20170626_Brandon2.pdf

DECISION 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