20251023Application.pdf

RECEIVED
OCTOBER 23, 2025
IDAHO PUBLIC
UTILITIES COMMISSION
H. Robert Price, President
Capitol Water Corporation
2626 N. Eldorado St,
Boise, Idaho 83704-5926
208-375-0931
info ,capitolwatercorp.com
www.capitolwatercorp.com
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION ) CASE NO. CAP-W-25-03
OF CAPITOL WATER CORP. TO )
CHANGE ITS SCHEDULE NO. 3 ) APPLICATION
PURCHASED POWER ADJUSTMENT RATE )
COMES NOW Capitol Water Corporation("Company"), holder of Certificate of Public
Convenience and Necessity No. 239, and files this Application to change its Schedule No. 3
Purchased Power Cost Adjustment ("PPCA")rate to recover the Company's cost of electricity
related to Idaho Power Company's electric rate schedules that have been approved by the Idaho
Public Utilities Commission("Commission"). The Company requests that the new PPCA rate be
effective on or after January 1, 2026.
The Company's current base power expenses were established by Order No. 30762 in
Case No. CAP-W-08-02. In that order the Commission adopted a three (3)year average of
1,454,401 kWh of electricity consumption at an average cost of 5.19¢ to establish rates for the
Company. Together these produce a total cost of electric power for Capitol Water Corporation
of$75,483.41. This amount has been the benchmark for determining the incremental cost of
power used to calculate the PPCA rate.
Initially when the Commission approved the PPCA for Capitol Water Corporation, it
adopted a three (3)year average of power consumption, as proposed by Staff of the Commission
("Staff'), as more indicative of what to expect in the future. In Case CAP-W-17-01 the
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CAP-W-25-03
Capitol Water Corporation's PPCA Annual Rate Adjustment

Commission adopted the most recent twelve months of power costs as a better and more efficient
method for the Company to recover its increased electric power costs.
The Company's actual power costs in calendar year 2024 were $113,416. This is
$37,933 more than the power cost embedded in the Company's base rates in 2024, and $10,507
more than the current PPCA rate of 3.33% is designed to recover. The increased cost requires an
increase to the current customer PPCA rate of 1.28%to bring the PPCA rate to 4.61% as
reflected in Exhibit No. 1 attached to this Application. The Company has provided workpapers
showing the details of the Company's electric power bills used to develop the proposed PPCA
rate for Commission Staff s review. The Company has also included the workpapers for the well
logs for 2024 for Staff s review.
The Company proposes to recover these additional electric power costs by replacing the
currently approved Schedule No. 3 Purchased Power Cost Adjustment rate of 3.33%with a new
Purchased Power Cost Adjustment rate of 4.61%. The Company's base power costs were
established by Order No. 30762 in Case No. CAP-W-08-02; the Company's current base revenue
of$823,952 was established in Case No. CAP-W-24-01, Order No. 36427.1
The Company has filed for a rate increase, Case No. CAP-W-25-02, and requests that its
new PPCA rate go into effect about the same time as the new rates, depending on the processing
time for each case. The new PPCA rate would be determined by using the Incremental (power)
Cost of$37,933 from Line 4 of Exhibit 1, divided by the new base revenue determined in Case
No. CAP-W-25-02. This will allow the Company to change rates for both cases simultaneously.
Depending on the processing timeline for Case No. CAP-W-25-02 and for this case, a
new Schedule No. 3, with the proposed Purchased Power Cost Adjustment rate, will be
submitted to the Commission for approval with the new tariffs at the conclusion of both cases. A
redlined Schedule No. 3 is included with this filing as Exhibit No. 2, using the current revenue
requirement established in CAP-W-24-01.
Capitol Water Corporation will inform its customers of this application through a
customer notice that will be mailed on or about November 1, 2025, and by a news release that is
' The new power costs established in CAP-W-24-01 will be used in the PPCA case filed in 2026,reflecting 2025
power costs compared to base power costs established in Case No.CAP-W-24-01,as current rates were effective
January 1,2025.
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Capitol Water Corporation's PPCA Annual Rate Adjustment

being sent to the Idaho Statesman and the Idaho Business Review newspapers coincident with
this filing. Copies of the customer notice and news release are enclosed as Exhibit Nos. 3 and 4
respectively.
Capitol Water Corporation requests that the Commission process this Application under
its rules of modified procedure and approve the new PPCA rate of 4.61% (using current rates)
with the actual PPCA rate to be determined at the conclusion of Case No. CAP-W-25-02, with an
effective date on or after January 1, 2026.
CONTACT INFORMATION:
Questions regarding this Application should be addressed to:
H. Robert Price, President
Capitol Water Corporation
2626 N. Eldorado St,
Boise, Idaho 83704-5926
208-375-0931
infogcapitolwatercorp.com
www.capitolwatereorp.com
Please provide copies of all correspondence, notices, and orders to the above individual.
Respectfully submitted,
,/J1,4"e/�
H. Robert Price, President
Capitol Water Corporation
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CAP-W-25-03
Capitol Water Corporation's PPCA Annual Rate Adjustment