HomeMy WebLinkAboutPowerPoint presentation for Falls Water Co Jan 5 Workshop.pdfWorkshop Participation
Online:
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Type questions and comments in the chat box;
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This PowerPoint is available on the commission’s homepage at puc.idaho.gov.
*This workshop is being recorded*
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Introduction
Purpose of Public Workshop
Informational session to learn about this case
•Review Falls Water’s application.
•Provide customers an opportunity to meet Commission
Staff.
•Ask questions and submit written public comments.
This Public Workshop is not part of the official case record.
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Purpose of Public Hearing
Provide customers an opportunity to speak to Commissioners
and provide public testimony on this case.
Commissioners will not answer questions at the Public
Hearing.
Staff encourages you to attend the Public Hearing.
•January 14 at 6 p.m.
The Public Hearing is 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 adequate service and reasonable rates.
•The Commission is made up of three commissioners appointed by the Governor. The Commissioners make the decisions in each case.
•Commission Staff is made up of Auditors, Consumer Advocates, Engineers & Technical Analysts.
•The Staff is conducting this workshop. Staff is one of the parties in the rate case 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 Falls Water’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 oral
testimony at public 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 and in the future.
•All Commission decisions must withstand Idaho Supreme Court appeals from
either utility or customer groups.7
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. 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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Falls Water Application
Filed June 30, 2020
Requested rate increases starting on August 15, 2020
•On July 16, the Commission suspended the
effective date by up to 5 months and 30 days.
Requested a 19.12% revenue increase.
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Rate Case Drivers, cont.
First rate case in 8 years
Larger system:
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2012 2019
Rate base $2.4 milliona $5 million
Customer count 3,858a 5,424
Rate Case Drivers, cont.
Northwest Natural acquisition: not directly related
to rate case
“Pro forma” adjustments:
Salaries
Shared Northwest Natural services
Completed projects added to Plant in Service
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Revenue Requirement
The amount the Company needs to meet its
expenses, cover depreciation, and offer a sufficient
rate of return to attract investors.
Components:
Operating Expenses;
Taxes;
Depreciation;
Return on Rate Base:
Rate Base x Rate of Return;
Rate Base consists of Net Plant in Service and Working Capital;
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Expenses
Must be prudent
Must be used for service
Taxes
Properly Calculated
Depreciation
Properly Calculated
Based on Plant in Service
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Return on Rate Base
Plant in Service
Must be prudent
Used and Useful
Working Capital (cash needed for everyday
operations)
Rate of Return
Calculated based on Debt and Equity Costs
Must be able to access the capital needed to maintain the
system
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Revenue Requirement
Falls Water Co.
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Category Company
Request
Expenses
Taxes $243,709
Depreciation $215,696
Return on Rate Base (7.24%)$363,022
$2,144,602
Rate Proposal
Meter sizes and monthly allotments
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Meter size Gallons
5/8” or 3/4”12,000
1”17,000
1 ½”22,000
2”28,000
4”49,000
Second Tier Charge (per 1,000 gallons)
Current
Proposed
Percent Increase 38.9%
Rate Proposal
Monthly minimum charge
Meter size Current
Rate Rate
Percent
increase
5/8” or 3/4”5.63%
1"
1.5"
2"5.63%
4"
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Rate Proposal
Comparing percentage increases
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Bill component Percentage
increase
Minimum monthly charge 5.63%
Per-gallon charge
(above allotted amount)38.9%
Bill Impact (Residential)
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Residential
meter size
Current
average bill
Proposed
average bill
%
increase %
5/8" & 3/4"17.7%
1"23.8%
1 /2"14.5%
2"-15.5%
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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 tariff.
•In a rate case, investigators review issues from
previous cases, review previous complaints,
investigate consumer issues raised in the case, and
review submitted comments from customers.
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To comment on the case
•Comments are due by January 11, 2021
•Fax letters or comment sheets to the Commission at
208-334-3762
•Email comments to: secretary@puc.idaho.gov
•Written comments can be filed electronically via the
Commission website at: puc.idaho.gov
Look for the “Case Comment Form” link on the home page.
•Reference case number FLS-W-20-03
•Attend for the public hearing on January 14
•Reminder –comments only, no questions
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Idaho Public Utilities Homepage
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Comments Webpage
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Event Date
Case Filed June 30, 2020
Public Workshop Today (January 5)
Staff & Public Comments January 11, 2021
Public Hearing January 14 @ 6:00 pm
Company Response January 25
Close of Case Final Order
Proposed Effective Date February 15, 2021 (or Final
Order date)
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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 “all panelists” option when using chat to ensure your message will be seen.
To speak, click on the hand in the lower right corner by your name.
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.
*This workshop is being recorded*
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