20180615Decision Memo.pdf

DECISION MEMORANDUM
TO COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:BRANDON KARPEN
DEPUTY ATTORNEY GENERAL
DATE: JUNE 7,2018
SUBJECT: CAPITOL WATER CORPORATION'S APPLICATION TO INCREASE
ITS SCHEDULE NO. 3 PURCHASED POWER ADJUSTMENT RATE;
CASE NO. CAP-W.I8.OI
On May 30,2018, Capitol Water Corporation filed an Application to adjust its
Schedule No. 3 Purchased Power Adjustment Rate to "recover the Company's cost of electricity
related to ldaho Power Company's electric rate schedules that have been approved by the ldaho
Public Utilities Commission." Application at l. Capitol Water proposes an effective date of
August 1,2018.
THE APPLICATION
Capitol Water requests a decrease in its Schedule 3 rates, It states that the proposed
decrease is driven by a drop in electric power expenses. Id. The Company claims that its current
3.1% PPCA rate is too high when factoring in the lower power rates. /d. The Company requests a
new PPCA rate of 2.610/o. ld.
Capitol Water states that its "current base rates werc established by Order No. 30762
in Case No. CAP-W-08-02." Id. at L The Company summarizes the Order: "the Commission
adopted a three (3) year average of l,454,40lKWh of electricity consumption at an average cost
of 5. I 9p, to establish rates for Applicant." /d. This results in a total electric power cost rate of
$75,483.41 . Id. The Company claims that its actual cost in 2017 was $17,034 more than what is
embedded in base rates, but $3,170 lowerthan what is currently being charged after factoring in
the PPCA. Id. at 24. Capitol Water is seeking to recover these costs together with the electric
power costs. /d.
DECISION MEMORANDUM I
Capitol Water also includes a worksheet with the Application detailing its
calculations (Exhibit No. l), a copy of the proposed Schedule No. 3 in legislative format (Exhibit
No. 2), a copy of a direct customer notice and a news release that will be printed in the Idaho
Statesman and Idaho Business Review. /d. (Exhibit Nos. 3-4).
Capitol Water requesls that the Commission process its Application pursuant to
Modified Procedure. ld
STAF'tr' RECOMENDATION
Staff concurs with the use of Modified Procedure. Given the expedited nature of this
case, and cunent demands on Stafi Staff recommends a July 12,2018, comment deadline and a
July 19, 2018, reply deadline.
COMMISSION DNCISION
Does the Commission wish to process the PPCA Application by Modified Procedure
with a July 12,2018, comment deadline and a July 19,2018, reply deadline?
Attorney
CAPWt t0t -5t
?DECISION MEMORANDUM