20050624Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEG AL
FROM:SCOTT WOODBURY
DATE:JUNE 24, 2005
SUBJECT:CASE NO. BIT-05-1 (Bitterroot Water)
APPLICATION FOR WATER RATE INCREASE
On June 15, 2005 , Bitterroot Water Company, Inc. (Bitterroot; Company) filed an
Application with the Idaho Public Utilities Commission (Commission) requesting a change in its
tariff rates from a metered base rate of $20 per month to a metered base rate of $45 per month.
No change is proposed in the commodity charge per 1 000 gallons of water consumed in excess
of 15 000 gallons per month. According to the Application, the proposed increase is to help
offset the increasing costs associated with the operation, maintenance and capital improvements
to the water system.
Bitterroot is a regulated water utility providing water service under Certificate of
Public Convenience and Necessity No. 319 to approximately 116 customers in Kootenai County,
Idaho. The Company s water rates were last adjusted in 1999. Reference Order No. 28121.
Bitterroot contends that in the last 12 months, the water system has been
systematically reviewed and upgraded to maintain compliance with increasingly tougher
governrnent standards for water quality. The increased operating expenses, the Company
contends, are largely out of its control. Rising power costs play the biggest role in recent
operating expense increases. Bitterroot's Application is accompanied by financial schedules and
engineering information.
Staff recommends that the Commission issue a Notice of the Company s Application
for water rate increase. Staff anticipates holding a public workshop for customers and will
recommend further procedure based on its investigation and assessment of the Company s filing.
DECISION MEMORANDUM
COMMISSION DECISION
Bitterroot Water Company has filed an Application for a rate increase. The
Company has not requested a proposed effective date. Staff recommends that the Commission
issue a Notice of Application. Staff will make a recommendation of further procedure including
a date for a public workshop following further investigation of the Company s filing. Does the
Commission agree with Staffs recommended procedure?
Scott Woodbury
blslM:BITWO501 sw
DECISION MEMORANDUM