20030930Application.pdf

1(,'10
Capitol
RECEIVED mFILED
znn3 SEP 30 AM I: f 2
\Vater
ill/ccll) FUbLiC
UTILITiES .COt1M1SSlON
2626 Eldorado Boise, Idaho 83704
Telephone [phone]
Corp.
September 29, 2003
CA p- t(j- (J 1-
Idaho Public Utilities Commission
O. Box 83720
Boise, ID 83720
To whom it may concern:
RE: Surcharge Funds
At the present time there is in the Capitol Water surcharge account, an amount in excess of
$100 000. This became possible because of two factors. All the money of Surcharge two has not
been borrowed and the interest rate was reduced from 7.0% to 5.65%.
My proposal is to use the money in the surcharge account to retire early the surcharge one loan.
This loan is expected to be paid August 1 , 2004. The amount to pay this loan off is about
$63 000. This would leave more than $40 000 to satisfy surcharge two s obligations and
surcharge one s uses for phosphate purchases, power, etc.
Surcharge one s interest rate is 9.0%. By retiring surcharge one early, money can be saved on
interest plus the consumer s bill will be reduced by $3.27 plus tax per month. The monthly bills
would change from $15.82 to $12.45 for a 3/4" service and the 1" service from $17.68 to $14.31.
The meter rates would be reduced by 25.2%.
Because this is in the best interest of the rate payers, I request your approval and an early
response so we can have the November billing with the lower rates.
;(
dYJ2
H. Robert Price, President
Capitol Water Corporation