20050909Supplement to application.pdf

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Molly O'Leary
Richardson & O'Leary, P.
O. Box 7218
Boise , 10 83707
Tel: [phone]
Fax: [phone]
Molly~richardsonandoleary. com
Idaho State Bar No. 4996
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Attorneys for Eagle Water Company, Inc.
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE INVESTIGATION)
OF LOW WATER PRESSURE IN A PORTION OF EAGLE WATER
COMPANY'S SERVICE AREA
CASE NO. EAG-05-
SUPPLEMENT TO EAGLE WATER
COMPANY, INC.S APPLICATION
FOR AN EMERGENCY
SURCHARGE
COMES NOW, Eagle Water Company, Inc. ("Eagle Water" or "the Company
and hereby supplements its APPLICATION FOR AN EMERGENCY SURCHARGE as
follows:
Pursuant to Section 61-307 , Idaho Code , Eagle Water is requesting an
immediate effective date for its requested emergency surcharge upon the Commission
approval.
Pursuant to Idaho Administrative Procedures Act (IDAPA) Rule
31.21.02.102., Eagle Water hereby submits a copy of the Notice to Customers that is
EAGLE WATER COMPANY, INC.
SUPPLEMENT TO APPLICATION FOR EMERGENCY SURCHARGE
being mailed to all Eagle Water customers as of today s date. (See Exhibit 12
attached. )
Pursuant to IDAPA Rule 31.21.02.102., Eagle Water hereby submits a
copy of the Press Release forwarded as of today s date to all newspapers , television
and radio stations on the Commission s news organization list for Eagle Water. (See
Exhibit 13, attached.
RESPECTFULLY SUBMITTED this 9th day of September, 2005.
& O'Leary P.
r Eagle Water Company,
EAGLE WATER COMPANY, INC. - 2
SUPPLEMENT TO APPLICATION FOR EMERGENCY SURCHARGE
EAGLE WATER COMPANY, INC.
APPLICATION FOR EMERGENCY SURCHARGE
TO OUR CUSTOMERS
We have recently filed an Application with the Idaho Public Utilities Commission for a
temporary surcharge to cover expenses that we have incurred and will incur to alleviate
low water pressure problems in the northeastern portion of Eagle Water Company,
Inc.s Service Area.
In the summer of 2004, a 12-inch mainline that was connected to the booster pump that
serves the northeastern portion of Eagle Water s service area was undermined by a
local gravel pit operator. Consequently, Eagle Water had to re-route this service line
using an eight-inch line. Due to unusually hot weather this past July, as well as
excessive lawn irrigation by some of our customers, unacceptably low water pressure
occurred in the higher elevations of Eagle Springs subdivision. To address this
problem, Eagle Water installed a 12-inch mainline to provide sufficient supply to the
existing booster pump. This was completed on August 5, 2005.
In addition to the foregoing solution, Eagle Water has identified three potential options
for further ensuring adequate water pressure in the Eagle Springs area. These include:
Option 1 - Increase the horsepower of the existing booster pump; or
Option 2 - Add a second booster pump station on Big Springs Street to
specifically target the 51 customers in the highest elevation of Eagle Springs
subdivision who are most affected; or
Option 3 - Bring a new well online to increase pressure and supply
Eagle Water will need to borrow funds to cover its expenditures , regardless which
option the Commission approves. Repayment of this loan would need to be recovered
through the assessment of a surcharge on all Eagle Water customers. Commission
approval of Option 1 or Option 2 would result in a temporary surcharge of
approximately 16.850/0 on your monthly water bill for a period of three years. In the
alternative, Commission approval of Option 3 would result in a temporary surcharge of
approximately $9.16 per month for our average residential water customers, or 40.850/0,
for the same period.
Although Option 3 is more expensive that Option 1 or Option 2 , Eagle Water
engineer, James M. Rees, P., MTC, Inc., believes this is the most cost-effective
solution over the long run, as additional supply is needed throughout Eagle Water
system. A new well would address both short-term water pressure problems and help
provide adequate supply to meet the fast-paced growth in Eagle Water s Service Area.
Consequently, Option 3 is our preferred alternative.
As you know, Eagle Water s rates are considerably lower than either the City of Eagle
rates or United Water-Idaho s rates. The average Eagle Water residential customer
pays $269.18 per year for water. That same customer would pay approximately
$608.53 to the City of Eagle for the same amount of water and would pay $650.16 on
United Water s system. Thus, even with the proposed temporary 40.85% surcharge
you would continue to pay considerably less than like-situated water users elsewhere in
the Eagle area.
We have requested that the Commission process our Application pursuant to its
Modified Procedure Rules. We anticipate the Commission will issue an Order next
week setting a deadline for written Comments.
You may review a copy of our Application either at our office or at the Commission
office. You may also review the Application online at www.puc.idaho.under the
File Room" icon.
EAGLE WATER COMPANY, INC.
APPLICATION FOR EMERGENCY SURCHARGE
FOR IMMEDIATE RELEASE
September 9, 2005
Eagle Water Company, Inc.
Contact:Molly O'Leary
208.938.7900
208.861.8635
EAGLE WATER COMPANY SEEKS EMERGENCY SURCHARGE
Eagle Water Company, which serves just over 3 000 customers in the
Eagle , Idaho area , has filed an Application with the Idaho Public Utilities
Commission seeking permission to assess its customers a temporary surcharge
to recover present and future expenses necessary to address water pressure
problems this past summer in Eagle Springs Subdivision and adjacent areas.
Eagle Water has asked the Commission for expedited review and
approval of its Application. The Company proposes that the surcharge become
effective upon the Commission s approval.
In the summer of 2004, a 12-inch mainline that was connected to the
booster pump that serves the northeastern portion of Eagle Water s service area
was undermined by a local gravel pit operator. Consequently, Eagle Water had
to re-route this service line using an eight-inch line. Due to unusually hot
weather this past July, as well as excessive lawn irrigation by some customers
unacceptably low water pressure occurred in the higher elevations of Eagle
Springs subdivision. To address this problem , Eagle Water installed a 12-inch
mainline to provide sufficient supply to the existing booster pump. This was
completed on August 5, 2005.
EAGLE WATER COMPANY, INC. -
EMERGENCY SURCHARGE APPLICATION
FOR IMMEDIATE RELEASE
September 9, 2005
Eagle Water Company, Inc.
Contact:Molly O'Leary
208.938.7900
208.861.8635
In addition to the foregoing solution , Eagle Water has identified three
potential options to further ensure adequate water pressure in the Eagle Springs
area. These include:
Option - Increase the horsepower of the existing booster pump; or
Option 2 - Add a second booster pump station on Big Springs Street to
specifically target the 51 customers in the highest elevation of Eagle
Springs subdivision who are most affected; or
Option 3 - Bring a new well online to increase pressure and supply
Eagle Water will need to borrow funds to cover its expenditures
regardless which option the Commission approves. Repayment of this loan
would need to be recovered through the proposed surcharge on all Eagle Water
customers. The price tag for Option 1 or Option 2 , together with costs already
incurred by Eagle Water in replacing the 12-inch mainline, is approximately
$214 246.00 and would result in a temporary surcharge of approximately
16.850/0 on Eagle Water Company customers' monthly water bills for a period of
three years. In the alternative, Option 3 would cost approximately $517 476.
and result in a temporary surcharge of approximately 40.850/0 on all Eagle Water
customers for three years. This latter option , which includes the costs already
incurred in replacing the 12-inch mainline , would translate into an increase of
approximately $9.16 per month for Eagle Water Company s average residential
water customers.
According to James M. Rees, P., MTC, Inc., engineer for Eagle Water
Company, building a new well (Option 3) is the most cost-effective solution over
EAGLE WATER COMPANY, INC. - 2
EMERGENCY SURCHARGE APPLICATION
FOR IMMEDIATE RELEASE
September 9, 2005
Eagle Water Company, Inc.
Contact:Molly O'Leary
208.938.7900
208.861.8635
the long run , as additional supply is needed throughout Eagle Water s system.
A new well would address both short-term water pressure problems and help
provide adequate supply to meet the fast-paced growth in Eagle Water s Service
Area. Consequently, Option 3 is the Company s preferred alternative.
Eagle Water s rates are considerably lower than either the City of Eagle
municipal water system rates or United Water-Idaho s rates, and the proposed
surcharge would not change this fact. The average Eagle Water Company
residential customer pays $269.18 per year for water. That same customer
would pay approximately $608.53 to the City of Eagle for the same amount of
water and would pay $650.16 on United Water s system. Thus, even with the
proposed temporary surcharge of 40.850/0, Eagle Water s customers would
continue to pay considerably less than like-situated water users elsewhere in the
Eagle area.
EAGLE WATER COMPANY, INC. - 3
EMERGENCY SURCHARGE APPLICATION