20080117Vol I Idaho Falls.pdf

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APPEARANCES:
For the Idaho Public Utili ties Commission:
Idaho Attorney General's Office
BY MR. DONALD L. HOWELL, I I
472 West Washington Street
P . O. Box 83720
Boise, Idaho 83720-0074
I N D E X
Testimony of BRUCE R. WATERS..............
Testimony of BRENT JOHNSON......... ... . . . . .
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M & M COURT REPORTING SERVICE, INC. [phone] (fax)[phone]
PROCEEDINGS
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COMMISSIONER REDFORD: Let i s get
started.
My name is Mack Redford.11m one of
three commissioners of the Idaho Public Utili ties
Commission. And we i re here tonight at a public
hearing in the case of Falls Water. For the
record, let me get the information. It i S Falls
Water, and the case number is FLS-W-07-01.
The purpose for the meeting tonight is
to take testimony from those people who are
interested in this case, mostly from people that
are rate payers of the water company.
And one thing that let me just tell
you a little bit about how this works. This is
not a hearing where there i s an exchange of views.
We simply are asking for your input. And we i II
ask you to be sworn and to step up to the podium
to testify.
And we have a fellow here with us,
Chris Hecht, who is -- he is an employee of the
Utili ties Commission. And if you have questions
after the hearing, you can certainly take them up
wi th Chris, who may be able to answer further
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1 questions and give you any information that you
2 might want.
3 What I i II do now is turn this matter
4 over to Mr. Don Howell, who is our general
5 counsel, and he will swear the witnesses.
6 There are no attorneys present for
7 anyone other than the Commission, and so we don It
8 take appearances by anyone else.
9 MR. HOWELL: So for the record -- thank
10 you, Mr. Chairman -- my name is Don Howell. 11m
11 the deputy attorney general representing the
12 Commission staff. And you are correct; as far as
13 I know, there is no counsel representing Falls
14 Water. However, I understand that the company is
15 here; Mr. Scott Bruce is here.
16 And I believe that you have the sign-up
17 sheet --
18 COMMISSIONER REDFORD: Yes, I do.
19 MR. HOWELL: for people who might be
20 interested in testifying.
21 COMMISSIONER REDFORD: Yes.
22 MR. HOWELL: Do you want to call the
23 first name, or do you want me to?
24 COMMISSIONER REDFORD: Yes. I will
25 call Brent Johnson. Step right up, Brent.
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BRENT JOHNSON: And I'm with
Falls Water. I'm one of the owners. Do you want
me to wait until maybe everybody else has spoken?
COMMISSIONER REDFORD: Sure. That
would probably be better.
Bruce Waters.
BRUCE WATERS: Tha t 's me.
COMMISSIONER REDFORD: All right.
Thank you, Mr. Waters.
MR. HOWELL: Mr. Waters, would you
raise your right hand, please.
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BRUCE R. WATERS,
first duly sworn to tell the truth relatinq to
said cause, testified as follows:
MR. HOWELL: I'm going to ask you a
couple of questions. Could you state your full
name and spell your last for the record.
BRUCE WATERS: My name is Bruce Ray
Waters. My last name is spelled W-a-t-e-r-s.
MR. HOWELL: And, sir, are you a
customer of Falls Waters Company?
BRUCE WATERS: Yes, I am.
MR. HOWELL: And do you have a
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1 statement that you would like to give to
2 Commissioner Redford?
3 BRUCE WATERS: Well, I didn't really
4 prepare a statement. But I noticed on the
5 sign-up sheet, there's nobody signed up. I'm
6 really surprised. I noticed nobody's here.
7 But the main reason I came here is
8 because I just wanted them to know that somebody
9 is opposed to this. I'm not opposed to the fact
10 that they need more money, but I'm opposed to the
11 amount of money that they're asking for. And
12 such was the case two years ago when they asked
13 for money. I just wanted to make sure that
14 whoever overviews this, you know, they keep it
15 reasonable and stuff.
16 But I do have some questions, because
17 the main thing they keep talking about is these
18 meters and these unmetered people.
19 Well, I used to live out there in
20 Mobile Home Estates, and I didn't have a meter
21 and none of. my other neighbors had meters. And
22 we didn't have to worry about the water. We'd
23 let it run all the time. I mean, you know, if
24 you remembered to shut it off, fine; if you
25 didn't, the heck with it.
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Well, now I've moved to a different
house in a different part of the neighborhood, in
a different part of the service area, and I have
a meter, so I have to be more careful. Well, I
know we need the meters, and I want the meters
because I want to save the water because the
drinking water out there is getting kind of bad
anyway. I want to conserve it.
But my question is if -- if we have to
up everybody's costs to pay for these meters, I
was wondering if anything had been done to these
people that have meters. Maybe their rates
should have see, back then, I was paying
almost nothing for a continuous amount of water.
Well, maybe those people without the meters
maybe their rates should have been adjusted up to
help cover the costs of putting the meters into
my line.
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COMMISSIONER REDFORD: Well,
Mr. Waters, I would address you -- I'd let you
talk to Chris Hecht, who is our technical
person -- he's back there -- as soon as the
hearing is over. And I think he can explain to
you how this all works; okay?
BRUCE WATERS: All right. Sounds fine.
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1 COMMISSIONER REDFORD: Okay. Thank you
2 very much.
3 BRUCE WATERS: Is anybody else here --
4 is everybody here for the company, or is there
5 anybody opposed? I just want to make sure they
6 know somebody is here.
7 I'm really surprised, with all the
8 people who have Falls Water, nobody shows up.
9 Nobody takes an interest in this. It really
10 doesn' t sit right.
11 COMMISSIONER REDFORD: Well, that's the
12 American way.
13 BRUCE WATERS: Yeah, I suppose. Let
14 everybody else do it; right?
15 COMMISSIONER REDFORD: Yeah.
16 BRUCE WATERS: Okay.
17 COMMISSIONER REDFORD: If there are no
18 other persons that want to testify -- if you
19 changed your mind and want to testify, I will
20 gi ve you an opportunity to do so.
21 If we don't have any other witnesses,
22 then, Mr. Johnson, you can make a statement if
23 you'd like.
24 MR~ HOWELL: Would you raise your right
25 hand, please.
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BRENT JOHNSON,
first duly sworn to tell the truth relating to
said cause, testified as follows:
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MR. HOWELL: Could you state your name
and spell your last for the record, please.
BRENT JOHNSON: Brent Johnson,
J-o-h-n-s-o-n.
MR. HOWELL: And, Mr. Johnson, could
you tell us your position with the company?
BRENT JOHNSON: I'm one of the owners.
MR. HOWELL: All right.
BRENT JOHNSON: Okay. Yeah, I
represent the La Salle Group, which is the owner
of Falls Water.
I just wanted to maybe make some
clarifications before the Board -- not
necessarily clarifications. But the reason
one of the main reasons for our application to
increase rates is just to meet the ongoing
demands of day-to-day operations. You know, we
have a return from investors and to you know,
to provide a fair wage to employees and things
like that.
But one of the other reasons that we
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1 asked for an increase in the rates is we're
2 trying to be a very proactive company. You know,
3 Idaho is -- water rights have been in the
4 forefront of the news for the last couple of
5 years here in Idaho. You know, Twin Falls and
6 there have been protests and just a lot of issues
7 that have gone on.
8 And, you know, Falls Water, probably
9 over the last three or four years, has been very
10 proactive of acquiring water rights to make sure
11 that our customers have the water they need, you
12 know, to water their lawns and to, you know,
13 provide household functions without an
14 interruption. And our goal is to provide a good,
15 clean resource without interruption to each of
16 our customers.
17 You know, this last year, Amon City,
18 who's not regulated by the PUC, whose rates are
19 much higher than ours -- Amon City had to
20 ration, to some extent, the water of their users.
21 They had to go, in watering their lawns, to twice
22 a week instead of watering as much as they
23 wanted -- or excuse me, every other day, so three
24 to four times a week.
25 Falls Water hasn't had to ration the
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1 water to their users, and a lot of that is
2 because we've been taking a proactive approach,
3 which is very expensive. Water rights are only
4 getting more expensive.
5 And the Commission has an option to
6 help us fulfill this -- this goal of ours. If
7 we're not able to increase rates, you know, we
8 won't have any funds to go out and acquire new
9 water rights. We won't have the funds to put new
10 wells in. We won't have the funds to do these
11 things that provide water to our customers.
12 A lot of people say that there's --
13 there's been a lot of growth to the Falls Water
14 Company over the last five or six years. A lot
15 of the old existing customers always say that our
16 rates are going up because of all the new growth.
17 Well, the rates are going up, but
18 the -- new growth usually pays for their
19 addition, plus they pay for a lot of modification
20 and improvements to the system that the old
21 customers benefit from without having to pay a
22 lot more money for it.
23 Wi thout the growth, the rates would
24 have to go a lot higher to the old customers.
25 The growth is actually helping us acquire the
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1 rights and put the new wells in.
2 You know, I know we're asking for a
3 large increase. You know, I think,
4 percentagewise, it's about a 40 percent increase.
5 You know, that 40 percent is amounting to about,
6 you know, for our base rate, $17 a month -- $16
7 to $17 a month, you know, for a life-sustaining
8 commodity that we can't live without, that's
9 expensi ve to produce. It's more expensive to
10 supply than power and phone and cell phone
11 service. I mean, it is one of the most expensive
12 products to run -- utili ties to run into a home.
13 And it is the least expensive, you know.
14 And I know the Commission hears this
15 time and time again that -- you know, a cell
16 phone bill is $50 a month, and I would dare guess
17 most of our customers have cell phones. It is an
18 option of theirs to purchase, you know.
19 (Telephonic interruption.)
20 COMMISSIONER REDFORD: Speaking of cell
21 phones. That was on cue.
22 BRENT JOHNSON: And I know that's a
23 comment I've read that in some of the
24 li terature from the PUC, you know. But that's an
25 item that people get to buy freely in the market.
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1 You know, it's something they can live without.
2 It's something that's not required. But it's,
3 you know, 40 to $ 5 0 a month.
4 Water -- you can't live without it.
5 You can't have a home without water. If you do,
6 then your house is has no value. People won't
7 buy it, you know.
8 And we're asking for a modest increase,
9 but we're still the absolute cheapest utility
10 that is run into the home and we're the most
11 expensive to provide, you know.
12 And I think, in part, that's probably
13 why we don't have a big turnout. When people pay
14 their monthly bills, the water is the cheapest
15 bill they pay, you know. And they recognize
16 that.
17 You know, they -- I think they
18 recognize the value that we're trying to provide
19 a good service, but we've got to have revenue and
20 funds to do that, you know.
21 Things are just getting more expensive.
22 The water rights are more expensive. The cost of
23 a new well is going up 10 to 12 percent a year.
24 You know, a lot of the things we deal in are
25 three to four times the cost of inflation. You
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1 know, to put new pipe in the ground and asphalt,
2 those products have been going up 10 to 20
3 percent a year the last five or six years, you
4 know.
5 And if we want to have a good company
6 that provides a good service, we've got to have
7 the funds to do that. And that's why I ask that
8 we get the full rate that we've applied for so
9 that we can continue to do this for our
10 customers.
11 COMMISSIONER REDFORD: Thank you very
12 much.
13 If we don't have any other people who
14 would like to testify, why, I guess this hearing
15 is adj ourned.
16 If anybody has any questions that you'd
17 like to address to Mr. Hecht, he'll be able to
18 answer them for you to the best of his ability.
19 And that's him right there.
20 And so we'll close this, and I thank
21 you all for coming and I appreciate your
22 courtesy. Thank you very much.
23 (The hearing concluded at 7:14 p.m.)
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REPORTER'S CERTI FICATE
I, DANIEL E. WILLIAMS, CSR No. 686,
Certified Shorthand Reporter, certify:
That the foregoing proceedings were taken
before me at the time and place therein set
forth, at which time the wi tness was put under
oath by me;
That the testimony and all objections made
were recorded stenographically by me and
transcribed by me or under my direction;
That the foregoing is a true and correct
record of all testimony given, to the best of my
ability;
I further certi fy that I am not a rela ti ve
or employee of any attorney or party, nor am I
financially interested in the action.
IN WITNESS WHEREOF, I set my hand and seal
this__ii~ day of _~__, 2007.
WILLIAMS, CSR, RPR
Notary Public
P.O. Box 2636
Boise, Idaho 83701-2636
My commi s s ion expires February 2, 2009.
M & M COURT REPORTING SERVICE, INC. - [phone]
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TRASCRIPT
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twice 10:21
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