HomeMy WebLinkAbout20230816Falls Water Presentation.pdf1
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Introduction
Purpose of Public Workshop
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Informational Session To Learn About The Case
•Present Falls Water’s Application
•Explain IPUC Staff’s Role In The Case
•Provide Customers An Opportunity To Meet IPUC Staff
Members
•Ask Questions And Learn How To Submit Written Public
Comments
This Public Workshop is not part of the official case record.
•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 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 Falls Waters
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 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 and 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 May 12, 2023
Public Workshop August 16, 2023 Virtual WebEx
Staff Comments October 12, 2023
Public Comments
Company Response November 2, 2023
Customer Hearing TBA TBA
Close of Case Final Order
Proposed Effective Date December 1, 2023
A copy of the Application and Falls Water’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 – FLS-W-23-01.
Most Recent Rate Changes
by Water System
System Year
Falls Water / Taylor Mountain 2020
Morning View 2019
Morning View acquired in 2021
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Falls Water Proposal
Increase revenue by $1,174,000 or approximately 47%
Rate of Return (ROR) of 7.71%
Rate consolidation
Morning View and Taylor Mountain
One rate for all three systems
Establish an irrigation rate
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Rate Case Drivers
Operating Expense
Electric power, chemicals, insurance, accounting & payroll
services and other expenses.
Additions to Plant
Seeking recovery of plant additions made since their last
General Rate Case in 2020.
Roughly $5 Million
Water rights, land & office building, wellhouse improvements,
purchased software and other investments.
Assessment Fees related to ground water mitigation
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What is Revenue Requirement?
Revenue Needed Each Year To:
Recover Prudently Incurred Expenses
Necessary To Provide Service
Cost Effective
Earn A Return On Capital Investments
Infrastructure Needed To Provide Service To
Customers
Pumps, Pipes, Wells, Meters, and Vehicles
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Revenue Requirement Components Defined
Operating Expenses
•Wages, Office supplies, Rent, Etc. Which Contribute To Providing Service To Customers
Taxes
•State And Federal Taxes Related To Providing Service To Customers
Plant
•Infrastructure Investments Used To Provide Service To Customers
Depreciation
•Recovery Of Plant Used To Provide Service To Customers
Rate of Return
•The Average Cost Of Debt (Interest) and Authorized Return On Equity (Investors)
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Ultimately Falls Water Needs To Be Able To
Recover Prudently Incurred Expenditures
Operating Expenses
Taxes
Plant Additions
Depreciation
Offer A Sufficient Rate Of Return To Attract Investors
Investors Supply Necessary Funds To Falls Water Which Are
Used To Provide Utility Service
Most Investors Will Only Invest In A Company If They
Expect A Reasonable Return On Their Investment
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The Company is proposing to consolidate all water system rates into a
single schedule.
The Company states benefits may include:
Improved customer service;
Help mitigate large investments by encouraging water
conservation;
A single schedule for non-recurring charges.
Rate Design
Rate Design Cont.
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Company has 3 water systems:
Falls Water;
Taylor Mountain; and
Morning View.
Proposed rate design includes:
Customers consolidated based on meter size; and,
A new schedule for secondary Irrigation service for some
customers.
Rate Design Cont.
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The proposed tariffs include:
New Base Charges
New Commodity Charges:
Inclining 3 block tier rate structure
A new Schedule 3 tariff for secondary irrigation
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Water System: Meter Size Fixed Rate Volume Included in Fixed
Rate
Excess Charge
$0.917 Per 1,000 gallons
Falls Water 3/4"$18.75 12,000 gallons Consumption over 12,000
gallons
Falls Water 1"$26.40 17,000 gallons Consumption over 17,000
gallons
Falls Water 1.5"$34.05 22,000 gallons Consumption over 22,000
gallons
Falls Water 2"$43.30 28,000 gallons Consumption over 28,000
gallons
Falls Water 4"$77.35 49,000 gallons Consumption over 49,000
gallons
Current Commodity Charges: Falls Water
Current Commodity Charges: Taylor Mountain
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Water System: Meter Size Fixed Rate Tier 1
Included in base
charge
Tier 2
$0.71 per 1000
gallons
Tier 3
$1.00 per 1000
gallons
Tier 4
$2.00 per 1000
gallons
Taylor Mountain 3/4"$20.00 Next 60,000 Next 50,000 Over 125,000
Taylor Mountain 1"$20.00 Next 60,000 Next 50,000 Over 125,000
Taylor Mountain 2"$20.00 Next 60,000 Next 50,000 Over 125,000
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Water System:Meter Size Fixed Rate
First Tier
$0.17 per 1,000 gallons
Second Tier
$0.53 per 1,000 gallons
Morning View 1/4 Acre 5/8" & 3/4” &
1”$55.00 Less than 10,000 gallons More than 10,000 gallons
Morning View 1/2 Acre 5/8" & 3/4” &
1”$65.00 Less than 40,000 gallons More than 40,000 gallons
Morning View 1 Acre 5/8" & 3/4” &
1”$70.50 Less than 45,000 gallons More than 45,000 gallons
Current Commodity Charges: Morning View
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Falls Water Schedule 1: Proposed Consolidated
Commodity Charges for all water systems
Meter Size Base Charge First Block
Charge
Second Block
gallons
Third Block
$1.55 per 1000
gallons
5/8" & 3/4"$27.60 Under 8,000 Next 16,000 Over 24,000
1"$38.90 Under 11,000 Next 22,000 Over 33,000
1.5"$50.15 Under 15,000 Next 30,000 Over 45,000
2"$63.75 Under 19,000 Next 38,000 Over 57,000
4"$113.90 Under 33,000 Next 66,000 Over 99,000
Secondary
Irrigation $16.85 N/A N/A N/A
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Example: Proposed Falls Water 5/8" or ¾"
Meter
Meter Size Base Charge First Block
Charge
Second Block
gallons
Third Block
$1.55 per 1000
gallons
5/8" & 3/4"$27.60 Under 8,000 Next 16,000 Over 24,000
Customer
Consumption
Current bill Proposed Percentage Change
7,500 gallons $18.75 $27.60 47%
15,000 gallons $21.62 $32.43 50%
30,000 gallons $35.26 $47.94 35%
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Schedule 1: Proposed Consolidated Commodity Charges for all
water systems
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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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Consumer Comments
As of this week, the PUC has received 33 Customer Comments.
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CUSTOMER COMMENTS
Customer written comments are due prior to the
Commission closing the record on the case.
(Reference Case Number FLS-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: secretary@puc.idaho.gov
•Mail – IPUC, PO Box 83720, Boise, ID 83720-0074
•Public Customer Hearing – TBD
COMMENTS ONLY
(QUESTIONS WILL NOT BE ADDRESSED)30
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 TBD.
•The Commission will issue a final order which will close the case.
Where do we go from here?
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