082895.docx

Q.Please state your name and business address for the record.
A.My name is Donald M. Oliason.  My business address is 472 West Washington Street in Boise, Idaho.
Q.By whom are you employed and in what capacity?
A.I have been employed by the Idaho Public Utilities Commission as an electrical engineer since January 1990.
Q.Please describe your educational background and engineering experience.
A.I received Bachelor of Science degrees in Civil and Electrical Engineering from the University of Idaho and I am a registered Electrical Engineer in the states of Washington and Idaho.  In addition to my work with the Public Utilities Commission, I have had 24 years of experience in various engineering and operating positions with an electric, water and natural gas utility.
Q.What is the purpose of your testimony?
A.The purpose of my testimony is to recommend a rate design to recover an interim rate increase if the Commission approves one.  A recommendation on whether or not an interim is merited is covered by Staff witness Carlock.
Q.What interim increase was requested by Capitol Water Corporation (Capitol)?
A.Capitol proposed to add $1.00 to its residential year-round rate of $8.06 per month which represents a 12.4% increase.  It also proposed to increase the commercial rate by a uniform 12.4%.  It did not propose an increase to the private fire and hose service nor did it propose an increase to the residential irrigation rate.  Capitol's proposal would increase annual revenue by $31,871 or 8.57% of its 1994 revenue.  See Exhibit No. 106.
Q.What is the basis for your rate design recommendation?
A.My recommendation is based on the revenue deficiency of $5,889 calculated by Staff witness Stockton.
Q.How would you recommend the recovery of a revenue deficiency of $5,889?
A.I would recommend the addition of a 2.29% surcharge to the residential year-round rate of $8.06 per month, and a 2.29% surcharge to the commercial customer’s monthly bill.  See Exhibit No. 106. I would not recommend an increase to the private fire and hose service because it is too small being about 1% of annual revenue, and I would not recommend an increase to the residential irrigation rate because it stops September 30.
Q.Is your method for recovering a revenue deficiency the same as the Company’s except that it generates $5,889 instead of $31,871?
A.Yes.
Q.Does this conclude your direct testimony in this proceeding?
A.Yes, it does.