20250512Comments_2.pdf

The following comment was submitted via PUCWeb:
Name: Janice Skikas
Submission Time: May 9 2025 9:14PM
Email:jlsl<il<[e-mail]
Telephone: [phone]
Address: 1129 E Amulet Circle
Rathdrum, ID 83858
Name of Utility Company: Gem State Water
Case ID: GSW-W-24-01
Comment: "Dear Members of the Public Utilities Commission:
I am writing to you to express my concern regarding the proposed rate adjustment filed by
Gem State Water, my local water agency. As a resident affected by these proposed rate
changes, I find it increasingly challenging to understand the justification behind another
rate hike.The rise in water rates places an undue financial burden on our community and
therefore, it is essential to ensure that rate adjustments are both fair and absolutely
necessary.
To better understand Gem State Water's proposed rate increase, I thought it would be a
worthwhile exercise to compare their proposed base rates, as well as their proposed
charge for water usage, to other water agencies in our area. I reside in the "Bar Circle S"
area and therefore any amounts I reference relate to this area. I gathered information for
the following five water agencies: Dalton Water Association, Inc., City of Coeur d'Alene—
Water Service, Bayview Water District, City of Post Falls—Water, and North Kootenai Water
&amp; Sewer District (Main System).
I learned, excluding any debt service charges, that Gem State Water's proposed monthly
base charge of$53.50 is higher than four of the five other agencies. Not only that, but Gem
State Water's current base of$35.00 is also higher than those same four of five agencies.
And yet Gem State Water wants to increase their base rate. Not only that, but they are also
proposing a decrease in the amount of water included in the base charge—down from the
current 7,500 gallons to a proposed 5,000 gallons.
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I also looked at the water usage rates. Gem State Water has proposed an increase in the
usage rate per 1,000 gallons (over the base gallons mentioned above)from $2.52 to $4.50.
For calculation purposes, let's assume a hypothetical summer month usage of 25,000
gallons. The billed amount for usage from each of the agencies would be as follows:
Gem State Water(current) $44.10
Gem State Water(proposed) $90.00
Dalton Water Association, Inc. $15.00
City of Coeur d'Alene $28.00
Bayview Water District $35.00
City of Post Falls $36.75
North Kootenai Water&amp; Sewer District $49.00
So, according to my calculation for a hypothetical monthly usage of 25,000 gallons, not
only would Gem State Water's billed amount (proposed) be higher than that of all the
compared agencies, their billed amount (current)would be higher than four of the five
other agencies. Water is a basic resource—its essential nature does not change from one
agency to another.Why should Gem State Water be permitted to charge more than
neighboring agencies for what is the same commodity?
I urge the Public Utilities Commission to thoroughly review the reasoning behind this
proposed rate increase. Transparency in the cost structure and a comparison with
neighboring water agencies could provide valuable insights into whether this rate hike is
justified.
Thank you for considering my comments on this important issue. I look forward to your
thoughtful deliberation and hope for a fair outcome that reflects the best interest of all the
Gem State Water customers.
Sincerely,
Janice Skikas
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The following comment was submitted via PUCWeb:
Name: Jerry Whetstine
Submission Time: May 11 2025 11:03PM
Email:[e-mail]
Telephone: [phone]
Address: 1609 E. Amulet Circle
Rathdrum, ID 83858
Name of Utility Company: Gem State
Case ID: GSW-W-24-01
Comment: "Idaho Public Utilities Commission P.O. Box 83720 Boise, Idaho 83720 Case
#GSW-W-24-01
My name is Jerry Whetstine. I'm located in the Bar"S"water district administered bythe
Gem State water company. These are additional comments from my second letter which
could not be expanded upon due to length limitations.
Previously, I indicated that the Gem State Water District is a "MONOPOLY"and is enabled
by the Idaho Public Utilities Commission. Gem State Water is guaranteed a sufficient rate
of return by the Idaho Public Utilities Commission. With this guarantee Gem State Water
assumes no risk on its business decisions. It can continue to buy water districts, invest in
the districts, then turn to the Idaho Public Utilities Commission to approve exorbitant rate
increases to pay for it all at the expense their customers. It is a great deal for the Gem State
Water District and its shareholders. Bad deal for us customers who have to pay for it.
The Gem State Water District revenue requirement states:
"The revenue the Company needs to meet its expenses, cover depreciation, and earn a
sufficient rate of return to attract investors".
Please notice the revenue requirement does not mention acquiring water districts,
investing money into those districts, then raising rates on customers to pay for it. Again, a
great deal for Gem State Water and its shareholders. No risk to the water district because
the Idaho Public Utilities Commission guarantees a sufficient rate of return. In business,
watching out for its shareholders is always the highest priority, not the customers. I
guarantee, the shareholders and water district will be ecstatic if this rate increase is
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approved. Certainly, more money in their pocket while still not meeting the demands of
good service to the customer.
Please provide written documentation to memorialize the following:
*Justify the 79% increase with financial statements for review.
*Show the Idaho Public Utilities Commission audited Gem State Water to verify their
financial needs for this level of rate increase?
*Does the Idaho Public Utilities Commission have documentation in hand to support this
exorbitant rate increase or does the State just take the word of Gem State Water that the
rate increase is necessary?
*If an audit has been conducted to justify the rate increase, all documentation justifying
this increase should be shared with the Gem State Water customers and not hidden.
There are many questions that need to be answered to justify such an exorbitant rate
increase. I am very suspicious of a 79% rate increase coupled with a decrease from 10,000
gallons monthly use to 5,000 gallons. There are many irate water customers, and for many,
it will be an unjustified hardship. I'm hoping the Idaho Public Utilities Commission has
done their due diligence and has investigated and audited the Gem State Water District
making sure any rate increase is justified and will come to a reasonable decision on this
rate increase. Please take all my questions and comments into consideration when your
decision is made.
Respectfully Submitted
Jerry Whetstine"
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