20250915Application.pdf

RECEIVED
SEPTEMBER 15, 2025
IDAHO PUBLIC
UTILITIES COMMISSION
Jennifer Reinhardt-Tessmer (ISB No. 7432)
Kira Dale (ISB No. 6571)
KIRTON MCCONKIE
1100 W. Idaho St., Ste. 930
Boise, ID 83702
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]
Attorneys for Dry Creek Water Company LLC
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION ) CASE NO. DRY-W-25-01
OF DRY CREEK WATER COMPANY LLC )
FOR A GENERAL RATE CASE ) APPLICATION
COMES NOW, Dry Creek Water Company ("Dry Creek", "Company", or
"Applicant") and hereby applies to the Idaho Public Utilities Commission ("Commission"
or " IPUC"), pursuant to Idaho Code §§ 61-307, 61-502, 61- 524, and 61- 622 and Rules
52, 121, and 125 of the Commission's Rules of Procedure, IDAPA 31.01.01. In support
thereof, Applicant respectfully represents the following:
I. INTRODUCTION AND REQUEST
1. The Applicant seeks Commission approval for revisions to its rates for water
service in the State of Idaho.
2. Current operating costs continue to exceed revenues from customer charges. To
continue providing reliable service, we are requesting approval of annual revenue in the
amount of$1 ,637,275.
DRY CREEK WATER COMPANY'S APPLICATION - 1

3. As this is Dry Creek's first formal rate application, it will establish a baseline for
rates. Applicant is committed to easing the impact on customers through a phased
approach — similar to cost-of-living adjustments — beginning with an average residential
increase of 6%, followed by similar incremental steps in 2027 and 2028.
II. BACKGROUND
4. Dry Creek is a Limited Liability Company formed in the State of Idaho with its
primary place of business located at 923 S. Bridgeway Place in Eagle, Idaho.
5. Dry Creek is a public utility providing water service to approximately 570
customers in the Dry Creek Ranch development in Boise, Idaho. A certified copy of the
Company's Articles of Incorporation, along with all amendments, is on file with the
Commission.'
6. The Commission approved the Company's current rates in Case No. DRY-W-
24-01, wherein the Commission issued the Company a Certificate of Public
Convenience and Necessity (CPCN No. 556) to operate a water system and provide
potable water to customers in Dry Creek Ranch. As part of that case, Staff reviewed the
Company's current service rates and found them to be fair, just, and reasonable. See
Order No. 36361. The Company's current tariff can be viewed on the PUC's website at
www.puc.idaho.gov by selecting File Room — Tariffs, Prices Lists & Filing Instructions —
Approved Tariffs and Price Lists — Water Tariffs — Dry Creek Water Co., LLC.
7. The Company's priority has consistently been to maintain low rates for its
customers while delivering reliable and safe water services. However, it is now
Relevant corporate documents were filed in Case No. DRY-W-24-02, which filing was ultimately
determined to be a compliance filing in Case No. DRY-W-24-01.
DRY CREEK WATER COMPANY'S APPLICATION - 2

necessary to increase rates to ensure the continued health, resilience, and sustainability
of Applicant's water company.
8. Much like an annual cost-of-living increase that reflects changing economic
conditions, Applicant's utility requires a reasonable increase in the authorized rate of
return. This adjustment will help Applicant to proactively prepare for ongoing growth and
the evolving needs of its system.
9. A fair rate of return is a critical component of responsible utility management
that will provide customers with assurance that efforts are being undertaken in order to
meet evolving regulatory and environmental standards; and that the Company can
sustain long-term system integrity and reliability, while continuing to provide high-quality
service to both current and future customers.
III. CUSTOMER NOTICE
10. Applicant is sending notice of this filing pursuant to Rule 121.01(c) to its
customers by direct mailing in the next bill cycle and through press releases, copies of
which are attached as Exhibits 1 and 2 to this Application. Additionally, the Application
will be available on the Commission's website at www.puc.idaho.gov. The Application
can be accessed by selecting Water; Open Cases; Case DRY-W-25-01.
DRY CREEK WATER COMPANY'S APPLICATION - 3

IV. COMMUNICATIONS
11. Communications in reference to this Application should be addressed to
Jennifer Reinhardt-Tessmer
Kira Dale
KIRTON MCCONKIE
1100 W. Idaho St., Ste. 930
Boise, ID 83702
Telephone: [phone]
Facsimile: [phone]
jtessmer(c�kmclaw.com
kdaleC@.kmclaw.com
valtig(c)_kmclaw.com
V. PROPOSED TARIFF REVISIONS
12. Pursuant to Rule 121.01(a), Applicant includes as Exhibit 7 both clean and
redlined versions of the proposed revisions to its current tariff service charge and fee
schedule, reflecting the proposed changes effective on October 15, 2025 or as soon as
possible thereafter.
VI. EXPLANATION OF PROPOSED RATE MODIFICATIONS
13. To ensure the continued health and viability of its services, the Company is
requesting approval of annual revenues of $1,637,275.
14. The requested rate adjustment is primarily driven by the need to keep pace with
rising costs of providing reliable water service while accounting for growth in the
customer base. In the past, the Company's main focus has been on keeping customer
rates as low as possible. While this approach has supported affordability in the early
stages of service, it is no longer sustainable in light of Dry Creek's growing
responsibilities and the need for ongoing investment in the delivery system.
DRY CREEK WATER COMPANY'S APPLICATION - 4

15. Based on its financial analysis, the Company has determined that a full recovery
of its entire revenue requirement ($1,637,275) is neither immediately necessary, nor in
the best interests of the Company's customers or affiliated entities. Instead, to mitigate
the impact on customers, the Company proposes a phased rate adjustment to be
implemented over a three-year period, rather than applying the full increase at once.
This gradual approach reflects a prudent balance between ensuring a reasonable rate
of return for the Company and maintaining affordability for customers. By spreading the
increase over time, the Company can responsibly address rising operational and capital
costs while minimizing financial strain on its customers. This phased approach balances
the need for a higher rate of return with the Company's commitment to customer
affordability.
16. Filed concurrently herewith are Exhibits 1-7, which include:
Exhibit 1 — Notice to Customers
Exhibit 2 — Press Release
Exhibit 3 — Income Statement
Exhibit 4 — Plant in Service
Exhibit 5 — Rate Base
Exhibit 6 — Revenue Requirement
Exhibit 7 — Current Tariff with Proposed Changes in Redline and Proposed
Tariff (Clean)
17. As reflected in the supporting exhibits, the proposed increases would provide an
expected rate of return of 7.3% in 2028 on the Company's investment in property that is
both used and useful in rendering water service. In summary, Applicant proposes to
implement the requested increase in revenue as follows:
DRY CREEK WATER COMPANY'S APPLICATION - 5

• effective in 2026, a $2.85 increase in the monthly fixed fee and an
increase in the usage rate from $2.00 to $2.12 per 1,000 gallons, resulting in a 6%
increase to the 2025 average monthly residential water bill;
• effective in 2027, a $3.02 increase in the monthly fixed fee and an
increase in the usage rate from $2.12 to $2.25 per 1,000 gallons, resulting in a 6%
increase to the 2025 average monthly residential water bill; and
• effective in 2026, a $3.20 increase in the monthly fixed fee and an
increase in the usage rate from $2.25 to $2.39 per 1,000 gallons, resulting in a 6%
increase to the 2025 average monthly residential water bill.
18. Additional customer growth—projected at approximately 75 new homes per
year—will generate incremental revenue and is anticipated to contribute to narrowing
the gap between existing revenue levels and the Company's operating and capital
investment needs.
VII. REQUEST FOR RELIEF
19. The Company respectfully requests immediate consideration of this Application
through modified procedure. The Company further requests that the PUC ultimately
issue an Order finding the Company's proposed rates and charges to be fair, just and
reasonable, and approve the Company's proposed tariff changes, as submitted
herewith.
DRY CREEK WATER COMPANY'S APPLICATION - 6

Respectfully Submitted this 15t" day of September, 2025.
/s/Jennifer Reinhardt-Tessmer
Jennifer Reinhardt-Tessmer
Attorneys for Dry Creek Water Company LLC
DRY CREEK WATER COMPANY'S APPLICATION - 7

CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 15t" day of September, 2025, 1 served the
foregoing document upon the following named parties by the method indicated below,
and addressed to the following:
Commission Secretary ❑ U.S. Mail
Idaho Public Utilities Commission ® Email
P.O. Box 83720
❑ Hand Delivery
Boise, ID 83720-0074
[e-mail] El Overnight Mail
❑ Facsimile
/s/ Valerie R. Altiq
Valerie R. Altig
Legal Assistant for Kirton McConkie
Counsel for Dry Creek Water Co., LLC
DRY CREEK WATER COMPANY'S APPLICATION - 8