing new PPCA rates simultaneously. However, because
potential approval of items within Capitol Water's general rate case will provide information
necessary for commission staff to analyze this case, the parties have realized the implementation
of both proposed rate adjustments simultaneously is not feasible.
Capitol Water proposed that the revised rate would divide the $27,436 incremental costs by the
new base revenue. If the commission approves Capitol Water's application,unmetered
residential customers will see a decrease in their monthly bill between$0.05 to $0.10 in the
months of May through September and between $0.04 to $0.09 in the other months. Metered

customers will see a decrease of 0.30 percent in their bills. Capitol Water said it expects the
amounts to be adjusted based on the outcome of the general rate case before the commission.
The commission is accepting written comments on the PPCA application until Dec. 5, 2024.
Comments are required to be filed through the commission's website or by e-mail unless
computer access is not available. To comment using the commission website, please visit
puc.idaho.gov and click on the "Case Comment Form" link on the upper left side of the page.
Please use case number CAP-W-24-02 when filling out the form. If submitting comments using
e-mail, comments should be sent to the commission secretary and Capitol Water at the e-mail
addresses listed below. Those submitting comments through e-mail are required to provide their
name, address and include case number CAP-W-24-02. If computer access is not available,
comments can be mailed to the commission and Capitol Water at the addresses listed below.
Those mailing in comments are required to include their name, address and case number CAP-
W-24-02.
For the Idaho Public Utilities Commission:
Commission Secretary
Idaho Public Utilities Commission
P.O. Box 83720
Boise, ID 83720-0074
[e-mail]
Street address for express mail:
11331 W. Chinden Blvd.
Building 8, Suite 201-A
Boise, ID 83714
For Capitol Water:
H. Robert Price, President
Capitol Water Corporation
2626 N. Eldorado St.
Boise, ID 83704-5926
[e-mail]
Additional information on the utility's application is available at:
puc.idaho.gov/case/Details/7434.