HomeMy WebLinkAbout20060630Decision memo.pdfDECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
CO MMISSI 0 NER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:CECELIA A. GASSNER
DATE:JUNE 29, 2006
SUBJECT:CAPITOL WATER CORPORATION'
APPLICATION - CASE NO. CAP-06-
GENERAL RATE CASE
On June 21 , 2006, Capitol Water Corporation filed a general rate case Application
seeking authority to increase its rates approximately 27.8%. If approved the Company
revenues would increase by $132 449 annually. Capitol Water provides service to approximately
875 customers in Boise, Idaho. The Company s Application includes proposed tariffs and
requests an effective date of August 1 , 2006.
THE APPLICATION
Capitol Water s Application states that since the entry of the final Order in its last
rate case, Order No. 26247 in Case No. CAP-95-, 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.
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.The Company requests that the Application be
processed by Modified Procedure. Id.
DECISION MEMORANDUM
ST AFF RECOMMENDATION
Unless suspended, the proposed rates would go into effect on August 1 , 2006
according to the Application. Because it is not possible to perform the necessary audit and
review of the Company s Application prior to the August 1 , 2006 effective date, Staff
recommends the Commission suspend that effective date. Idaho Code ~ ~ 61-622 and 61-623.
Staff recommends that a notice of the Company s Application be issued, with a deadline for
intervention of July 26, 2006. Staff suggests the case not proceed by Modified Procedure, but
rather a hearing schedule be established.
COMMISSION DECISION
Does the Commission wish to issue a notice of the Company s Application?
Does the Commission wish to suspend the effective date of the proposed rate
increase pursuant to Idaho Code ~ ~ 61-622 and 61-623?
How does the Commission wish to proceed with this matter?
M:CAP-O6-
DECISION MEMORANDUM