20050603Press Release.pdf

IDAHO PUBLIC UTILITIES COMMISSION
Case No. CCH-05-, Order No. 29794
June 3 2005
Contact: Gene Fadness [phone]
Website: www.puc.idaho.2ov
Commission OKs increased rates for Country Club Hills water customers
BOISE - Most customers of a rural Idaho Falls water company will be paying $17 a month for
the first 30 000 gallons of water they use, up from the former rate of$14 per month; The new
rates were effective June 1 , the Idaho Public Utilities Commission announced.
To raise the necessary annual revenue requirement of$42 718, the owner of County Club Hills
sought an increase for metered customers to $20 per month. The commission approved a smaller
increase to $17 , but set a higher rate than that sought by Country Club Hills for those who use
more than 30 000 gallons a month. The commission approved a rate of 60 cents for every 1 000
gallons more than 30 000 gallons. That's up from the current 35 cents per 1 000 gallons. The
company originally requested an increase to 45 cents.
Country Club Hills ' proposed rate design of a larger increase for consumption lower than 30 000
gallons and a smaller increase for uses of greater than that amount sends an inappropriate signal
when the company is trying to encourage customers to conserve water, the commission said.
The commission noted that the 15 highest users on the system of about 128 customers used from
000 to 252 000 gallons during May 2004, well above the company s average May use of
500 gallons per month. The company has a 150 000-gallon storage tank that is pumped dry on
a regular basis.
The company s owner, Mike Groth, said previous efforts at getting customers to change timers
on sprinklers and alter watering to every other day or every third day have not reduced
consumption.
The commission directed the company to work with commission staff to develop a cost-effective
program that encourages water conservation. "The commission reminds the company
customers that water is a precious commodity that should be conserved and used wisely," the
commission said.
Unmetered customers who live in condominiums will pay a flat fee of$15.75 per month, up
from $12 per month. Hook-up fees for new customers increase from $300 to $500. The
commission said $300 is low compared to other water systems. There are about one to four new
hook-ups each year.
The increased revenue requirement, 32 percent above the revenue requirement approved the last
time rates were adjusted in 1990, is to help meet the costs of a new pump, monitoring and control
equipment, a $4 000 management fee for the system owner, liability insurance, increased testing
expense for two wells and a dedicated reserve for service line repairs.
A full text of the commission s order, along with other documents related to this case, are
available on the commission s Web site at www.puc.idaho.gov. Click on "File Room" and then
on "Water Cases" and scroll down to Case No. CCH-05-
Interested parties may petition the commission for reconsideration by no later than June 22.
Petitions for reconsideration must set forth specifically why the petitioner contends that the order
is unreasonable, unlawful or erroneous. Petitions should include a statement of the nature and
quantity of evidence the petitioner will offer if reconsideration is granted.
Petitions can be delivered to the commission at 472 W. Washington St. in Boise, mailed to P.
Box 83720, Boise, ill, 83720-0074, or faxed to 208-334-3762.