20250814APPLICATION.pdf

RECEIVED
August 14, 2025
IDAHO PUBLIC
CapW UTILITIES COMMISSION
Water 2626 Eldorado Boise,Idaho 83704
Corp. Telephone [phone]
August 14, 2025
Commission Secretary
Idaho Public Utilities Commission
11331 W. Chinden Boulevard
Building 8, Suite 201-A
Boise, Idaho 83714
Re: Case No. CAP-W-25-02
In the Matter of the Application of Capitol Water Corporation for Authority to
Increase Its Rates and Charges for Water Service in the State of Idaho
Dear Commission Secretary,
Attached for electronic filing,please find Capitol Water Corporation's Application in the
above-entitled matter.
This application requests that the Commission authorize a 6.004% across-the-board
increase in water rates for residential, commercial, and private fire protection customers. This
request results in an increase to the Company's annual revenues of approximately $49,447. The
Company requests that such changes in rates and charges be effective on September 1, 2025.
Capitol Water Corporation is requesting that the Commission process this application under its
rules of modified procedure without hearing.
If you have any questions about the attached documents,please do not hesitate to contact
me.
Sincerely,
H. Robert Price, President
Capitol Water Corporation

ROBERT PRICE
PRESIDENT
CAPITOL WATER CORPORATION
2626 ELDORADO ST.
BOISE, IDAHO 83704-5926
208-375-0931
info(&capitolwatercorp.com
www.capitolwatereorp.com
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF )
CAPITOL WATER CORPORATION )
FOR AUTHORITY TO ) CASE NO. CAP-W-25-02
INCREASE ITS RATES AND CHARGES FOR )
WATER SERVICE IN THE STATE OF IDAHO. )
COMES NOW Capitol Water Corporation("Company"), the holder of Certificate of
Public Convenience and Necessity No. 239, and respectfully applies to the Idaho Public Utilities
Commission ("Commission") for authority to increase its base tariff rates for water service in the
State of Idaho effective September 1, 2025, by 6.004%. In support of this Application, Capitol
Water Corporation states as follows:
I. BACKGROUND AND SERVICE AREA
Capitol Water Corporation is a public utility as defined by Idaho Code § 61-129 and is
subject to the jurisdiction of this Commission under Title 61 of the Idaho Code.
As of December 31, 2024, the Company provides regulated water service to
approximately 2,536 residential and 276 commercial customers located on the west bench of the
City of Boise. The Company's service territory is approximately bounded by Curtis Road to the
east, Maple Grove Road to the west, Ustick Road to the north, and Northview Street to the south.
The Company's current rates and charges were authorized by the Commission in Order
No. 36427, issued in Case No. CAP-W-24-01 on December 19, 2024. Rates were changed to
reflect the Commission Order in January 2025.
The revenue requirement approved in that case was based on a 2022 test year with known
and measurable changes through 2024. Certain capital expenditures, including the cleaning and

rehabilitation of Well No. 7, were anticipated but not completed before the closure of that case
due to timing constraints and financial limitations.
The Company now proposes to include capital expenditures placed in service through
August 11, 2025, as well as known and measurable expenditures to be placed in service by
September 30,2025. This includes the planned installation of a generator at Well No. 7, which
has been ordered and is expected to be installed by the end of September 2025.
This Application is limited to recovery of additional plant items, accumulated
depreciation, depreciation expense, and rate case expense.
II. BASIS FOR THE APPLICATION
Since the issuance of Order No. 36427, Capitol Water Corporation has completed the
cleaning and rehabilitation of Well No. 7, and several other significant capital improvement
projects. The Company now seeks to recover the associated costs.
This case is primarily to update the Company's rate base. Specifically,the Company
requests recovery o£
• Plant placed in service during 2024 not included in the last general rate case:
$35,133;
• Plant placed in service in 2025 through August 11, 2025: $167,668;
• Pro Forma Plant additions: $70,038:
• Total Plant in service increase requested: $272,839.
The increase in rate base includes accumulated depreciation and working capital
associated with the rate case expenses.
These projects were completed after Order No. 36427 and do not generate incremental
revenues. They represent capital investments necessary to maintain system reliability and meet
public health and safety requirements.
III. PROPOSED RATE ADJUSTMENT
The Company characterizes this Application as a"Make-Whole"filing, limited to
updating rates for plant additions, associated depreciation, and rate case expense.
No changes are proposed to operations and maintenance expense categories, other than
depreciation expense related to new plant and reasonable, necessary rate case expenses.

The Company requests that the revenue deficiency be collected on a uniform basis, as the
total number of customers served has not significantly changed since the last general rate case.
Exhibit No. 1 provides a one-page financial summary of the incremental revenue
requirement. Key figures are:
Line 1: Current rate base from Order No. 30198: $963,947
Lines 2-5:
2024 Capital additions less depreciation expense: $33,238
2025 Completed Capital additions less depreciation expense: 164,429
2025 Forma Capital Additions less depreciation expense: 68,637
Increase to Working Capital (1/81`Rate Case Expense of$7,750): $939
Line 6: Adjusted Rate Base: 1 231 220
Line 12: Incremental Revenue Requirement due to Rate Base: $36,322
Line 18: Incremental Depreciation&Rate Case Expense: $13,125
Line 19: Total Revenue Requirement Increase: 49 447
Line 21: Increase Required: 6.004%
The proposed base rate increase of 6.004%is designed to recover additional revenue of
$49,447, and will allow the Company to continue providing safe and reliable water service to its
customers. The proposed 6.004%across-the-board increase is detailed in:
• Exhibit No. 2—Redlined Tariffs showing the changes,
• Exhibit No. 3 —Clean Tariffs with proposed new rates.
Consistent with CAP-W-24-01,minimum and monthly charges are rounded up to the
nearest$0.05.
Also included with the Application are the following:
• Exhibit No. 4—Customer Notice(to be mailed with August 31, 2025 billings)
• Exhibit No. 5—Press Release (to be distributed and posted on the Company's
website on the filing date).

IV. PLANT IN SERVICE CAPITAL ADDITIONS DISCUSSION
The majority of plant additions in this filing relate to:
• Rehabilitation and Cleaning of Well No. 7-$85,219
• Preparation and Installation of Generator at Well No. 7-$79,011
Together,these projects comprise 60.2% of the total plant additions requested.
The plant additions placed in service in 2024 total $35,133. Of this amount, 35% is for
supply mains, and 47% is for services.
The plant additions placed in service in 2025 total $167,668. Of this amount, 5 1% is for
the cleaning and rehabilitation of Well No. 7; 19% is for pumping equipment: and 13% is for
electrical work for the new power generator.
Pro Forma Additions (through 2025)include:
• Paint shop and Wellhouse at Well No. 6 - $2,500 (firm bid)
• Generator at Well No. 7 - $56,438 (on order, delivery expected August 2025)
• Concrete pad for generator- $1,500 (estimate,to be completed August 2025)
• Harmonic filter for Well No. 7 -$9,600
Justification for work on Well No. 7: Declining efficiency required cleaning and
rehabilitation. Commission Orders Nos. 34783, 35224, 35582, and 35999 emphasize the
importance of maintaining the efficiency of the wells to control electricity costs passed to
customers. This project was planned for 2024, but delayed to 2025, due to the timing of the work
and financial constraints.
Justification for the Generator at Well No. 7: The April 1, 2024, Idaho Department of
Environmental Quality Sanitary Survey identified a deficiency in standby power at the largest
production well. Installation will ensure adequate pressurization during outages.
V. ACCUMULATED DEPRECIATION, DEPRECIATION AND RATE CASE
EXPENSE DISCUSSION
Capitol Water Corporation has included accumulated depreciation in the rate base
calculation for all plant placed in service, as well as for pro forma additions. The Company
applies the half-year convention for the first year that plant is in service.

For plant placed in service during 2024,the Company has included one and one-half
years of accumulated depreciation. This calculation reflects half a year of depreciation for 2024
and a full year for 2025. Similarly, for plant placed in service during 2025 and the pro forma
plant anticipated to be in service by September 30, 2025, one-half year of accumulated
depreciation is included.
A full year of depreciation expense has been included for the plant placed in service in
both 2024 and 2025, as the Company anticipates new rates in early 2026.
In 2025,the Company paid its consultant$7,750 for services related to this case: - $4,000
on April 4,2025 - $3,750 on May 23, 2025. These costs are included for recovery over a three-
year amortization period, consistent with CAP-W-24-01.
V. REQUEST FOR EXPEDITED PROCESSING
The Company requests that the Commission process this filing as a Make-Whole general
rate case under Modified Procedure, with the scope limited to recovery of capital additions,
accumulated depreciation, and rate case expense.
Given the limited scope and clearly identified adjustments,the Company believes
expedited review is appropriate and in the public interest.
Questions regarding this application should be addressed to
H. Robert Price Kathy Stockton, Consultant
Capitol Water Corporation Capitol Water Corporation
2626 Eldorado 2626 Eldorado
Boise, Idaho 83704-5926 Boise, Idaho 83704-5926
Ph: [phone] waterconsultantkls(kgmail.com
infokcapitolwatercorp.com
Please provide copies of all correspondence,notices, and orders to the above individuals.

VI. CONCLUSION
WHEREFORE, Capitol Water Corporation respectfully requests that the Commission:
1. Accept this Application as a Make-Whole General Rate Case;
2. Authorize a 6.004%increase in base tariff rates, effective September 1, 2025;
3. Approve recovery of the requested capital expenditures for plant additions and related
depreciation and rate case expenses;
4. Process the case by Modified Procedure; and
5. Grant such further relief as may be just and reasonable.
Respectfully submitted this 141" day of August 2025.
CAPITOL WATER COORPORATION
(41
tee
H. Robert Price
President, Capitol Water Corporation