20060502Decision memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:HARRY HALL
DATE:APRIL 26, 2006
RE:BITTERROOT WATER COMPANY, CASE NO. BIT-OS-
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 was proposed in the commodity charge per 1 000 gallons of water consumed in
excess of 15 000 gallons per month. According to the Applicant, the proposed increase was 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.
On January 31 , 2006, the Commission issued Order No. 29966 approving a 50.78% or
$18 089 increase in authorized annual revenues for Bitterroot Water Company, Inc., for a total
authorized annual revenue requirement of$53 708. This amount includes two surcharges with a
total annual surcharge revenue of $5 489.64 comprised of a four-year $1.24 per month surcharge
for backflow prevention ($1 740.96) and an eight-year $2.67 per month surcharge for
replacement of defective isolation valves ($3 748.68). The approved tariffs are also to include a
$21.00 per month minimum charge.
DECISION MEMORANDUM - 1 -APRIL 26, 2006
Bitterroot Water Company has submitted tariffs in response to that order that are attached
and include:
Rate Schedule 1 , Residential Service for all metered residential customers
Rate Schedule 2, Non-Recurring Charges for hook-up, reconnection and returned
checks (NSF)
Rate Schedule 3, Temporary Surcharge for backflow prevention
Rate Schedule 4, Temporary Surcharge for isolation valves
COMMISSION DECISION
Staff finds that the tariffs submitted are in compliance with Order No. 29966 and
recommends that the tariffs be approved as submitted. Does the Commission agree?
~,y
udmemos/BitteIToom Dee Memo 042606
DECISION MEMORANDUM - 2 -APRIL 26, 2006
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