20081117Customer Notice.pdf

NOTICE TO OUR CUSTOMERS RECEIVED
OF RATE CHANGES .NOV 17 PH 2: 08
IDAHO PUBliCCapitol Water Corporation fied two applications with the Idaho Public OOtmeS COMMISSiON
C;ommission on November 17, 2008. The first Application (Case No CAP-W-08-01) requests the
Commission's approval to cancel the surcharges that have been in effect for the last six and
one-half years. These surcharges were authorized to repay emergency loans the Company had
to take out to make extraordinary emergency repairs to the Company's water system. The
Company has now collected from its customers all the funds necessary to satisfy those
emergency obligations. This change reduces the Company's rates by 18% to 25% depending
upon the rate schedule you are biled under and is reflected on your enclosed December bil.
The Second application (Case No. CAP-W-08~02) requests the Commission's approval to
increase the Company's base rates by 7.8% on January 1,2009. This increase was made
necessary by three factors over which the company has no control. The first was the
extraordinary cost ($102,006) the Company incurred to make changes to its water distribution
system as required by the Ada County Highway District's Ustick Road widening project. The
second factor contributing to the request was the extraordinary failure in October of one of the
Company's well pumps requiring a repair cost of $11,234. The third factor is the increase in the
Company's electric power costs experienced since the Company's last rate increase was
approved and effective January 1, 2007.
Together these two applications, if approved by the Public Utilties Commission, wil
result in a net decrease in our customets bils beginning January 1, 2009 of between 10% and
20% depending upon the rate schedule you are biled under. Separate summer sprinkling rates
for flat rate customers wil increase by 7.8% as wil commercial fire sprinkling rates.
A copy of the Company's applications are on file and available for your review at the
Company office located at 2626 Eldorado in Boise. The applications are also available for
review on the Public Utilties Commission web site www.puc.idaho.gov under the above case
numbers.
Exhibit NO.4
CAP-W-08-02