20031223Press Release.pdf

IDAHO PUBLIC UTILITIES COMMISSION
For Immediate Release
Case No. CAP-03-
, '
Order No. 29401
December 22, 2003
Contact: Gene Fadness [phone]
Website: www.puc.state.id.
Capitol Water customers will pay less
Boise - One of two surcharges assessed the nearly 2 800 customers of Capitol Water goes awaynext month while a second surcharge increases slightly. The result is a net decrease of $2.82 permonth for flat-rate customers and 27 percent for metered customers. Capitol Water serves about
. 2 800 customers in southwest Boise.
A $400 000 loan the company secured in 1997 is being paid off early resulting in the elimination of a$3.27 per month surcharge assessed flat-rate customers and an additional 25.2 percent increase
charged to metered customers. The loan account, scheduled to be retired in August 2004, hadaccrued surplus funds that will now be used to retire the $63,000 loan balance.
However, flat-rate customers will notice a reduction of only $2.82 to their bills because the
commission s order authorizing the elimination of the 1997 loan surcharge also approves a 45-centper month increase in a surcharge added to customer bills in 2002 for a second loan for $500,000the company took out to finance system improvements.
The commission said the company was under-collecting the amount needed to payoff the secondloan because it had not taken into account yearly changes in the electric rates the company pays to
Idaho Power and also did not include income taxes for years 2001 and 2002. "The purpose ofincluding these items in the calculation it to make Capitol Water whole, neither benefiting nor
penalizing the company," the commission said. Commission staff expressed concern that potential
shortages in the second surcharge account could cause the company to file a general rate case to
recover those costs.
Residential flat-rate customers were paying $3.10 a month on the second loan and metered
customers were paying an additional 23.6 percent. That rate now increases to $3.55 per month forflat-rate customers and 27 percent for metered customers.
The commission s final order and other documents related to this case can be accessed on the
commission s Web site at www.puc.state.id.. Click on "File Room " then on "Water Cases " andscroll down to Case Number to FLS-W-03-1.
Interested parties may petition the commission for reconsideration by no later than Jan. 9 , 2004.
END