20030218_389.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:SCOTT WOODBURY
DATE:FEBRUARY 14, 2003
RE:CASE NO. GPW-02-1 (Grouse Point Water)
APPLICATION TO INCREASE RATES AND TO CHANGE FROM
UNMETERED 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.
On January 10, 2003 the Commission issued Notices of Application, Public
Workshop and Modified Procedure in Case No. GPW-02-01. The public workshop was held
DECISION MEMORANDUM
on January 30 2003. The customer comment deadline was February 6 2003. The Commission
Staff comment deadline was February 2003.
Timely comments were filed by the Commission Staff and a number of the
Company s customers.
Staff in conclusion recommends that the revenue requirement for Grouse Point Water
be set at $6 702 per year based on Company and Staff recommended changes to the 2001 test
year. Staff recommends that the monthly charge to customers be set at $22 per month for the
first 8 000 gallons plus $0.50 per 1 000 for each additional gallon. Staffs recommendations if
adopted result in a rate decrease rather than the Company requested increase. The Company has
been advised of Staffs recommendation and requests an opportunity to reply. To provide the
Company with this opportunity, Staff recommends that the proposed March 1, 2003 effective
date be suspended for 90 days or until such earlier time as the Company files its reply and
Commission issues its Order accepting, rejecting or modifying the Company s Application.
Reference Idaho Code 61-622.
Commission Decision
Staff recommends that the March 1, 2003, proposed effective date be suspended for
90 days to give the Company the opportunity to file reply comments. Does the Commission
agree that the suspension of the proposed effective date is appropriate?
Scott Woodbury
Vld/M:GPWWO201 sw2
DECISION MEMORANDUM