20030106_355.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMISSIONER HANSEN
JEAN JEWELL
COMMISSION STAFF
LEGAL
FROM:SCOTT WOODBURY
DATE:DECEMBER 27,2002
RE:CASE NO. GPW-02-1 (Grouse Point Water)
APPLICATION FOR RATE INCREASE AND CHANGE TO METERED
RATES
On December 17, 2002, Grouse Point Water Company (Grouse Point; Company)
filed an Application with the Idaho Public Utilities Commission (Commission) requesting
authority to increase rates and to change from unmetered to metered rates.
Grouse Point is a small water company serving 23 customers in Kuna, Idaho. Current
authorized Schedule 1 tariff rates are $25 per month (Order No. 28110, effective September 1
1999). The Company contends that its fees and expenses have increased and that additional
revenue is required to meet its expenses plus a reasonable amount for management services.
Based on a 2001 test year, the Company proposes rates that will provide an annual
revenue requirement of $10 120. The Company estimates that the proposed rates will result in
an average monthly customer bill of $36, a 40% increase in rates. Individual billings will differ
depending upon water consumption. The Company requests an effective date of March 1 2003.
The metered rates proposed by the Company are as follows:
Base charge $33/mo for first 12 000 gallons
$1.70/for every additional 1 000 gallons.
Grouse Point with its Application submits income statements for the years 1999 to
2001. The Company s filing is available for inspection at the Company s office, 4225 Riva
Ridge Way, Boise, Idaho (telephone: [phone]), at the Commission s office, 472 West
DECISION MEMORANDUM
Washington, Boise, Idaho and has been posted on the Commission s web site
www.puc.state.id.
Commission Decision
Grouse Point has requested authority to increase rates and to change from unmetered
to metered rates. Staff recommends that the Company s Application be initially processed
pursuant to Modified Procedure, i., by written submission rather than by hearing. Reference
Commission Rules of Procedure, IDAPA 31.01.01.201-204. As a significant 40% rate increase
is being requested, Staff also proposes to conduct a public workshop for customers prior to the
comment deadline. The Company has provided a customer list with addresses. Individual
copies of the Notice of Application, public workshop and scheduling will be mailed to all
customers. Does the Commission agree with the proposed procedure?
Scott Woodbury
Vld/M:GPW-O2-
DECISION MEMORANDUM