20060707notice_of_application_order_no_30098.pdf

Office of the Secretary
Service Date
July 7 2006
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF CAPITOL WATER CORPORATION FOR
AUTHORITY TO INCREASE ITS RATES
AND CHARGES FOR WATER SERVICE IN THE STATE OF IDAHO
CASE NO. CAP-06-
NOTICE OF APPLICATION
ORDER NO. 30098
On June 21 , 2006, Capitol Water Corporation ("Capitol Water" or "Company ) filed
a general rate case Application seeking authority to increase its rates approximately 27.8%. If
approved the Company s revenues would increase by $132 449 annually. Capitol Water
provides service to approximately 2 875 customers in Boise, Idaho. The Company s Application
includes proposed tariffs and requests an effective date of August 2006. In this Order, the
Commission suspends the effective date of the proposed rate increase during which time the
Staff shall conduct an audit of the Company.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that to meet continued capital investment needs
the Company requests a revenue requirement increase of $132 449 resulting in a percentage
increase of approximately 27.8%. Application at 2-3. The Company proposes to change the
months subject to the summer rate schedule to include the month of April, which would provide
approximately $27 000 in additional revenue.Application at 3.The Company proposes
spreading the remainder of the requested additional revenue requirement across its customer
classes, resulting in a 22.21 % increase in base rates for all customers. Id.
YOU ARE FURTHER NOTIFIED that Capitol Water s Application states since the
entry of the final Order in its last rate case, Order No. 26247 issued in November 1995 , it has
been necessary to implement certain capital improvements. Application at 1. The Commission
has authorized two surcharges to help the Company meet its capital improvement needs, in June
1997 and July 2003. Id. See Order Nos. 27022 and 29306.
NOTICE OF APPLICATION
ORDER NO. 30098
YOU ARE FURTHER NOTIFIED that the Company has filed certain exhibits and
workpapers. These documents are on file with the Commission Secretary at the Commission
office, 472 West Washington Street, Boise, Idaho, where they may be reviewed as a matter of
public record during regular business hours. Interested persons may also view Capitol Water
Application at the Commission s website www.puc.idaho.gov under the "File Room" icon.
YOU ARE FURTHER NOTIFIED that the following persons are designated as
Capitol Water s representatives in this matter:
H. Robert Price
Capitol Water Corp.
2626 Eldorado
Boise, ID 83704
E-mail: capitolwatercorp(fYworldnet.attnet
Robert E. Smith
2209 N. Bryson Road
Boise, ID 83713
E-mail: utilitvgrouP(fYyahoo.com
All communications with reference to this Application should be served upon the
above named representatives of Capitol Water.
YOU ARE FURTHER NOTIFIED that Capitol Water s revenue requirement, and
every component of it, both rate base and expense, are at issue. The Commission may grant
deny, or modify the revenue requirement requested and may find a revenue requirement different
from that proposed by any party is just, fair and reasonable. IDAPA 31.01.01.124.01.
YOU ARE FURTHER NOTIFIED that the rates and charges of all Idaho retail
customers, both recurring and non-recurring, including those of any special contract customers
are at issue, and every component of every existing and proposed rate and charge is at issue. The
Commission may approve, reject or modify the rates and charges proposed and may find that
rates and charges different from those proposed by any party are just, fair and reasonable.
IDAP A 31.01.01.124.02.
YOU ARE FURTHER NOTIFIED that the Commission may approve, reject or
modify existing or proposed relationships between and among rates and charges within, between
or among customer classes or rate groupings and may approve, reject or modify existing or
proposed relationships among and between customer classes or rate groupings.IDAPA
31.01.01.124.02.
YOU ARE FURTHER NOTIFIED that the Commission may abolish, reduce or
create rate blocks or categories of rates and charges, abolish, create or reduce components of
rates and charges, abolish, reduce or create customer classes or rate groupings, and abolish
NOTICE OF APPLICATION
ORDER NO. 30098
reduce or create absolute or relative differences among and between existing classes or rate
groupings of customers. IDAPA 31.01.01.124.02.
YOU ARE FURTHER NOTIFIED that the tariffs, practices, rules and regulations
servIce, instrumentalities , equipment, facilities, classifications, and customer relations of the
utility are at issue, and the Commission may address any of them in its order.IDAPA
31.01.01.124.02.
YOU ARE FURTHER NOTIFIED that the Commission may consider implementing
metered service for all customers. IDAPA 31.01.01.124.
YOU ARE FURTHER NOTIFIED that the Commission Staff shall conduct an audit
of the Company s Application, workpapers and all documents and files relevant to this matter.
Following such audit, the Staff shall present to the Commission its findings and
recommendations. After reviewing the Staff s audit and recommendations, the Commission will
issue an Order regarding the further processing of this rate case.
YOU ARE FURTHER NOTIFIED that the Commission has jurisdiction over this
matter pursuant to Title 61 ofthe Idaho Code, and specifically Idaho Code ~ ~61-502, 61-622 and
61-623.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission s Rules of Procedure, 31.01.01.000 et seq.
SUSPENSION OF PROPOSED EFFECTIVE DATE
Due to the complexities of this case and other constraints on the Commission s time
the Commission finds that it cannot resolve Capitol Water s requested rate increase before the
proposed effective date of August 1 2006. Pursuant to Idaho Code ~~ 61-622 and 61-623, the
Commission hereby suspends the proposed rates for a period of thirty (30) days plus five (5)
months from August 1 , 2006, or until such time as the Commission enters an Order accepting,
rejecting or modifying the request in this matter.
ORDER
IT IS HEREBY ORDERED that the proposed schedules of rates and charges
submitted by Capitol Water in this matter are suspended for a period of thirty (30) days plus five
(5) months from August 1 , 2006, or until such time as the Commission enters an Order
accepting, rejecting or modifying the request in this matter.
NOTICE OF APPLICATION
ORDER NO. 30098
IT IS FURTHER ORDERED that the Commission Staff shall conduct an audit of the
Company s Application and shall present its findings and recommendations to the Commission
following the conclusion of such audit.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this "1~
day of July 2006.
PAU
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ARSHA H. SMITHfcOMMISSIONER
~~~~#~-
ENNIS S. NSEN, COMMISSIONER
ATTEST:
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Assistant Commission Secretary
O:CAP-O6-
NOTICE OF APPLICATION
ORDER NO. 30098