20101230Vol I pp 1-27 Telephonic Public Hearing.pdf

ORIGINAL
.BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF TROY HOFFMAN WATER
CORPORATION FOR AUTHORITY TO
INCREASE ITS RATES AND CHARGES FOR
WATER SERVICE IN THE STATE OF
IDAHO
HEARING BEFORE
CASE NO.
TRH-W-10-01
TELEPHONIC
PUBLIC HEARING
COMMISSIONER JIM D. KEMPTON (Presiding)
COMMISSIONER MACK A. REDFORD.
PLACE:Commission Hearing Room
472 West Washington Street
Boise, Idaho
DATE:December 9, 2010
VOLUME I - Pages 1 - 27
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wi~~.HEDRICK
COURT REPORTING
POST OFFICE BOX 578
BOISE, IDAHO 83701
208-336-9208
tef~ th ¥ (Jlfllit¡ ,f1Í( 198
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2 For the Staff:
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APPEARANCES
SCOTT WOODBURY, Esq.
Deputy Attorney General
472 West Washington
Boise, Idaho 83702
HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
APPEARANCES
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1 I N D E X
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WITNESS EXAMINATION BY PAGE
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Barbara Christofferson
( Public)
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Statement
Commissioner Kempton
Mr. Woodbury (Cros s)
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Melanie Goularte
( Public)
Statement 16
7 David Wagner
( Public)
Statement 19
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Diane Pryor
( Public)
Statement
Sworn
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12 EXHIBITS
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14 (No exhibits were marked.)
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HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
INDEX
EXHIBITS
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1 BOISE, IDAHO, THURSDAY, DECEMBER 9, 2010, 8:00 P.M.
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4 COMMISSIONER KEMPTON: Good evening. This is the
5 Idaho Public Utilities Commission. And this is Jim Kempton;
6 I'll be chairing the hearing tonight. It's eight 0' clock
7 Mountain and seven 0' clock Pacific, Thursday, December 9, 2010,
8 and the location is the Public Utilities Commission hearing
9 room in Boise, Idaho. This is the date, time, and place
10 specified in Commission Order No. 32012 as amended by Order
11 32130 to conduct a telephonic public hearing for the purpose of
12 taking testimony in the matter of the Application of Troy
13 Hoffman Water Corporation for authority to increase its rates
14 and charges for water services in the state of Idaho, otherwise
15 identified as Case No. TRH-W-10-1.
16 Proceedings in this case are being conducted in
17 accordance with Commission jurisdiction under Title 61, Idaho
18 Code, and Commission Rules of Procedure under IDAPA 31.01.01.
19 As I mentioned, it is Jim Kempton speaking now,
20 and I will be chairing the hearings. With me is Commissioner
21 Mack Redford. And Commissioner Marsha Smith is traveling on
22 Commission business and is excused from the hearing tonight.
23 Staff in attendance are Scott Woodbury, deputy
24 attorney general; Joe Leckie; Gerry Galinato; and Chris Hecht.
25 And all of these that I just introduced in the Staff have
1
HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701 COLLOQUY
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1 worked on this case.
2 The Applicant is Ron Stadley.
3 There are some procedural considerations that I'd
4 like to go ahead and read through so that everyone is familiar
5 and comfortable with the process that we'll be following
6 tonight.
7 First of all, this is a formal hearing. It's a
8 public hearing. It's quasi-judicial in nature, and the purpose
9 is to gather public comment. As such, the Commission will hot
10 engage in argument or debate, and in general will not be
11 responsive to questions concerning specific aspects of the
12 case.
13 Information on the case is fully presented on the
14 Commission Web site at www.puc.idaho.gov, and once you're on
15 that Web site if you'll go to Current Electric Cases and then
16 look up the case number on this that I just quoted a minute
17 ago, the TRH-W-10-01 on the current electric cases, you can
18 read everything that's been posted in this case, including the
19 Staff' s position.
20 Everyone on the call-in phone will be able to
21 hear the proceedings. Everyone's call-in phone will be
22 automatically muted except for the person testifying.
23 And the procedure is, again, if you would like to
24 testify, press star one on the phone keypad and this will sign
25 you in to testify. It will put you in a queue and you'll be
2
HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
COLLOQUY
.1 told your order among other callers. If you are blocked when
2 you try and do this because somebody else is doing it at the
3 same time, just try again.
4 Before you testify, please eliminate any
5 background noise such as radio and TV.
6 When your turn comes up to testify, you will hear
7 a prompt: Ask your question. This prompt is the time for you
8 to identify yourself by announcing your name.
9 You'll be sworn in by Staff attorney Scott
10 Woodbury. You will be asked to state your full name for the
11 record and to spell your last name. You will also be asked to
12 provide your full mailing address..13 At the end of your testimony, you may be asked
14 questions by the Commission or Mr. Stadley if he comes on the
15 line tonight. He has that right to also ask questions.
16 If at any time after you sign up to testify you
17 decide you do not want to testify, simply push the pound key on
18 your phone and you will be taken out of the testimony list.
19 If there's a disconnect at any time, just stay on
20 the line and we'll try and hook everything back up.
21 Also for the record, I'd like to go through a
22 brief background, the history of this case:
23 The Application was originally filed on June 7th,
24 2009..25 On June 23, 2010 I'm sorry, on June 7, 2010.
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HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
COLLOQUY
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1 On June 23, 2010, Notice of the Application was
2 issued through Order No. 32012. The Notice of Application also
3 suspended the proposed schedule of new rates and charges for
4 water service for a period of 30 days plus five months, from
5 July 1st, 2010, or until such time as the Commission would
6 issue an Order accepting, rej ecting, or modifying the
7 Application.
8 On October 21, 2010, the Commission issued a
9 combined Notice of Public Workshop, Notice of Modified
10 Procedure, establishing a public comment period ending on
11 December 9, 2010 -- that will be tonight at midnight -- and
12 Notice of Telephonic Customer Hearing on December 9th, 2010,
13 and that's this hearing that we're having in a few minutes.
14 Order No. 32012 was amended by Order No. 32130 to
15 correct the telephone number for tonight's telephonic hearing.
16 The public workshop was held Tuesday, November 9,
17 2010, in the Driftwood Bay Room of the North Idaho College
18 Student Union Building.
19 And then press releases describing progress in
20 the case were issued on June 25, 2010; October 27, 2010; and
21 December 2, 2010. Those went to the Coeur d'Alene Press,
22 Spokesman Review, and radio stations KVNI and KXLY, Spokane.
23 So, with those preliminary bits of information,
24 we're ready now for public testimony, and we will move to the
25 first person in the queue. And as I mentioned before, if you
4
HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
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1 will say your name after you get the question for asking a
2 question, and then Scott Woodbury will swear you in.
3 A VOICE: Participant line unmuted.
4 MS. CHRISTOFFERSON: Yes, my name is Barbara
5 Christofferson, and I have a couple questions.
6 COMMISSIONER KEMPTON: Okay, Barbara, just a
7 moment. Scott, the attorney general, will swear you in. You
8 also have to state your name, spell your last name, and give us
9 your address.
10 MS. CHRISTOFFERSON: Okay.
11 Now?
12 COMMISSIONER KEMPTON: Yes, go ahead now.
13 MS. CHRISTOFFERSON: Oh, okay. Barbara
14 Christofferson: C-H-R-I-S-T-O-F-F-E-R-S-O-N.
15 MR. WOODBURY: And what is your address, mailing
16 address?
17 MS. CHRISTOFFERSON: 5140 North Fourth Street,
18 Coeur d' Alene, Idaho.
19
20 BARBARA CHRISTOFFERSON,
21 appearing as a public witness, being first duly sworn, was
22 examined and testified as follows:
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25
MR. WOODBURY: Okay, you may give your testimony.
THE WITNESS: Okay, I have a couple questions and
5
HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
CHRISTOFFERSONPublic
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1 then I'd like to make some comments.
2 My first question -- and I'm not sure this deals
3 with where we're at right now -- is the DEQ annual charge of
4 $5, is that an annual charge or is that a monthly charge?
5 COMMISSIONER KEMPTON: Okay, as I mentioned
6 earlier , it's a hearing to take your information, but we don't
7 cross-respond on questions, so --
8 THE WITNESS: Oh, okay.
9 COMMISSIONER KEMPTON: I can give you the answer.
10 If you'll go on that Web page that I mentioned a minute ago,
11 you can look up in the records --
12 THE WITNESS: Okay.
13 COMMISSIONER KEMPTON:which that is.
14 THE WITNESS: Okay, okay, back to the business
15 we're at then. I just didn't know if you could answer that
16 question or not.
17 Can you answer the question of what's the
18 difference between the Commission and the Commission Staff?
19 COMMISSIONER KEMPTON: The Commission relates to
20 the Commissioners, and Commission Staff relates to Commission
21 Staff.
22 And you're right, I was a little ambiguous on
23 that and I used that in sort of a general expression. But the
24 Commission is made up of both the Commissioners -- three of
25 us -- and Commission Staff.
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HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
CHRISTOFFERSONPublic
.1 THE WITNESS: Oh, okay. So it wouldn't be like a
2 city planning commission and then the elected commissioners?
3 It's not like that?
4 COMMISSIONER KEMPTON: No, the Commissioners have
5 the final Decision, and Staff supports the Commission in making
6 Staff comments and taking a Staff position in the case.
7 THE WITNESS: Okay. Okay. Well, my comments are
8 I do think that an increase is probably needed. I think our
9 water has been very reasonable for a long time. And I'm not
10 opposed to an increase, and I'm not opposed to 100 percent on
11 the monthly increase, which would make it $11 a month.
12 But I think that the gallon use should be.13 increased if they're going to increase the over the so many
14 gallons. Right now it appears that it's going to be -- they're
15 looking for 142 percent increase. I think that if it goes up
16 100 percent on the monthly charge, that the gallons should
17 possibly increase to maybe 7,000 gallons a month. They're
18 still going to make up that. A normal household uses more than
19 that, and especially in the summer. I think if the gallon use
20 increases as -- doubles from 60 cents to a dollar something
21 here, 11m not just sure where I saw it here, I think that
22 you're going to see lawns not being watered, they're going to
23 turn brown.
24 Wi th the economic times right now, I think 142.25 percent increase is quite heavy. But I'm not opposed to the
7
HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
CHRISTOFFERSONPublic
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1 monthly charge and a smaller overuse of gallon use increase,
2 but I would like to see the gallons increase.
3 I think we have a beautiful area in this
4 northeast quadrant of town, and I would like to see the water
5 Company give a little also. The increase will be quite good
6 for them, I think, to keep this area in a beautiful area. I
7 think that they would want to be proud of that too and be
8 a part of that.
9 So I think that's probably all I have to say.
10
11 EXAMINATION
12
13 BY COMMISSIONER KEMPTON:
14 Okay, Ms. Christofferson, can you tell me why youQ.
15 mentioned $11, just out of curiosity?
16 Well, because I think it's 5.50 a month now.A.
17 MR. WOODBURY: Uh-huh.
18 BY COMMISSIONER KEMPTON: Yes.Q.
19 A.Correct?
20 Q.Yes.
21 And so 100 percent increase would be 11.A.
22 Correct?
23 Okay. So one thing I can tell everybody on theQ.
24 line and you as well is that Staff -- the Staff position that
25 you can check on again on the Internet if you wish --
8
HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
CHRISTOFFERSON (Com)Public
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1 A.Uh-huh.
2 -- is that the Staff recommends a minimumQ.
3 customer charge of $11.52, with a volume allowance of 5,000
4 gallons and a commodity charge of $1.05 per thousand gallons
5 for water usage above 5,000 gallons, and that's for the
6 resident customers.
7 Uh-huh.A.
8 Residential customers.Q.
9 A.And I'm pretty -- excuse me.
10 No, go ahead. That's what the Staff position is.Q.
11 Right. And I -- and I -- and I'm really close toA.
12 that in my thinking, the monthly charge.
13 Now, when you said a monthly proposing, the Staff
14 proposing 11.52, is that a month or every other month? You
15 mean monthly. Right?
16 Q. Yes.
17 Yeah. Okay. And we're paying 5.50 a month nowA.
18 for basic charge.
19 Q.Yes.
20 Okay. So, I'm not opposed to -- I would like toA.
21 see that at 11: That's a hundred percent increase. I don't
22 think that's out of line. We have very good water and we
23 have -- and I think it's been very reasonable. A hundred
24 percent, I'm okay with that.
25 But I would like to see it -- it's going up to
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HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
CHRISTOFFERSON (Com)Public
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1 $1.05 for each gallon they're asking over for 5,000, and right
2 now we're getting three allotted. I think it was 60 cents and
3 it's going up to $1.05. I think maybe a dollar for every
4 gallon over in the thousand gallons, but I would like to see
5 the 5,000 raised a li ttle bit. There's still most normal
6 families use more than that water, so they're going to make
7 money on that excess charge.
8 COMMISSIONER KEMPTON: Okay. I have no further
9 questions.
10 Commissioner Redford?
11 COMMISSIONER REDFORD: No. No, I have no further
12 questions.
13 COMMISSIONER KEMPTON: Okay, Ms.
14 Christofferson--
15 MR. WOODBURY: I have a question.
16 COMMISSIONER KEMPTON: Oh, okay.
17
18 CROSS-EXAMINATION
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20 BY MR. WOODBURY:
21 Q.Ms. Christofferson, this would be Scott Woodbury.
22 I'm the deputy attorney general and I'm an attorney for
23 Commission Staff.
24
25
A.Uh-huh.
Q.The -- you're talking about an increase in the
10
HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
CHRISTOFFERSON (X)Public
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1 volume allowance. You know, Staff was recommending 5,000 in
2 their comments, which is an increase from three?
3 A.Right.
4 But you're talking -- how large is the lot thatQ.
5 you have?
6 Oh, I think it's 90 -- 90 by 110.A.
7 Okay. And is that a standard lot then where youQ.
8 live?
9 I would say it's a little larger than -- and itA.
10 92 or -5 -- by 110 or -15.might be 90 -- 90 something
11 The -- and I would say it's a little larger.
12 I'm on Fourth Street, which was one of the
13 first -- the first streets to be -- my house was built in 1980,
14 and my -- I guess just to say, my back yard encases a little
15 bit of the not only the house directly behind me but a little
16 bit on each side of the other two neighbors.
17 And is most of your landscaping put to grass?Q.
18 A.No, not all of it.
19 Q.Okay. All right.
A.And I do not have a sprinkler system.
Q.And you realize that, you know, the Company made
22 its initial Application and Staff filed its comments, but the
23 Company also filed reply comments. Have you seen those on the
24 Commission's Web page?.25 A.No, I haven't. And I have to tell you, I don't
11
HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
CHRISTOFFERSON (X)Public
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1 own a computer.
2 Q.Oh.
3 I'm probably behind times.A.
4 the Company came in in itsQ.Well, they came
5 reply and asked for -- looked at Staff's adj ustments and asked
6 for an additional $5,500 a year, and so that will be before the
7 Commission also for their consideration.
8 A.Okay.
9 And they broke that down into an additionalQ.
10 thousand for license, backup operator; 1,200 for bookkeeping;
11 2,400 for space rental; 400 for landscaping; and 500 for
12 transportation. So those were the additional expenses that the
13 Company would like to recover on the basis of the record, I
14 guess, as you saw it.
15 Uh-huh. So you kind of lost me there. They'reA.
16 asking for that additional cost how?
17 Q.How?
18 How do they want it? Are we all going toA.
19 be billed?
20 The Company looked at Staff's adj ustments andQ.
21 indicated that their expenses are greater than what Staff was
22 proposing and asked for an additional $5,500. And I think
23 Staff had -- Staff was recommending an increase of 16,239, and
24 so the Company was asking for a little more than that.
25 Okay. Now, will that be in our water bill or areA.
12
HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
CHRISTOFFERSON (X)Public
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1 they going to assess us a different assessment? I'm kind of
2 lost on what you mean.
3 Yes, it would be -- it would be rolled into yourQ.
4 rates and averaged out over the 12 months, but the Commission
5 hasn't made any decision yet as to what's reasonable.
6 Okay. So -- so are you saying that what theA.
7 paper that I have in front of me telling me about -- I got in
8 the mail telling me about this hearing, are you telling me that
9 they want more than what this paper's telling me?
10 11m saying that under the scheduling, that thatQ.
11 Notice that the Commission issued, the Company was permitted to
12 file a reply to Staff's comments, and they made their reply
13 filing last I believe it was Friday.
14 So it's kind of like an Amendment.A.
15 Q.It's an Amendment?
16 No, they have, as the Company, they had an
17 opportuni ty to respond to Staff i s comments, and that's what
18 they have done.
19 Okay. So -- so I guess I just -- I'm not really,A.
20 really clear on how this is handled. So they may be wanting
21 more of a rate than what this paper i s telling me, or is that
22 included in this rate that they have asked for?
23 I don't -- I'm trying to think of how thisQ.
24 information can get to you. i would call the water Company
25 A.Uh-huh.
13
HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
CHRISTOFFERSON (X)Public
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1 Q.and ask them for the reply comments that they
2 filed, or we can -- we have your address and we can mail a copy
3 of the reply to you.
4 A.That would be helpful. I would appreciate that.
5 Q.All right. And it's 6140 North Hornsby?
6 A.No. No. 5-1-4-0. 5140 North Fourth Street,
7 NO.4.
8 Q.Okay. And what is your Zip code?
9 A.83815.
10 Q.Okay. Thank you.
11 A.Uh-huh, thank you.
12 COMMISSIONER KEMPTON: Ms. Christofferson, that's
13 all the questions we have, and thank you very much. That was
14 an interesting exchange between you and the deputy attorney
15 general.
16 THE WITNESS: Yeah, I'm still not sure I got it,
17 but--
18 COMMISSIONER KEMPTON: Well, they do have a _~ I
19 read to you what the Staff proposal was. And by law, the party
20 that made the Application for the rate change can respond to
21 Staff's proposal.
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23
THE WITNESS: Uh-huh.
COMMISSIONER KEMPTON: And this isn't at all
24 unusual. They will counter with things that they think the.25 Staff missed. We'll look at those and then we'll make a fair,
14
HEDRICK COURT REPORTING
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1 just, and reasonable Decision.
2 THE WITNESS: Well, I was just mainly concerned
3 when the attorney general brought that up that it was going to
4 be an extra assessment; like you i re going to take all those
5 thousands of dollars he said they asked for, if that was going
6 to be an assessment split 150 some ways, if we were going to
7 get an extra assessment.
8 COMMISSIONER KEMPTON: If the Commission decides
9 to honor some of the Requests that the Applicant made when they
10 responded to the Staff i s proposal, there will be a slight
11 increase in the rates from what Staff has in their proposal.
12 THE WITNESS: Uh-huh. Okay.
13 COMMISSIONER KEMPTON: We don't know what that
14 will be, and I can't tell you that at all.
15 THE WITNESS: Yeah, okay. Now, your explanation
16 just told me what I was looking for.
17 COMMISSIONER KEMPTON: Okay.
18 THE WITNESS: Because I just wasn't getting it
19 from the attorney general.
COMMISSIONER KEMPTON: Okay. Thank you.
THE WITNESS: Okay, thank you.
(The witness was excused.)
A VOICE: Participant line unmuted.
MS. GOULARTE: My name is Melanie Goularte
spelled G-O-U-L-A-R-T-E -- and my address is 4835 North Troy
15
HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
CHRISTOFFERSON (X)
Public
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1 Street.
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3 MELANIE GOULARTE,
4 appearing as a public witness, being first duly sworn, was
5 examined and testified as follows:
6
7 MR. WOODBURY: You may give your testimony.
8 THE WITNESS: Well, first of all, I'd like to
9 tell you what my lot size is, because you questioned about the
10 lots around here. Our lot size is 103 by 125, and we're -- we
11 sit on a corner, so we may be a tad bit bigger, but I think
12 most of the lots are pretty close to our size.
13 And the only thing that I really wanted to say
14 was that I called the City of Coeur d' Alene today to see what
15 their water charges were so I had something to kind of base it
16 on, because when the water system first went up for sale, we
17 got a thing that said, you know, do you want the City of Coeur
18 d' Alene to buy it. And everybody balked because Coeur
19 d' Alene's water rates were higher than ours. But if we go with
20 the proposed rate increases that are on the piece of paper that
21 I got in the mail, our water is going to be higher than the
22 City of Coeur d'Alene.
23 COMMISSIONER KEMPTON: Okay. So, we have that.
24 Are there other things that you want to address?
25 THE WITNESS: No, that's probably really all I
16
HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
GOULARTE
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1 want to say.
2 I mean, I do agree, yeah, they probably need a
3 rate increase. I'm not sure why they waited 14 years for it.
4 And I guess maybe one other thing I'd like to say
5 is if they do this rate increase, rather than having bimonthly
6 bills, I think maybe monthly bills might be better for some
7 people because, you know, in the summer, our water bill can be
8 $94 for two months, so then we're looking at $180. And it
9 might be easier to pay it one month at a time, you know,
10 instead of one big bill every other month.
11 COMMISSIONER KEMPTON: Okay. We got that.
12 THE WITNESS: Okay.
13 COMMISSIONER KEMPTON: And if that's all you
14 have, we appreciate your testimony this evening.
15 THE WITNESS: All right. Thank you. I hope you
16 guys make the right Decision.
17 COMMISSIONER KEMPTON: So do I. Thank you.
18 THE WITNESS: Yep. Bye-bye.
19 A VOICE: There are no more questions.
MR. LAW: Nobody else left to testify. You might
21 ask if anyone on the line wants to testify.
22 COMMISSIONER KEMPTON: I've been informed that we
23 still have some people in the queue. It shows up here on our
24 computer. We have no one else that i s signed up to testify, so.25 this would be the end of the hearing if none of you who are on
17
HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
GOULARTE
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1 the line now wish to testify.
2 MR. LAW: You might remind them how to testify.
3 We got somebody.
4 A VOICE: Participant line unmuted.
5 MR. WAGNER: Excuse me. I'm David Wagner:
6 W-A-G-N-E-R.
7 COMMISSIONER KEMPTON : Little louder, please.
8 Was it W-A-G-N-E-R, David Wagner?
9 MR. WAGNER: Yes.
10 COMMISSIONER KEMPTON: Okay. You're a little
11 soft-spoken; if you could speak up just a little bit.
12 MR. WAGNER: Okay. How's that?
13 COMMISSIONER KEMPTON: Better.
14 MR. WAGNER: My address is 4765 North Troy
15 Street.
16 COMMISSIONER KEMPTON: Okay, Scott.
17 MR. WOODBURY: Okay. Mr. Wagner, would you
18 please -- it's 4765 North Fourth Street?
19 MR. WAGNER: Troy Street.
COMMISSIONER REDFORD: Troy.
MR. WAGNER: T-R-O-Y.
MR. WOODBURY: Oh.
18
HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
GOULARTEPublic
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1 DAVID WAGNER,
2 appearing as a public witness, being first duly sworn, was
3 examined and testified as follows:
4
5 MR.WOODBURY:You may give your testimony,sir.
THE WITNESS:Okay.I guess I'd just like to say
that if there needs to be a rate increase,I'd certainly agree
with the Commission Staff and what they're proposing.I think
6
7
8
9 the 142 is a little steep the 142 percent is a little
10 steep -- right now. I think what the Commission Staff was
11 proposing, I think that's more in line with what people, they
12 would like to see happen.
13 I think there needs to be -- you know, the people
14 who own the water -- the water Company, they need to make a
15 profi t in order to keep the upkeep on the equipment. You know,
16 they can't continue to run in a deficit. And I would just
17 like, you know -- I i d just like to have a guarantee that for
18 sure that's, you know -- that's what they're going to do if
19 profit can be made.
20 And as well, as I was listening to the first
21 caller, the deputy attorney general -- and I -- sorry, I'm not
22 getting names down.
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COMMISSIONER KEMPTON: Scott Woodbury.
THE WITNESS: But he said something about their
request of extra money for I guess their own considered
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1 expenses.
2 COMMISSIONER KEMPTON: Okay, let me take a crack
3 at that, because it i S a normal procedure, as I explained
4 earlier and I think you were on the line then I believe, that a
5 person who i s an Applicant and files the rate case can respond
6 to the Staff when Staff files their proposal. And in many
7 cases, there's just simply disagreement in certain areas about
8 what may actually exist.
9 For example, the Staff could say that they were
10 operating out of a rented building, and the Company may come
11 back and say, No, we're not in that rented building anymore,
12 we're someplace else and the cost is higher. And so they would
13 file for that higher cost because it wasn't correct when Staff
14 made that determination. It's those kind of adj ustments. And
15 in this case, when you add all of them up, it's $5,000.
16 That does not mean that after the Commission
17 looks at it, that that $5,000 automatically goes into into
18 the -- or, to the Applicant, because there i s a review of that,
19 just like there was a review of the entire case before Staff
20 made their original proposal.
21 So this is something that could increase the
22 rates a li ttle bit higher than what Staff has proposed at this
23 point in time, but it i s, nevertheless, a process that's
24 required by law.
25 THE WITNESS: Right. If I could, as the attorney
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1 general kind of went through the list and he talked about
2 landscaping, and could you give me the number that he --
3 COMMISSIONER KEMPTON: I will let the deputy
4 attorney general go ahead and give you that information that he
5 addressed earlier.
6 THE WITNESS: Okay. Thank you.
7 MR. WOODBURY: What was his question?
8 COMMISSIONER KEMPTON: Scott, the landscaping
9 issue, how much was that?
10 MR. WOODBURY: That was $400 to -- for mowing
11 of -- let me check here.
12 $400 a year for lawn maintenance around the pump
13 house.
14 THE WITNESS: Okay. Then did he have some there
15 for like --
16 MR. WOODBURY: They break that down as $20 per
17 week for 20 weeks -- five months -- May through September.
18 THE WITNESS: Yeah, it's just a little patch of
19 grass that they're mowing.
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COMMISSIONER KEMPTON: Okay. So those are the
kind of we don't want to continue this because it steps
22 outside of the bounds of how these hearings are normally
23 conducted, but we wanted to provide additional information
24 because Staff's proposal isn't well known in the community,.25 and, obviously, most of you aren't aware of the Applicant's
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1 right to respond to the Staff proposal and try and make some
2 adj ustments.
3 THE WITNESS: Uh-huh. But anyway, yeah, just --
4 I want to just let you guys know that I agree that there needs
5 to be a profit. The Staff -- the Commission Staff I think at
6 this point is fine; I don't have a problem with that.
7 And maybe -- I guess just something to
8 consider maybe the commercial customers -- and I don't know
9 who they are -- but if they i re a commercial company, they're
10 not paying a whole lot more than residential are, so maybe, you
11 know -- maybe you could up theirs a bit, I don't know, because
12 they're commercial.
13 So, anyway, I guess about all I'd have.
14 COMMISSIONER KEMPTON: Okay. Do you have
15 anything else?
16 THE WITNESS: No, not -- I don't.
17 COMMISSIONER KEMPTON: Okay. Excuse me. Well,
18 thank you for your testimony then.
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THE WITNESS: Thank you.
MR. LAW: Want me to go to the next one?
COMMISSIONER KEMPTON: Somebody else who wants to
22 go on?
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A VOICE: There are no more questions.
MR. LAW: Okay, they backed out. They backed
out: They didn't want to.
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1 COMMISSIONER KEMPTON: Okay, so there's no more
2 lined up?
3 MR. LAW: No more.
4 Oh, there is one now come back on, Jim.
5 COMMISSIONER KEMPTON: Okay.
6 A VOICE: Participant line unmuted.
7
8 DIANE PRYOR,
9 appearing as a public witness, was examined and testified as
10 follows:
11
12 THE WITNESS: Hi. My name is Diane Pryor:
13 P-R-Y-O-R. I own a duplex at 902 and 904 East Margaret Avenue,
14 Coeur d' Alene, 83815. I reside in 904 and I rent out 902.
15 And I just have a comment that I think a 142
16 percent rate hike is way out of line in this economy. I was on
17 unemployment, and I had a temporary job for almost a year. I
18 had just become permanently employed this past April. I've had
19 to lower my rate -- my monthly rate -- to rent out my duplex,
20 and I can't take a 142-percent rate hike.
21 I do agree that they do need to do a rate hike,
22 but I think in wintertime and higher heating bills and
23 everything, that that is too much. I agree with the monthly
24 charge being doubled to 11, as the Commissioner's Staff.25 proposes, but I -- why can't they do, you know, maybe just a
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1 dollar on the every thousand over 3,000 gallons. I have no
2 idea what this is going to do to my water bill, but I think
3 it's too tight an economy to go with 142 percent.
4 COMMISSIONER KEMPTON: Okay. Do you have
5 anything--
6 THE WITNESS: I will not be watering my lawn if
7 it's too high. My lawn will go brown.
8 So, those are my comments.
9 COMMISSIONER KEMPTON: Okay. Mr. Woodbury.
10 MR. WOODBURY: Ms. Pryor, we didn't swear you in
11 at the beginning. Everything that you've said has been the
12 truth, the whole truth, and nothing but the truth?
13 THE WITNESS: Yes, it has.
14
15 DIANE PRYOR,
16 appearing as a public witness, being duly sworn, confirmed the
17 preceding examination and testimony.
18
19 MR. WOODBURY: Thank you.
20 COMMISSIONER KEMPTON: Commissioner Redford, do
21 you have any questions?
22 COMMISSIONER REDFORD: No.
23 COMMISSIONER KEMPTON: I have no question,
24 Ms. Pryor.
25 THE WITNESS: You do or you don't?
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1 COMMISSIONER KEMPTON: I do not.
2 THE WITNESS: Okay.
3 COMMISSIONER KEMPTON: I accept your testimony as
4 you gave it.
5 THE WITNESS: Thank you.
6 COMMISSIONER KEMPTON: Thank you very much.
7 (The witness was excused.)
8 COMMISSIONER KEMPTON: There are no more
9 questions.
10 MR. LAW: Still no more.
11 COMMISSIONER KEMPTON: Okay. There being no
12 further questions for the Commission and no one else to testify
13 before the Commission, then with the conclusion of this
14 hearing, this case will be fully submitted as of midnight
15 tonight.
16 Let's see. Wait. Let me take that -- Scott, it
17 isn't fully submitted if we still have the testimony coming
18 back. Correct?
MR. WOODBURY: Which testimony?
COMMISSIONER KEMPTON: The filing, the -- can we
21 go off the record here for a minute?
22 (Discussion off the record.)
23 COMMISSIONER KEMPTON: All right, going back on
24 the record then, this case will be fully submitted as of
25 midnight tonight, which is the end of the comment period. The
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1 Commission will deliberate the case in the near future and a
2 Decision Order will be issued shortly thereafter.
3 There being no further business before the
4 Commission, this hearing is adj ourned.
5 (The hearing concluded at 8:35 p.m.)
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1 AUTHENTICATION
2
3
4 This is to certify that the foregoing is a
5 true and correct transcript to the best of my ability of the
6 proceedings held in the matter of the Application of Troy
7 Hoffman Water Corporation for authority to increase its rates
8 and charges for water service in the state of Idaho, Case No.
9 TRH-W-I0-0l, commencing on Thursday, December 9, 2010, at the
10 Commission Hearing Room, 472 West Washington, Boise, Idaho, and
11 the original thereof for the file of the Commission.
12
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15
otary Publ'
State of Ida 0,
residing at Meridian, Idaho.
My Commission expires 2-8-2014.
Idaho CSR No. 475
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