20231011Algoma Workshop.pdf

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Introduction
Purpose of Public Workshop
Informational Session To Learn About The Case
•Explain IPUC Staff’s Role In The Case
•Present Algoma Water Systems Application
•Learn How To Submit Written Public Comments
•Ask Questions
This Public Workshop is not part of the official case
record.
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•Established in 1913. Idaho Code Sections 61, 62, and 63.
•The Commission regulates Idaho's investor-owned utilities, ensuring
safe, reliable service, and reasonable rates.
•The Commission is made up of three commissioners appointed by the
Governor and confirmed by the Senate. The Commissioners make the
decisions in each case.
•Commission Staff is made up of Auditors, Consumer Compliance
Investigators, Engineers, & Technical Analysts.
•Staff is conducting this workshop. Staff is one of the Parties in the rate
case and providing comments to the Commissioners.
What is the Idaho Public
Utilities Commission?
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Why can’t the Commission just tell them “no”?
Customers may want the Commission to reject Algoma’s
request to raise rates, but state law requires that the
Commission:
•Consider the evidence that is on the record, which includes the Company’s
Application, comments from Staff, and customers' written comments or
testimony at customer hearings.
•Meet the statutory public interest standard that ensures customers have
adequate, safe, and reliable service at just and reasonable rates.
Important Points to Consider:
•It is not in the public interest to have a utility that cannot adequately serve
all the customers in its assigned territory now or in the future.
•All Commission decisions must withstand Idaho Supreme Court appeals
from either utility or customer groups.
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Why can’t utilities cut costs just
like any other business?
Regulated utilities are not like any other business. They are
assigned service territories and must serve every customer in that
territory. What they charge customers is determined by state
regulators. In exchange for their guarantee to provide adequate,
safe, and reliable service, the state must provide utilities the
opportunity to:
•Recover prudently incurred expenses necessary to serve
customers; and,
•Earn a reasonable rate of return on their investment.
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Event Date Location
Case Filed March 7, 2023
Public Workshop October 11, 2023 Virtual WebEx
Staff Comments October 18, 2023
Public Comments October 18, 2023
Customer Hearing October 18, 2023 Sandpoint
Company Response November 1, 2023
Close of Case Final Order
Proposed Effective Date December 1, 2023
A copy of the Application and Algoma Water System’s current rate schedules are available for review by
the public on the Commission’s website at www.puc.idaho.gov. The Application can be accessed by
selecting Water – Open Cases – AWS-W-23-01.
Algoma Water System Proposal
Requesting a 100% increase on monthly flat rate for both residential and
commercial customers.
First rate-case since 2008.
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Rate Case Drivers
Higher expenses:
Increased power costs, and water testing.
New tank, new pump, new check valve, new contactor. The Company has had to make many replacements to the system.
Total Operating Expenses are $13,317 and current Revenue is $9,726.
The Company added $19,230 for Power Pumping Equipment in 2022 to replace equipment that had been broken.
Impact to Customers
Current Rate New Rate
Residential $27/ month $54/ month
Commercial $44.50/month $89/ month
Staff is analyzing the Company’s request. Staff is investigating all
the new expenses to determine if they were prudently incurred,
and if the rate increase is warranted.
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What is Revenue Requirement?
Revenue Needed Each Year To:
Recover prudently incurred expenses that are necessary to
provide service to customers and are cost effective
Earn a return on these capital investments
Pumps, pipes, and wells
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Revenue Requirement Components Defined
Operating Expenses
Office supplies, Rent, Water Operators, Etc. Which
Contribute To Providing Service To Customers
Taxes
State And Federal Taxes
Plant
Infrastructure Investments Used To Provide Service To Customers
Depreciation
Recovery Of Plant
Rate of Return
The return for the Company’s investments in the system.
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Consumer Assistance
•Utility Compliance Investigators assist customers to
resolve issues and/or disputes with the Company.
•Investigators monitor compliance with laws,
commission rules, and the Company’s tariff.
•In a rate case, investigators review issues from previous
cases, review previous complaints, review submitted
comments from customers, and investigate consumer
issues raised in the case.
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CUSTOMER COMMENTS
Customer written comments are due prior to the
Commission closing the record on the case.
(Reference Case Number AWS-W-23-01)
•Internet Website Address – puc.idaho.gov
•Select - Case Comment Form (once comments are submitted, they become part of public record)
•Email – Address: [e-mail]
•Mail – IPUC, PO Box 83720, Boise, ID 83720-0074
•Public Customer Hearing – October 18, in Sandpoint
COMMENTS ONLY
(QUESTIONS WILL NOT BE ADDRESSED)
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Idaho Public Utilities Homepage
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Comments Form Page
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PUC Home Page
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Water Page
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Open Water Cases Page
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Case Summary Page
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•Customers can subscribe to the Commission’s RSS feed to receive updates about all cases via email.
•Continue submitting your comments.
•Public Customer Hearing, date is October 18.
•The Commission will issue a final order which will close the case.
Where do we go from here?
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Workshop Participation
Online:
To open chat in WebEx, please select the icon.
Type questions and comments in the chat box;
Please use the “Everyone” option when using chat to ensure your message will be seen.
To speak, click on the hand icon in the lower section of your Webex screen. I will send you an invitation to unmute your audio line.
On the phone:
*3 is the command to raise and lower your hand;
When your line has been un-muted, you will hear an
announcement indicating that.
This PowerPoint is available on the commission’s homepage at puc.idaho.gov.
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