20120615Application.pdf

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2626 Eldorado Boise, Idaho 83704
Telephone [phone]
June 15, 2012
Jean D. Jewell, Secretary
Idaho Public Utilities Commission
P.O. Box 83720
Boise, Idaho 83720-0074
Re: CASE NO. CAP-W-12-01
IN THE MATTER OF THE APPLICATION
OF CAPITOL WATER CORP. TO
CHANGE ITS SCHEDULE NO. 3
PURCHASED POWER ADJUSTMENT RATE
Dear Ms Jewell:
Enclosed are an original and seven copies of an application and exhibits for
approval of Capitol Water Corporations change in its Schedule No. 3 Purchased Power
Adjustment. The change is necessitated by Idaho Power Company's recent changes in
the rates and charges for electric service to Capitol Water Corporation. The Application
also incorporates the effect of Idaho Power Company's pending Case No. IPC-E-12-14
regarding the Langley Gulch power plant.
Applicant is requesting that the Commission process this application under its
rules of modified procedure without hearing.
An electronic version of the application, exhibits and work papers in Excel and
Microsoft Word format is being transmitted as e-mail attachments.
Robert Price, President
Capitol Water Corporation
Robert Price, President
Capitol Water Corp.
2626 Eldorado
Boise, Idaho 83704
Ph: [phone]
Fax: [phone]
E-mail: [e-mail]
Representative for Capitol Water Corp.
RE CE V ED
1wLlIILJ;UtIsJ!I
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION ) CASE NO. CAP-W-12-01
OF CAPITOL WATER CORP. TO )
CHANGE ITS SCHEDULE NO.3 ) APPLICATION
PURCHASED POWER ADJUSTMENT RATE)
COMES NOW Capitol Water Corporation ("Capitol", "Applicant" or
"Company"), holder of Certificate of Convenience and Necessity Number 239 and files
this Application to change its Schedule No. 3 Purchased Power Cost Adjustment rate to
recover the Company's cost of electricity related to Idaho Power Company's electric rate
schedules that have been approved by the Idaho Public Utilities Commission ("IPUC" or
Commission").
Subsequent to Applicant's last case (CAP-W-1 1-01) Idaho Power Company has
been granted a number of changes in its rates and charges that affect Applicants cost of
electric power. Applicant requests that the Commission take official notice of its Order
Nos. 32540 (Case No. IPC-E-12-06), 32541 (Case No. IPC-E-12-07), 32559 (Case No.
IPC-E-12-08), 32549 (Case No.IPC-E-12-09), 32544 (Case No. IPC-E-12-12), 32258
(Case No. 1PC-E-12-13 and 32552 (Case No. IPC-E-12-17), all of which affected rates
and charges paid by Applicant to Idaho Power Co. for electric service.
This application also incorporates the estimated effect of Idaho Power Company's
pending Case No. IPC-E-12-14 concerning Idaho Power's Langley Gulch power plant.
Comments in this case have been filed and it is Capitol Water Company's understanding
that an order will be issued and the affect on Idaho Power Company's rates will be
effective in early July 2012.
APPLICATION
CAP-W-12-01
Applicant's current base rates were established by Order No. 30762 in Case No.
CAP-W-08-02. In that order the Commission adopted a three (3) year average of
1,454,401 KWh of electricity consumption at an average cost of 5.190 to establish rates
for Applicant. Together these produce a total cost of electric power for Applicant of
$75,483.41. Recalculating Applicants average cost per KWh at Idaho Power Company's
current rates produces an average cost of 5.580 per KWh. When the estimated affect of
the Langley power plant case are included using the Commission Staffs proposed rate
increase for Idaho Power Company, Applicants average cost per KWh becomes 5.870
The average cost per KWh at current Idaho Power Company rates when applied
to the Commission approved average use produces an annual cost for electric power of
$81,136. This is an increase in annual electric power cost of $5,653 or 7.49% more than
included in Applicants base water rates.
When the estimated affect of the Langley power plant case are included,
Applicants average KWh cost of 5.870 per KWh results in an annual cost to Applicant of
$85,418. This is an increase in annual electric power cost of $9,934 or 13.161% more
than included in Applicants base water rates.
Applicant expects its costs to review the Idaho Power Company cases, determine
their effect on Applicant, prepare and file this application and respond to questions
regarding the Application to be $1,200. Applicant proposes to include these costs
together with the electric power costs for recovery by replacing the Company's currently
approved Schedule No.3 Purchased Power Cost Adjustment of .37% with a new
Purchased Power Cost Adjustment of 1.71%. This proposed rate incorporates the effects
of the Idaho Power Company Langley Gulch power plant Case No. IPC-E-12-14 together
with current Idaho Power Company rates and Applicant's cost of processing this
Application.
Enclosed is one page Exhibit No. 1 that presents Applicants calculations at Idaho
Power Company's currently approved rates. Also enclosed is one page Exhibit No.2 that
shows the same calculation but incorporates the effect of the Idaho Power Company
Langley Gulch power plant case. Enclosed as Exhibit No. 3 is a copy of the Company's
current approved Schedule No. 3 in legislative format that shows the proposed change to
the Purchased Power Cost Adjustment.
APPLICATION 2
CAP-W-12-01
A new Schedule No. 3, with the proposed power cost adjustment rate, is enclosed
for the Commission's approval with an effective date of August 1, 2012.
Applicant has provided work papers showing its calculations that develop the
proposed power cost adjustment to the Commission's Staff for its review.
Applicant requests that the Commission process this Application under its rules of
modified procedure and approve the rates effective August 1, 2012
Capitol Water Corporation will inform its customers of this application through a
customer notice that will be included with customer bills to be mailed July 1, 2011 and
by a news release that is being sent to the Idaho Statesman and the Idaho Business
Review newspapers coincident with this filing. Copies of the customer notice and news
release are enclosed as Exhibit Nos. 4 and 5 respectively.
CONTACT INFORMATION:
Questions regarding this Application should be addressed to:
Robert Price, President
Capitol Water Corp.
2626 Eldorado
Boise, Idaho 837704
Ph: [phone]
e-mail [e-mail]
Robert E. Smith
2209 N. Bryson Rd.
Boise, Idaho 83713
Ph: [phone]
e-mail [e-mail]
Please provide copies of all correspondence, notices and orders to the above individuals.
R1ubmitt ~Q
Robert Price, President
Capitol Water Corporation
APPLICATION 3
CAP-W-12-01
Capitol Water Corporation
Calculation of Purchased Power Cost Adjustment
1 Base Revenue $ 651,738 Per Order #30762 in CAP-W-08-02
2 Normalized 3 Yr Average Power Consumption (KWh) 1,454,401 Per Order #30762 in CAP-W-08-02
3 Average Cost per KWh 0.0519 Per Order #30762 in CAP-W-08-02
4 Power Cost Embeded In Basic Rates 75,483.41 Line 3 X Line 2
5 Restated Average Cost Per KWh @ New IPC Rates 0.0558 Calculated in Workpapers
6 Power Cost with New IPC Rates $ 81,135.98 Line 5 X Line 2
7 Incremental Power Cost @ New Rates 5,652.57 Line 6- Line 4
8 Rate Case Costs 1,200.00
9 Incremental Costs © New Rates 6,852.57
10 Total Revenue Required with New IPC Rates $658,590.57 Line 9 + Line I
11 Total Incremental Power Revenue included in
Current Capitol Water Rates $ 2,442.00 Per Order #32325 in CAP-W-1 1-01
12 Total Current Revenue $ 654,180 Line I + Line 11
13 Increase or (Decrease in Incremental Power Costs $ 4,410.57 Line 9- Line 11
14 % Increase or (Decrease in Total Revenue 0.67% (Line 10- Line 12)! Line 12
15 Exceeds +1- 0.25% Revenue Band? Yes
16 Purchased Power Cost Adjustment (PPCA) Required 1.05%
EXHIBIT NO I
CAP-W-12-01
Capitol Water Corp.
Capitol Water Corporation
Calculation of Purchased Power Cost Adjustment
I Base Revenue $ 651,738 Per Order #30762 in CAP-W-0802
2 Normalized 3 Yr Average Power Consumption (KWh) 1,454,401 Per Order #30762 in CAP-W-08-02
3 Average Cost per KWh 0.0519 Per Order #30762 in CAP-W-08-02
4 Power Cost Embeded in Basic Rates 75,483.41 Line 3 X Line 2
5 Restated Average Cost Per KWh @ New IPC Rates 0.055€
6 Power Cost with New IPC Rates $ 81,135.98
7 Incremental Power Cost © New Rates 5,652.57
8 Rate Case Costs 1,200.00
9 Proforma Effect of Langley Case 4,281.86
10 Incremental Costs © New Rates 11,134.42
11 Total Revenue Required with New IPC Rates $662,872.42
Calculated in Workpapers
Line 5 X Line 2
Line 6- Line 4
Calculated from Capitol Water Bills
Line 9+ Line I
12 Total Incremental Power Revenue included in
Current Capitol Water PPCA Rates $ 2,442.00 Per Order #32325 in CAP-W-1 1-01
13 Total Current Revenue $ 654,180 Line I + Line 11
14 Increase or (Decrease in Incremental Power Costs $ 8,692.42 Line 9- Line 11
15 % Increase or (Decrease in Total Revenue 1.33% (Line 10- Line 12)/Line 12
16 Exceeds +1- 0.25% Revenue Band? Yes
17 Purchased Power Cost Adjustment (PPCA) Required 1.71%
Exhibit No. 2
CAP-W-12-01
Capitol Water Corp.
No. Page
LP.UC. No.
Name of Utility
CAPITOL WATER CORPORATION
SCHEDULE NO. 3
OTHER RECURRING AND NON-RECURRING CHARGES
Applicable: To all customer bills
Purchased Power Cost Adjustment I August 1, 2012 -
Beginning September 1, 2011 all customer bills will be increased by .3.7%-for recovery of the I C
Company's costs of electric power related to changes in Idaho Power Company's Rate Schedules
' of Boise Franchise Fee:
customer bills will be increased by 3% for payment of Franchise Fees assessed by the City of Boise.
partment of Environmental Quality Fee:
customer bills will be increased by $0.34 to collect the assessment required by the Idaho
partment of Environmental Quality.
Applicable: To all customer bills
Reconnection Charges: A reconnection charge will be assesed to any customer who has
been voluntarily or involuntarily disconnected in compliance with the Idaho Public Utilities
Commission's Uniform Customer Relations Rules (UCRR). Charges do not apply to customers
who have been involuntarily disconnected for the convenience of the Company.
Reconnection Charge $20.00
The following "Customer Requested Service Calls" charges also apply.
Customer Requested Service Calls: During Normal Business Hours $0.00
Other Than Normal Business Hours $20.00
Service call charges will be waived if the service call resulted in repair
to Company's equipment through no fault of the customer.
Normal Business Hours are 8:00 AM to 5:00 PM Monday through Friday excluding
Legal Holidays recognized by Idaho State Government Offices
Returned Check Charge: In the event a customers check is returned by the Company's bank for
any reason, the Company will charge the customer's account a reprocessing fee of $15.00
Meter Testing Fee: Not Currently in Use.
Per Commission Order No.
Issued August 16, 2011 Effective September 1, 2011
Title By
President
Exhibit No. 3
CAP-W-12-01
Capitol Water Corp.
NOTICE TO CUSTOMERS
Capitol Water Corporation filed an application on June 15 th with the Idaho Public Utilities Commission to raise
its Purchased Power Cost Adjustment from .37%% to 1.71%, an increase of 1.34 percentage points. The
Purchased Power Cost Adjustment is applied to customer's bills after all other charges for water service have
been accumulated. The Company has requested an effective date of August 1 after the Commission has had
an opportunity to thoroughly review the application. The application is in response to recent orders of the
Public Utilities Commission that have changed the rates Idaho Power Company charges Capitol Water
Corporation for the electric power it uses to provide water service to customers. The Application also includes
the estimated increase to electric power rates of Idaho Power Company's Pending rate increase for recognition
of the Langley Gulch power plant. The Capitol Water Power Cost Adjustment is designed to only recover
expenses Capitol Water incurs to pay its electric power bills. A copy of the application is available for review
on the Public Utilities Commission web site www.puc.idaho.gov . Refer to Case No. CAP-W-12-01. Interested
persons may also review a copy of the application at the Capitol Water Corporation office located at 2626
Eldorado St. in Boise.
Exhibit No. 4
CAP-W-12-01
Capitol Water Corporation
Capitol Water Corporation
2626 Eldorado Street June 15, 2012
Boise, Idaho 83704
N gw s

Capitol Water Corporation, that serves customers on Boise's west bench, filed an
application today with the Idaho Public Utilities Commission to change its Purchased
Power Cost Adjustment from 0.37% to 1.71%, an increase of 0. 1.34 percentage points.
The Power Cost Adjustment is applied to customer's bills after all other charges for
water service have been accumulated. The Company has requested an effective date
of August 1St after the Commission has had an opportunity to thoroughly review the
application. The application is in response to recent orders of the Public Utilities
Commission that have changed the rates Idaho Power Company charges Capitol Water
Corporation for the electric power it uses to provide water service to customers. The
Application also includes the estimated increase to electric power rates of Idaho Power
Company's rate increase for recognition of the Langley Gulch power plant. The Capitol
Water Purchased Power Cost Adjustment is designed to only recover expenses Capitol
Water incurs to pay its electric power bills. A copy of the application is available for
review on the Public Utilities Commission web site www.puc.idaho.gov . Refer to Case
No. CAP-W-12-01. Interested persons may also review a copy of the application at the
Capitol Water Corporation office located at 2626 Eldorado St. in Boise.
END
For More information contact:
Capitol Water Corporation President Robert Price at [phone]
Or
Robert Smith, Utility Consultant at [phone]
Exhibit No. 5
CAP-W-12-01
Capitol Water Corporation
No. Page
I.P.U.C. No.
Name of Utility
CAPITOL WATER CORPORATION
SCHEDULE NO. 3
OTHER RECURRING AND NON-RECURRING CHARGES
To all customer bills
Purchased Power Cost Adjustment:
Beginning August 1, 2012 all customer bills will be increased by 1.71% for recovery of the
Company's costs of electric power related to changes in Idaho Power Company's Rate Schedules
V of Boise Franchise Fee:
customer bills will be increased by 3% for payment of Franchise Fees assessed by the City of Boise.
Department of Environmental Quality Fee:
All customer bills will be increased by $0.34 to collect the assessment required by the Idaho
Department of Environmental Quality.
Applicable: To all customer bills
Reconnection Charges: A reconnection charge will be assesed to any customer who has
been voluntarily or involuntarily disconnected in compliance with the Idaho Public Utilities
Commission's Uniform Customer Relations Rules (UCRR). Charges do not apply to customers
who have been involuntarily disconnected for the convenience of the Company.
Reconnection Charge $20.00
The following "Customer Requested Service Calls" charges also apply.
Customer Requested Service Calls: During Normal Business Hours $0.00
Other Than Normal Business Hours $2000
Service call charges will be waived if the service call resulted in repair
to Company's equipment through no fault of the Customer.
Normal Business Hours are 8:00 AM to 5:00 PM Monday through Friday excluding
Legal Holidays recognized by Idaho State Government Offices
Returned Check Charge: In the event a customers check is returned by the Company's bank for
any reason, the Company will charge the customer's account a reprocessing fee of $15.00
Testing Fee: Not Currently in Use.
Commission Order No.
June 15, 2012 Effective August 1, 2012
By Title
President