20050323Stipulation.pdf

ORIGINAL
HECEIVEO
fLEDDean J. Miller
McDEVITT & MILLER LLP
420 West Bannock Street
O. Box 2564-83701
Boise, ID 83702
Tel: [phone]
Fax: [phone]
. oe mcdevitt-miller. com
lOnSt,ltR 23 flt" ~.: 41
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U llL II \ f:. S Cur'ir'IS~ION
Attorneys for Applicant
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF UNITED WATER IDAHO INC. FOR
AUTHORITY TO INCREASE ITS RATES
AND CHARGES FOR WATER SERVICE IN
THE STATE OF IDAHO
Case No. UWI - W -04-
STIPULATION
COME NOW United Water Idaho Inc
, ("
United" or "the Company ) and Community
Action Partnership Association of Idaho ("CAP AI"), by and through their respective counsel of
record and stipulate and agree as follows:
On February 23, 2005 representatives of United and CAP AI participated in a public
workshop held at the Commission offices. Members of the Commission Staff also participated.
The workshop was preceded by a public notice, issued February 3, 2005.
The purpose of the workshop was to discuss the need for, scope, and design of a low-
income customer assistance program for United Water customers.
As a result of the workshop discussions, agreement was reached regarding the general
parameters and features of a low-income assistance program. Thereafter representatives of
United and CAP AI continued to discuss possible program features.
Based thereon, after extensive good faith negotiations, United and CAP AI have reached
an agreement upon a proposed low-income assistance program, for consideration by the
Commission. The proposed three-part program is described in Attachment A, hereto. The text of
STIPULATION-
Attachment A has also been filed with the Commission in response to Staff Production Request
No. 54.
United and CAPAI believe the low-income assistance program described in Attachment
A would provide measurable benefit to low-income customers without burden to the general
body of United's ratepayers and that the program is consistent with and promotes the public
interest.
United and CAP AI respectfully request that the Commission approve the low-income
assistance program, described in Attachment A, in the Commission s Final Order in this
proceeding.
Dated this ~'1 day of March, 2005.
cD EVITT & MILLER LLP CAP AI
.......
Attorneys for United Water Idaho Inc.
Brad M. Purdy
Attorneys for Community Action
Partnership of Idaho
STIPULA TION-
Mar 23 05 03: 12p Brad M. Purd~2083848511 p. 3
Attachment A has also been filed with the Commission in response to Staff Production Request
No. 54.
United and CAP AI believe the low-income assistance program described in Attachment
A would provide measurable benefit to low-income customers without burden to the general
body of United's ratepayers and that the program is consistent with and promotes the public
interest.
United and CAP AI respectfully request that the Commission approve the low-income
assistance program~ described in Attachment A, in the Commission s Final Order in this
proceeding.
."..
Dated this R;:,day of March, 2005.
McDEVITT & MILLER LLP CAP AI
Dean J. Miller
Attorneys for United ~Vater Idaho Inc.
Brad M. Purdy
Attorneys for Community Action
Partnership of Idaho
STIPULA TION-2
. ..-......- -.----..
CERTIFICATE OF SERVICE
I hereby certify that on the2;l!~ of March, 2005, I caused to be served, via the method(s) indicated
below, true and correct copies of the foregoing document, upon:
Brad M. Purdy
Attorney for the Community Action Partnership
Association of Idaho
2019 North 17th Street
Boise, Idaho 83702
Fax: [phone]
bmpurdy~hotmail.com
William M. Eddie
Advocates for the West
o. Box 1612-83701
1320 West Franklin Street
Boise, Idaho 83702
Fax: [phone]
billeddieCfYrmci .net
Bill Sedivy
Idaho Rivers United
O. Box 633
Boise, Idaho 83701
Fax: [phone]
iru~idahorivers.org
Sharon Ullman
9627 West Desert Avenue
Boise, Idaho 83709
Fax: [phone]
sharonu~cableone.net
Chuck Mickelson
Boise City Public Works
O. Box 500-83701
150 North Capitol Boulevard
Boise, Idaho 83702
Fax: [phone]
cmi eke Ison~cityofboise.org
Douglas K. Strickling
Boise City Attorney s Office
O. Box 500-83701
150 North Capitol Boulevard
Boise, Idaho 83702
Fax: [phone]
dstri c kl i n ~c ity 0 tho i se.o rg
Scott L. Campbell
Moffatt Thomas
101 South Capitol Blvd., 10th Floor
O. Box 829-83701-0829
Boise, Idaho 83702
Fax: [phone]
~c(fYmoffatt.com
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ATTACHMENT A
United Water Idaho
Proposed Low-Income Assistance Program
As part of it's filing before the Idaho Public Utilities Commission for authority to increase its
rates and charges for water service, United Water Idaho (United) proposed to convene a
workshop(s) to evaluate the need for, scope and design of a low-income assistance program for
customers, (see Wyatt Direct Testimony page 16, line 18 through page 17, line 16). After
adequate public notification, a workshop was conducted on February 23, 2005 at the
Commission offices from 10:00 A.M. until approximately noon. In addition to United and
Commission Staff, representatives of Community Action Partnership of Idaho (CAP AI) and one
individual customer participated in the workshop. A copy of the workshop agenda is attached.
Following the workshop, United and CAPAI have continued a dialogue regarding a low-income
assistance program resulting in the following proposal.
United's proposed low-income assistance program is comprised of three components: a lower
priced initial rate block in the summer, a fund from which customers may receive water bill
payment assistance, and targeted water conservation help.
Residential Summer Rate Block
United proposes implementing a two-tier inclining summer rate structure for residential
customers where the first 3 hundred cubic feet (cct) of water consumed in a billing cycle is
priced at the winter rate, and all other water consumption priced at the 25% higher summer rate.
This inclining rate block structure would be effective May 1 through September 30 of each year
to coincide with the current "summer rate" timing.
The "lost revenue" from 3 ccf of consumption in the summer priced at the winter rate has been
calculated to be $100,406. United recommends spreading this revenue across the entire year and
adjusting both the winter rate and the summer rate accordingly in order to make this component
of the low-income assistance program essentially revenue neutral to the Company.
The 3 ccf level (2 244 gallons) was chosen based on the perception that a "subsistence" level of
water could be priced at the winter rate in order to enable residential customers to "flush the
toilet and take a shower" in the summer for the same cost as in the winter. Statistics from a 1997
Idaho Department of Environmental Quality report (the most current IDEQ data available) shows
that average daily household toilet and shower use is approximately 30 gallons a day, (18 gallons
for toilet and 12 gallons for shower). For a 60-day billing period this amounts to 1 800 gallons
of water. Therefore the 3ccf threshold accommodates a small amount of water use (444 gallons)
in excess of this "toilet and shower" use each billing period.
United also analyzed its billing data and determined that approximately 10% of its customers
billed during the winter use period, use 3ccf or less in a billing period. It is reasonable to assume
that low-income users would be in this low water consumption group so it is logical to project
that, although the 3ccf rate block in the summer will benefit all users, it will benefit low-income
users the most.
Attachment A
Page 1 of 4
United Water Shares
United proposes a voluntary giving program to a "United Water Shares" fund among its
customers through its billing and collections process. United's shareholders would initially
support the United Water Shares fund in an amount of$10 000 in 2005 (assuming the program
begins in July 2005) and would then match customer contributions to the fund up to $20,000 in
ensuing years. Customers would have the option of donating to the United Water Shares fund
when paying their bill.
United would initially partner with CAP AI for customer screening and administration of the
fund. CAP AI would screen applicants for eligibility and to determine account credits. The
following describes the basic program parameters:
In general:
. CAP AI begins to process benefits as soon as the program is authorized based on
United Water shareholder initial infusion of funds.
After the first six months, monthly distributions to be based on the average monthly
collection of the previous three months including United Water shareholder
contributions.
. CAP AI free to solicit other donations to the fund if they choose.
Monthly fund amount to be made available to eligible customers on a first-come
first-served basis.
CAPAI would charge United an administrative fee of 10% of the funds used, which
would be booked as a utility operating expense.
Eligibility:
Eligible customers would be those at or below 150% of the Federal Poverty
Guidelines.
Maximum individual benefit to be capped at $50.00.
Water termination has to be imminent.
Customer eligibility limited to one time in any calendar year. This limitation and/or
the $50.00 cap may be revisited later based on fund utilization and balance.
Distribution:
United Water to hold the United Water Shares funds in a separate account.
. CAP AI determines applicant eligibility, gathers basic demographic information
(name, address, account number, phone number, etc.), and submits daily report to
United Water.
Upon notice from CAPAI, United Water credits eligible accounts and transfers
appropriate amounts from United Water Shares fund to United Water and credits
accounts receivable. Follow-up notice of accounts credited made back to CAP AI.
United would communicate and promote the United Water Shares program and seek customer
contributions by means of bill inserts and messages on the bill. United anticipates the annual
cost for bill inserts to be $12 000, based on three inserts per year at $4 000 each time, which will
be booked as a utility operating expense.
Attachment A
Page 2 of 4
Tareeted Conservation HelD
United proposes targeting water conservation information and water conservation kits (indoor
and outdoor kits) specifically to those customers who are determined eligible for assistance by
CAP AI under the United Water Shares program. CAP AI estimates they serve approximately
300 United Water Idaho customers per year through its Weatherization program. These same
customers are likely to have need of the United Water Shares program and could benefit by
implementing water conservation practices. CAP AI would distribute conservation information
and kits supplied by United to the targeted customers.
Attachment A
Page 3 of 4
II.
III.
AGENDA
UNITED WATER IDAHO
LOW-INCOME PROGRAM WORKSHOP
IDAHO PUBLIC UTILITIES COMMISSION OFFICES
10:00 A.M. FEBRUARY 23, 2005
Introduction / Purposea. Introductions
b. General purpose and goals of the workshop
Identify Level of Need for a Low-Income Program
a. Boise demographics (CAP AI)b. LIHEAP information
c. United Water data
Identify Program Feature Optionsa. Tariff / non-tariff options
b. Budget billing (level pay) for eligible participants
c. Time of year availability
IV.Mechanics of a Low-Income Program
a. Use of a third-party to administer (Le. Salvation Army)
b. Mechanism to assess/certify eligibility (LIHEAP certification?)
c. Funding - sources and administration
Next Steps
Attachment A
Page 4 of 4