20250623Comments_5.pdf

The following comment was submitted via PUCWeb:
Name: James Johnson
Submission Time: Jun 21 2025 2:46AM
Email:[e-mail]
Telephone: [phone]
Address: 1290 E Margaret Ave
Coeur d'Alene, ID 83815
Name of Utility Company: Gem State
Case ID: GSW-W-24-01
Comment: "Attended both workshop and public hearing. Pet peave, Troy Hoffmans rates
were not$27.50/per month as presented 2 years ago that was a 2 month billing($13.75 per
month) Once one pencils out the already approved increases, one understands annual
charges for most went from $175-185 per year, to $420 ($35x12) plus another 100 or 200 for
usage.
The proposed increases will change these numbers to $642 (53.50x12) plus another$200-
400 overage charges for most, increased $700 to $1,000 annual water bills.
As an 85 year old neighbor said he will need a rain barrel to afford his garden. My own view,
the rate increases far exceed years of prior managements, triggers thought of usury laws
used in finance.
Please don't support these requests, were are getting less than before, those of us at
ground level wish Gem State never entered the picture."
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Idaho Public Utilities Commission
P.O. Box 83720
Boise, Idaho 83720
Case#GSW-W-24-01
My name is Jerry Whetstine and I'm located in the Bar S water water district administered and
owned by the Gem State water company and I'm addressing the proposed 79%water increase
Gem State Water is certainly a monopoly and is enabled by the Idaho Public Utilities
Commission. It is guaranteed a sufficient rate of return by the Idaho Public Utilities Commission.
With this guarantee Gem State Water assumes no risk in its business decisions. It can continue
to buy water districts, invest in those districts then turn to the Idaho Public Utilities Commission,
claim poor, then pass on exorbitant rate increases to us customers to pay for it all. Because the
Idaho Water Public Utilities Commission guarantees them a sufficient rate of return there is no
need for the Gem State to act prudently with its finances.
The Gem State Water Company is a private company with shareholders. They are always
obligated to the shareholders to make as much profit as possible which comes at the expense
of the Gem State Water customers.
The Gem State Water increase notice states "recover the current cost of operating and
maintaining the water systems, which has escalated in recent years, prudently incurred system
improvements, and recent investments to replace aging infrastructure".
With any investments or purchase of a new water district the cost is always passed on to current
customers. There is never a risk to Gem State Water as they are always guaranteed a sufficient
rate of return from the Idaho Public Utilities Commission.
The Idaho Public Utilities Commission requirement states:
"The revenue the Company needs to meet its expenses, cover depreciation, and earn a
sufficient rate of return to attract investors."
1. What is the definition of a sufficient rate of return?
2. What is a sufficient rate of return for Gem State?
3. What are the guidelines that the Idaho Public Utilities Commission uses to give Gem
State Water a sufficient rate of return?
4. Who makes the decision on how much the sufficient rate of return is for Gem State?
5. Are any employees or family members of the Idaho Public Utilities Commission
shareholders in Gem State Water?
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6. What is the appeals process for any decision that the Idaho Public Utilities Commission
makes?
7. Why is there no documentation available for these questions?
I have been in my home for 4 years. We have a home with acreage, livestock, garden and
maintain a fire zone of grass around our house for fire protection. Many of our neighbors are in
the same situation living in our rural area. Many homes in our area have livestock including
ourselves. Did you know that just one horse drinks an average of 10 gallons a day and one cow
can drink between 12 and 30 gallons a day. As you can see that can really add to gallons of
water used every month.
We certainly have a major issue with water pressure. I have documented water pressure as low
as 31 pounds in the summer. Two years ago I contacted Gem State Water on the low pressure
issue. I told them I have documented water pressure as low as 31 pounds in the summer and
was very concerned about having enough water pressure. In case of a fire, can the fire
department do their job with such low water pressure?
The Gem State representative who met with me recognized the low water pressure issue and
related it to aging water pumps and an increase in construction of homes. He also stated that 31
pounds of pressure still meets the State of Idaho requirements. He indicated funds were in
place to update the pumps and it would be about a year. Two years later there is still low water
pressure. The only improvement has been a new water meter.
Because of the extremely low water pressure I had to install a water booster pump for my house
with a cost of$2,000.
In my last letter to the Idaho Public Utilities Commission I asked in writing to provide written
documentation to memorialize the following:
1. Justify the 79% increase with financial statements for review.
2. Has Idaho Public Utilities Commission conducted an audit on Gem State to justify a 79%
increase. if they have, why has the audit not been disclosed to Gem State Water
customers.
3. If the state has not done an audit, why not. It certainly can not approve any rate increase
without updated audit information.
4. Does the Idaho Public Utilities Commission have documentation in hand to support this
exorbitant rate increase or does it just take the word of Gem State Water that this
increase is necessary. If they have documentation, why has it not been disclosed?
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As of this date the Idaho Public Utilities Commission has not provided any information to
memorialize. Why not?What's going on?Why are we the customers being kept in the dark on
this exorbitant rate increase.
Did you know that the monthly allotment for water in Coeur d'alene is 30,000 gallons a month
and the monthly charge is less than our monthly charge. This certainly shows that we are
already paying a very high cost for water.
To put this all in perspective, the Gem State Water is a MONOPOLY and is enabled by the
Idaho Public Utilities Commission by their policy, that Gem State Water is guaranteed a
sufficient rate of return, no matter how good or bad the company is run. With this policy it is
certainly financially beneficial to be a Gem State Water shareholder.
There are many questions that need to be answered for such an exorbitant rate increase and
the Idaho Public Utilities Commission has not answered one question or provided any
documentation.
Why? What are they hiding?
I'm very suspicious of a 79% rate increase coupled with a decrease from 10,000 gallons
allotment to 5,000 gallons. For many customers this increase will be an unjustified hardship.
I hope the Idaho Public Utilities Commission has done their due diligence and has investigated
and audited the Gem State Water District to make sure any rate increase is justified and fair.
Please take all my questions and comments into consideration when your decision is made.
Respectfully Submitted,
Jerry Whetstine
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You may either hand this sheet to a commission staff member or mail it to:
IPUC, PO Box 83720, Boise, ID 83720-0074
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10/23/23 5
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6-18-2025
RE: Gem State Water proposed rate increase
Case No. GSW-W-24-01
My husband, Rich and I purchased property in Diamond Bar Estates in 2001. At
that time, there were no trees or lawn on our 5 acre piece of property. As of today,
we have 65 trees, about 2 acres of irrigated lawn, plus bushes, shrubs, flowers and
a large garden. You may wonder why would we plan away like that? Well, we both
love to be outside and working in the yard AND at that time, there was a flat
summer irrigation water rate of $250.
Last summer, our highest month of water was $555.77.
Our total summer of 2024 watering bill was $1,711.22. 1 will let you do that
percentage increase math!
I could go on and on about how I feel and why this proposed increase shouldn't
happen - but I won't. It just makes me sad that our irrigation rate needs to be so
astronomical. It feels like a penalty for having 5 acres and trying to keep it looking
nice and enjoying the health benefits of having a little farm.
Thank you for considering our position as property owners.
Mary and Rich Boettcher
1014 [e-mail]1
208-659-7784
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