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HomeMy WebLinkAbout2017 annual report section 4.pdfIdaho Public Utilities Commission WATER Company Customers Nearest city/town CDS Stoneridge Utilities, LLC 358 Blanchard Diamond Bar Estates Water Company 46 Rathdrum Eagle Water Company, Inc. 3,546 Eagle Falls Water Company, Inc. 4,500 Ammon Grouse Point Water 24 Kuna Happy Valley Water System 27 Athol Island Park Water Company 362 Island Park Kootenai Heights Water System, Inc. 11 Kootenai Mayfield Springs Water Company 76 Kuna Morning View Water Company, Inc. 108 Rigby Picabo Livestock Company 28 Picabo Ponderosa Terrace Estates Water System, Inc. 22 Sandpoint Resort Water Company 422 Sandpoint Rickel Water Company 38 Coeur D'Alene Rocky Mountain Utility Company, Inc. 101 Rigby Schweitzer Basin Water LLC 439 Sandpoint Spirit Lake East Water Company 301 Coeur D'Alene Suez Water Idaho Inc. 88,400 Boise Sunbeam Water Company 22 American Falls Teton Water and Sewer Company, LLC 285 Driggs Troy Hoffman Water Corporation 147 Coeur D'Alene Regulated water companies Page 43 Idaho Public Utilities Commission WATER CASES Page 44 Grouse Point Water receives approval to raise rates and charges In September, the Commission approved increases to rates and charges for customers of Grouse Point Water Company near Kuna. The changes included an increase to the monthly customer charge, from $22 to $86, and to charges based on the amount of water used. The changes took effect Oct. 15 and call for usage charges based on an inclining block rate structure that assesses a higher rate when usage exceeds certain amounts. Grouse Point customers who use up to 8,000 gallons in a month are now charged $2.50 per 1,000 gal- lons used. The rate increases to $3.75 per 1,000 gallons for monthly usage between 8,001 and 20,000 gallons. It climbs to $5 per 1,000 gallons for monthly usage exceeding 20,000 gallons. Under the previous rate structure, customers paid 50 cents per 1,000 gallons used when monthly con- sumption exceeded 8,000 gallons. There were no usage charges for customers who consume less than 8,000 gallons per month. Grouse Point Water provides service to 24 customers. In requesting Commission approval to raise rates, the company said revenue had fallen short of opera- tional expenses every year since 2003, when its previous rates were set. Without a rate increase, the company said, it would be unable to continue operations. Grouse Point had proposed raising the monthly customer charge to $113.86 and implementing con- sumptive charges with two tiers separated at 8,000 gallons - $1.83 per 1,000 gallons for those who use less than 8,000 gallons in a month, and $5 per 1,000 gallons for usage in excess of 8,000 gallons. In its proposal, the company said revenue between 2012 and 2015 covered approximately 40 per- cent of its expenses for basic operations and maintenance, creating a deficit in excess of $10,000. In addition, the company contended its rates did not reflect $127,441 in capital improvements made in 2009 and 2013. Those improvements included installation of a new well, two pumps and associated equipment needed to comply with federal drinking water standards involving uranium that were estab- lished in 2004. Commission approves Falls Water request to build new well In September, the Commission approved a request from Falls Water Company to construct a new well in order to resolve problems with water pressure in its service territory. The project is estimated to cost $647,215 and calls for construction of a well, well house, pumping equipment and controls. The decision does not immediately impact rates; however, the Commission’s order allows project ex- penses to be considered in Falls Water’s next rate case. Company estimates indicate the project could lead to a rate increase of between 3.4- and 4.4 percent, but all expenses related to the project will be reviewed for accuracy and reasonableness before they are included in future rates. Idaho Public Utilities Commission WATER CASES Page 45 Falls Water serves approximately 4,700 customers in Bonneville County, east of Idaho Falls. Officials with the Idaho Department of Environmental Quality notified the company in July 2016 that it had failed to comply with water pressure requirements of the Idaho Rules for Public Drinking Water Systems. DEQ officials suggested that corrective action could include water-use restrictions or an increase in sys- tem capacity through additional sources, storage or pumping. When the potential solutions were deemed inadequate or cost prohibitive, Falls Water sought to add capacity through the construction of a new well. The Commission found that the company’s proposal “appears to be the most cost-effective means of providing adequate service to its customers.” Morning View Water receives approval to raise rates and charges In late 2016, the Commission approved a rate increase for customers of Morning View Water Compa- ny in Rigby. The change raised the monthly minimum charge from $32.62 to $50 for quarter-acre lots, and intro- duced volumetric charges based on the amount of water used each month. These consumption-based charges are now split into two tiers. For a customer with a quarter-acre lot, the first tier is 15 cents per 1,000 gallons used per month, up to 10,000 gallons. Usage beyond that amount is assessed at 48 cents per 1,000 gallons used per month. The changes were expected to increase the company’s annual revenue by $93,727, or nearly $8,000 less than the revenue generated under Morning View’s proposal, which did not call for volumetric charges. In its application to the Commission, the company said its first rate increase since 2007 was needed in order to meet expenses related to the installation of a third well, along with upgrades to two existing wells. Morning View provides water service to approximately 100 customers in and around Rigby in eastern Idaho. The Commission received a number of comments from customers opposed to the company’s request.