20090623notice_of_application_order_no_30850.pdf

Office of the Secretary
Service Date
June 23, 2009
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF CAPITOL WATER TO ESTABLISH A )
NEW TARIFF RATE TO RECOVER ITSPOWER COSTS.
CASE NO. CAP-09-
NOTICE OF APPLICATION
NOTICE OF
MODIFIED PROCEDURE
ORDER NO. 30850
On May 8, 2009 , Capitol Water Corporation filed an Application for authority to
establish a new tariff rate to recover the Company s increased cost of electricity corresponding to
Idaho Power Company s recently approved Rate Schedule No. 55
, "
Power Cost Adjustment."
Capitol Water requests that the Application be processed by Modified Procedure and that the
tariff changes become effective July 1 2009.
BACKGROUND
In April 2009, the Commission issued final Order No. 30762 that established just and
reasonable rates for Capitol Water. In that Order the Commission allowed Capitol Water to
recover its expenses for electricity by utilizing a three-year consumption average.The
Commission determined the Company s average annual electricity consumption to be 1 454,401
kWh. Order No. 30762 at 3.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that Capitol Water requests a new tariff rate to
recover its cost of electricity related to the recent increase in Idaho Power Company s Schedule
No. 55 , Power Cost Adjustment (PCA). When it filed its Application, Capitol Water observed
that Idaho Power had requested an increase in its PCA rate from 0.7864 cents per kWh to 1.4717
cents per kWh, to be effective June 1 , 2009. Case No. IPC-09-11.! Based on its annual
electricity consumption and Idaho Power s proposed PCA increase, Capitol Water contends that
it will incur additional electricity costs of$9 967., or a 13.02% increase.
1 On May 29, 2009, the Commission issued Order No. 30828 approving an increase in Idaho Power s PCA rate.
The PCA rate was set at 1.4022 cents per kWh effective June 1 2009.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30850
YOU ARE FURTHER NOTIFIED that to alleviate the expense shortfall, Capitol
Water proposes a change to its Schedule No.3 (Other Recurring and Non-recurring Charges) for
a period of one year commencing July 1 , 2009, to allow it to collect $10 467 in additional
revenue ($9 967 in electricity costs + $500 as the cost of filing its Application in this matter).
The Company claims that this request represents a 1.675% increase in the total revenue
requirement authorized by the Commission in the last rate case, Order No. 30762. Capitol Water
maintains that, in each subsequent year, it will review Idaho Power s PCA applications and file
with the Commission appropriate requests to pass through any increases or decreases in electric
power costs to its customers.
YOU ARE FURTHER NOTIFIED that the Application and supporting workpapers
testimonies and exhibits have been filed with the Commission and are available for public
inspection during regular business hours at the Commission offices. The Application and
testimonies are also available on the Commission s web site at www.puc.idaho.gov by clicking
on "File Room" and then "Water Cases.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the
public interest may not require a formal hearing in this matter and will proceed under Modified
Procedure pursuant to Rules 201 through 204 of the Idaho Public Utilities Commission s Rules
of Procedure IDAP A 31.01.01.201 through .204. The Commission notes that Modified
Procedure and written comments have proven to be an effective means for obtaining public input
and participation.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
Application may file a written comment in support or opposition with the Commission within
twenty-one (21) days from the service date ofthis Order. The comment must contain a statement
of reasons supporting the comment. Persons desiring a hearing must specifically request a
hearing in their written comments. Written comments concerning this Application shall be
mailed to the Commission and the Applicant at the addresses reflected below:
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30850
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
Street Address for Express Mail:
Robert Price
Capitol Water Corp.
2626 Eldorado
Boise, ID 83704
Mail: capitolwatercorp~Yahoo.com
472 W. Washington Street
Boise, ID 83702-5918
Robert E. Smith
2209 N. Bryson Road
Boise, ID 83713
Mail: utilitygroup~yahoo.com
These comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission's home page located at www.puc.idaho.gov. Click the "Comments and Questions'
icon and complete the comment form using the case number as it appears on the front of this
document. These comments must also be sent to the Applicant at the e-mail addresses listed
above.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set, the Commission will consider this matter on its merits and
enter its Order without a formal hearing. If written comments are received within the time limit
set, the Commission will consider them and, in its discretion, may set the same for formal
hearing.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission s jurisdiction under Title 61 of the Idaho Code and specifically
Idaho Code ~~ 61-124, 61-125 , 61-129, 61-622 and 61-623. The Commission may enter any
final Order consistent with its authority under Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission s Rules of Procedure, IDAP A 31.01.01.000 et seq.
DISCUSSION AND FINDINGS
In this case Capitol Water seeks to recover the increased cost of electricity
occasioned by a recent rate increase granted by this Commission to Idaho Power. We find that
customers were notified of the proposed rate increase with their May water bills.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30850
Pursuant to Commission Rule of Procedure 263.0l.a the Commission may take
judicial notice of its own orders. IDAPA 31.01.01.263.01.a. Accordingly, we take judicial
notice of the fact that, on May 29, 2009, this Commission issued Order No. 30828 approving an
increase in Idaho Powers PCA rate. The PCA was set at 1.4022 cents per kWh effective June 1
2009. Capitol Waters Application in this case is based entirely on the change in Idaho Powers
PCA rate.
Having taken judicial notice of Commission Order No. 30828 and after reviewing the
Company's Application, we find it reasonable to allow Capitol Water Company to implement an
increase (subject to refund) consistent with the Commission-approved Idaho Power PCA rate of
1.4022 cents per kWh to be effective July 1 2009. Because the rate increase is subject to refund
ratepayers are protected from an unreasonable rate increase until the Commission has completed
its review of the reasonableness and prudency of the Company's proposed changes.
ORDER
IT IS HEREBY ORDERED that Capitol Waters request to collect additional revenue
consistent with the Commission-approved Idaho Power PCA rate of 1.4022 cents per kWh is
approved subject to refund.The Company is temporarily authorized to increase its tariff
Schedule No., as set out in greater detail above, until such time as the Commission completes
its review ofthis matter.
IT IS FURTHER ORDERED that the Company shall submit its tariff in compliance
with the rate identified in this Order no later than July 1 , 2009. The interim rate authorized by
this Order shall become effective for service rendered on and after July 1 , 2009 (subject to
refund).
IT IS FURTHER ORDERED that this case be processed under Modified Procedure.
Interested persons and the parties may file written comments regarding the Company's
Application no later than twenty-one (21) days from the service date of this Order. After the
close of the comment period the Commission will issue its final Order.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30850
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this .;23 d..
day of June 2009.
~/~~
JIM . KE PTO , IDENT
MARSHA H. SMITH, COMMISSIONER
~~A
MACK A. REDFORD, COMMISSIONER
ATTEST:
O:CAP-09-01 ks
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30850