HomeMy WebLinkAbout2001615_sw.docDECISION MEMORANDUM
TO: COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
JEAN JEWELL
RON LAW
LOU ANN WESTERFIELD
GENE FADNESS
DON HOWELL
RANDY LOBB
TONYA CLARK
BOB SMITH
BEVERLY BARKER
WORKING FILE
FROM: SCOTT WOODBURY
DATE: JUNE 15, 2001
RE: CASE NO. CAP-W-01-1 (Capitol Water)
ELECTRIC POWER COST PROPOSAL
On March 23, 2001, Capitol Water Corp. (Capitol Water; Company) filed a Letter Application with the Idaho Public Utilities Commission (Commission) requesting authority to use monies in its existing surcharge account to pay for increased electric power costs. Capitol Water provides water services in Boise to approximately 2754 customers. The Company receives electric service from Idaho Power Company.
Capitol Water maintains that it does not have revenue in sufficient amounts to absorb a high percentage increase in power costs. The Company provides the following information to illustrate the effect a power increase will have:
1. Total power costs for the year 1998 was $46,543.64.
2. Total power costs for the year 1999 was $45,545.50.
3. Total power costs for the year 2000 was $42,196.14 (power consumption in this year was less because Well No. 5 had to be abandoned due to trichlorethylene (drycleaning fluid) found in the well water.
The average cost of power for the last three years is $44,764.
In anticipation of increased power costs, the Company is requesting the Commission to consider the following proposal as a solution. Capitol Water would pay power bills amounting to $44,764 (past three year average). After this amount has been paid by Capitol Water, monies from the surcharge account would be used for the remainder of the year (2001). If the power rates remain high in the year 2002, the same procedure would be used for that year also. The surcharge account balance as of February 2001 is $54,654.
COMMISSION DECISION:
Staff recommends that the Company’s Application be processed pursuant to Modified Procedure, i.e., by written submission rather than by hearing. Reference Commission Rules of Procedure, IDAPA 31.01.01.201-.204. Does the Commission agree with the proposed procedure? If not, how does the Commission wish to proceed?
Scott D. Woodbury
bls/M:cap011_sw
DECISION MEMORANDUM 2