20170626Application.pdf

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2626 Eldorado Boisg ldaho 83704
Telephone [phone]
June 30,2017
Diane Hanian, Secretary
Idaho Public Utilities Commission
P.O. Box 83720
Boise, Idaho 83720-007 4
Re CASE NO. CAP-W-I7-OI
IN THE MATTER OF THE APPLICATION
OF CAPITOL WATER CORP. TO
CHANGE ITS SCHEDULE NO. 3
PURCHASED POWER COST ADruSTMENT RATE
Dear Ms Hanian:
Enclosed arp an original and seven copies of an application and exhibits for
approval of Capitol Water Corporations change in its Schedule No. 3 Purchased Power
Cost Adjustnent. The change is necessitated by Idaho Power Company's changes in the
rates and charges for electric service to Capitol Water Corporation.
Applicant is requesting that the Comntission process this application under its
rules of modified procedure without hearing.
An electonic version of Applicant's application, exhibits and work papers is also
enclosed for the Commission Staffs review.
-lLe-<-
Robert Price, President
Capitol Water Corporation
Robert Price, President
Capitol Water Corp.
2626Eldorudo
Boise, Idaho 83704
Ph: (208) 375-093r
Fax: [phone]
E-mail: [e-mail]
Representative for Capitol Water Corp.
IN THE MATTER OF THE APPLICATION )
oF CAPITOL WATER CORP. TO )
CHANGE ITS SCHEDULE NO.3 )
PURCHASED POWER ADJUSTMENT RATE )
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BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. CAP.W.I7.OT
APPLICATION
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).
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
1,454,401KWh of electricity consumption at an average cost of 5.19i, to establish rates
for Applicant. Together these produce a total cost of electric power for Applicant of
$75,483.41.
Applicant's actual power costs in the calendar year 2016 were $94,610.24. This
is a cost of $19,126.83 more than embedded in the Company's base rates. This additional
cost plus the cost of processing this case requires an adjustment to customer rates of 3.lo/o
as reflected in Exhibit No. 3 attached to this Application. Applicant expects its costs to
review the Idaho Power Company bills, determine their effect on Applicant, prepare and
file this application and respond to questions regarding the Application to be $1,100.
Applicant proposes to include these costs together with the electric power costs for
APPLICATION
CAP-W-17-01
recovery by replacing the Company's currently approved Schedule No.3 Purchased
Power Cost Adjustment of 2.8% with a new Purchased Power Cost Adjustment of 3.1%.
Enclosed is a one page Exhibit No. I that presents Applicant's calculations at
Idaho Power Company's currently approved rates utilizing the previously used computer
Model that recalculates the average cost per Kwh based on detailed bill analysis of power
consumption in the year 2005. That model calculates a cost of $.0728 per KWh.
Applicants actual cost per KWh in2016 was $.0733. The reason for the difference is that
Applicant's power consumption has been reduced from a level of 1,940,746 KWh in
2005 to 1,291,473 KWh in20l6. As the Commission is aware, the average cost of a
KWh is diluted as power consumption increases since Idaho Power Company's Demand
Charges and other charges are spread over the increased number of KWh. When the
model calculated cost per KWh is applied to the actual power consumption in 2016 it
produces a power cost of $94,028 or $582 less than actually experienced before Idaho
Power Company's latest rate increases.
Initially when the Commission approved the PPCA for Capitol Water
Corporation, it adopted a three (3) year average of power consumption, as proposed by
the Staff of the Commission (Staff), as more indicative of what to expect in the future. In
the last case (CAP-W-16-01) the Staff proposed, and the Commission adopted, the most
recent twelve months of power consumption as a better measure of future power
consumption. Exhibit No 2 presents the previous method of calculating the PPCA based
upon the twelve (12) month period ending in May 2017. This calculation produces a
PPCA of 2.61%. However, that 12 month period includes the fall months of 2016 and
the spring months of 2017 which were far above normal in precipitation which
suppressed normal water consumption and therefore demand on Applicants system for
irrigation.
Applicant in this case proposes to change the previously approved method of
calculating the Company's PPCA. Applicant proposes to simplify the calculation to
eliminate the use of the computer model to recalculate costs based upon consumption
data from over ten years ago. Instead, as shown on Exhibit No 3, the Company proposes
to simply compare the most recent year's costs with the costs imbedded in base rates
APPLICATION
CAP-W-17-01
2
This approach can be completed internally by the Company without the need for outside
consultant assistance and quite easily reviewed and verified by the Commission and its
Staff. The Company is aware that this method does not recognize changes in Idaho
Power Company rates on a timely basis that are expected to increase in the future and
creates a lag in the Company's recovery of increased power costs.
Also enclosed is a one page Exhibit No.5 that 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.
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 15, 2017.
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 15,2017
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 1,2017 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 6 respectively.
CONTACT INFORMATION:
Questions regarding this Application should be addressed to:
Robert Price, President Robert E. Smith
Capitol Water Co.p. 2209 N. Bryson Rd.2626Bldorado Boise,Idaho 83713
Boise,Idaho 83704
Ph: (208) 37s-0931 Ph: (208) 76t-9s01
e-mail [e-mail] e-mail [e-mail]
Please provide copies of all correspondence, notices and orders to the above individuals.
Respectfully
Robert Price, President
Capitol Water Corporation
APPLICATION
CAP-W-17-01
J
Capitol Water Corporation
Calculation of Purchased Power Cost Adjustment
Based Upon Energy Consumption in the Year 2016
1 Base Revenue
2 Normalized 3 Yr Average Power Consumption (KWh)
3 Average Cost per KWh
4 Power Cost Embedded in Basic Rates
$ 651,738 Per Order #30762 in CAP-W-08-02
1,454,401 Per Order #30762 in CAP-W-08-02
0.0519 Per Order #30762 in CAP-W-08-02
$ 75,483 Line 3 X Line 2
5 Restated Average Cost Per KWh @ New IPC Rates
6 2016 Power Consumption
$ 0.0728 Calculated in Workpapers
1,291,473 2016 Kwh
7 Power Cost with New IPC Rates $ 94,028 Line 5 X Line 6
8 Power Cost above Embedded Base Power Supply Costs
9 Rate Case Costs
10 Revised Total Expenses above Embedded Base Expense
11 Total Revenue Required with new IPC Rates
$ 18,545 Line 7 - Line 4
1,100
$ 19,645$ 671,383 Line 10 + Line 1
12 Existing Expenses above Embedded Base Rates
1 3 Total Current Revenue
$
$
18,249
669,987
Line 1 at current PPCA rale of 2.8o/o
Line 1 +Line 12
14 lncrease or (Decrease) in Power Costs
15 % lncrease or (Decrease) in Total Revenue
$ t,396 Line 10 - Line 12
0.208o/o (Line 1 1 - Line 13) / Line 13
17 Purchased Power Cost Adjustment (PPCA) Required 3.01o/o Line 10 / Line 1
EXHIBIT NO 1
CAP-W-17-01
CapitolWater Corp.
Capitol Water Corporation
Calculation of Purchased Power Cost Adjustment
Based Upon Most Recent 12 Months Energy Consumption
7 Power Cost with New IPC Rates $ 91,397 Line 5 X Line 6
8 Power Cost above Embedded Base Power Supply Costs $ 15,914 Line 7 - Line 4
9 Rate Case Costs 1,100
10 Revised Total Expenses above Embedded Base Expense $ 17,014
11 Total Revenue Required with new IPC Rates $ 668,752 Line 10 + Line 1
1 Base Revenue
2 Normalized 3 Yr Average Power Consumption (KWh)
3 Average Cost per KWh
4 Power Cost Embedded in Basic Rates
5 Restated Average Cost Per KWh @ New IPC Rates
6 Current 12 Month Power Consumption
12 Existing Expenses above Embedded Base Rates
1 3 Total Current Revenue
14 lncrease or (Decrease) in Power Costs
15 % lncrease or (Decrease) in Total Revenue
$ 651,738 Per Order #30762 in CAP-W-08-02
1,454,401 Per Order #30762 in CAP-W-08-02
0.0519 Per Order #30762 in CAP-W-08-02
$ 75,483 Line 3 X Line 2
$ 0.0728 Calculated in Workpapers
1,255,342 Most Recent 12 Months Kwh
$ 18,249 Line 1 at current PPCA rate of 2.0200/,
$ 669,987 Line 1 +Line 12
$ (1,235) Line 10 - Line 12
-0.184o/o (Line 11 - Line 13) / Line 13
EXHIBIT NO 2
oAP-W-17-01
Capttol Water Corp
17 Purchased Power Cost Adjustment (PPCA) Required 2.610/o Line 10 / Line 1
Capitol Water Corporation
Calculation of Purchased Power Cost Adjustment
Based Upon Energy Consumption in the Year 2016
4 lncrementalCost $19,127
5 Rate Case Costs 1,100
6 Revised Total Expenses above Embedded Base Expens $20,227
7 PPCA Required 3.10% Line 6 / Line 1
8 Current PPCA 2.80o/o Line 8 / Line 1
9 lncremental lncrease in PPCA 0.30o/o Line 7 - Line 8
1 Base Revenue
2 Actual Power Cost from 2016
3 Power Cost Embedded in Base Revenue
10 lncremental Revenue Produced by New PPCA
11 lncremental Revenue Produced by current PCA
12 Total Dollar lncrease from Current Charges
13 Percent lncrease in Current Charges
$ 651,738 Per Order#30762 in CAP-W-08-02
94,610 From Power Bills Workpaper
$75,483 Calculated Per Order #30762 (CAP-W-08.02)
$ 20,227 Line 1 X Line 7
$ 18,249 Line 1 X Line 8
$ 1,978
0.30%
EXHIBIT NO 3
CAP-W-17-03
Capitol Water Corp
NOTICE TO OUR CUSTOMERS
Capitol Water Corporation filed an application on June 30th with the ldaho Public Utilities Commission to increase
its Purchased Power Cost Adjustment from 2.8%lo 3.1/o, alt increase of 0.3 percentage points. The unmetered
residential customer will, if approved by the Commission, see an increase in their monthly bill of 50.09 in the
months of May through September and 50.04 in all other months. Metered customers will see an increase of 0.3%
in their bill. The Purchased Power Cost Adjustment will now appear on water bills as "PPCA Adj". The Purchased
Power Cost Adjustment is applied to customer bills after all other charges for water service have been
accumulated excluding Boise City Franchise fees and ldaho Department of Environmental Quality fees. The
Company has requested an effective date of August 15th. The application is in response to changes in the electric
rates ldaho Power charges Capitol Water Corporation for the electric power it uses to provide water service to
customers and is expected to produce an increase in Company revenues of 51,978. The application is subject to
the approval of the Commission and is available for review at the Company's office at 2626 Eldorado St. in Boise
and on the Commission's web site at puc.idaho.gov and one may subscribe to the Commission's RSS feed to
receive periodic updates via email about the case. Customers may make witten comments to the Commission
regarding the application.
Comments and inquiries may be addressed to the ldaho Public Utilities Commission on its web site by going to the
"file room" link on the home page and scrolling to the bottom of the list to "file a comment or complaint". Case
No. CAP-W-17-01 should be identified in all correspondence with the ldaho Public Utilities Commission.
Capitol Water Corporation
2626 Eldorado
Boise, ldaho 83703
Ph (208) 37s-0s31
ldaho Public Utilities Commission
PO Box 83720
Boise, ldaho 837 20-007 4
Ph (208) 334+0300 or [phone]
EXHIBIT NO 4
cAP-W-17-01
Capitol Water Corp
Tarriff No.
l.P.U.C. No
Canceling
Name of Utility
GAPITOL WATER CORPORATION
Page
(ApprovalStamp)
EXHIBIT NO 5
cAP-W-17-01
Capitol Water Corp
SCHEDULE NO. 3
OTHER RECURRING AND NON-RECURR!NG CHARGES
RECURRING CHARGES
Applicable: To all customer bills
Purchased Power Cost Adjustment: (PPCA)
August L5,2Ot7 3.7%
Beginning A*r€u5H#f6 all customer bills will be increased bVZASA The purpose of the PPCA is to
allow the company to adjust its rates when its power supply costs increase or decrease. The PPCA is
expressed as a percentage, which only applies to the monthly charges for service as listed in schedule
Nos.1,2 and 4. lt does not apply to the total bill amount, which includes other charges such as
the DEQ fee and the City of Boise franchise fee shown below.
City of Boise Franchise Fee:
All 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 S0.3a to collect the assessment required by the ldaho
Department of Environmental Quality.
NON-RECURR1NG CHARGES
Applicable: To all customer bills
Reconnection Charges: A reconnection charge will be assessed to any customer who has
been voluntarily or involuntarily disconnected in compliance with the ldaho Public Utilities
Commission's Utility Customer Relations Rules (UCRR). Charges do not apply to customers
who have been involuntarily disconnected for the convenience of the Company.
Reconnection Charge
The following "Customer Requested Service Calls" charges also apply.
Customer Requested Service Calls: During Normal Business Hours
OtherThan Normal Business Hours
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 ldaho State Government Offices
Returned Check Charge: ln 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
Meter Testing Fee: Not Currently in Use.
June 30,2017 August 15,2017
lssued Effective
c
s20.oo
so.oo
s20.00
S1s.oo
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By Title
President
Capitol Water Corporation
2626 Eldorado St.
Boise, ldaho 83704
June 30, 20L7
ldaho Public Utilities Commission
PO Box 83720
Boise, ldaho 837 20-007 4
Ph (208) 334+0300 or [phone]
NEws
Capitol Water Corporation filed an application on June 30th with the ldaho Public Utilities Commission to increase
its Purchased Power Cost Adjustment from 2.8Yoto 3.LYo, an increase of 0.3 percentage points. The unmetered
residential customer will, if approved by the Commission, see an increase in their monthly bill of 50.09 in the
months of May through September and 50.04 in all other months. Metered customers will see an increase of 0.3o/o
in their bill. The Purchased Power Cost Adjustment will now appear on water bills as "PPCA Adj". The Purchased
Power Cost Adjustment is applied to customer bills after all other charges for water service have been
accumulated excluding Boise City Franchise fees and ldaho Department of Environmental Quality fees. The
Company has requested an effective date of August 15th. The application is in response to changes in the electric
rates ldaho Power charges Capitol Water Corporation for the electric power it uses to provide water service to
customers and is expected to produce an increase in Company revenues of 51,978. The application is subject to
the approval of the Commission and is available for review at the Company's office at2626 Eldorado St. in Boise
and on the Commissions web site at puc.idaho.gov and one may subscribe to the Commissions RSS feed to receive
periodic updates via email about the case. Customers may make written comments to the Commission regarding
the application.
Comments and inquires may be addressed to the ldaho Public Utilities Commission on its web site by going to the
"file room" link on the home page and scrolling to the bottom of the list to "file a comment or complaint". Case
No. CAP-W-17-01 should be identified in all correspondence with the ldaho Public Utilities Commission.
Capitol Water Corporation
2626 Eldorado
Boise, ldaho 83703
Ph (208) 37s-0931
ND
For More !nformation contact:
Capitol Water Corporation President Robert Price at [phone]
Or
Robert Smith, Utility Consultant at [phone]
Exhibit No.6
cAP-W-17-01
Capitol Water Corporation
Tarriff No.
l.P.U.C. No.
Canceling
Page
rovalStam
Name of Utility
CAPITOL WATER CORPORATION
SCHEDULE NO. 3
OTHER RECURRING AND NON-RECURRING CHARGES
Applicable: To all customer bills
Purchased Power Cost Adjustment: (PPCA)
Beginning August t5,2Ot7 all customer bills will be increased bV 3.L%. The purpose of the PPCA is to
allow the company to adjust its rates when its power supply costs increase or decrease. The PPCA is
expressed as a percentage, which only applies to the monthly charges for service as listed in schedule
Nos.1,2 and 4. lt does not apply to the total bill amount, which includes other charges such as
the DEQ fee and the City of Boise franchise fee shown below.
City of Boise Franchise Fee:
All 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 $0.3a to collect the assessment required by the ldaho
Department of Environmental Quality.
NON.RECURRING CHARGES
Applicable: To all customer bills
Reconnection Charges: A reconnection charge will be assessed to any customer who has
been voluntarily or involuntarily disconnected in compliance with the ldaho Public Utilities
Commission's Utility Customer Relations Rules (UCRR). Charges do not apply to customers
who have been involuntarily disconnected for the convenience of the Company.
Reconnection Charge
The following "Customer Requested Service Calls" charges also apply.
Customer Requested Service Calls: During Normal Business Hours
Other Than Normal Business Hours
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 ldaho State Government Offices
Returned Check Charge: ln 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
Meter Testing Fee: Not Currently in Use
lssued June 30,2017
s20.00
So.oo
s20.00
s1s.00
Effective 1 2017
By a {Title
President