20200806Notice_of_Application_Order_No_34748.pdf

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
ORDER NO. 34748 1
Office of the Secretary
Service Date
August 6, 2020
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF CAPITOL WATER
CORP.’S APPLICATION TO DECREASE ITS
PURCHASED POWER COST ADJUSTMENT
RATE
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CASE NO. CAP-W-20-01

NOTICE OF APPLICATION

NOTICE OF
MODIFIED PROCEDURE

NOTICE OF SUSPENSION OF
PROPOSED EFFECTIVE DATE

ORDER NO. 34748

On July 15, 2020, Capitol Water Corp. (“Capitol Water”) applied for authorization to
decrease its Schedule No. 3, Purchased Power Cost Adjustment (“PPCA”) rate, from 2.93% to
2.06%. Capitol Water proposes an effective date of August 17, 2020.
The Commission now issues this notice of Capitol Water’s Application, notice of
Modified Procedure, and suspends Capitol Water’s proposed effective date for its tariff, under
Idaho Code § 61-622(4).
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.” Application at 1. Capitol Water
asserts that in Order No. 30762 “the Commission adopted a three (3) year average of 1,454,401
kWh of electricity consumption [by Capitol Water] at an average cost of 5.19¢, to establish rates
for Applicant.” Id. Capitol Water asserts this results in Capitol Water incurring a total electric
power cost of $75,483.41. Id.
YOU ARE FURTHER NOTIFIED that Capitol Water asserts that in Case No. CAP-
W-17-01 “the Commission adopted…the most recent twelve months of power costs as a more
efficient method for Capitol Water to recover its increased electric power costs.” Id.; see also
Order No. 33876.
YOU ARE FURTHER NOTIFIED that Capitol Water requests a decrease in its PPCA
rate. Application at 1. Specifically, Capitol Water claims the actual electric power supply cost it
incurred in 2019 was $88,888.00 which is $13,405.00 more than what is embedded in the
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
ORDER NO. 34748 2
Company’s base rates. Id.; see also Exhibit 1 to the Application. By comparison, Capitol Water’s
actual electric power supply cost in 2018 was $94,571.00. Order No. 34445 at 2. Therefore, Capitol
Water’s actual electric power supply cost was less in 2019 than 2018.
YOU ARE FURTHER NOTIFIED that Capitol Water requests its PPCA rate be
reduced from 2.93%1 to 2.06%. Application at 1.
YOU ARE FURTHER NOTIFIED that Capitol Water included a worksheet with the
Application detailing its electric power cost calculations, a copy of the proposed Schedule No. 3
in legislative format, and a copy of a direct customer notice and a news release that will be printed
in the Idaho Statesman and Idaho Business Review. Id. at 1-2.
YOU ARE FURTHER NOTIFIED that Capitol Water requests the Commission
process its Application by Modified Procedure, and that the proposed changes take effect as of
August 17, 2020. Id. at 2.
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
YOU ARE FURTHER NOTIFIED that the Commission lacks sufficient time to
thoroughly investigate the reasonableness of the proposed changes in rates and charges before
those changes would take effect on the proposed effective date of August 17, 2020. Consequently,
the Commission finds it appropriate to suspend Capitol Water’s proposed effective date of August
17, 2020 for thirty (30) days and five (5) months, or until the Commission issues an earlier Order
accepting, rejecting, or modifying Capitol Water’s Application. See Idaho Code § 61-622(4).
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined 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 through .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 persons desiring to state a position on this
Application may file a written comment explaining why the person supports or opposes the
Application. Persons who would like a hearing must specifically request a hearing in their written
comments. Persons shall have until August 27, 2020 to file written comments. Comments must

1 Capitol Water’s current PPCA rate was authorized by Commission Order No. 34445.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
ORDER NO. 34748 3
be filed by e-mail unless e-mail is unavailable. To comment by e-mail, please access the
Commission’s home page at www.puc.idaho.gov. Click the “Consumers” tab and then “Case
Comment Form” and complete the form using the case number as it appears on the front of this
document. Comments filed by e-mail must also be e-mailed to Capitol Water at the e-mail address
listed below. If e-mail is unavailable, then comments may be mailed to the Commission and
Capitol Water at these addresses:
For the Idaho Public Utilities
Commission:

Commission Secretary
Idaho Public Utilities Commission
P.O. Box 83720
Boise, ID 83720-0074

For Capitol Water:

Robert Price, President
Capitol Water Corp.
2626 Eldorado Street
Boise, ID 83704
E-mail: [e-mail]

YOU ARE FURTHER NOTIFIED that Capitol Water must file any reply comments
by September 3, 2020.
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.
O R D E R
IT IS HEREBY ORDERED that Capitol Water’s Application be processed by
Modified Procedure, Rule 201-204 (IDAPA 31.01.01.201-.204). Persons interested in submitting
written comments must do so by August 27, 2020. Capitol Water must file any reply comments
by September 3, 2020.
IT IS FURTHER ORDERED that the August 17, 2020, 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 modifying the Application.
IT IS FURTHER ORDERED that parties continue to comply with Order No. 34602,
issued March 17, 2020. All pleadings should be filed with the Commission electronically and shall
be deemed timely filed when received by the Commission Secretary. See Rule 14.02. Service
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
ORDER NO. 34748 4
between parties should also be accomplished electronically. Voluminous discovery-related
documents may be filed and served on CD-ROM or a USB flash drive.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 6th
day of August 2020.

PAUL KJELLANDER, PRESIDENT

KRISTINE RAPER, COMMISSIONER

ERIC ANDERSON, COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

I:\Legal\WATER\CAP-W-20-01\CAPW2001_ntc app_mh.docx