20070126Decision memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:CECELIA A. GASSNER
DATE:JANUARY 23,2007
SUBJECT:CAPITOL WATER CORPORATION'S APPLICATION FOR APPROVAL
OF CUSTOMER REFUNDS, CASE NO. CAP-07-
On January 9, 2007, Capitol Water Corporation filed an Application for approval of
customer refunds. If approved the Company would refund approximately $65 000 to its
customers. The Company requested that the Application be processed under Modified
Procedure.
THE APPLICATION
Capitol Water s Application states during the course of its recent rate case, Case No.
CAP- W -06-, a billing error was discovered that resulted in overcharges to certain metered
customers. The total over-billing from December 1 , 2003 until September 1 , 2006, was
approximately $65 000. In this Application, the Company proposes a mechanism to return these
overcharges to the pertinent customers.
The Company proposes the following plan to distribute the necessary refunds:
1) To the 99 customers currently connected to the water system to whom the
Company owes a refund of $100 or less, an immediate credit to each of
their respective accounts in the proper amount;
2) To the 18 former customers to whom the Company owes a collective
269., by locating them and issuing them refund checks;
3) To the 13 former customers who were in arrears on their accounts, by
reducing the amount owed to them by the amount in arrears;
4) To the 112 current customers to whom the Company owes more than
$100 each, bill credits each month over a 36-month period. The total
credits would be calculated as' an amortization of the refund principal due
DECISION MEMORANDUM
together with interest at the Commission s approved rate for customer
deposits of 5%. These refunds represent an aggregate total of
$58 937.26. The billing credits would reduce the Company s monthly
revenues by $1 767.51 during the refund period.
ST AFF RECOMMENDATION
Staff recommends that the Company s Application be processed by Modified
Procedure with a twenty-one (21) day comment period. This should allow sufficient time for
interested parties to review the Company s Application and file their comments with the
Commission. Reference Commission Rules of Procedure, IDAPA 31.01.01.201-204.
COMMISSION DECISION
Does the Commission wish to issue a notice of the Company s Application?
How does the Commission wish to proceed with this matter?
(Jd~
M:CAP-O7-
DECISION MEMORANDUM