20190724notice_of_application_order_no_34383.pdf

Office of the Secretary
Service Date
July 24,2019
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
CAPITOL WATER CORPORATION'S )CASE NO.CAP-W-19-01
APPLICATION TO INCREASE ITS )SCHEDULE NO.3 PURCHASE POWER )NOTICE OF APPLICATION
ADJUSTMENT RATE )
)NOTICE OF
)MODIFIED PROCEDURE
)ORDER NO.34383
On June 20,2019,Capitol Water Corporation ("Capitol Water"or the "Company")
filed an Application to increase its Schedule No.3 Purchased Power Cost Adjustment Rate to
"recover the Company's [increased]cost of electricityrelatedto Idaho Power Company's electric
rate schedules that have been approved by the Idaho Public Utilities Commission."Application
at 1.Capitol Water proposes an effective date of August 15,2019.Id.at 2.
In this Order the Commission approves the request to process Capitol Water's
Application using Modified Procedure,establishes deadlines for the filing of written comments
and suspends the effective date of the Company's proposed rate change to its Schedule No.3.
BACKGROUND
Beginning with Case No.CAP-W-09-01,Capitol Water has submitted an annual filing
requesting Commission approval to raise or lower its Schedule No.3 Purchased Power Cost
Adjustment Rate (the "PPCA")to account for increases or decreases in electric power supply costs
the Company incurs for the electric power it uses to operate its water system.In general,Capitol
Water's electric power supply costs increase or decrease annuallydue to Idaho Power Company's
("Idaho Power")Power Cost Adjustmentmechanism,Fixed Cost Adjustment mechanism and any
other miscellaneous annual rate changes.See Order No.30881 at 3;see also Order 33128.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that Capitol Water states its "current base rates were
established by Order No.30762 in Case No.CAP-W-08-02."Id.Capitol Water asserts in Order
No.30762 "the Commission adopted a three (3)year average of 1,454,401 kWh of electricity
consumption [by the Company]at an average cost of 5.19¢,to establish rates for Applicant."Id.
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NOTICE OF MODIFIED PROCEDURE
ORDER NO.34383 1
at 1.The Company asserts this results in a total electric power cost of $75,483.41 that is incurred
by the Capitol Water.Id.
YOU ARE FURTHER NOTIFIED that Capitol Water asserts in Case No.CAP-W-17-
01 "the Commission adopted,the most recent twelve months of power costs as a more efficient
method for the Capitol Water recover its'increased electric power costs."Id.;see also Order No.
33876.
YOU ARE FURTHER NOTIFIED that Capitol Water requests an increase in its PPCA
due to increases in electric power supply costs it incurred in 2018 from Idaho Power.Id.
Specifically,Capitol Water claims the actual electric power supply cost it incurred in 2018 was
$94,571.00 which is $19,088.00 more than what is currently embedded in the Company's base
rates.Id.;see also Exhibit 1 to the Application.
YOU ARE FURTHER NOTIFIED that Capitol Water asserts its current 2.61%PPCAT
is too low to recover the higher electric power costs it incurred in 2018.Id.Accordingly,Capitol
Water requests a new,increased PPCA of 2.93%.Id.
YOU ARE FURTHER NOTIFIED that Capitol Water included a worksheet with the
Application detailing its electric power cost calculations (Exhibit No.1),a copy of the proposed
Schedule No.3 in legislative format (Exhibit No.2)2 and a copy of a direct customer notice and a
news release that will be printed in the Idaho Statesman and Idaho Business Review (Exhibit Nos.
3-4).Id.at 1-2.
YOU ARE FURTHER NOTIFIED that Capitol Water requests the Commission
process its Application pursuant to Modified Procedure,and that the proposed changes take effect
as of August 15,2019.Id.at 2.
SUSPENSION
YOU ARE FURTHER NOTIFIED that the Commission lacks sufficient time to
thoroughlyinvestigate the reasonableness of the proposed changes in rates and charges before
those changes would take effect on the proposed effective date of August 15,2019.Consequently,
the Commission finds it appropriate to suspend the Company's proposed effective date of August
i Capitol Water's current PPCA rate was authorized by Commission Order No.34124.
2 As previouslystated,the Commission approved the Company's current PPCA rate of 2.61%in Order No.34124
which is reflected in the Company's current approved tariffs on file with the Commission.In this case though the
Company has submitted a proposed Schedule No.3 in legislative format that contains a PPCA rate of 3.1%which
was the Commission authorized PPCA rate prior to Order No.34124.The Commission assumes the use of an
outdated tariff was made in error.
NOTICE OF APPLICATION
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ORDER NO.34383 2
15,2019 for thirty (30)days and five (5)months,or until the Commission issues an earlier Order
accepting,rejecting,or modifying the Company's Application.See Idaho Code §61-622(4).
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has reviewed the Company's
filing in Case No.CAP-W-19-01,and finds 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,IDAPA 31.01.01.201-.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
concerning Capitol Water's Application in Case No.CAP-W-19-01 may file a written comment
in support or opposition with the Commission within twenty-one (21)days from the date of
this Notice.Written comments must contain a statement of reasons supporting the matters raised
within them.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:
Commission Secretary Robert Price,President
Idaho Public Utilities Commission Capitol Water Corp.
PO Box 83720 2626 Eldorado
Boise,ID 83720-0074 Boise,ID 83704
E-mail:in
Street Address for Express Mail:
472 W.Washington Street
Boise,ID 83702-5918
Written 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 .Click the "Case Comment or Question
Form"under the "Consumers"tab,and complete the form using the case number as it appears on
the front of this document.Written comments must also be sent to the Company at the e-mail
addresses listed above.
YOU ARE FURTHER NOTIFIED that Capitol Water may file reply written
comments,if necessary,no later than twenty-eight(28)days from the date of this Notice.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34383 3
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 the Application and exhibits have been filed
with the Commission and are available for public inspection during regular business hours at the
Commission office.The Application and exhibits are also available on the Commission's web site
at ,L .Click on the "File Room"tab at the top of the page,scroll down to "Open
Water Cases,"and then click on the case number as shown on the front of this document.
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 §§61-307,61-503,and 61-622.The Commission may enter any final Order consistent with
its authorityunder Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted
pursuant to the Commission's Rules of Procedure,IDAPA 31.01.01.000 et seq.
ORDER
IT IS HEREBY ORDERED that the August 15,2019,effective date Capitol Water
proposed for its rate increase is suspended for 30 days and five months,or until the Commission
issues an earlier Order accepting,rejecting,or modifyingthe Application.
IT IS FURTHER ORDERED that the Application of Capitol Water shall be processed
by Modified Procedure,IDAPA 31.01.01.201-204.
IT IS FURTHER ORDERED that persons.interested in submitting written comments
in this matter must do so by no later than twenty-one (21)days from the date of this Order.Capitol
Water may file written reply comments,if necessary,by no later than twenty-eight(28)days from
the date of this Order.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34383 4
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of July2019.
PAUL KI LA ,PRESIDENT
KRIÈINE RAPER,COMMISSIONER
ERIC ANDERSÖN,ÖÒMMISSIONER
Diane M.Hanian
Commission Secretary
CAPW190I_NtcAppMod_jrh
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.34383 5