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HomeMy WebLinkAbout20250804Comment_1.pdf 3uly 22, 2025 11269 Augusta Drive Idaho Falls, ID 83404 Commissioner John R. Hammond, 3r. P.O. Box 83720 Suite 201-A Boise, ID 83720-0074 RE: PUC Case #FLS-@-24-02 Dear Commissioner Hammond, I am writing to express my opposition to the proposed rate increase by Fails Water's parent company. I have submitted previous letters regarding the fiduciary responsibility that the PUC has to advocate for the ratepayer rather than the utility. Frankly, I believe that a forensic audit of audit of Falls Water & its parent company would be in order to gather facts and to create a "real world"view from the ratepayer's point of view. I reside at 11269 Augusta Drive, ID 83404. The six households in our cul-de-sac have expressed concern for the lack of water pressure every since Falls Water assumed operational oversight. We literally have one home on the Idaho Falls Golf Course that is just weeds & dead plants because the homeowner does not have sufficient pressure to operate a sprinkler system. The PUC granted an exclusive franchise to Falls Water to operate & ensure adequate service to its customer despite increases in rates. Water is a necessity, ever increasing profits through rate increases affects & hurts the most vulnerable who live on fixed incomes. There are considerable fixed income residents in the service area who will be harmed by the proposed draconian increases. Frankly, if the utility seeks to increase profits it can be accomplished through increased productivity, utilization available AI tools that minimize or reduce the human labor factor. I am attaching a copy of the analysis prepared by Romney B. Duffey, who lives in my neighborhood. His thorough analysis should provide the Commission justification & reasoning for disallowing the proposed rate increase that has been submitted by Falls Water's parent company. It is pathetic that an Oregon-based company, who's sole stated motive is every increasing profits. I have said before & I will say it again, utilities are granted a unique position in operating within their territory without any competition. Think of that! No competition! Competition drives innovation & drives prices down. In theory, I guess all of the households in the service area could decide to drill their own wells! \pectfully. I Da 'd R. A Berson I , ROMNEY B DUFFEY OF IDAHO FALLS, respectfully ask Idaho's PUC acting on behalf of the customers in this Case to reject and substantially reduce Falls Water Rate claim based on their own submission and the available data. A) THE BASIS FOR MY TESTI MONY AND FINDINGS: I THANK THE PUC FOR LETTING ME TESTIFY AND APPEAL DIRECTLY TO YOU. I AM A VERY CONCERNED CUSTOMER AND WORRIED A S WATER ACCESS, COST AND SUPPLY IS A MAJOR NEED AND VITAL ISSUE HERE IN IDAHO. TODAY IS A GREAT DAY FOR DEMOCRACY AND FOR IDAHO CUSTOMERS - AND A HUGE OPPORTUNTY FOR THE PUC TO DO THE RIGHT THING TO PROTECT BOTH OF THEM. ALTHOUGH LOCALLY WE ARE BLESSED WITH AMPLE SUPPLY FROM OUR MOUNTAINS, R IVERS AND GROUNDWATER A NON - LOCAL CORPORATE ORGANIZATION NOW HAS THE MONOPOLY - WHICH IS WHY I ASKED THE PUC NOT ONLY TO INTERVENE BUT TO DRASTICALLY LOWER THE REQUEST BASED ON THE ACTUAL LOCAL SITUATION. FALLS WA TER IS A 1% OR LESS PROPORTION OF THE OREGON NWN HOLDING COMPANY'S $1.2 B ILLION AND NWN WATER $290 M ILLION INCOME AND CASH FLOWSTREAMS. I WAS PERSONALLY AMAZED THEREFORE TO SEE THE SIZE OF THIS LOCAL RATE REQUEST. I FELT THAT JUST MY COMPLAINING WAS NOT SUFFICIENT - OTHER CUSTOMERS HAVE DONE THAT VERY EXTENSIVELY (SEE WEBSITE) AND HAVE ELOQUENTLY RAISED THEIR MAJOR SOCIETAL AND PERSONAL ECONOMIC ISSUES AND QUESTIONS . I EXAMINED THE SUBMISSION IN GREAT DETAIL AND FOUND ERRORS, OMISSIONS AND KEY MISLEADING STATEMENTS WITH SIMPLE USE OF A COMPUTER AND THE INTERNET. THEREFORE, I ASKED THE PUC BOTH TO EXAMINE THE CLAIMS AND REJECT THE SUBMISSION ANALYSES AND TO REDUCE THE REQUESTED INCREASE AMOU NT TO NO MORE THAN 6%, BASED ON CORRECT STATISTICAL ANALYSIS. I APPLAUD AND AM PLEASED TO SEE THAT THE PUC STAFF COMMENTS REPOR T ISSUED ON JULY 3 ADDRESSES MANY OF MY QUESTIONS AND SIGNIFICANTLY REDUCES THE 24% REQUEST TO 7.93% - QUITE CLOSE TO MY ESTIMATE OF 6% . IT IS A GOOD START THE STAFF HAVE DONE A THOROUGH REVIEW AND KINDLY PROVIDED THE DETAILED NUMBERS AND REVISED CALCULATIONS FOR WHICH I AM MOST GRATEFUL. AFTER EXAMINATION I FIND THE FOLLOWING ITEMS REMAIN FOR THE PUC TO ADDRESS AND CORRECT: 1. THE RATE INCREASE PLUS LARGE BASE ALLOWANCE REDUCTION CAUSES BILLS TO ACTUALLY RISE WITH MAJOR SOCIETAL AND ENVIRONMENTAL IMPLICATIONS DUE TO OUR LARGE FLUCTUATING SEASONAL USE PATTERN. 2. THE STAFF CALCULATIONS DO NOT INCLUDE THE ACTUAL STANDARD ERROR FOR INVESTMENT AMOUNTS SO UNCERTAINTY REMAINS DUE TO USING INAPPLICABLE COMPARABLE DATA AND A VERY SMALL SAMPLE. 3. THE EXCESSIVELY LARGE SHARE (6%) OF CORPORATE EXPENSES LIKE NATURAL GAS COSTS, SYSTEMS AND SALES DUE TO SOME PRIOR OUT - OF - STATE AGREEMENT' OR FORMULA SHOULD NOT BE ALLOWED OR APPLIED TO FALLS WATER. 4. THE LOWER BASE ALLOWANCE AND MUCH HIGHER TIER OR BLOCK 2 RATES CONFLI CT DIRECTLY WITH ADDING NEW CUSTOMERS AND PROJECTED CONNECTION GROWTH (ABOUT 5% PER ANNUM) SO ARE INCONSISTENT WITHTHE CLAIMED GOAL OF CONSERVATION AND OBVIOUSLY ANY AND ALL NEW WATER RIGHT S NEEDS AND COSTS SHOULD BE FULLY RECOVERED FROM NEWNOT CURRENT CUSTOMERS. 5. EVERY STATE IS DIFFERENT GEOLOGICALLY AND GEOGRAPHICALLY AND WE ALLOW CORPORATIONS THE BENEFIT OF OPERATING AND MAKING MONEY HERE BUT AT THE SAME TIME REQUIRE AND EXPECT BOTH ACCOUNTABILITY AND SENSIT IVITY TO LOCAL NEEDS AND CULTURAL HE RITAGE WHEN MANAGING OUR PRECIOUS RESOURCES. THE NW NATURAL HOLDINGS CORPORATE POSITION IS CLEAR: OUR CORPORATE PROFILE IS STRONG AND OUR FINANCIAL BACKING IS STEADY" (STATED AT HTTP S://WWW.NWNATURALWATER.COM/NW - NATURAL - HOLDINGS FEBRUARY, 2025), THIS COMFORTING PUBLIC ASSURANCE IS TOTALLY ABSENT FROM THE PUBLIC SUBMISSION AND TESTIMONY AND ALONE IS SUFFICIENT GROUNDS FOR REJECTING THE REQUESTED INCREASE. TODAY I AGAIN ASK THE PUC AND ITS STAFF TO NOT ALLOW THE DEVASTATING REDUCTIONS TO THE BLOCK ALLOWANCES AND LARGE INCREASES IN BILLS DUE TO THEIR POTENTIAL ADVERSE LOCAL, SOCIETAL, ECONOMIC AND ENVIRONMENTAL. IMPACTS AND TO NOT ALLOW THESE IN THE FUTURE. DETAILS ARE IMPORTANT — SO LET US EXAMINE SOME OF THEM. 1. FIRSTLY THE SUBMISSION RAISES KEY QUESTIONS a. THE FALLS WATER / NWN PUBLIC SUBMISSION APPE A RS TO FOLLOW A STANDARD STRATEGY, BOTH IN FORMAT AND METHODOLOGY FOR THE UTILITY BUSINESS. ASK FOR A LOT, COMPLAIN ABOUT IN A DEQUUATE REVENUE AND RETURN (ROE ETC), AND HOPE TO GET SOMETHING , WHILE ANSWER ING ROUTINE QUESTIONS WITH LENGTHY BUT UNFORTUNATELY INCORRRECT AND INCOMPLETE JUSTIFICATIONS. b. FALLS WATER'S OPERATIONS MANAGER EVEN PUBLICALLY STATED IN FEBUARY: I'M MORE CONFIDENT THAN EVER THAT WE HAVE THE CAPITAL, TECHNICAL AND REGULATORY RESOURCES TO SUPPORT OUR RAPIDLY EXPANDING SERVICE TERRITORY." (SEE https://www..nwnaturalwater.comjour-systems). THIS WAS AFTER THE SUBMISSION ASKING FOR LARGE INCREASES. SO THE SUBMISSION WAS CLEARLY BIASS ED AND CONTAINS TECHNICAL ERRORS AND ITSELF. c. RAISED MANY QUESTIONS: i. DESPITE SO MUCH CLAIMED FINANCIAL PAIN AND WITHOUT INCENTIVE S TO BE EFFICIENT THE CORPORATE OWNERS AND COMPANY HAVE NOT EFFECTIVELY MANAGED THE SITUATION, SO WHY ARE THEY ALSO CLAIMING PUBLICALLY (SEE THEIR WEBSITES) TO HAVE ADEQUATE RESOURCES AND FINANCIAL STRENGTH? ii. WHY ARE UNDERLYING OREGON PARENT C 0 R P 0 R A TE DATA AND DETAILS (FORNWNW AND NW HOLDINGS) STILL NOT AVAI L A B LE FOR TRANSPARENT REVIEW OR DISCLOSED IN THE SUBMISSION AND PUC REPORT? iii. WHY ARE THERE STILL GROWING OVERHEAD COSTS AND BUSINESS GOALS OF A BIG (5% PER YEAR) SERVICE REGION EXPANSION WHICH CONFLICT S DIRECTLYWITH CURRENT SUPPLY ISSUES, OVERPRODUCTION FEES AND KNOWN WATER RIGHTS INADEQUACIES? iv. L GIVEN FALLS WATER IS NO MORE THAN 1 % OF THE TOTAL CORPORATE BUSINESS AND RISK WHY ARE THEY JUSTIFIED IN CLAIMING 6% AND MORE IN ALLOCATED' EXPENSES INCLUDING M E M BERSHIPS, TRAVEL, TOTALLY INAPPLICABLE GAS AND OTHER BUSINESS OVERHEAD COSTS BASED ONLY ON SOME EXISTING (MASACHUSETTS METHOD) AGREEMENT APPARENTLY WITH IDAHO AND OTHER PUCS? v. IT WAS NWN W AND NW HOLDINGS SOLE DECISION TO AC QUIRE THE IDAHO COMPANIES SO WHY ARE THEY NOW CLAIMING BIG RISKS AND INADEQUATE RETURNS? (ANYONE ELSE WOULD HAVE BEEN FIRED OR CASTIGATED FOR DOING THIS!!). vi. WHY IS THE MULTISTATE OREGON CORPORATE BUSINESS MO DEL AND LOCAL IDAHO PLAN NOT PUBLICALLY AVAILABLE BUT CLEARLY BASED ON EXPANSION BY ACQUSITION AND THEN ASKING FOR MASSIVE RATE INCREASES CASE - BY - CASE IN STATE - BY - STATE? vii. THE COMPARABLE COMPANIES SELECTED FOR ANALYSIS TO JUSTIFY INCREASEARE ADMITTED TO BE NOT COMPARABLE - SOME ARE OVER 100 TIMES LARGER. IN REVENUE THAN TINY FALLS WATER AT $3M - SO WHY WERE THEY EVEN INCLUDED AND WHY WERE THE ACTUAL SUBMITTED STATISTICAL ANALYSES ON FINANCIAL RETURNS INCOMPLETE AND THE CLAIMS SO MISLEADING? (MANAGING A SMALL SUBSIDIARY IS NOT AT ALL LIKE OPERATING A BIG CORPORATION). viii. THE TIE RED BLOCK RATES IN TH E PUC REPORT LOOK TO BE A NICE "CONSERVATION' IDEA ON THE SURFACE BUT HIDE A SERIOUS ISSUE - AS YOU CAN TELL TODAY THE IDAHO WEATHER IS TOTALLY SEASONAL WITH HUGE PEAK SUMMER DEMAND PERHAPS 20 TIMES OR MORE HIGHER THAN WINTER. WE IN IDAHO FALLS LIVE IN HIGH DESERT AND THE DATA SHOWS THIS HUGE PEAK USAGE NOT ONLY EXCEEDING THE BASE ALLOWANCE BUT IS NOT NORMALLY DISTRIBUTED OR POSSIBLE TO REDUCE FURTHER SO WHY IS THIS NOT CONSIDERED? (SEE GRAPH). ix. SUMMER WATERI NG HERE IN IDAHO FALLS IS NOT A CHOICE SO THERE IS LARGE MAJOR ENVIRONMENTAL IMPACTS FROM FORCING COST— DRIVEN REDUCTIONS. ANY INABILITY TO PAY MORE, BIG SPRINKLER CHANGE COSTS OR JUST NOT ABLE TO AFFORD TO FULLY WATER ARE NOT DISCUSSED. DESPITEOUR BEST EFFORTS SOME OF OUR MODEST GARDENS, PRECIOUS FRUITS, FLOWERS AND LANDSCAPES WILL JUST DIE OR JUST REVERT TO DESERT - CAUSING HUGE DAMAGE TO NEIGHBORHOODS AND LANDSCAPING. THIS SIGNIFICANTLY INCREASES THE FIRE HAZARDS AND ENTAILS POTENTIALLY HUGE COSTS FROM INEVITABLY DYING TREES, SHRUBS AND GROUNDCOVER, PLUS PRUDENT FIRE PREVENTION REQUIREMENTS AND COSTS SO WHY ARE THESEREAL CONCERNS NOT ADDRESSED? x. IN IDAHO WE NEED MANAGED GROWTH ESPE CIALLY FOR OPTIMIZING OURWATER SUPPLY AND DEMAND GIVEN THE ADMITTED PRESENT FALLS WATERCOMMODITY SUPPLY SHORTAGE SO WHY ENDORSE THE FALLS WATER 5%CUSTOMER AND REVENUE GROWTH TARGET, ALLOW NEW CONNECTIONS ATEXISTING COSTS, AND WHY HAVE ANY APPAR ENT CUSTOMER GROWTH GOALS FOR THE COMPANY AT ALL? xi. NONE OF THIS DISCUSSED SO SERIOUSLY WHY AND HOW COULD THIS CLAIM EVEN BE RE QUESTED LET ALONE ALLOWED? xii. AND WHY NOW? WATER LOSS' IS STATED TO BE STILL ABOVE 10% (PUC STAFF REPORT TABLE 4) OR ABOUT A MONTH'S SUPPLY SO SURELY IT IS BEST TO REDUCE THIS ASAP TO OFFSET ANY BLOCK ALLOCATION CHANGES AND REDUCE OVERPRODUCTION .FEES. WE DO AGREE WITH THE STAFF ON ALLOWING THE MINOR MORNINGVIEW RATE DECREASE - BUT THE VAST MAJORITY OR 98% OF CUSTOMERS ARE STILL FACED WITH MASSIVE INCREASES THAT THEY HAVE NO MEANS TO ABSORB. d. WHAT IS THE MIN I MUM JUSTIFIABLE INCREASE? THE REAL NEED IS TO ESTABLISH WHAT MIN I MUM INCREASE SHOULD THE PUC ALLOW AND WE THE PEOPLE AND THEIR CAPTIVE CUSTOMERS ALLOW? THE PROBLEMS IN THE SUBMISSION ARE NOT HARD TO FIND BUT NOT EASY TO CORRECT. A CLEAR EXAMPLE OF EXTORTION AND BIAS IS IN THE SUBMISSON ITSELF (P29 LINE 1). e. "THERE IS NO UNIVERSALLY ACCEPTED METHOD FOR DETERMINING AN APPROPRIATE RISK - BASED AJUSTMENT. THEREFORE, I RECOMMEND THAT THE IDAHO PUC NOT AUTHORIZE AN ROE IN THE LOWER END OF THE RANGE OF ROE ESTIMATES PRESENTED HERE." f. THE PUC STAFF HAS CAREFULLY REDONE THE CALCULATIONS AND ALREADY FOUND THIS'ADJUSTMMENT' IS NOT APPROPRIATE WE ALL KNOW THAT AS MARK TWAIN EXPLAINED "THERE ARE LIES, DAMN' LIES AND STATISTICS" SO HERE WE HAVE ANOTHER FINE EXAMPLE. THE MAJOR TECHNICAL ISSUE I FOUND IS THE LACK OF A PROPER STATISTICAL ANAL YSIS - NOT ONLY WERE THE 'COM PARABLES' FINANCIAL DATA NOT GIVEN IN THE SUBMISSION BUT THE SUBMITTED ANALYSIS DETERMINES AND USES AVERAGES' WITHOUT STATING THE TRUE ERROR RANGE OR ANY CONFIDENCE LEVELS. THIS ERROR AND LO WER LIMIT ESTIMATE IS NOT ROCKET SCIENCE OR COMPLEX AND OBSCURE STATISTICS - IT IS COMMON PRACTICE AND AVAILABLE IN TEXTBOOKS THE WELL KNOWN PROVEN WAYS FOR QUANTIFYING THE MOST LIKELY RANGE ARE CALLED THE '95% CONFIDENCE LEVEL' OR THE STANDARD ERROR' IN POLITICAL POLLS WITH WHIC H YOU MAY BE FAMILIAR IT IS OPENLY CALLED "THE MARGIN OF ERROR". THIS ERROR IS A LWAYS A SERIOUS PROBLEM WHEN POOLING' INCOMPATIBLE DATA ESPECIALLY HAVING ONLY A VERY SMALL SAMPLE FROM WILDLY DIFFERENT OPERATIONS - IN THIS CASE FOR SEVEN COMPANIES 300 OR MORE TIMES LARGER THAN FALLS WATER!! THE LIKELY CLAIM IS THAT THEY ARE COMPARABLE TO NWN WATER AND NW HOLDINGS FOR WHOM WE HAVE NO DATA SUBMITTED. BUT CLEARLY FALLS WATER IS A MINISCULE 1% OF THE CORPORATION AND I S FISCALLY INSIGNIFICANT AND JUST A SMALL SUBSIDIARY AND NEGLIGIBLE RISK. g. CALCULATING A LOWER LIMIT TO DO THIS CALCUATION USING EXCEL I HAD TO FIND THE NEEDED FINANCIALRETURN AND REVENUE DATA ONLINE AND CALCULATE D THE RANGE - THIS WAS QUITEA TASK AND WAS DETAILED IN MY WEBSITE COMMENTS.AS REQUESTED, THE PUC STAFF HAVE ALSO RE-ANALYZED AND ADDED ANOTHER COMPARABLE' BUT DO NOT GIVE THE STANDA RD DEVIATION OR ERROR. WE CAN CALCULATE IT IN A FEW MINUTES USING EXCEL XLS,IF WE INCLUDE THIS ADDED COMPANY. EVEN IF UNWISELY ACCEPTING THE NWN - SIZED $300M+ COMPARABLES AS PROVIDING SOME AVERAGE, THE STATISTICALLY DERIVED MINIMUM FINANCIAL RET URNS AT 95% CONFIDENCE ARE 5.5% WHEN INCLUDING 'THE MARGIN OF ERROR' THE TRUE UN CERTAINTY OR TWO STANDARD ERROR RANGE IS LARGE, AND THIS LOWER LIMIT FOR THE ROE EXPLAI NS WHY IT IS NOT GIVEN IN THE SUBMISSION. THIS ALSO SHOWS CLEARLY THE REQUEST IS HEAVILY BIASSED UPWARDS (EUPHAMISTICALLY CALLED THE REQUIREMENT') BECAUSE THE RANGE IS NOT STATED OR EVEN DISCUSSED JUST SO ME AVERAGE' BASED ON A SMALL IN APPLICABLE SAMPLE. EVEN ADDING ON THE 1% CORPORATE RISK THAT FALLS WATER TRULY REPRESENTS TO ITS OWNERS AND INVESTORS GIVES MY 6% SUGGEST ION WHICH IS 3% LOWER THANTHE PUC STAFF REPORT PROPOSAL. THE ADDED SAVINGS WOULD BE ABOUT 6/9.7 X $59,223 = $36,632. WE IN IDAHO FALLS DO NOT WANT TO BE AMONG THE HIGHEST RATE PAYERS BUT NEARER TO THE MIN I MUM POSSIBLE FAIR AMOUNT. h. THERE ARE OTHER INFLATED NUMBERS BEHIND THE NUMBERS FALLS WATER WHILE ONLY 1% OF NWN I NCOME AND CASH FLOWS IS BEING ALLOCATED 6.1% OF THE CORPORATE EXPENSES IN CURRED IN OREGON. IDAHO CUSTOMERS ARE BEING ASKED TO PAY FOR A SHARE OF EXPENSES OVER WHICH THEY HAVE NO INPUT, CONTROL OR SAY. IF 6% IS AGREED' FOR SOME REASON I ASK THAT THE PUC SHOULD STILL EXCLUDE THE ACTUAL IRRELEVANT CORPORATE GAS CHARGES ($ 1,398, 166 ROWELL EXHIBIT 2H). USING THIS IDAHO FALLS METHOD GIVES A SHARE REDUCTION OF $86,126, WITH STILL $174,795 BEING PAID TO THE OREGON CORPORATE ENTITIES BUT REDUCING THE AMOUNT TO FALLS WATER FAIR SHARE OF 1% GIVES A MASSIVEREDUCTON OF OUT - 0 F - STATE COSTS OF $218, 610 INSTEAD OF PAYING NWN $260,291 (ATTACEMENT A P2).WE CAN NOT UNDERST A ND WHY THE ' MASSACHUSETTS METHOD ' SHOULD BE APPLIEDFAR AWAY IN IDAHO WHERE WATER NEEDS AND USE ARE SO DIFFERENT.THE PUC STAFF EVEN SAY ON SHARED SERVICES: STAFF DOES NOT BELIEVE THE BUDGETED AMOUNTS ARE KNOWN OR MEASURABLE " (P21) SO WHY SHOULD WE PAY ANYTHING? SO IDAHO PUC AND ITS WATER -ONLY USERS REALLY DO NEED TO CREATE A NEWAGREEMENT WITH OREGON AND NOT PAY FOR INAPPLICABLE GAS SERVICE COSTS. ALSO STATED IS "FALLS WATER IS SEEKING TO RECOVER MORE IN SHARED SERVICES COSTS THAN IT ACTUALLY INCURRED IN 2024, WITH A 3% INCREASE INCLUDED OVER THE 2024 CHARGES ". THIS IS SIMPLY NOT JUST I FIED IN THE SUBMISSION AND THE STAFF HAS REDUCED THE AMOUNT BUT ONLY BY $35,903. i. MAJOR MONTHLY BILL IMPACTS ARISE FROM THE PENALTIES OF REDUCED FIRST BLOCK BASE ALLOCATION OF 2000 GALLONS AND INCREASED TIER 2 RATES SUMMER IS REALLY WHEN FALLS WATER MAKES MOST OF ITS 'INCOME', SO WHAT IS THE INCREASE I N ACTUAL BILLS? j. THE STAFF REPORT ATTACHMENTS H AND I ON BILL IMPACTS ARE EXCELLENT AND HAVE ALL THE USEFUL CALCULATIONS AND I THANK THEM FOR ALL THIS GOOD WORK. BUT THEY SHOW FOR A'SUMMER AVERAG E' USER THE PROPOSED AVERAGE ACTUAL BILL INCREASE IS ABOUT 16%, AND FOR A 'HIGH USER' IS ABOUT 11%. THESE ARE AT LEAST 25% ABOVE THE 7.9% ASSESSED BY THE STAFF SO ARE TOO JUST MUCH, ESPECIALLY FOR ANYO NE ON A MONTHLY BUDGET, FIXED INCOME OR STEADY PAY CHECK SO SHOULD BE SGNIFICANTLY REDUCED. THE PUC SHOULD REDUCE THIS BLOCK COST INCREASE BASED ON ECONOMIC AND SOCIETAL GROUNDS. k. EXISTING SUPPPLY SHORTFALL, NEW HOOK UP CHARGES AND NEW CUSTOMERS THE STAFF REPORT SAYS THE FALLS WATER SYSTEM SUPPLY FALLS SHORT EVEN NOW AND 'MAY NOT HAVE ENOUGH CAPACITY'TO SATISFY THE PROJECTED GROWTH (P5) GIVEN THIS CURRENT SUPPLY SHORTFALL WHY ADD ANY MORE NEW HOOK UPS AT ALL? THIS IS A REAL BUT HIDDEN ISSUE. TODAY, PRODUCTION BY FALLS WATER ALREADY EXCEEDS THEIR WATER RIGHTS AND IT DOES NOT GET BETTER AS "STAFF BELIEVES THAT THERE IS A HIGH PROBABILITY WILL INCUR ASSESSMENT FEES DUE TO OVERPRODUCTION IN THE NEAR FUTURE (P2) I. THE STAFF ONLY RECOMMENDS UPDATING (P25) BUT THE REAL COSTS ARE FOR ADDING NEW INFRASTRUTURE AND MORE RIGHTS WHILE PRESENT HOOK UPS ARE STILL ARTIFICALLY CHEAP AND PRESENT SUPPLY INADEQUATE THERE SHOULD LIKELY BE A MORITORIUM ON ANY NEW CONNECTIONS AT LEAST UNTIL ABLE TO FULLY MEET JUST TODAYS NEEDS. THE TRUE COSTS OF ADDING NEW SUPPLY AND RIGHTS MUST BE ESTABLISHED AND ANY"BUILDOUT" DEFERRED ANDNEW CONNECTION COSTS RECOVERED IN FULL FROM FUTURE USERS I HAVE FOUND AND SUBMITTED AT LEAST TEN SUFFICIENT REASONS FOR THE PUC TO REQUIRE SUBMISSION REVISION, RATE INCREASE REJECTION AND MASSIVE REDUCTION DUE TO THE MISLEADING STATEMENTS AND STATISTICAL INACCURACIES IN FALLS ATER EXHIBITS, TESTIMONY AND FINANCIAL ANALYSIS. THE PRESENT REMARKS ARE DISTRIBUTED HERE AT MY OWN EXPENSE (THE TRANSCRIPT COSTS $$$!) FOR THE OPEN PUBLIC RECORD. GIVEN THEIR OWN INTERESTS AND POSITION, I FULLY E XPECT THE COMPANY TO OPPOSE THESE FINDINGS AND RECOMMENDATIONS SO ASK THE PUC TO RULE IN FAVOR OF IDAHO CUSTOMERS. THANK YOU FOR YOUR ATTENTION - I HOPE I NEVER HAVE TO DO THIS AGAIN! I DO HOWEVER WELCOME ANY QUESTIONS YOU MAY HAVE. Idaho Falls is seasonally water-dependent high desert Summer peak need Is about 20x times proposed base allowance while normal distribution is only Sx times 0-9 I O8 - / 1 \ 0.7 f \ t \ I \ f \ 1 \\ OA �J-� —A� ----- 0.3 r r \ %r 0.2 - �,t��_.,t_ -�-i% - r--Typkalseasnn 0 1 2 3 a S 6 7 a 9 10 11 12 Monm Janmy Figure 1:Typical Idaho Falls seasonal use variation showing the huge summer peak and very low base. -Ale, 0 C:) E E Lu CD LU 0 ry) < 0 X 00 1 0 .0 —1 D 0 (n X C:) . 0 rJ E a) E 0 0 0 cc pwl�l -C�