HomeMy WebLinkAbout20060327Vol I Idaho Falls.pdfORIGINAL
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF FALLS WATER COMPANY , INC. FOR
AUTHORITY TO INCREASE ITS RATES
AND CHARGES
HEARING BEFORE
Case No.
FLS-W- 05-
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(.:::0COMMISSIONER PAUL KJELLANDER (Presiding)
COMMISSIONER DENNIS S. HANSEN
COMMISSIONER MARSHA H. SMITH
PLACE:Idaho Falls Council Chambers
140 South Capitol Avenue
Idaho Falls, Idaho
DATE:March 15, 2006
VOLUME I - Pages 1 - 18
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HEDRICK
COURT REPORTING
gtR'f1f tk etlIIr/frUJ(!lt d'I,fU 1978
POST OFFICE BOX 578
BOISE, IDAHO 83701
208-336-9208
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For the Staff:
For Falls Water:
SCOTT WOODBURY, Esq.
Deputy Attorney General
472 West WashingtonBoise, Idaho 83702
K. SCOTT BRUCE, Manager
Falls Water Company, Inc.
1770 Sabin Drive
Idaho F a II s , Idaho 834 0 6 - 674 7
HEDRICK COURT REPORTING
P. o. BOX 578, BOISE , ID
APPEARANCES
83701
WITNESS EXAMINATION BY PAGE
Michael Armstrong
(Public)
Bruce Waters
(Public)
Jeff Ring
(Public)
Larson Rowen
Public)
Mr. Woodbury
Statement
Mr. Woodbury
Statement
Mr. Woodbury (Cross)
Commissioner Smith
Mr. Woodbury
Statement
Sworn
Mr. Woodbury
Statement
Mr. Woodbury
HEDRICK COURT REPORTING
P. O. BOX 578, BOISE , ID
INDEX
83701
IDAHO FALLS, IDAHO, WEDNESDAY, MARCH 15, 2006 , 7:00 P.
COMMISSIONER KJELLANDER:We I II go ahead and
officially call this public hearing to order.This is the time
and place for a public hearing in Case No. FLS-05-It I
also known as In the matter of the Application of Falls Water
Company, Inc., for authority to increase its rates and charges.
My name is Paul Kj ellander.I'll be the Chairman
of today' s proceedings.To my right is Commissioner Dennis
Hansen , and to my left is Commissioner Marsha Smith.
At this point , we'll take the appearances of the
parties, and we'll begin with Mr. Woodbury.
MR. WOODBURY:m Scott Woodbury, Deputy
Attorney General, for Commission Staff.
COMMISSIONER KJELLANDER:And is there anyone
from the Utility?
MR. BRUCE:Yes.Scot t Bruce, manager , and I I ve
got also the rep here, Tony Wise , our operations manager; and
Lyle Waters, one of our field operators.
COMMISSIONER KJELLANDER:Scott, is it your
intent tonight to do any cross-examination of witnesses?
MR. BRUCE:Not - - not really, no , not at this
time.
COMMI S S lONER KJELLANDER:Okay.As we have
HEDRICK COURT REPORTING
P. O. BOX 578 , BOISE , ID
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83701
witnesses come up, I'll just ask if there I s any questions from
the Company.If you just want to say, "" for the record
that's fine.
MR. BRUCE:Okay.Thank you.
COMMISSIONER KJELLANDER:As far as the
proceedings this evening, this is an opportunity for customers
of the Utility to come forward and offer their comments in
relationship to the request for increase in rates.
How it will work is we'll call your name and
you III come forward to the podium, and there's a microphone
there.If you notice , we have a court reporter there, and they
will be taking down your statement that you make so it will be
part of the official record that the Commission will then
include in its review of the case as we then move past this
specific part of the case and begin to deliberate on the final
outcome of the case that's been filed before us.
But as you come forward, Mr. Woodbury will ask
you a couple of questions for the record - - your name, to spell
your name officially for the record , and just a couple of
introductory questions that will be standard - - and then you'll
be allowed to offer your testimony and your comment for the
record.
Once you've completed your statement, there will
be an opportunity for the Commissioners to ask some follow-
questions , as well as legal counsel that I s here, and possible
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cross-examination from the Company itself.
So wi th that, then , we'll go ahead and beg in wi th
Michael Armstrong.And, Mr. Armstrong, if you could just come
forward, I'll go ahead and swear you, if you 'd just raise your
right hand.
MICHAEL ARMSTRONG,
appearing as a public witness, being first duly sworn , was
examined and testified as follows:
EXAMINATION
BY MR. WOODBURY:
Mr. Armstrong, will you please state your full
name, spell your last name?
Michael D. Armstrong, A-
Could you give your address , please?
237 Springwood Lane, Idaho Falls, Idaho.
Okay.You can give your testimony.
Okay.Thanks very much for thisThank you.
opportuni ty.I think the opportunity to be involved in a
public forum is very much appreciated.
My background is I am a ratepayer for Falls
Water.I I m also developing land inside their jurisdiction , and
they have been a good provider for us.We've appreciated their
HEDRICK COURT REPORTING
P. o. BOX 578 , BOISE , ID 83701
ARMSTRONG
Public
cooperation through a number of things we've done.
My belief is that if they can go to an
all-metered system , it allows equity, allows probably a more
efficient system.I have some concerns though about how
understood that metering cost would be covered for properties
that are not currently metered.If I understood the proposal
some - - a month or so ago, the rate increase that I s being asked
for would include costs to install meters in those unmetered
properties, and to my knowledge, in my case and others that
know of, all of the meters that are installed have been paid
for either directly or indirectly by the people who own the
property.So it appears , to me , a little inequitable to ask
them to shoulder the financial burden of putting meters on
properties that are not metered when they have already paid
directly or indirectly for their own meters.
That I S basically the extent of my testimony.
COMMISSIONER KJELLANDER:Thank you
Mr. Armstrong.Let me see if there are any questions from
Mr. Woodbury.
MR. WOODBURY:, I have no questions.Thank
you.
COMMISSIONER KJELLANDER:Are there any questions
from the Company?
MR. BRUCE:No.
COMMISSIONER KJELLANDER:And the Commission?
HEDRI CK COURT REPORTING
P. O. BOX 578 , BOISE , ID 83701
ARMSTRONG
Public
COMMISSIONER SMITH:No.
COMMISSIONER KJELLANDER:
you for your testimony.
Thank you.THE WITNESS:
COMMISSIONER KJELLANDER:
presence tonight.
Mr. Armstrong, thank
We appreciate your
(The witness left the stand.
COMMISSIONER KJELLANDER:
Mr. Bruce Waters.
MR. WATERS:Good evening.
COMMISSIONER KJELLANDER:
Mr. Waters.
BRUCE WATERS,
Let I S move
How you doing there?
Very good.Thank you,
appearing as a public witness, being first duly sworn, was
examined and testified as follows:
COMMISSIONER KJELLANDER:
Mr. Woodbury.
EXAMINATION
BY MR. WOODBURY:
Thank you.
Mr. Waters, could you please state your name,
spell your last name?
HEDRICK COURT REPORTING
P. O. BOX 578, BOISE , ID 83701
WATERS
Public
My name is Bruce Waters.My last name is spelled
And could you give us your address, please?
I live at 940 Moonstone in Idaho Falls.
Okay.You can provide your testimony.
Well, I'm not prepared because when I came here
didnlt realize I was going to be given this opportunity to say
anything, but I just want to say right offhand I I m not opposed
to a rate hike at all , I know how the world turns , but the
figures I read all the time, what is in the paper and stuff,
and I just -- my figures don't jive with all their figures and
the numbers they were asking, but I think I understand things
are going to be maybe a little different.
I just feel that the rate increase that was
originally asked for would make it so I wouldn I t have been able
to do anything at my house other than maybe drink water and
wash my clothes.I try to conserve the water when I use it,
but I do have a lawn.I don It keep it exceptionally well
green , but it doesn't burn up either.I try not to waste
water.I have a small garden; just two people in my family.
So I would just like to basically ask that they
keep the rate increase at a reasonable
- -
reasonable rate.
These figures that everybody quoted and stuff and I got the
figures from the water company, I figured them all out, and
somewhere I read that it was supposed to be a 64-percent
HEDRICK COURT REPORTING
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increase.And I think I read something today said it was a
48 -percent increase.But my figures said everything in the
summertime, the increases are over 100 percent, because
figured it out for what I'm paying for 20,000 gallons of water
right now and what I would be paying for the same 20,000
gallons of water if this went through like it's proposed , and I
got the figure right here, it's more than double.Right now , I
pay $11.50 for 20,000 gallons.If this went through , I would
be paying $22.95 for the same 20,000 gallons, which is double.
And then after that, it was asked to be 41 cent -- or , it is
41 cents per 1 000 extra now and it would go up to 85 cents
which , to my way of thinking, is more than double.
So I just want to say that the rate increases
that were asked for are real high , I think.But I think - - you
know , I don't understand this thing about they say they re --
they don t make money.What's the word I want to
- -
can't
think -- nonprofitable organization.Well, they might be
nonprofitable, but those three guys back there and everybody
else, I know everybody has to make a living.m not asking
them to not get paid and stuff.I think everybody should be
paid , they're entitled to it , nonprofitable or otherwise, but
just want to be able to , while they re making their living,
I want to be able to water my yard too.
, that's probably about all I really have to
say.
HEDRICK COURT REPORTING
P. O. BOX 578, BOISE , ID
WATERS
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Thank you, Mr. Waters.COMMISSIONER KJELLANDER:
Let's see if there are some questions.
Mr. Woodbury.
CROSS -EXAMINATION
BY MR. WOODBURY:
Mr. Waters, you re aware that Staff
- -
Commission
Staff - - performed an audit of the Company and filed comments
in this case?
Yeah , I think so.ve been trying to keep up
with it.
And did you get a copy of the summary of the
recommendations on the table at the entrance?
Right here just tonight?No, I did not, but
I will.
COMMISSIONER KJELLANDER:Let's go first to the
Are there questions from the Company?Company.
MR. BRUCE:No.
How about from theCOMMISSIONER KJELLANDER:
Commission?Commissioner Smith.
HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID
WATERS (X)
Publ i c83701
EXAMINATION
BY COMMISSIONER SMITH:
I was just curious, Mr. Waters, is the
OOO-gallon example you used, did you use that because that'
your usage on a summer month?
No, ma I am , I used that because that's a standard.
Right now when you pay your water bill
Because that I s included with your monthly
customer charge at the present time?
Yeah , that's what it is.They figure you can
have 000.
Right.
And in the winter , I pay the same $11.50 and I
don I t even come close to using that much, so really they I
making a little extra off of me in the winter , I don t care,
because it's reasonable and they're entitled to make some
I understand that.We all have to make a living andmoney.
there are costs.And out there where we live, things are going
crazy, they I re building like crazy and there I s new things being
put in and stuff.I I m not opposed to this by no means, but I
just want it to be reasonable.
All right.Thank you.
Thank you, ma' am.
(The witness left the stand.
HEDRICK COURT REPORTING
P. O. BOX 578, BOISE , ID
WATERS (Com)
Public83701
COMMISSIONER KJELLANDER:
Jeff Ring.
MR. RING:That was quick.
COMMI S S lONER KJELLANDER:
I was number 1 7 .MR. RING:
be a while.
COMMISSIONER KJELLANDER:
Could I have you raise your right hand?
MR. RING:Sure.
JEFF RING,
I'd like to call
Mr. Ring.
I thought it would
We're pretty quick.
appearing as a public witness , being first duly sworn , was
examined and testified as follows:
COMMISSIONER KJELLANDER:
Mr. Woodbury.
Thank you.MR. WOODBURY:
EXAMINATION
BY MR. WOODBURY:
Thank you.And,
Could you please state your full name and spell
your last name?
Jeff Ring, R-
And please give us your address.
HEDRICK COURT REPORTING
P. O. BOX 578, BOISE , ID 83701
RING
Public
476 South Heath - - H-H - - Lane.
And you may give your testimony.
Okay.
I attended the first meeting, the informal
meeting, and at that time, the representative from Falls Water
indicated that the proposed
- -
their proposed rate increase was
to try to conserve - - get customers to conserve water; and it
seemed, to me, that a ' better way of doing that would be to have
a sliding rate scale where, you know, you get your first
think 17- or 18,000 gallons at a flat rate, and then perhaps
the next $10,000 (sic) at a higher rate, and then the next
10,000 after that at a higher -- a still higher rate, rather
than cutting back.I think the proposal was something like
5- or 6,000 gallons , you know, as the base, which in the
summertime is
- -
that doesn't seem quite fair, because in the
summertime , that's when a lot of people are using water to
water their lawns and we're kind of caught in a catch-22 then.
We I re mandated by the County that we have to maintain the
lawns, and yet they are proposing that the base, flat rate,
number of gallons be cut way back in the summertime.Doesn
seem quite fair.
And, again , my idea, if their idea is to try
to - - excuse me - - encourage people to conserve water, then a
sliding scale would be fairer.Okay?
HEARING OFFICER:Let's see if there are some
HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID
RING
Publ ic83701
questions.Mr. Woodbury.
MR. WOODBURY:I have no questions, thank you.
COMMISSIONER KJELLANDER:
from representatives from the Company?
MR. BRUCE:No.
COMMISSIONER KJELLANDER:
Commission.
Are there any questions
Let's move to the
COMMISSIONER SMITH:No, thanks.Thank you.
COMMISSIONER KJELLANDER:
your testimony.
Thank you very much for
(The witness left the stand.
COMMISSIONER KJELLANDER:
Rowen.
We'll call Larson
MR. ROWEN:My name is Larson Rowen.I live at
2785 North Ammon Road.
HEARING OFFICER:Let me go ahead and get you
sworn in real quick.
LARSON ROWEN
appearing as a public witness, being first duly sworn, was
examined and testified as follows:
COMMISSIONER KJELLANDER:And, Mr. Woodbury, I
think we have his name, so if you could do the follow-
questions?
HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
ROWEN
Public
EXAMINATION
BY MR. WOODBURY:
How do you spell your last name?
Rowen, like a boat:
Okay.Thank you.You can provide your
testimony.
Okay.To address the previous gentleman I
comment just a bit, I think any talk about conserving water is
just a big smoke screen.The bottom line here is more money.
And most water systems are owned by cities or
counties, and they have their own structure of doing business
and they do a business that is not necessarily a non- - - it's a
nonprofit business.It I S a business to run the city and do the
people I s business.
Falls Water is a private corporation to make a
profit.That I s what all this is all about is making a profit,
making money.And that's all right and good.You know, a
company has the right to make a profit.You know , that's the
American way.But because it is a public utility, they re kind
of ruled a little bit by the Public Utilities Commission and
there are just a few things I would like to address about that.
In the sense that it is a private company in this
instance, not a city - - a county government or a city
government, Falls Water, when they put a - - hook up a new
HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID
ROWEN
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addi tion - - and they claim that as one of their reasons for
this, because they need to cover the expense - - they don t have
The developer pays for that.They pay for everyany expense.
pipe that goes in the ground , they pay for the labor for all of
it to go in the ground, and everything else.Falls Water just
hooks to it.Then they start metering water and theyOkay?
start collecting revenue every month, and really, the overhead
that Falls Water has is maintaining the system that other
people bought and paid for , and that's part of being in
business, you know, and they have to drill new wells
occasionally and expand their water system.
For every acre of this ground that we take out of
farm and turn it into housing proj ects, that's more water going
into the aquifer.That's water that's not being taken out of
the aquifer, it's runoff.You know, that's irrigated with
runoff water.But in any case, it
- -
it I S not depleting the
aquifer.The wells deplete the aquifer to some extent, but I
don't think it's an offset situation.
And I really think the people that bought this
I hear Jay Johnson is one of the people
- -
maj or people - - that
bought this company, and I think he has the right to make a
profit, but I think we re being way excessive here, way
excessive.And if he deserves any more money at all, I think
he needs to prove he does.
HEARING OFFICER:Is that your statement?
HEDRICK COURT REPORTING
P. O. BOX 578, BOISE , ID
ROWEN
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THE WITNESS:That I S pretty much it.
COMMISSIONER KJELLANDER:Okay.Let me see if
there are some questions.
Mr. Woodbury.
CROSS-EXAMINATION
BY MR. WOODBURY:
Mr. Rowen, were you aware that Commission Staff
performed an audit of the Company and filed comments with a
recommendation in this case?
That it be a lesser amount.I read that in the
newspaper.
Okay.And that amount is 11.13 percent increase,
as opposed to the 48.2 recommended by the Company.Staff'
comments are on the table outside of this room , if you 'd like
to pick up a copy.
I do know about that , but where I s the
justification for that?Because if you just take just one of
the subdivisions that Mr. Johnson put in, you know, Falls Water
is making a gaboom (phonetic) more money.Now, Mr. Johnson had
to pay to put the water pipes and I think he s trying to
recover his cost for having to put the water system in, you
know , but that I s the way the county is run.If you -- not just
Falls Water, but everywhere in the valley.You know, if you
HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID
ROWEN (X)
Public83701
going to put a subdivision in , you I re responsible for putting
the water lines in , and the local water company, whatever that
may be, absorbs that into their system and it becomes their
property, just like the public highways.You know, when a
developer develops the road, he builds the roads in the
development and then he assigns them to the
- -
turns them over
to the county and it becomes the property of the county and the
county maintains them, and then we pay for that in our taxes.
And I'm not saying that's wrong.You know
that's right.That's the way it should be.But he I s already
making a prof it, you know.He already is making an adequate
profit.
COMMISSIONER KJELLANDER:Mr. Rowen , let's see if
there s any question from the Company.
MR. BRUCE:No, there s no questions.
COMMISSIONER KJELLANDER:Questions from the
Commission.Commissioner Smith?
COMMISSIONER SMITH:No.
COMMISSIONER KJELLANDER:No.Okay.
And, Mr. Rowen , I appreciate your testimony and
thank you for appearing here this evening.
THE WITNESS:Thank you very much.Have a good
day.
COMMISSIONER KJELLANDER:You too.
(The witness left the stand.
HEDRICK COURT REPORTING
P. O. BOX 578, BOISE , ID
ROWEN (X)
Public83701
COMMISSIONER KJELLANDER:We're at the end of the
list of those that have signed up.I know that there have been
some other people who have come in this evening, and so I
just ask if there is anyone who's walked in who would like to
offer their comment this evening as part of the public record.
And since there are no takers, I think at this
point then , it is appropriate for us to conclude the public
hearing and to thank those who have taken time out of their
evening to come forward and offer their testimony for the
record.
The Commission will, at the appropriate time and
place, begin its deliberation on this case and try to render a
very quick Order that will then be issued and distributed, and
there will be accompanying press releases that will follow that
as well so you will be able to see what the Decision is.
And, also, I think that there is another rebuttal
testimony date.
MR . WOODBURY:March 24th.
COMMISSIONER KJELLANDER:March 24th.That - - if
you have access to the Internet, you can go onto the Public
Utility Commission's Web site to look at that rebuttal
testimony.
So with that, then , we are adjourned.
(The hearing concluded at 7: 25 p. m.
HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID
COLLOQUY
83701
AUTHENTICATION
This is to certify that the foregoing is
a true and correct transcript to the best of my ability of the
proceedings held in the matter of the Application of Falls
Water Company, Inc., for authority to increase its rates and
charges, Case No. FLS-05-1, commencing on Wednesday,
March 15, 2006, at the Idaho Falls Council Chambers, 140 South
Capitol Avenue, Idaho Falls, Idaho, and the original thereof
for the file of the Commission.
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WENDY J. MURRAY, N ry ublicin and for the Sta of Idaho,
residing at Meridian, Idaho
My Commission expires 2-2008.
Idaho CSR No. 475
AUTHENTICATIONHEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701