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Home My WebLink About20230131Staff Workshop Presentation.pdfWorkshop 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. 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* 1 2 3 Introduction Purpose of Public Workshop Informational session to learn about the case •Present Veolia Water Idaho, Inc. application. •Explain Staff’s role in this case. Provide customers an opportunity to meet Commission Staff. Ask questions to Staff and learn how to submit written public comments. This Public Workshop is not part of the official case record. 4 •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 Compliance Investigators, Engineers, and Technical Analysts. •Staff is conducting this workshop. Staff is one of the Parties in the rate case and providing testimony to the Commissioners. What is the Idaho Public Utilities Commission? 5 Why can't the Commission just tell them no? Customers may want the Commission to reject Veolia Water Idaho, Inc. 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, testimony from Staff & Parties, 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.6 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. 7 8 9 Event Date Location Case Filed September 30, 2022 Public Workshop Today (January 31, 2023)Boise, ID Staff Testimony February 15, 2023 Public Comments File Now Company Rebuttal Testimony March 8, 2023 Public Customer Hearing TBA TBA Technical Hearing TBA TBA Close of Case Final Order Proposed Effective Date Final Order Application Filed September 30, 2022 Requested rate increases effective October 31, 2022. •On October 20, the Commission suspended the effective date by 30 days and five months. Requested a 23.4% revenue increase. •Increase revenues of $12.1 million •Across-the-board percentage increase to all customers. 10 Rate Case Drivers Last rate case was in 2020. Since last rate case: Plant investments $70 million since 2020. Investments in source of supply, water treatment, customer service lines, customer meters, and general plant. 11 Rate Case Drivers, cont. Operating Expense increases $4.7 million in Operating Costs. Includes increases in taxes, depreciation, and payroll. “Pro forma” adjustments: Salaries. Projects added to Plant in Service. 12 Rate Case Drivers, cont. Veolia Water Idaho, Inc. maintains the increase is needed to: Provide sufficient capital dollars to maintain & improve quality of service; Provide adequate operation and maintenance coverage; and, Maintain a sound financial position. 13 14 Revenue Requirement The amount that Veolia Water Idaho, Inc. needs to meet its expenses, cover depreciation, and offer a sufficient rate of return to attract investors. Components: Operating Expenses; Taxes; Depreciation; Return on Investments. 15 Expenses Must be prudent Must be used for service Taxes Properly Calculated Depreciation Properly Calculated Based only on Plant that is actually in Service 16 Return on Investments Plant in Service: Used and Useful in serving customers. Must be prudent. Rate of Return: Calculated based on Debt and Equity Costs; and, Must be able to access the capital needed to maintain the system and to provide safe & reliable service to customers. 17 18 Proposed Rates Proposed Rate Charge (Bi-monthly) -inch meters $28.48 1-inch $36.41 -1/2 inch $62.29 -inch $96.66 -inch $188.52 -inch $351.71 -inch $587.20 -inch $768.19 -inch $1,094.73 Winter Rates $1.9797 $1.9797 Summer Rates $1.9797 $2.5063 Flat Rate 19 Proposed Rates –Existing Eagle Water Customers Present Rate Proposed Rate Charge (Monthly) -inch meters $8.31 1-inch $10.62 -1/2 inch $18.16 -inch $28.20 -inch $54.98 -inch $102.58 -inch $171.27 -inch $224.05 -inch $319.30 Winter Rates $1.1548 $1.1548 Summer Rates $1.1548 $1.4621 Flat Rate 20 Average Bill 21 Average Residential Bill Increase $0.25 a day or $7.59 per month. Average Commercial Bill Increase $0.93 a day or $27.92 per month. Existing Eagle Water Average Residential Bill Increase $0.15 a day or $4.43 per month. 22 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. 23 Consumer Issues As of this week, the PUC has received 131 Customer Comments •The majority of comments were against the increase; •The amount of the increase is too much; •Cost of improvements / Eagle Water purchase; •Issues with Veolia merger / foreign owned company 24 CUSTOMER COMMENTS Customer written comments are due prior to the Commission closing the record on the case. (Reference Case Number VEO-W-22-02) •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 83720-0074oBlank Customer Comments sheets are available here tonight to be mailed in or left with Staff. o Fax letters or comment sheets to the Commission at 208-334-3762 •Public Customer Hearing –TBD COMMENTS ONLY (QUESTIONS WILL NOT BE ADDRESSED)25 Idaho Public Utilities Homepage 26 Comments Form Page 27 Case Summary Page 28 •Customers can subscribe to the Commission’s RSS feed to receive updates about all water 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? 29 30 31 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. 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* 32