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HomeMy WebLinkAboutmodproc.doc BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF APPLICATION OF BITTERROOT WATER COMPANY FOR AUTHORITY TO INCREASE ITS RATES. ) ) ) ) ) ) ) ) ) ) ) ) ) ) CASE NO. BIT-W-99-1 NOTICE OF APPLICATION NOTICE OF STAFF REPORT ANALYSIS & RECOMMENDATION (and Commission’s proposed adoption of same) NOTICE OF MODIFIED PROCEDURE NOTICE OF COMMENT/ PROTEST DEADLINE YOU ARE HEREBY NOTIFIED that on January 19, 1999, 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 flat rate of $20 per month to a metered rate of $20 per month plus $1.10 per 1,000 gallons of water consumed in excess of 15,000 gallons per month. According to the Application, this change in rates would produce increased revenues to the Company of $9,636 representing an increase in total water revenues of approximately 80%. Bitterroot is a regulated water utility providing water service under Certificate of Public Convenience and Necessity No. 319 to approximately 54 customers in Silver Meadows Subdivision, a development located in Kootenai County, Idaho, approximately 15 miles north of Coeur d’Alene to the west of Old State Highway 95. The Company’s water rates were initially established on May 1, 1996, at a flat rate of $20 per month. Customer consumption data was not available at that time. Since that time, the Company has read company meters and now has customer consumption data that can be used to develop a metered rate design. YOU ARE FURTHER NOTIFIED that on June 9, 1999, following completion of its investigation into the Company’s filing, the Commission Staff filed a report with the Commission Secretary containing its analysis and recommendation in Case No. BIT-W-99-01. Staff’s investigation included on site audit of the Company’s records from its inception to December 31, 1998, review of the Commission’s past case files, annual reports filed with the Commission and PUC complaint records. STAFF RECOMMENDATION Staff has determined that the revenue increase necessary to recover the Company’s operating costs is $4,153 representing an increase in total revenues of 32%. See attached Staff Report, Exhibit D. Staff further recommends that the calculated revenue requirement be collected by means of a metered rate of $20 per month plus $.75 per 1,000 gallons of water in excess of 15,000 gallons per month. Staff points out that customers on this water system have, under the current flat-rate, used extraordinary amounts of water as compared to customers on metered systems. The change to a metered rate will result in significant increases in bills to high volume customers unless they change their consumption habits. The following table estimates the effect of this rate design on the Company’s customers: Annual Consumption Annual Bill Peak Month Consumption Month Bill Maximum use customer Average use customer Minimum use customer 684,400 gal 284,970 gal <180,000 gal $623 $330 $240 142,680 gal 42,820 gal <15,000 gal $116 $ 41 $ 20 YOU ARE FURTHER NOTIFIED that the Commission has reviewed and considered the Company’s Application and Commission Staff’s report, analysis and recommendation in Case No. BIT-W-99-1. The Commission has preliminarily found Staff’s proposed revenue requirement and rate design to be fair, just and reasonable and proposes to adopt same. The Commission has also preliminarily found that the public interest regarding implementation of Staff’s proposed revenue requirement and rate design may not require a hearing to consider the issues presented and that the Application may be processed under Modified Procedure, i.e., by written submission rather than by hearing. Reference Commission Rules of Procedure, IDAPA 31.01.0l.201-204. YOU ARE FURTHER NOTIFIED that the Commission will not hold a hearing in this proceeding unless it receives written protests or comments opposing the use of Modified Procedure and stating why Modified Procedure should not be used. Reference IDAPA 31.01.01.203. YOU ARE FURTHER NOTIFIED that the deadline for filing written comments or protests with respect to the Application, the Commission’s proposed adoption of Staff’s recommended revenue requirement and rate design, and the Commission’s use of Modified Procedure in Case No. BIT-W-99-1 is Friday, July 23, 1999. Persons desiring a hearing must specifically request a hearing in their written protests or comments. YOU ARE FURTHER NOTIFIED that if no written comments or protests are received within the deadline, the Commission will consider the matter on its merits and enter its Order without a formal hearing. If comments or protests are filed within the deadline, the Commission will consider them and in its discretion may set the matter for hearing or may decide the matter and issue its Order on the basis of the written positions before it. Reference IDAPA 31.01.01.204. YOU ARE FURTHER NOTIFIED that the Application in Case No. BIT-W-99-1 and Staff’s related report, findings and recommendation are available for public inspection during regular business hours at the offices of the Idaho Public Utilities Commission, 472 West Washington, Boise, Idaho. Additionally, arrangements for inspection can be made by contacting the Company at telephone number: 208-687-1743. YOU ARE FURTHER NOTIFIED that the Commission has authority to determine a change in the Company’s total revenue requirement in an amount other than that proposed by the Company and/or a spread or allocation or relative increase in the tariffed rates or charges other than that proposed by the Company. YOU ARE FURTHER NOTIFIED that the Commission has jurisdiction over Bitterroot Water Company and the issues presented in its Application pursuant to Title 61 of the Idaho Code. Written comments concerning this Application shall be mailed to the Commission and the Company at the addresses reflected below: COMMISSION SECRETARY BITTERROOT WATER COMPANY, INC. IDAHO PUBLIC UTILITIES COMMISSION PO BOX 1527 PO BOX 83720 COEUR d’ALENE, IDAHO 83816-1527 BOISE, IDAHO 83720-0074 Street Address for Express Mail: 472 W WASHINGTON ST BOISE, IDAHO 83702-5983 All comments should contain the case caption and case number shown on the first page of this document. DATED at Boise, Idaho this day of June 1999. DENNIS S. HANSEN, PRESIDENT MARSHA H. SMITH, COMMISSIONER PAUL KJELLANDER, COMMISSIONER ATTEST: Myrna J. Walters Commission Secretary vld/N:BIT-W-99-1.sw NOTICE OF APPLICATION NOTICE OF STAFF REPORT ANALYSIS & RECOMMENDATION NOTICE OF MODIFIED PROCEDURE NOTICE OF COMMENT/PROTEST DEADLINE 1 Office of the Secretary Service Date June 23, 1999