171016 Grouse Point Water.pdf

Case No. GPW-W-17-01
Order No. 33910 Final Order
Contact: Matt Evans
[phone] office
[phone] cell
www.puc.idaho.gov

PUC approves increases to rates and charges
for Grouse Point Water Company
BOISE (Oct. 16, 2017) – State regulators have approved increases to rates and charges for
customers of a small water company near Kuna.
The changes for Grouse Point Water Company include an increase to the monthly customer
charge and to charges based on the amount of water used.
Grouse Point Water provides service to 24 customers.
In requesting approval from the Idaho Public Utilities Commission to raise rates, the
company said revenue had fallen short of operational expenses every year since 2003,
when its current rates were set. Without a rate increase, the company said, it would be
unable to continue operations.
The changes took effect Oct. 15 and include an increase to the monthly customer charge
from $22 to $86, along with 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 gallons 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 rate structure set in 2003, customers paid 50 cents per 1,000 gallons used when
monthly consumption exceeded 8,000 gallons. There were no usage charges for customers
who consume less than 8,000 gallons per month.

Grouse Point had proposed raising the monthly customer charge to $113.86 and
implementing consumptive 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 percent 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 established in 2004.
While the Commission determined that expenses associated with the new well and pump
were prudent, it did not allow the company to recover costs related to a pump that was no
longer in service, and it deducted more than $1,000 in equipment depreciation expenses.
The Commission’s decision allows $87,775 in expenses and an 11-percent rate of return.
The company had requested that the new rates be based on $99,056 in expenses with a 12-
percent rate of return.
The Commission’s order also encouraged the company to collaborate with Commission
staff to revise its tariffs and policies, to develop a strategy to avoid over- or under-earning
when there are changes to the number of customers and to take steps to improve the
efficiency of operations, particularly related to power consumption.
The Commission’s order and other documents related to the case can be found at
www.puc.idaho.gov. Under the “Water” heading, click on “Open Cases” and scroll down to
Case No. GPW-W-17-01. Or go here.
Interested parties may petition for reconsideration of the decision by no later than Nov. 3.
Petitions for reconsideration must set forth specifically why the petitioner contends that
the order is unreasonable, unlawful or erroneous. Petitions should include a statement of
the nature and quantity of evidence the petitioner will offer if reconsideration is granted.
Petitions can be delivered to the Commission at 472 W. Washington St. in Boise, mailed to
PO Box 83720, Boise, ID, 83720-0074, or faxed to [phone].