28867.mod.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

in the matter of THE APPLICATION OF FALLS WATER COMPANY, INC. FOR AUTHORITY TO INCREASE ITS RATES AND CHARGES. )
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CASE NO. FLS-W-01-01

NOTICE OF MODIFIED PROCEDURE

NOTICE OF SCHEDULING

NOTICE OF COMMENT/PROTEST DEADLINE

ORDER NO. 28867

On July 9, 2001, Falls Water Company, Inc. (Falls Water) filed an Application with the Idaho Public Utilities Commission (Commission) in Case No. FLS-W-01-1 requesting authorization to increase its rates and charges for water service.
Falls Water requests a 38% increase in water rates as follows:
Increase flat rate residential customer monthly charges from $10.00 to $13.90.
Increase the residential metered rate from $10.00 for the first 20,000 gallons and $.30 per 1,000 gallons in excess of 20,000 gallons to $12.65 for the first 10,000 gallons and $.37 per 1,000 gallons in excess of 10,000 gallons.
Increase the commercial metered rate from $10.00 for the first 20,000 gallons and $.30 per 1,000 gallons in excess of 20,000 gallons to $13.25 for the first 10,000 gallons and $.37 per 1,000 gallons in excess of 10,000 gallons.
Falls Water also proposes to:
Eliminate the Metered Commercial Service Seasonally Read rate.
Establish tiered hook-up fees based on the size of the water meter installed.
1. Standard ¾" meter hook-up fee will remain unchanged at $500
2. Proposed 1" meter hook-up fee of $600
3. Proposed 1½" meter hook-up fee of $825
4. Proposed 2" meter hook-up fee of $900
Increase the reconnection fees from $14.00 during office hours to $20.00 during office hours and from $28.00 for after hours to $40.00 for after hours.
Institute a service charge for delinquent accounts in the amount 1.5% per month with a $.50 minimum.
Except for these charges, the tariffs on file with the Commission will remain the same.

Falls Water requests that its requested rate changes take effect as soon as possible but at the beginning of a calendar month to avoid partial month increases. Even with the increases proposed, Falls Water contends that its rates would be among the lowest for water service in Idaho. The Company requests that this Application be considered by the Commission under the rules of Modified Procedure, i.e., by written submission rather than by hearing. Reference IDAPA 31.01.01.201-204.
Falls Water states that the need for filing this Application has arisen because it is currently operating at a loss. The requested increase in charges will result in revenue sufficient to pay current operating expenses and provide a small return that will be held by the corporation for system improvements and replacement. Falls Water Company, Inc. is an Idaho not-for-profit corporation and is therefore not authorized to make any distributions of return on investment to owners, but can utilize retained earnings for expansion and improvements.
Falls Water notes that it has not made application for a rate increase since May 1997. At that time, an increase of 21.64% was granted. Reference Case No. FLS-W-97-1, Order No. 27110. Falls Water notes that the age of some of its system means more frequent repairs and has caused this "inevitable application."
Included with the Company’s filing are the following attachments, schedules and proposed tariffs:
1. Copy of customer notification of this filing.
2. Three-year balance sheet.
3. Three-year income statement.
4. Calculation of rate base.
5. Comparison of income at present rates and income at proposed rates.
6. Explanation of rate calculations.
7. Proposed tariff schedules in legislative format.
On July 31, 2001, the Commission issued a Notice of Application in Case No. FLSW-01-01. Staff was directed to recommend further scheduling following its audit of Company books. Staff represents that its financial audit is now complete and that it is in the process of preparing a report to the Commission. Staff recommends that the matter be processed pursuant to Modified Procedure and that the Company be provided the opportunity to file a written reply to Staff comments.
YOU ARE HEREBY NOTIFIED that the Commission has reviewed the Application and filings of record in Case No. FLS-W-01-01. The Commission has considered Staff's proposed procedure and has preliminarily determined that the public interest regarding the Company's proposed increase in rates and charges may not require a hearing to consider the issues presented and that the issues raised by the Application may be processed under Modified Procedure, i.e., by written submission rather than by hearing. Reference Commission Rules of Procedure, IDAPA 31.01.01.201-204.
YOU ARE FURTHER NOTIFIED that the Commission may not hold a hearing in this proceeding unless it receives written protests or comments opposing the use of Modified Procedure and stating why Modified Procedure should not be used. Reference IDAPA 31.01.01.203.
YOU ARE FURTHER NOTIFIED that Commission Staff is directed to file its report and comments in Case No. FLS-W-01-01 by Friday, October 19, 2001.
Following the Staff comment/deadline/report, the Company will have until Friday, November 2, 2001 to file reply comments.
YOU ARE FURTHER NOTIFIED that the customer deadline for filing comments or protests with respect to the Application and the Commission's use of Modified Procedure in Case No. FLSW-01-01 is Wednesday, November 14, 2001. Persons desiring a hearing must specifically request a hearing in their written protests or comments.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are received within the deadline, the Commission will consider the issue on its merits and enter its Order without a formal hearing. If comments or protests are filed within the deadline, the Commission will consider them and in its discretion may set the matter for hearing or may decide the matter and issue its Order based on the written positions before it. Reference IDAPA 31.01.01.204.
YOU ARE FURTHER NOTIFIED that written comments concerning Case No. FLSW-01-01 should be mailed to the Commission and the Company at the addresses reflected below.

COMMISSION SECRETARY
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074

Street Address for Express Mail:

472 W WASHINGTON ST
BOISE, ID 83702-5983 K SCOTT BRUCE
FALLS WATER COMPANY INC
2025 EAST FIRST STREET
IDAHO FALLS ID 83401-4411
All comments should contain the case caption and case number shown on the first page of this document.
YOU ARE FURTHER NOTIFIED that persons desiring to submit comments via e-mail may do so by accessing the Commission's homepage located at www.puc.state.id.us under the "comments and questions" icon. Once at the "comments and questions" icon, fill in the Case Number as it appears on the front of this document, and enter your comments. These comments should also be sent to the Applicant at the following e-mail address: [e-mail].
YOU ARE FURTHER NOTIFIED that the Application in Case No. FLS-W-01-01 can be reviewed at the Commission's Office and at the office of Falls Water Company during regular business hours. The Company's Application can also be viewed in the "file room" on the Commission's internet web page (www.puc.state.id.us). Staff report and comments in this case will also be posted on the Commission's web page.
O R D E R
IT IS HEREBY ORDERED and the Commission in Case No. FLS-W-01-01 hereby adopts the scheduling and procedures set forth above.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this _______ day of September 2001.

PAUL KJELLANDER, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

DENNIS S. HANSEN, COMMISSIONER

ATTEST:

Jean D. Jewell
Commission Secretary

vld/N:FLSW0101 _sw2

NOTICE OF MODIFIED PROCEDURE
NOTICE OF SCHEDULING
NOTICE OF COMMENT/PROTEST DEADLINE
ORDER NO. 28867 1

Office of the Secretary
Service Date
September 28, 2001