150723_UWIworkshop.pdf

Case No. UWI-W-15-01, Order No. 33344
Notice of Public Workshop, Technical Hearing
Contact: Gene Fadness [phone], 890-2712
www.puc.idaho.gov

Workshop, technical hearing set in United Water Idaho case

BOISE (July 23, 2015) – The Idaho Public Utilities Commission has set dates for a public
workshop and technical hearing regarding United Water Idaho’s application to increase rates.
The commission also set deadlines for parties and staff to submit their direct testimony and
rebuttal testimony.

The public workshop will be Wednesday, August 19, at 7 p.m. in the commission hearing room
at 472 W. Washington St. in Boise.

During the workshop, commission staff will present an overview of the company’s application
and explain how customers may further participate in the proceeding. There will also be time
for customers to ask questions. Representatives of the company may also be available.

United Water Idaho, which provides water to about 90,000 customers in Boise, parts of Eagle
and unincorporated areas of Ada County, is asking the commission for an increase to rates that
would increase an average residential bill by about $4.22 per month, or 13.2 percent. The
average $4.22 per month proposed increase is based on the average residential customer’s
monthly consumption of 9,500 gallons.

A technical hearing in the case will be Thursday, November 19, at 9:30 a.m. also in the
commission hearing room. During this hearing, testimony from the company, commission staff
and intervening parties is presented. Attorneys for the parties may cross-examine each party
regarding their testimony and exhibits. The technical hearing is open to the public, but public
comment is not taken. The date and time for a hearing to take public comment will be
announced later. Public comments can also be submitted in writing.

Other parties to the case, which include commission staff and the Community Action
Partnership Association of Idaho, will pre-file direct testimony by Oct. 9. Rebuttal testimony
from United Water is due by Nov. 6. That testimony will be available on the commission’s
website.

United Water applied for the increase on May 21. The commission suspended the company’s
application for six months to allow time for its staff of auditors, engineers, technical analysts
and attorneys to review the case. The commission cannot, by state law, arbitrarily refuse to
consider rate increase requests without first considering the evidence presented by the utility,
intervening parties and customers. The burden of proof is on the utility to justify the expenses it
seeks to recover as 1) necessary to serve customers and 2) prudently incurred. The commission
may accept, reject or modify the company’s request. All commission decisions can be appealed
to the state Supreme Court by the utility, intervenors or customers.

As part of the proposed 13.2 percent increase, United Water seeks an increase in the bi-
monthly customer service charge to $23.55, up from $20.08 for small-service customers. For
larger customers using a 1-inch service line, the basic charge would increase from $26.60 to
$30.10. The company proposes to increase its volumetric charge to about $1.66 per 100 cubic
feet (748 gallons), up from $1.46. If use exceeds 3 CCF during the summer months, the
proposed increase is to $2.07 from $1.83. If the commission were to approve the full requested
amount, annual revenues to United Water would increase by $5.88 million. United Water is
seeking an 8.45 percent overall rate of return and 10.4 percent return on equity. It claims its
current rate structure results in a 6.43 percent rate of return.

United Water claims the increase is needed to recoup more than $39 million of investment in
its water system since the last rate case in 2011. The capital improvements include $17.2
million to replace aging water mains and meters, $3.5 million to replace treatment facilities,
$900,000 for a replacement storage tank in the Bogus Basin Road area and $500,000 for
auxiliary power equipment to ensure uninterrupted water supply during electric outages.

The company also seeks to make changes to its customer service rules, including one that
would allow United Water to terminate service without prior notice if a customer fails to install,
maintain or annually test a backflow prevention device and a dangerous condition is present.

Comments are accepted via e-mail at www.puc.idaho.gov and clicking on "Case Comment
Form,” under the “Consumers” heading. Fill in the case number (UWI-W-15-01) and enter your
comments. Comments can also be mailed to P.O. Box 83720, Boise, ID 83720-0074 or faxed to
[phone].

Consumers may track the case from the commission website. Click on “Open Cases” under the
“Water” heading and scroll down to the above case number. Included are the company’s
application, testimony and customer comments received to date. Testimony from commission
staff and other parties will be available by Oct. 9.

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