20120111Volume II.pdf

ORIGINAL.
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
IDAHO
CASE NO.
UWI -W- 1 1 -02
PUBLIC HEARING
HEARING BEFORE
,.~ç..;;
,...
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~NWCOMMISSIONER MARSHA H. SMITH (Presiding)
COMMISSIONER PAUL KJELLANDER.
PLACE:Commission Hearing Room
472 West Washington Street
Boise, Idaho
DATE:January 5, 2012
VOLUME II - Pages 50 - 60
~.-II-
HEDRICK
POST OFFICE BOX 578
BOISE, IDAHO 83701
208-336-9208.
COURT REPORTING
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1 APPEARANCES
2
3 For the Staff:WELDON STUTZMAN, Esq.
Deputy Attorney General
472 West Washington
Boise, Idaho 83702
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5
For United Water Idaho:McDEVITT & MILLER
by DEAN J. MILLER, Esq.
420 West Bannock Street
Boise, Idaho 83702
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HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
APPEARANCES
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. 25
1 I N D E X
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WITNESS EXAMINATION BY PAGE
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4
John Taylor
( Public)
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53
57
Mr. Stutzman
Statement
Commissioner Smith
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6 EXHIBITS
7
8 PAGENUMBER
9 For the Public:
10
201.John Taylor Billing Information, 2 pgs Marked
Admitted
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HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
INDEX
EXHIBITS
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1 BOISE, IDAHO, THURSDAY, JANUARY 5, 2012, 7:01 P.M.
2
3
4 COMMISSIONER SMITH: Good evening, ladies and
5 gentlemen. This is the time and place set for a hearing before
6 the Idaho Public Utilities Commission in Case No. UWI-W-II-02,
7 further identified as in the matter of the Application of
8 Uni ted Water Idaho Inc. for authority to increase its rates and
9 charges for electric (sic) service in Idaho.
10 MR. MILLER: Water.
11 MR. STUTZMAN: Water service.
12 COMMISSIONER SMITH: Well, there's an error. It
13 is definitely water. Thank you. We'll have to make sure that
14 the Order doesn't go out saying "electric" service. Yes,
15 indeed, it is for water service. I think we finished all the
16 electric cases.
17 My name's Marsha Smith, and I'm one of the three
18 Commissioners, and I'm going to chair tonight's hearing. On my
19 left is Commissioner Paul Kj ellander, who is also president of
20 the Commission. And a third member of our Commission is
21 Commissioner Mack Redford, who is excused.
22 We're here tonight to take testimony from members
23 of the public regarding United Water Idaho's Request. Our
24 procedure is that if you wish to testify, you sign up on a
25 sign-up sheet. I call your name. When you come forward,
50
HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
COLLOQUY
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1 Commissioner Kjellander will ask you to raise your right
2 hand -- this right hand -- and promise to tell the truth. And
3 then our Staff attorney will get your name and address so
4 you'll be identified on the record.
5 The Commission's Decisions have to be based upon
6 evidence that is contained within the record before us, which
7 consists of testimony and exhibits of the formal witnesses in
8 the technical hearing and also the testimony of the public
9 wi tnesses, which is why we have a court reporter here tonight
10 so thàt everything can be taken down and we have a transcript
11 that can be used in the case that our Decision needs to be
12 reviewed.
13 We will begin with the appearances of the
14 parties. For the Applicant.
15 MR. MILLER: Thank you, Madam Chairman.
16 Dean J. Miller of the firm McDevitt and Miller for the
17 Applicant. Also with me is the general manager of the Company,
18 Mr. Greg Wyatt; and also with me are a number of personnel from
19 the Company. If any members of the public would like to speak
20 informally with Mr. Wyatt or other Company personnel, they are
21 certainly available for informal conversation with members of
22 the public as well.
23 COMMISSIONER SMITH: Thank, Mr. Miller.
24 For the Commission Staff.
25 MR. STUTZMAN: Thank you, Madam Chairman. Weldon
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HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
COLLOQUY
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1 Stutzman, Deputy Attorney General, for the Commission Staff.
2 COMMISSIONER SMITH: And I believe the other
3 party to this case is the Community Action Partnership.
4 Ms. Ottens, are you presenting an appearance here tonight?
5 (Indicating. )MS. TERI OTTENS:
6 COMMISSIONER SMITH: You're just attending.
7 Thank you.
8 That said, we'll look at our list and see
9 Mr. John Taylor has signed up to testify.
10
11 JOHN TAYLOR,
12 appearing as a public witness, being first duly sworn, was
13 examined and testified as follows:
14
15 EXAMINATION
16
17 BY MR. STUTZMAN:
18 Good evening, sir.Q.
19 A.Yes.
20 Would you please state your name for the recordQ.
21 and spell your last name?
22 John Taylor, T-A-Y-L-O-R.A.
23 And are you a resident of Boise?Q.
24 A.Yes.
25 What's your residence address for the record?Q.
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HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
TAYLORPublic
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1 9570 West Telfair Drive -- T-E-L-F-A-I-R Drive --A.
2 Boise, 83704.
3 Thank you. And you are a customer of UnitedQ.
4 Water, I take it?
5 A.Yes.
6 Please make your statement for the Commission.Q.
7 THE WITNESS: Okay, as I was reviewing the
8 information that was received and that I could muster up in my
9 time, I noticed that they have a revenue decline of almost
10 $3 million and a cost increase of $2.2 million in operating
11 costs. Mr. Wyatt, I would say that you need better management.
12 If you see your revenues going down and your costs are not
13 going down with them, we need to take a look at what's
14 happening, the same as any other business. So, Commission, I
15 would say that you throw those two out.
16 Also, there is an increase here in plant
17 investment. I understand that part of that $8.8 million is
18 $5.5 million in computer. My understanding is that United
19 Water is -- their job is to produce and deliver water, and I'm
20 not sure that $5.5 million worth of computer is going to help
21 that. However, I did get a note yesterday that said that
22 because of their new system, they were going to eliminate two
23 customer representatives. So either those customer
24 representatives get paid an awful lot of money, or you're
25 somewhat out of line with your $5.5 million.
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HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
TAYLORPublic
.1 So, moving on: $3.3 million, which is
2 one-quarter of what they're asking for, seems, to me, an
3 appropriate amount that needs to be taken care of, and in doing
4 that, I would suggest -- i would ask the Commission if they
5 would consider raising the price of the water and lowering the
6 price of the customer service fee. Customer service fee for
7 Idaho Power and Intermountain Gas is $4 per month. Customer
8 service fee for water is $9.05 a month, which, in turn, causes
9 those that are trying to save money and save water to raise the
10 amount that it costs us per hundred cubic feet.
11 And I have a couple of documents here that I'd
12 like to pass on to the Commissioners if I could..13 COMMISSIONER SMITH: Certainly.
14 COMMISSIONER KJELLANDER: Do you have a third
15 copy?
16 THE WITNESS: I do.
17 COMMISSIONER KJELLANDER: Go ahead and give it to
18 the court reporter.
19 THE WITNESS: Okay, thank you.
20 COMMISSIONER SMITH: And, let's see, we'll mark
21 these as Exhibit 201.
22 (Public Exhibit No. 201 was marked for
23 identification.)
24 THE WITNESS: Okay, page 1 shows my usage over.25 the last four years at my home. And in 209 (sic), we used 237
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HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
TAYLOR
Public
.1 hundred cubic feet; in 210 (sic), we used 188; and in 211
2 (sic), we used 151. The next line shows the total cost for
3 that water. And then the third line there shows the average
4 cost per hundred cubic feet. As you can see, the more that we
5 save, the higher it is per cubic foot, which on the lower one
6 where it's month by month shows that it can go as high as $ 6.60
7 for 100 cubic feet.
8 If we could get the price of the customer fee
9 down to where it is with the rest of the utilities in town,
10 then we could look at it at maybe a $2 water charge and charge
11 us for what we get, rather than just because we've got a meter
12 in our yard that was put there by the -- actually, all the.13 piping was put there by the contractor and the meter was all
14 that was installed by the Water Company. So, I would ask the
15 Commission if they would consider lowering the fee of the
16 customer fee and raising the costs of water so that it shows
17 more appropriately on the bill, and so that when we actually do
18 conserve water, that we get a break on our water bill.
19 COMMISSIONER SMITH: And does that conclude your
20 statement, Mr. Taylor?
21 THE WITNESS: Well, I just -- I'm real
22 frustrated. I live a mile away from a water company that would
23 have saved me $120 last year.
24 And I go back to Mr. Wyatt and management. You.25 know, I just -- I'm real frustrated with the management, that
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HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
TAYLOR
Public
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1 they can't do a better job and not charge so much for water. I
2 realize that it's not the same situation one has that the other
3 one has, there are different things, but I really believe that
4 looking at some of the information that I have, that they can
5 do a better job of managing.
6 So I would also suggest and ask that rather than
7 gi ving them an opportunity again in two years to come back to
8 the Commission, that they look at a five-year plan. They get a
9 five-year plan and run on a five-year plan like most businesses
10 do.
11 The second thing -- second page of my -- I don't
12 know what you call it, what I've turned in -- shows that if you
13 don't use any water for two months -- in fact, I used one cubic
14 foot at this location -- it cost me $19.90 for a cubic foot.
15 So it really goes back to that same customer cost.
16 So the documents really show the need to lower
17 the customer charge and to raise the water costs if we need to
18 raise water costs to make up for the differences, especially --
19 especially with the three-quarter -- or, the five-eighths and
20 the three-quarter customers. Those are the ones that are the
21 single-home dwelling that really need the break. They need to
22 look at some of the others, but I don't know -- I don't know
23 what size of a meter most one-inch customers are, you know, I
24 don't know, but I know most single houses are five-eighths,
25 three-quarters.
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HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
TAYLORPublic
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1 So, anyway, I don't know what else to say, except
2 that if we do need to -- and they've done some improvements. I
3 understand they did a Hill Road improvement. Some of the
4 improvements that are done because they need to deliver water
5 or that they needed to produce water, I can understand those,
6 but I don't understand these other costs and I certainly don't
7 understand a rate increase when you come in and say that we had
8 $3 million less in revenue and yet we let our costs go up two
9 and a half million dollars.
10 Thank you very much.
11 COMMISSIONER SMITH: We appreciate your
12 statement. Let's see if there are any questions for you.
13 Any questions, Mr. Stutzman?
14 MR. STUTZMAN: No questions.
15 COMMISSIONER SMITH: Mr. Miller.
16 MR. MILLER: No, thank you, Madam Chairman.
17 COMMISSIONER SMITH: Commissioner Kj ellander.
18 COMMISSIONER KJELLANDER: No.
19
20 EXAMINATION
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22 BY COMMISSIONER SMITH:
23 I just had one clarifying question about what youQ.
24 refer to as the five-year plan: Were you -- was that
25 indicating that you believe that the Company should not come
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HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
TAYLOR (Com)Public
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1 back for a rate increase more often than every five years?
2 I believe that they need to turn in a businessA.
3 plan of what they're doing, where they're going with it, so
4 that the Commission can see that ahead of time; and then I
5 don't think that they should come back only every five years.
6 Q.Okay.
7 Except in an emergency. If there's emergenciesA.
8 that come up, then I understand that, and if there was an
9 emergency they would have to do something to take care of that,
10 because we have to make sure that we get the supply of water
11 that we need, and that's really what we're paying for.
12 Q.Okay.
13 And that's why the customer fee really gets in myA.
14 crock. Thank you.
15 Thank you very much for appearing tonight. WeQ.
16 appreciate your help.
17 (The witness left the stand.)
18 COMMISSIONER SMITH: That's the only person I
19 have on the list. And I don't see any other potential persons
20 who may wish to make a statement, but if there are any, this
21 would be the time to come forward.
22 Seeing none, we appreciate the attendance of all
23 those that were here tonight. We appreciate Mr. Taylor taking
24 the opportunity to come and make his thoughtful statement.
25 The record in this case will now be closed. The
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HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
COLLOQUY
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1 Commission will deliberate as speedily as possible and issue an
2 Order as soon as it can. And so we thank you for your
3 attendance, and we're adjourned.
4 (Public Exhibit No. 201 was admitted into
5 evidence. )
6 (The hearing concluded at 7: 15 p.m.)
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HEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
COLLOQUY
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AUTHENTICATION
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 United
7 Water Idaho Inc. for authority to increase its rates and
8 charges for water service in Idaho, Case No. UWI-W-II-02,
9 commencing on Thursday, January 5, 2012, at the Commission
10 Hearing Room, 472 West Washington, Boise, Idaho, and the
11 original thereof for the file of the Commission.
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N tary Publ' c
in and for e S ate of Idah
residing at Meridian, Idaho.
My Commission expires 2-8-2014.
Idaho CSR No. 475
60
AUTHENTICATIONHEDRICK COURT REPORTING
P. O. BOX 578, BOISE, ID 83701
.Customer # 06007810531111 Capital Water Comparion
2011 2010 2009 2011 $$CCF $perCCF
Usae 151 188 237 My Cost 363.69 151 2.4085
Total Cost 363.69 409.72 450.91 Cap.Wtr.243.99 151 1.6158
Avg. $ per CCF 2.4085 2.1794 1.9026 119.70
Capwt 33% less
Usage Cost CCFCost
17-Nov-11 19 46.94 2.470526
15-Sep-11 46 98.17 2.134130
18-Jul-11 61 124.30 2.037705
16-May-ll 14 39.43 2.816429
17-Mar-11 4 26.41 6.602500
21-Jan-ll 7 28.44 4.062857
18-Nov-l0 25 54.85 2.194000
20-Sep-l0 65 129.22 1.98800
20-Jul-l0 61 122.37 2.006066
17-May-1O 18 44.68 2.482222
18-Mar-l0 5 23.93 4.786000
22-Jan-l0 14 34.67 2.476429
18-Nov-09 35 63.02 1.800571
21-Sep-09 76 134.78 1.773421
17-Jul-09 84 147.26 1.753095.19-May-09 28 53.99 1.928214
17-Mar-09 6 24.68 4.113333
14-Jan-09 8 27.18 3.397500
17-Nov-08 17 39.50 2.323529
17-Sep-08 50 94.24 1.884800
17-Jul-08 57 105.16 1.844912
21-May-08 31 58.55 1.888710
20-Mar-08 7 25.93 3.704286
18-Jan-08 11 30.92 2.810909
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.USAGE HISTORY
BiMonthly usa in Hundreds of Cubic fe
"
...... ~~- ... .~~-. - - ".._. -. ._---_...- ---.__..-.---. - -..
2 ..- ~ -~~- .-..._._-~. -. _. _r__.___..~ ~ __ __ ___ __ . ____ _ ~_ _.." _._....__._._
1 - --._.-~--._.~ _.__...._------_._- .- ---.."-----
0_Cc-l _
~!:;;t :-;;~r i2cdiil!Î dútt ~; \J~ 0-::2.4l2012
seRVICE TO: lO TTAYlOR
51788061 11123/11 12/16/11 23 146
1.0000 CCF 12 $1.3521
CUSTOMER CHARGE
BOISE FRANCHISE fEE
$1.35
$6.94
$0.25
.. 81lñrig Date:
Afu"t Number:
12/20/11
06002284178195
--.- --_._._-"--------_. -...- -...... .._-----~---
$11.17.'
$ll.17CR
$0.00.
. $8.73
SE AD 11340 W DA cr BO lD
147 . 1 CCf PRORATED ACTUAL W18EQro 748GAONSAF DRIN WT FE $0.19TOTAl Cl rJS $8.73
USAGE HISORY
Bi-Monthly usage in Hundreds of Cubic fee
4
3 ..... '.-.. '-'.-.-_... "-'_" ....._ . .____. ._.__. . _____._ _________
Z ---.-:-..... - '_.._- ---____.._____ ___.__._.._._
1 ---. ..---.------.-___..._____..__..___._.______ __.____ .____
o _.-
51788061 10/19/11 11/23/11 35 146
CUSTOMER CHARGE
BOISE FRANCHISE fEE
SAFE DRINKING WT FEE
TOTAL CURRENT CHARGES
Billng Date:
Acount Nutnbèr:
. ..12/05/11
06002284178195
------------- -.-~.-._- .--.-------. ._.- -_._.__. _.0. __'__0._ ..._...-__ _.:.:. .
146 o CCfEQAL10 PRORATED ACAL
o GAON W18.'
$10.56
50.32
$0.29
$11.17
SE REVe ~ i= IMTAN AtNT INFORMATION..I((F
if.' 7g.7J,~1'1. 'to