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HomeMy WebLinkAbout20241122Application.pdf RECEIVED Friday, November 22, 2024 IDAHO PUBLIC Preston N. Carter, ISB No. 8462 UTILITIES COMMISSION Morgan D. Goodin, ISB No. 11184 Megann E. Meier, ISB No. 11948 Givens Pursley LLP 601 W. Bannock St. Boise, Idaho 83702 Telephone: (208) 388-1200 Facsimile: (208) 388-1300 prestoncarter(&r zivenspursle, morgan o�ggivenspursley.com memk ia�g venspursle�com Attorneys for Veolia Water Idaho, Inc. BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE APPLICATION ) CASE NO. VEO-W-24-01 OF VEOLIA WATER IDAHO, INC. FOR A ) GENERAL RATE CASE ) APPLICATION Veolia Water Idaho, Inc., ("Veolia Water Idaho," "Applicant," or"Company") hereby moves the Idaho Public Utilities Commission("Commission")requesting an Order approving revisions to Applicant's schedules of rates and charges for water service in the State of Idaho to become effective on or after December 23, 2024. I. Applicant is a public utility water corporation within the meaning of the Idaho Public Utility Law, is duly organized and existing under the laws of the State of Idaho and is engaged in conducting a general water business in and about Boise City, Ada County, Idaho, having its principal office and place of business at 8248 West Victory Road, Boise, Idaho. A certified copy of Applicant's Articles of Incorporation, together with all amendments to date, is on file with the Commission, along with Applicant's most recent annual report. Applicant's current Certificate APPLICATION OF VEOLIA WATER IDAHO,INC. PAGE I OF 7 of Public Convenience and Necessity("CPCN") is Amended Certificate No. 143, most recently amended by the Commission in Case No. VEO-W-23-05. II. Veolia Water Idaho has been providing water service to the public in Boise City and surrounding areas for more than 100 years. Currently, Veolia Water Idaho provides service to approximately 108,000 customer connections within Ada County, Idaho. III. Veolia Water Idaho's operations, and rates and charges for service have been reviewed in several rate proceedings before the Commission, most recently, two years ago in Case No. VEO- W-22-02. IV. Attached hereto as Attachment 1 are copies of Applicant's Schedule Number 1, General Metered Service; Schedule Number 1B, Flat Rate Service; Schedule Number 2, Public Hydrants and Street Sprinkling; Schedule Number 3, Private Fire Sprinkling and Service; and Schedule Number 4, Private Fire Hydrant Service, containing the rates under which water service is currently rendered and charged to Applicant's customers. V. Attached hereto as Attachment 2 are copies of Applicant's new proposed Schedule Numbers 1, 1B, 2 and 3 setting forth changes to be made to Applicant's customers rates on and after December 23, 2024, as requested in this Application. VI. Applicant proposes to increase rates by $11,158,946. This represents an overall average increase of 19.84% over Veolia Water Idaho's rates as approved by the Commission in 2022. Applicant proposes a two-phase rate plan, with 70% of the requested increase to be effective APPLICATION OF VEOLIA WATER IDAHO,INC. PAGE 2 OF 7 December 23, 2024 and the remaining 30% of the requested increase to be effective twelve months later on December 23, 2025. Veolia Water Idaho submits that the proposed changes in rates and charges set forth on Attachment 2 are just and reasonable. The expected rate of return under the revised rates and charges will be 7.47%, which is a fair rate of return on Veolia Water Idaho's investment in property used and useful in rendering water service. VII. The revenue realized by Applicant under its presently authorized rates produces a rate of return of 4.78%based on a historical year ending August 31, 2024. Applicant seeks additional revenues to recover increased operating expenses and costs associated with plant additions, and to produce a fair rate of return, thereby enabling it to continue to provide adequate and reliable service to its customers. VIII. Applicant is proposing a revision to its Rules and Regulations Governing the Rendering of Water Service to remove Private Fire Hydrant charges from the Tariff; to add a definition of "private fire hydrant"that improves upon the current definition and that has been vetted by Fire Districts within Applicant's service territory; and to define the responsibilities associated with owning a private fire hydrant. Applicant is also proposing to add a 12-inch meter charge under General Metered Service as a pre-emptive measure and to add President's Day and Juneteenth to Observed Holidays related to reconnection availability/charges. In addition, Applicant is proposing to update the manner in which service requests may be taken to include online or personal visit to the applicant office by appointment; to update language to confirm the normal routing for water main extensions shall be in dedicated public rights-of ways; and to specify that APPLICATION OF VEOLIA WATER IDAHO,INC. PAGE 3 OF 7 an applicant to Veolia Water Idaho agrees not to lay other pipes or conduits within Eve (5') feet, measured horizontally, from water pipes as discussed in the testimony of witness Johns. IX. Applicant is filing concurrently herewith Direct Testimony of David Johns, Harold Walker, III, Timothy Michaelson, Michael Wilson, Lino Bucci, Anupa Jacob, Catherine Cooper, Katherine Arp, David Njuguna, James Cagle, Maryanne Hatch, Ian MacDougall, and Exhibit 1 through Exhibit 14. These Exhibits include financial statements, revenue analysis, analysis of cost of service, and supporting work papers that justify and support the proposed increase. X. Applicant proposes to implement the requested increase in revenue by a uniform percentage increase to all rate elements, except for private fire rates, which would see no increase as outlined in the Testimony of Timothy Michaelson and supported by the results of the Class Cost of Service Study further explained in the Testimony of Maryanne Hatch. XI. Notice to Veolia Water Idaho's customers is being accomplished by news media releases simultaneously with the filing of this Application and by an individual notice mailed to each customer. Copies of the press release and customer notice are attached to this Application as Attachment 3. In addition, a copy of the Application and Applicant's present and proposed rate schedules are available for public inspection at its office at 8248 West Victory Road, Boise, Idaho at any time during office hours. The Application will be available on the Commission's website at www.pue.idaho.gov. Customers may also subscribe to the Commission's RSS feed to receive periodic updates. APPLICATION OF VEOLIA WATER IDAHO,INC. PAGE 4 OF 7 XII. Applicant stands ready for an immediate hearing on this Application and requests that a hearing be held as soon as possible. XIII. Communications in reference to this Application should be addressed to: Preston N. Carter(ISB No. 8462) Morgan D. Goodin(ISB No. 11184) Megann E. Meier(ISB No. 11948) Givens Pursley LLP 601 W. Bannock St. Boise, ID 83702 Telephone: (208) 388-1200 Facsimile: (208) 388-1300 prestoncarter(a) i_ig venspursley.com morgan o�(a�givenspursle. merrig ig venspursley.com and David Njuguna Director-Regulatory Business Veolia Water M&S (Paramus), Inc. 461 From Road, Suite 400 Paramus,NJ 07052 david.njuguna(a,veolia.com Veolia Water Idaho respectfully requests: 1. That this Application be heard and acted upon at the earliest possible date, 2. That the Commission find that the Applicant's existing rates are unjust, unreasonable and insufficient to provide Applicant with a fair rate of return and that the revised rates and charges proposed in Attachment 2 of this Application are just and reasonable and that Applicant be permitted to charge said rates to its customers, effective December 23, 2024. APPLICATION OF VEOLIA WATER IDAHO,INC. PAGE 5 OF 7 3. That the Commission grant such other and further relief as the Commission may determine proper in the circumstances. Date: November 22, 2024. VEOLIA WATER IDAHO,INC. Preston N. Carter Attorney for Veolia Water Idaho, Inc. APPLICATION OF VEOLIA WATER IDAHO,INC. PAGE 6 OF 7 CERTIFICATE OF SERVICE I certify that on November 22, 2024, a true and correct copy of the foregoing was served upon all parties of record in this proceeding via electronic mail as indicated below: Commission Staff Via Electronic Mail Monica Barrios-Sanchez, Commission Secretary monica.barriossanchez@puc.idaho.gov Idaho Public Utilities Commission 11331 W. Chinden Blvd., Bldg. 8, Suite 201-A Boise, ID 83714 Dayn Hardie dayn.hardie@puc.idaho.gov Deputy Attorney General Idaho Public Utilities Commission 11331 W. Chinden Blvd., Bldg. 8, Suite 201-A Boise, ID 83714 Preston N. Carter APPLICATION OF VEOLIA WATER IDAHO,INC. PAGE 7 OF 7