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HomeMy WebLinkAbout20170626_Brandon2.pdfDECISION MEMORANDUM 1 DECISION MEMORANDUM TO: COMMISSIONER KJELLANDER COMMISSIONER RAPER COMMISSIONER ANDERSON COMMISSION SECRETARY COMMISSION STAFF FROM: BRANDON KARPEN DEPUTY ATTORNEY GENERAL DATE: JUNE 22, 2017 SUBJECT: GROUSE POINT WATER COMPANY, LLC RATE CASE; CASE NO. GPW-W-17-01 On February 22, 2017, Grouse Point Water Company applied to the Commission for authority to increase its monthly base rate from $22/month to $113.86/month (418%), and to increase its consumptive charge for customers using over 8,000 gallons/month from $0.50/1,000 gallons of use to $5.00/1,000 gallons of use (900%). The Company also proposed a new consumptive charge of $1.83/1,000 gallons of use under 8,000 gallons/month. Grouse Point asked for the new rates to take effect on April 15, 2017. On March 9, 2017, the Commission issued notice of the Application, set an intervention deadline, and suspended the proposed effective date until October 15, 2017. Since that time, Staff has evaluated the Company’s filing and now requests that the Commission order that this case be processed by Modified Procedure and that comment deadlines be set. BACKGROUND Grouse Point is a limited liability corporation providing water service to 24 customers in the Kuna, Idaho area. The Company’s existing tariff is a simple base rate with a uniform single block structure approved by the Commission in December 2003. Order No. 29402. The Company claims its existing rates are not adequate to cover even half of the operational and maintenance expenses; do not recognize significant capital improvements made since the last rate case; and that rates must be increased to continue operating. The increase is largely attributed to repairs, treatment, and replacement of a well due to EPA standards for uranium levels in drinking water. DECISION MEMORANDUM 2 STAFF RECOMMENDATION Staff has concluded that the Company’s proposal to process this case by Modified Procedure is appropriate and requests that the Commission order the same. Further, Staff is requesting that the Commission set an August 17, 2017 comment deadline, and an August 31, 2017 reply deadline. Furthermore, Staff has requested that a Staff workshop be set to take place on July 20, 2017, at 7:00 p.m., at Kuna City Hall, 751 W 4th Street, Kuna, Idaho. COMMISSION DECISION Does the Commission wish to issue a Notice of Modified Procedure with an August 17, 2017 comment deadline, and an August 31, 2017 reply deadline, and set the Staff workshop as described above? M:GPW-W-17-01_bk2