HomeMy WebLinkAbout20070924_2067.pdfDECISION MEMORANDUM
TO:CO MMISSI 0 NER KJELLAND ER
COMMISSIONER SMITH
COMMISSIONER REDFORD
COMMISSION SECRETARY
COMMISSION STAFF
FROM:DONOV AN E. WALKER
DATE:SEPTEMBER 21,2007
SUBJECT:UNITED WATER'S APPLICATION TO IMPLEMENT MONTHLY
BILLING AND FOR RECOVERY OF THE ASSOCIATED COSTS, CASE
NO. UWI-07-04.
On September 17 , 2007, United Water filed an Application seeking authority to
implement a program of monthly billing and for authority to implement rates and charges to
recover the increased cost of converting from bi-monthly to monthly billing. The Company
stated that it believes a hearing is not necessary and requested that its Application be processed
by Modified Procedure.
THE APPLICATION
United Water states that it believes it would be in the public interest to convert from
bi-monthly to monthly billing for the following reasons: (1) a monthly bill should be easier for
customers to budget for and to pay than a bi-monthly bill, especially in summer; (2) monthly
billing can enhance water conservation and lower bills by sending a more timely price signal to
customers and providing more timely information to customers regarding their consumption; (3)
monthly billing would reduce the incidence of "high-bill" complaints from customers that result
from bills that reflect charges for two months of usage; and (4) monthly billing would double the
number of visits to customer premises by meter readers, enabling quicker detection and
troubleshooting of leaks or meter problems.
The Company estimates that the additional annual cost of monthly billing will be
125 905 , reflecting the cost of additional personnel for meter reading, preparation and mailing
of bills on a more frequent basis, increased collections processing, and administrative expenses.
Recovery of this cost represents an overall increase in rates of 3.75% on average. The Company
DECISION MEMORANDUM
proposes to apply the increase to the fixed customer charge portion of bills. This would raise
rates for all customers by approximately $1.15 per month, bringing the average annual
residential customer bill from $368.61 to $382.44.
The Company estimates that it will require at least five months lead time to hire and
train additional personnel and to make the operational adjustments needed to implement monthly
billing. It requests an effective date for the proposed tariff changes of May 1 , 2008, and
consequently an Order approving its req~est on or before December 1 , 2007.
The Company filed with its Application revised tariff sheets showing the proposed
changes from bi-monthly to monthly billing. The Company also filed the Direct Testimony of
Gregory P. Wyatt, which discusses the Company s Application and requests in more detail.
STAFF RECOMMENDATION
Staff recommends that before the Commission authorizes the use of Modified
Procedure as requested by the Company that it issue Notice of the Company s Application, and
establish an Intervention Deadline, by which those interested may petition to intervene as parties
to this case.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Company s Application, authorize
the use of Modified Procedure and establish a comment deadline? -or-
Does the Commission wish to issue a Notice of Company s Application and establish
an Intervention Deadline, by which those interested may petition to intervene as parties to this
case? -and-
Does the Commission wish for Staff to conduct a public workshop pursuant to Rule
125 (IDAP A 31.01.01.125)?
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DECISION MEMORANDUM