20220920Decision Memo.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER ANDERSON
COMMISSIONER CHATBURN
COMMISSIONER HAMMOND
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: CLAIRE SHARP
DEPUTY ATTORNEY GENERAL

DATE: SEPTEMBER 20, 2022

SUBJECT: IN THE MATTER OF CAPITOL WATER CORPORATION’S
APPLICATION TO CHANGE ITS SCHEDULE NO. 3 PURCHASED
POWER COST ADJUSTMENT RATE; CASE NO. CAP-W-22-01.

On September 6, 2022, Capitol Water Corporation (“Company”) applied for authority
to change its Schedule No. 3 - Purchased Power Cost Adjustment (“Schedule No. 3”) rate to
recover the electricity costs that exceed what it collected in rates. The Company requests that the
Application be processed by Modified Procedure and that the tariff changes become effective
November 15, 2022.
BACKGROUND
The Company’s current base rates were established in Commission Order No. 30762
issued in 2008. Since that time, the Company has applied to adjust the Schedule No. 3 annually,
the most recent was Order No. 35224, effective on November 15, 2021. Id. In Order No. 35224,
the Commission estimated $75,483.41 for the Company’s total 2021 yearly cost of electric power
using a three-year average of 1,454,401 kilowatt-hour (“kWh”) electricity consumption at an
average cost of 5.19 cents per kWh. Id.
THE APPLICATION
According to the Company, actual costs for calendar year 2021 exceeded the estimated
costs by $17,729. Based on its calculations, the Company now seeks to increase the Schedule No.
3 Purchased Power Cost Adjustment from 0.89% to 2.72%. Id.
The Company attached its current approved Schedule No. 3 with the proposed change
to the Purchased Power Cost Adjustment. Id. at 2; Exhibit No. 2. The Company also included a
DECISION MEMORANDUM 2
new Schedule No. 3 with the proposed power cost adjustment rate, a work sheet showing the
detailed electric power bills the Company used to develop its power cost adjustment, and its
customer notice to be mailed on October 1, 2022, and a news release for the Idaho Statesman and
the Idaho Business Review. Exhibits No. 3-4.
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Application and Notice of
Modified Procedure establishing an October 19, 2022, comment deadline, and an October 26,
2022, Company reply comment deadline.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure with an October 19, 2022, comment deadline, and an October 26, 2022, Company reply
comment deadline?

_____________________________
Claire Sharp
Deputy Attorney General

I:\Legal\WATER\CAP-W-22-01\memos\CAPW2201_memo_cs.docx