20110701notice_of_application_order_no_32287.pdf

Office ofthe Secretary
Service Date
July 1,2011
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF CAPITOL WATER CORPORATION )CASE NO.CAP-W-l1-O1TOCHANGEITSSCHEDULENO.3 )PURCHASED POWER ADJUSTMENT )NOTICE OF APPLICATIONRATE)
)NOTICE OF
)MODIFIED PROCEDURE
)
______________________________
)ORDER NO.32287
On June 6.2011,Capitol Water Corporation applied to the Idaho Public Utilities
Commission for authority to change its Schedule No.3 Purchased Power Cost Adjustment
(PPCA).Capitol Water seeks to increase its PPCA from 0.8 1%to 1.44%on an interim basis
effective July 1,2011 (subject to refund).Capitol Water requests that the interim increase
become permanent effective August 1,2011.
NOTICE OF APPLICATION
A.Proposed PPCA
YOU ARE HEREBY NOTIFIED that Capitol Water is applying to change its PPCA
from 0.8 1%to 1.44%to account for recent Commission-approved changes to Idaho Power
Company’s rates.’The Commission approved Capitol Water’s cunent base rates in 2008 in
Commission Order No.30762,which authorized a three-year average of 1,454,401 kWh of
electricity consumption at an average cost of 5.190.Thus,Capitol Water’s total electric power
cost was $75,483.41.According to Capitol Water,however,recent Commission-approved
changes to Idaho Power’s rates have increased what Capitol Water pays to Idaho Power for
electric service.Capitol Water says its average cost per kWh at Idaho Power’s current rates is
5.770 per kWh,which has increased Capitol Water’s total annual electric power cost by 11.1%to
$83,856 ($75,484 +$8,372).
Capitol Water refers to Idaho Power’s Commission-approved rate changes from Order Nos.32248 (granting IdahoPowerauthoritytoincreaseitscontributiontoitspensionplan,resulting in a 1.39%increase for all customerclasses);32250 (approving Idaho Power’s request to reduce the annual Power Cost Adjustment surcharge an average4.8%);and 32251 (approving an average 0.74%increase to residential and small-business customers in this fourthyearofIdahoPower’s Fixed Cost Adjustment Program).Idaho Power’s approved rate changes result in an overall,net average rate decrease of 3%for all customer classes and about 1 .45%for residential customers.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDERNO.32287 1
Capitol Water explains that it must increase its PPCA because:
Subsequent to the issuance of the Commission’s Order No.32056 in Case No.
CAP-W-10-01,an error was discovered in the calculation of Applicant’s
average cost of electric power used in prior cases.That error understated the
average cost of Applicant’s electric power costs reducing Applicant’s
Schedule No.3 Purchased Power Adjustment approved in Case No.CAP-W
10-1.Hence,Applicant has under recovered its purchased power costs over
the last twelve months.Correction of that calculation error together [withi the
changes to Idaho Power Company’s tariff rates ...produce an increase in the
Applicant’s Schedule No.3 Purchased Power Adjustment.
Capitol Water states its proposed PPCA includes $1,000 in expenses to offset the
Company’s costs to review the recent Idaho Power cases,determine their effect on the Company,
prepare and file the Application,and respond to any questions about the Application.
Exhibit Nos.1 and 2 to Capitol Water’s Application attach the Company’s underlying
PPCA calculations and the proposed Schedule 3.
B.Effective Date and Suspension
YOU ARE FURTHER NOTIFIED that Capitol Water requests that the proposed
PPCA rate increase take effect on July 1,2011 on an interim basis,subject to refund,and that the
increase become permanent effective August 1,2011.Because Capitol Water did not file its
Application until June 6,2011,Capitol Water’s proposed July 1,2011 effective date will occur
in less than 30 days after the filing date.Per Idaho law,a utility cannot propose an effective date
fewer than 30 days after the date on which the application was filed unless the utility can show
good cause why the Commission should approve the earlier effective date.See Idaho Code §61-
307;Rule 23 of the Commission’s Rules of Procedure (RP)123,IDAPA 31.01.01.123.Capitol
Water explains that it could not apply to increase its PPCA in time to meet the Commission’s 30-
day requirement because the Company was unable to review the Commission’s pertinent Orders
approving Idaho Power’s new rates until after June 1,2011.
Capitol Water says it will notify its customers of its pending Application by mail on
July 1,2011 (i.e.,on the proposed,interim effective date),and by placing a news release in the
Idaho Statesman and the Idaho Business Review newspapers when it files the Application.
Exhibit Nos.3 and 4 to the Application are the Company’s proposed customer notice and news
release.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDERNO.32287 2
YOU ARE FURTHER NOTIFIED that the Commission finds there is not sufficient
good cause to approve the Company’s request to implement the proposed interim rate on less
than 30 days’notice.If the proposed PPCA increase were to take effect on July 1,2011,it is
likely the Company’s customers will not receive prior notice of the interim increase.Further,
“interim rate relief is an extraordinary remedy to be granted only in an emergency or where there
is danger that the utility will not be able to render adequate service if relief is withheld.”See
Order 25683.Consequently,the Commission finds that Capitol Water has not presented
sufficient good cause to obtain the extraordinary relief requested.
Because the Commission is not approving the proposed interim effective date,the
soonest the rate increase could go into effect is 30 days afier the Application is filed,pursuant to
Idaho Code §61-307,or July 6,2011.See RP 123.However,the Commission finds it
appropriate to suspend the proposed July 6,2011 effective date for a period of sixty (60)days,or
until such time as the Commission may issue an Order accepting,rejecting,or modifying the
Application.Idaho Code §61-622;RP 123.03.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has reviewed Capitol
Water’s filing in Case No.CAP-W-1 1-01 and finds that the public interest may not require a
formal hearing in this matter.Accordingly,this matter will proceed under Modified Procedure
pursuant to Rules 201 through 204 of the Commission’s Rules of Procedure,IDAPA
31.01.01.201-.204.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
concerning Capitol Water’s request to change its Schedule No.3 Purchased Power Cost
Adjustment to recover the Company’s cost of electricity may file a written comment in support
or opposition with the Commission within twenty-one (21)days from the service date of this
Notice.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 filing should be mailed to the Commission and Capitol Water at the
addresses reflected below:
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDERNO.32287 3
Commission Secretary Robert Price
Idaho Public Utilities Commission Capitol Water Corporation
P0 Box 83720 2626 El Dorado
Boise,ID 83720-0074 Boise,ID 83704
E-mail:[e-mail]
Street Address for Express Mail:
472 W.Washington Street Robert E.Smith
Boise,ID 83702-5918 2209 N.Bryson Road
Boise,ID 83713
E-mail:utilitygroup(ZI:yahoo.com
All 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 Capitol Water at the e-mail addresses listed
above.
YOU ARE FURTHER NOTIFIED that Capitol Water ‘s filing can be viewed at
www.puc.idaho.gov by clicking on “File Room”and then “Water Cases,”or it can be viewed
during regular business hours at the Idaho Public Utilities Commission,472 West Washington
Street,Boise,Idaho.
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 §6 1-124,6 1-125 ,61-129,6 1-622 and 6 1-623.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,IDAPA 3 1.01.01.000 ci seq.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDERNO.32287 4
ORDER
IT IS HEREBY ORDERED that Capitol Water’s proposed rates in this case are
suspended for sixty (60)days from the effective date of July 6,2011,or until such time as the
Commission may issue an Order accepting,rejecting or modifying the Application in this matter.
IT IS FURTHER ORDERED that Capitol Water’s Application shall be processed
through lvi odified Procedure,IDAPA 31.01.01.201-204.Persons interested in submitting written
comments in this matter must do so no later than twenty-one (21)days from the service date of
this Order.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this 3C
day of June 2011.
PA1JL KJEILLAl:R,PRESIDENT
MARSHA H.SMITH,COMMISSIONER
REDFOD,ISS1ON
ATTEST:
Jan D.Jeweli
Commission Secretary
O:CAP-W-1 1O1-OIkk
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.32287 5