20060621Application.pdf

Capitol
Water (J .j 1/
Corp.
2626 Eldorado Boise, Idaho 83704
Telephone [phone]
June 21 , 2006
Idaho Public Utilities Commission
O. Box 83720
Boise, Idaho 83720-0074
Case No. CAP-06-
Subject: Application for Approval of Increase in Rates and Charges
Dear Commission:
Capitol Water Corporation requests the Commissions' approval of an increase in the rates
it charges its customers of approximately 27.8%. This would result in an increase in the
Company s annual revenues of approximately $132 449. The company has not had an
increase in its basic rates and charges since Commission Order No. 26247 was issued on
November 27, 1995 authorizing an increase in rates of7.27% Effective December 1
1995.
Since that time, the company has requested and received Commission approval to
implement two (2) surcharges to help it meet its capital improvement needs. (Case Nos.
CAP;.W-96-, Order No.27022 and CAP-02-, Order No.29306). These surcharges
were necessary because the company could not meet its capital improvement needs from
internally generated funds. The improvements were necessary to comply with
governmentally mandated changes to the company s water system and to protect and
maintain service quality to our customers.
The company continues to experience similar capital improvement requirements. Both
wells No.5 and No.7 show continuing production declines requiring extensive
rehabilitative cleaning every 2 to 4 years to maintain production and avoid the need for
an additional well. In 2007, the Ada County Highway District will require the Company
to replace a number of customer service lines (main to property line) to accommodate a
widening of U stick Road. The company cannot generate the funds needed to meet these
capital improvement needs at its current rate levels.
The attached financial exhibits are based upon the actual recorded performance of the
company. They are comparable to the annual reports filed with the Idaho Public Utilities
Commission for each of the years 2002 through 2005. The recorded financial data does
not include any revenue, expense or capital investment associated with the Commission
approved surcharges.
The company is proposing the use of the year 2005 as its test year for this case. The
actual test year data has not been adjusted in any way for any known and measurable
changes beyond the test year. The Company believes that the 2005 test year is indicative
of the Company s continuing operations.
Exhibit No.1 attached to this Application presents the detail of the company s revenues
and expenses for the years 2002 through 2005. Attached Exhibit No.2 carries through
the revenues and expenses from Exhibit No.1 to show the net income realized by the
Company for the last four years. As can be seen ftom this Exhibit, income after payment
of debt service cost has been a net loss in two of the last four years and a minimal income
in the other two years.
Exhibit No.3 presents a comparative balance sheet for the years 2002 through 2005.
That exhibit is the basis for calculating rate base as presented on Exhibit No.4. Exhibit
No.4 shows that the company has experienced a minimal return on its rate base of
between three percent (3%) and seven one-hundredths of a percent (7/1 OO
th %) in each of
the last four years. The most recent year (2005 Test Year) produced a return on rate base
of fifty-four one-hundredths of a percent (.54%).
Exhibit No.5 is a calculation of the company s "Weighted Cost of Capital". Using a
return on the company s equity capital of 12%, together with the contractual costs of
various debt instruments, results in a "Weighted Cost of Capital" of 11.48%. (Bank loans
associated with the company s surcharge cases are not included in this calculation. As
stated earlier, those debt service costs are paid from the surcharge revenues received and
are not included here as part of the company s capital costs.
Exhibit No.6 shows the development of the company s gross revenue deficiency. This
exhibit utilizes the Rate Base developed on Exhibit No., the Weighted Cost of Capital
(Rate of Return) developed on Exhibit No.5 and the Net Operating Income developed on
Exhibit No.2 to calculate the Net Operating Income Deficiency of $102 800 shown on
line 5. This deficiency must be grossed-up for revenue sensitive costs the Company will
realize. The calculation of the gross-up factor is shown on lines 10 through 18 of the
exhibit. When the gross-up factor is applied to the Net Operating Income Deficiency, a
Gross Revenue Deficiency of$132 449 results (line 7). The increased revenue
requirement represents an increase of27.84% (line 9) in the actual revenues billed
customers of $475 805 shown on line 8.
The company proposes to collect additional revenues through a two step approach. First
the company proposes to change the months subject to its summer rate schedule to
include the month of April. The summer rate applies only to the company s Schedule
No.1 flat rate schedule. All other rate schedules are metered so increased consumption
for summer irrigation needs are reflected in the customer s bills. Exhibit No.7 presents a
comparison of the company s electric consumption at each of its wells for several years.
The total pumping power consumption is indicative of the water demand on the water
system. As can be seen ftom this exhibit, water demand in April is significantly greater
than for the month of February. February is used here as a base domestic use indicator.
The increased April consumption reflects increased demand to meet customer s lawn
watering needs. An argument could also be made to include the month of October in the
summer rate period.
The company estimates that the addition of April to the summer rate period will increase
revenues by approximately $27 000. The lower portion of Exhibit No.7 shows how the
$27 000 estimate was determined.
Second, the company proposes to spread the remaining revenue deficiency of $105 602
as an equal percentage increase of22.21% across the board to each of its tariff rates.
Exhibit No.8 shows the development of the remaining increase requirement.
Exhibit No, 9 is a marked-up copy of the company s existing tariff rates showing the
existing rates and proposed rates in legislative format.
Exhibit No. 10 is a clean copy of the company s proposed new tariff sheets for the
Commissions' approval.
Exhibit No. 11 is a copy of the company s notice to its customers that will be included in
customer billings to be mailed in July. A similar notice will be published in the Idaho
Statesman newspaper coincident with mailing the notice directly to our customers.
The company proposes an effective date for the new rates to be the first day of the month
beginning 30 days after the date offiling this case. That effective date would be August
, 2006.
The company requests that the Commission proceed with this case under Modified
Procedure without hearing. In the event the Commission determines a hearing is
necessary, the company stands ready to prepare and file testimony in support of the
attached exhibits.
Questions regarding this application should be addressed to :
H. Robert Price
Capitol Water Corp.
2626 Eldorado
Boise, Idaho 83704
Robert E. Smith
2209 N. Bryson Rd.
Boise, Idaho 83713
Ph: [phone]
e-mail capitolwatercorp~worldnet.att.net
Ph: [phone]
mail utilitygroup~yahoo.com
Please provide copies of all correspondence, notices and orders to the above individuals.
H. Robert Price
President
Capitol Water Corporation
Revenue and Expense Detail
2002 - 2005 Comparison
(A)(B)(C)(D)
Test Year
2002 2003 2004 2005
REVENUES
460 Unmetered Water Revenue $380,423 $ 360 494 $ 371 384 $ 375 977
461.Metered Sales - Residential
461.Metered Sales - Commercial, Industrial 951 612 573 151
462 Fire Protection Revenue 578 465 720 788
464 Other Water Sales Revenue 628 320 729 889
465 Irrigation Sales Revenue
466 Sales for Resale
400 Total Revenue 463 580 $ 448,891 $ 479 406 $ 475 805
Commission Approved Surcharges Collected $ 174 766 $ 217,429 $ 129 298 $ 125,462
Surcharge revenue is not included above
OPERATING EXPENSES
601.1-6 Labor - Operation & Maintenance 784 42,154 714 661
601.Labor - Customer Accounts 33,608 814 781 591
603.Labor - Administrative & General 280 087 900 33,633
603 Salaries, Officers & Directors 53,000 167 50,833 015
604 Employee Pensions & Benefits 332 827 537 884
610 Purchased Water
615-16 Purchased Power & Fuel for Power 31,842 53,826 56,834 68,255
618 Chemicals 288
620.1-6 Materials & Supplies - Operation & Mainl 496 659 588 452
620.7-8 Materials & Supplies - Administrative & General 210 953 700 20,026
631-Contract Services - Professional 748 16,278 810 314
635 Contract Services - Water Testing
636 Contract Services - Other 618 513 613 886
641-42 Rentals - Property & Equipment
650 Transportation Expense 213 019 376 853
656-Insurance 882 611 101 673
660 Advertising
666 Rate Case Expense (Amortization)
667 Regulatory Comm. Exp. (Other except taxes)
670 Bad Debt Expense 182
675 Miscellaneous 435 314 255 271
Total Operating Expenses $ 304,483 $ 3 692 325 042 $ 350 640
Exhibit No.
Capitol Water Corporation
Comparative Income Statements
For the Years 2002 - 2005
(A)(B)(C)(D)
Test Year
2005200220032004
Revenue (From Exhibit No.1 Line 8)$ 463,580 $ 448 891 $ 479 406 $ 475 805
12 409.
13 409.
14 410.
15 410.
16 411
17 412
20 419
Operating Expenses (From Exhibit No, 1 Line 31)304 483 326 692 325 042 350 640
Depreciation Expense 91,475 319 79,794 937
Amortization, Utility Plant Aquisition Adj.
Amortization Exp. - Other
Regulatory Fees (PUC)447 518 603 589
Property Taxes 32,159 100 30,092 125
Payroll Taxes 12,603 587 778 623
Other Taxes (list)DEO Fees
Irrigation 177 515
Vehicles 354 766
Federal Income Taxes 316 585
State Income Taxes 378 164
Provision for Deferred Income Tax - Federal
Provision for Deferred Income Tax - State
Provision for Deferred Utility Income Tax Credits
Investment Tax Credits - Utility
Total Expenses from operations before interest $ 446,215 $ 448,142 $ 449 844 $ 470,700
Net Operating Income 365 749 562 105
Interest & Dividend Income 409
Net Income Before Interest Charges 774 749 29,562 105
22 427.Interest Expo on Long-Term Debt 13,248 101 445 678
NET INCOME 526 (7,352) $23,117 (573)
403
406
407
408.
408.
408.
408.
Exhibit No.
Capitol Water Co.
Comparative Balance Sheets
For the Years 2002 ~ 2005
(A)
Corrected
2002
(B)(C)(D)
Test Year
200520032004
ASSETS
Plant in Service
1 Organization Costs 584 584 584.584
2 Franchises and Comcents 40,969 969 969 969
3 Land and Land Rights 237 32,230 32,230 230
4 Structures and Improvements 122 440 125,544 115 726 116,746
5 Collecting and Impounding Reservoirs 452 452 2,452 452
6 Wells 212,383 228 396 228,396 228,396
7 Supply Mains 065 926 069,119 090,049 090 374
8 Power Pumping Equipment 157 884 162 713 162 713 162,944
9 Purification System 184 22,184 184 22,184
10 Distribution Reservoirs & Standpipes 076 076 076 076
11 Trans & Dist Mains & Accessories 511 608 702 12,507
12 Services 548,907 572,839 617 025 642,854
13 Meters & Meter Installations 414 95,738 104,153 104,511
14 Office Fumiture and Equip.285 285 962 18,340
15 Transportation Equip.91,668 122,600 122,600 103 879
16 Tools Shop & Garage Equip.12,321 13,511 13,664 15,786
17 Other Tangible Prop.107 107 107 107
Total Plant in Service $427 348 521,955 586,592 $ 2 598 939
accumulated Deoreciation
19 Structures & Improvements 72,809 948 78,676 81,508
20 Collecting and Impounding Reservoirs 397 400 402 2,405
21 Wells 121 864 127 902 134 260 140 619
22 Supply Mains 731 760 757 861 784 514 810,825
23 Power Pumping Equip 90,312 94,354 98,492 102 636
24 Purification Systems 19,385 514 643 772
25 Distribution Reservoirs & Standpipes 205 248 292 334
26 Transmission & Dist. Mains & Acces.186 2,471 901 350
27 Services 251 180 268,802 287 933 308,403
28 Meters & Meter Installations 962 075 451 54,976
29 Office Fumiture & Equip.13,483 336 16,910 319
30 Transportation Equip 099 82,539 96,830 380
31 Tools, Shop & Garage Equip.748 742 678 11,667
32 Other Tangible Prop.
Total Accumulated Depr. $1,427 455 505,261 585 055 $ 1,642,271
34 Net Plant in Service 999 893 016,694 001 537 956,668
35 Other Investments 141 984 60,763 60,76336 Cash 45,970 157 26,179 341
37 AIR Customers 675 45,630 463 48,005
38 Materials & Supplies Inv.359 359 801 801
39 Prepaid Exp.960 961 130
TOTALASSEST $162,998 129,785 140;873 $ 1,073,578
LIABILITI S & CAPITAL
41 Common Stock 000 000 10,000 10000
42 Misc. Capital Accounts 200 200 29,200 200
43 Unappropriated Retained Eamings 555,896 539,046 554,146 533,604
Total Equity Capital $595 096.578 246.593 346.$ 572 804.
45 Bonds 000 000 000 5000
46 Accounts Payable 869 045 13,578 176
47 Notes Payable 132 315 141 137 117 347 90,708
48 Accrued Other Taxes Payable 40,270 499 38,996 759
49 Accrued Income Taxes Payable 083)(5,022)(5,166)(5,166)
50 Accrued Debt, Interest & Dividends 250 500 375
51 Advances for Construction 322 690 302 999 319 391 304,591
52 Contributions In Aid of Construction 150 839 147 115 148 115 150,065
53 Accum Amortization of CIAC (85 248)(89,734)(89,734)(89,734)
Total Liabilities $567 902 551 539 547,527 500,774
TOTAL LIABILITIES AND CAPITAL $162,998 129,785 140,873 073,678
Exhibit No.
Capitol Water Co.
Comparative Rate Base
and Return on Capital
For the Years 2002 - 2005
1 Plant in Service
2 Less Accum Depr
3 less Contributions in Aid
4 Add Accum Amort of CIAC
5 Add Working Capital
(A)(B)(C)(D)
Test Year
2002 2003 2004 2005
2,427,348 $ 2 521 955 $ 2,586 592 $ 2 598 939
(1,427,455)505 261)585,055)642,271)
(150,839)(147 115)(148,115)(150 065)
248 734 734 89,734
38,060 837 40,630 43,830
972 362 $ 1 000 150 983 786 940 167
365 749 29,562 105
785857%074889%004921 %542989%
6 Rate Base
7 Net Operating Income
8 Return on Rate Base
Exhibit No.
Capitol Water Co.
Weighted Cost of Capital
For the TestYear 2005
(A)(B)(C)(D)
Weighted
Amount Ratio Cost Cost
1 Common Stock 000
2 Additional Paid-in Capital 200
3 Unappropriated Retained Earnings 533,604
4 Total Common Equity 572 804 85.68%12.00%10.28%
5 Debenture Bonds 000 10.00%07%
6 Note, Bayhill 051 87%24%
7 Note R. Price 232 00%74%
8 Note Bank of America 980 94%25%14%
9 Note Ford Motor Credit 446 37%00%00%
10 Total Capital 668,513 100.00%11.48%
Exhibit No.
1 Rate Base
2 Required Return on Rate Base
3 Required Net Operating Income
4 Net Operating Income Realized
5 Net Operating Income Deficiency
6 Net to Gross Multiplier
7 Gross Revenue Deficiencey
8 Actual Revenue Billed
9 Revenue Increase Percentage Required
Gross-up Factor Calculation10 Net Deficience11 PUC Fees12 Bad Debts
State Tax ~ 8%
Federal Taxable
Federal Tax ~ 15%
Net After Tax
Net to Gross Multiplier
Capitol Water Co.
Revenue Requirement
For the TestYear 2005
100.0000%
2486%
5000%
99.2514%
9401%
91.3113%
13.6967%
77.6146%
128.8417%
940,167
11.48%
107 905
105
102 800
128.84%
132 449
475,805
27.84%
Exhibit No.
Capitol Water Co.
Electric Power Consumption
(A)(B)(C)(D)(E)(F)(G)(H)
Billing Period Well 1 Well 2 Well 3 Well 4 Well 5 Well 6 Well 7 Total
End Date Kwh Kwh Kwh Kwh Kwh Kwh Kwh Kwh
2002 Comparison
3/1212002 190 280 520 051
5/1012002 250 307 12,780 55,400 105 750
April % of February 302%
10012002 44 ,944 10,320 660 33,760 122 720
September % of February 350%
11/14/2002 458 38,082 620 43,230 12,840 829
October % of February 273%
2003 Comparison
3/1112003 252 38,988 920 160 160 65,577
5/912003 689 34,925 15,660 25,440 000 82,755
April % of February 126%
10/9/2003 134 48,253 33,600 45,600 37,400 165,004
September % of February 252%
11rT12oo3 363 43,917 680 34 , 060 240 400 94,674
October % of February 144%
2004 Comparison
3/912004 580 320 200 160 362
5/1 012004 054 413 840 47,660 280 56,960 177 221
April % of February 271%
10/812004 163 28,920 55,900 56,200 141 237
September % of February 216%
11/812004 120 41,100 400 36,600 239
October % of February 124%
2005 Comparison
3/1012005 578 600 54,260 240 111 773
5/1112005 584 26,320 57,580 240 840 128 577
April % of February 115%
10/10/2005 50,529 17,080 72,700 35,960 27,000 203,288
September % of February 182%
11/812005 45,615 440 700 240 080 144,092
October % of February 129%
Number of
Customers Summer Incremental
Year Billed Rate April
for April Adder Revenues
2002 234 $11.$ 24 730
2003 234 $11.$ 24,730
2004 247 $11.$ 24 874
2005 418 $11.$ 26,767
Exhibit No.
1 Gross Revenue Deficiency (Ex
Less Incremental Revenue From
2 Shift of Existing Summer Rate to April
3 Remaining Revenue Deficiency
4 Gross Revenue Billed
5 Percentage increase to all Rates
Capitol Water Corporation
Tariff Rate Increase
After Shift of Summer
Rate to Include April
$ 132,449
26767.
$ 105 682
475 805
22.21%
Exhibit No.
Tariff No.
I . P . U . C. No -
Page
IDAHO PUBLIC UTILITIES COMMISSIONAPPROVED EFFECTIVE
JM12 '
Cancel in
JAR 1 - '
Name of Utility t--Ih SECRETARY
(Approval Stamp)CAPITOL WATER CORPORATION
SCHEDULE NO.
(Tn....l",'Hn~ early rv'tb;;'iim9~:t of SU~gRax:g9 it! aAd. iR-O;:PaasiRg ~ur~hii\x:gG
12 from $J 10 per mQ~k tg $J .ie per m~h ~or !PYC Order We. J94Ql)
APPLICABLE :To all non-metered customers for domestic use and
lawn sprinkl ing
RATE :Flat rate per month as follows:
Service
Size
Base Month1y Temp.3% Franchise
Rate SUrchar Tax
ID~
-:9'&- . ~ 1..6:;
1'" ;-3 .
~ .
LlltH)'~S
II/. 3 .l1-.i"
DEQ Tota1 Honth1y
Fee Base Rate
$12. 9 '1.88
$1. 4 7..
$Hi. /8~
Sprink1.ing Charge: From May 1. through September 30, the following
rates will be added to the base monthly rates:
KonthJ.y
SprinkJ.ing
Rate
13.. :;3
3% Franchise
Tax DEQ Fee
"11
Per Commission Order No. 29!91.
Issued Effective
Issued by
Total Monthly
Sprinkling
Rate
1;:1.1.IJ.,'I
January 1.,2004
Title President
Exibi t No.
Page 1:t
Tariff No.Page IDAHO PUBLIC UTlUTlES COMMISSIONAPPROVED EFFECTIVE
1. P. U. C. No.JAl12 '04 JAR 1 - '04
Canceling
Name of Utility
CAPiTOL WATJ:R CORPORATION
t' tJ.~ SECRETARY
(Approval Stamp)
SCHEDULE NO.
(I~lYdiR9 8~ly rQtirem~ of SYreh~rge t1 ana ingroasing ~U~ghaP98
#~ f;gm 28 _it ~g ~7.1 per lPUC Order NO. ~gt91)
APPLICABLE :To all metered customers
RATE:Basic S(,(,.GJ, 4' 1e.TotaJ.27 .1.%
For the first 000 cu.feet per month 0'1 .'J..7
Per 100 cubic feet
For the next 1, 000 cu.feet per month $ AJi,-! 5 f
$ ~
7').
Per 100 cubic feet
For the next 1,000 cu.feet per month '/'1 ,5 :-3-6-
Per 100 cubic feet
MI:N'DItJM CHARGE:The monthly minimum charge for service under this
schedule shall not be less than the following:
and smaller
i'J.at Minimum 3% Franchise DEQ
Charg Tax Fee
f3 . ,. 77 i1.& . 34
SUrcharg
TotaJ. Konthly
M;n;mum.CharService
Size
$19. fJ'3J..
$19. :n 17.1~"1.1. - 'J7 '3..
3t.
1:;2
1 "Cf.
?;/
3" J!Si . :J9
~g.
()2 1. J~1..
Per Commission Order No. 29401
$:Ji 3o.
$H;59"'$
19. i2 !t3.'-l8 ~8'j
Issued Effective January 1,2004
Ti tIe President
I Exibit NO.
Page 2
IDAHO PUBLIC UTIUTIES COMMISSIONAPPROVED EFfECTIVE
IPUC No.2, Tariff No.2, Original Sheet No.
CA~OL WATER CORPORA~ON
"31'93 Am 1- '93
Jl. ~ ~J"SECRETARY
SCHEDULE NO.
RATES FOR PUBUC FIRE HYDRANTS
Availability
For City of Boise fire hydrants.
Rate:
Flat rate per month for each hydrant $2.311
~ :1..
Issued: Per Order No. 24789 Effective: April 1, 1993
H. Robert Price TdIe: President
Exibi t No.tt-.Page 3
IPUC No.2 Tariff No.2, Second Revised Sheet No.
CAPITOL WATER CORPORATION
IDAHO PUBLIC UTILITIES COMMISSIONAPPROVED EFFEC11VE
NOV 30 '95 DEe 1- '95
Jl ~.()I.
~~~
SECRETARY
APPLICABLE:
RATE
Service Size
6"'
10"
SCHEDULE NO.
To all customers who have fire sprinkler systems and/or
inside hose connections for fire fighting purposes.
For service through a separate line for fire fight-
ing purposes, as follows:
Flat Monthly 3 % FranchiseRate Tax
tfa7.'o/g . UI"
Sel 10.37 28
19.~I'-fi8 7b
31..,1
g8, 67 1",
48."fS'1.;l7 46
DEO Fee
Total Monthly
Rate
8. iel,
::1. i'b 11..01
2().
32.8&
60.1.39
MISCELLANEOUS: If the installation of a private fire service requires an exten-
sion of the existing mains of the utility, the costs of such
extension shall be borne by the customer.
All private fire service shall be equipped with sealed gate
valves or thermal automatic openings.
Meters may be placed on fire services by the utility at any
time, however. metered rates will not apply unless improper
use of water is disclosed. In that event. usage will be billed
to the consumer under rate Schedule No.
Issued: Per Order No. 26247
CAPITOL WATER CORPORATION
H. Robert Price, President
Effective: December 1, 1995
Exibit No.
Page 4
Tarriff No.Page
I.P.C. No.
Cancelina
Name of Utility
(Aooroval Stamp)CAPITOL WATER CORPORATION
SCHEDULE NO.
APPLICABLE:To all non-metered customers for domestic use and lawn watyering.
RATE:Flat rate per month as follows:
Service Base Monthly Temp.3% Franchise DEQ Total Monthly
Size Rate Surcharae Tax Fee Base Rate
3/4"10.14.
12.17.
11/4"14.18.
Sprinkling Charge: From April 1 through September 30, the following rates will be added to the
base monthly rates:
Monthly 3% Franchise Total Monthly
Sprinkling Tax Sprinkling
Rate Rate
13.0.41 13.
Per Commission Order No.
Issued JulY Effective Auaust 1 , 2006
Title
President
Exhibit No.1 0
Page 1
T arriff No.Page
I.P.C. No.
Cancelina
Name of Utility
CAPITOL WATER CORPORATION (Approval Stamp)
SCHEDULE NO.
APPLICABLE:To all metered customers
RATE:Basic Surcharae Total
For the first 1000 cu. feet per month
Per 100 cubic feet
For the next 1000 cu. feet per month
Per 100 cu. Feet
For all cunsumption in excess of 2 000 cu. Feet per
month. Per 100 cu. feet
MINIMUM CHARGE:The monthly minimum charge for service under this
schedule shall not be less than the following:
Service Flat Minimum 3% Franchise DEO Surcharge Total Monthly
Size Charge Tax Fee Minimum Charge
3/4" and smaller
12.
11/2"13.17.
23.30.
43.54.
Per Commission Order No.
Issued JulY Effective Auaust 1, 2006
Title
President
Exhibit No. 10
Page 2
Tarriff No.Page
I.P.C. No.
Cancelina
Name of Utility
CAPITOL WATER CORPORATION (Approval Stamo)
SCHEDULE NO.
RATES FOR PUBLIC FIRE HYDRANTS
Availa itv
For City of Boise fire hydrants
B!t!:.
Flat rate per month for each hydrant
Per Commission Order No.
Issued Julv Effective Auaust 1 , 2006
TiUe
President
Exhibit No.1 0
Page 3
Tarriff No.
I.P.C. No.
Page
Canceling
Name of Utility
CAPITOL WATER CORPORATION
PPLICABLE:
Rate:
MISCELLANEOUS:
Per Commission Order No.
Issued July
Service Size
10"
(Approval Stamp)
SCHEDULE NO.
To all customers who have fire sprinkler systems and/or
inside hose connections for fire fighting purposes.
For service through a separate line for fire fighting
purposes, as follows:
Flat Monthly
Rate
3% Franchise
Tax
DEQ
Fee
Total Monthly
Rate
34 $
34 $10.
34 $
34 $
23.
38.
34 $59.
If the installation of a private fire service requires an extension
of the existing mains of the utility, the cost of such
extension shall be borne by the customer.
All private fire service shall be equipped with sealed gate
valves or thermal automatic openings.
Meters may be placed on fire services by the utility at any
time, however, metered rates will not apply unless improper
use of water is disclosed. In that event, usage will be billed
to the customer under rate Schedute No.
Effective August 1 , 2006
Title
President
11.
24.
40.
61.
Exhibit No. 10
Page 4
BILL STUFFER NOTICE
NOTICE TO OUR CUSTOMERS
Capitol Water Corporation filed an application with the Idaho Public Utilities Commission
on June 21 , 2006 to raise the rates we charge our customers. The Company is requesting an
increase of approximately 27.8% in the rates currently charged. The Company has not
had an increase in its base rates since November of 1995.
The Company is proposing to implement rate changes in two ways. First, the Company proposes
to extend the summer rate period to include the month of April. Second, the Company proposes to
spread the remaining rate increase requirement over all water rates by increasing them by 22.21%.
The Company currently has in place a temporary surcharge that was necessary to help
the Company meet its short term capital improvement requirements. These improvements
were necessary to comply with governmentally mandated changes to the Company s system and
to rehabilitate and replace wells to insure our water supply. The surcharge does not help
the Company meet its normal day to day operating expenses. The funds generated by
the surcharge are dedicated to paying for the required improvements to the water system.
This surcharge is expected to expire in June of 2009.
A copy Of the application is on file and available for inspection at the Idaho Public Utilities
CommiSSion, 472 W. Washington St., Boise, Idaho and at the Company s office located at
2626 Eldorado Street. The application can also be viewed on-line at the Idaho Public Utilities
Web Site. The vveb address is www.puc.state.id.
Written questions and comments directed to the Idaho Public Utilities Commission should be
addressed to, Idaho Public Utilities Commission, P.O. Box 83720, Boise, ID, 83720-0074.
Comments may also be submitted at the Commissions above referenced web site.
Correspondence should Identify the application by its case No. CAP-06-1
The Commission can be contacted at (208) 3J4.0300 or [phone]..
Exhibit No. 11