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Home My WebLink About20030728Application.pdfK. Scott Bruce Falls Water Company, Inc. 2025 East First Street Idaho Falls, ill 83401-4411 Tel. (208) 522-1300 Fax (208) 529-3930 E-mail: scott~Jallswater.com Representative for Falls Water Company, Inc. , ~:!:. :r~JEOlit ,. ,,-- 7003 JUL 25 PH 3: 33 ' J711 : ;:~ i':~SIONI,Ll iL-V v 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 CASE NO. fL f - utJI1Jd/ APPLICA TION FALLS WATER COMPANY, INC. AN Idaho not-for-profit corporation and holder of Certificate of Public Convenience and Necessity No. 236 from the Idaho Public Utilities Commission hereby applies to the Commission for authorization to increase its charges for water service. Application is made to the Commission to authorize a general 38.0% increase in water rates as follows: Increase flat rate residential customer monthly charges from $13.73 to $18.00. Increase the residential metered rate from $10.00 for the first 20 000 gallons and $0.32984 per thousand gallons in excess of20 000 gallons to $14.50 for the first 000 gallons and $0.40 per thousand gallons in excess of 17 000. Increase the commercial metered rate from $10.00 for the first 20 000 gallons and $0.32984 per thousand gallons in excess of20 000 gallons to $14.50 for the first 000 gallons and $0.40 per thousand gallons in excess of 17 000. Change the residential multi-family rate to eliminate a flat rate charge of$13. per vacant or occupied unit to a metered rate of $14.50 for the first 17 000 gallons and $0.40 per thousand gallons in excess of 17 000. The rate would apply to all duplexes, four-plexes, and apartment buildings where individual units in a building are not metered separately and/or living units cannot be sold separately. Except for these changes, the tariffs on file with the Commission will remain the same. Falls Water requests that such changes in rate shall take effect on October 15 2003. Falls Water Company, Inc. requests that this application be considered by the Commission under the rules of Modified Procedure Applicant hereby certifies that a notification of our intent to file this application has been included with our July 25 , 2003 water bills mailed to all customers. A similar notice was released to the local television stations and newspapers. A copy of the notice is included with this application Applicant further states that it stands ready for immediate consideration of this application. The need for filing this application has come about due to the fact that the applicant company is currently operating at a loss. The requested increase in charges will result in revenue sufficient to pay for the current operating expenses and provide a small return, which will be held by the corporation for system improvements and replacement. As stated above, Falls Water Company, Inc. is an Idaho not-for-profit corporation and is therefore not authorized to make any distributions of profits to owners, but can utilize profits for expansion and improvement. Applicant last made application for a rate increase on July 9 2001. A increase of 94% was granted from that application. The management of Falls Water Company, Inc. has tried to keep costs down in order to maintain low water rates. However, the aging of many of the infrastructure assets is requiring more repair and replacement. Currently, about 900 of the 1500 meters in the system are in need of replacement over the next 10 years. The annual replacement cost for ninety %" meters is $13 050.00. Routine maintenance is not done with the frequency that it should be done. Maintenance on fire hydrants is not completed as promptly as it is needed due to a lack of funds and manpower. For the same reason, approximately 50 street valves are in disrepair and an additional 25 new valves have yet to be installed to correct deficiencies of needed street valves in older portions of the water system. A new field employee was hired in 2003 and another is needed. A study by our engineer, compared Falls Water Company, Inc. employee total to the number of employees in other comparably sized water systems and found that on Falls Water Company, Inc. was 1.5 employees short of the average number of employees at the other water systems. Included with the application 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 Falls Water Company, Inc. respectfully requests favorable consideration of this application. Please direct any questions or correspondence related to this application to the applicant as indicated on page 1. Dated this 17th day of July 2003. Respectfully submitted FALLS WATER COMPANY, INc. Kel yD. Ho ,,* esident NOTICE TO FALLS WATER COMPANY. INC. CUSTOMERS Falls Water Company, Inc. has filed an application with the Idaho Public Utilities Commission (IPUC) for a proposed rate increase. Falls Water Company, Inc. seeks permission to increase rates to reflect the increased costs of maintenance and replacement of its aging infrastructure and improving its customer service response. If the proposed increase is approved, metered residential customers would experience an average monthly increase of $6.39 (46%). Metered commercial customers would experience an average monthly increase of $15.96 (79%). Unmetered residential customers would experience a monthly increase of $4.27 (31%). Multi-family residential customers would experience an average monthly decrease of $9.99 (-73%) per unit. If approved the proposed increase would increase total revenues by $129 564.25 (38%). This proposal is subject to public review and approval by the IPUC.A copy of the application is on file in our office for examination. If you have any comments or questions, please contact either Falls Water Company or the Idaho Public Utilities Commission: Idaho Public Utilities Commission PO Box 83720 Boise , 10 83720-0074 (800) 432-0369 Falls Water Company, Inc. 2025 E First Street Idaho Falls, 10 83401-4411 (208) 522-1300 Falls Water Rate Application - Attachment #1 FALLS WATER COMPANY, INC. Balance Sheet for years ending December 31 , 2000, 2001 , and 2002 ASSETS Current Assets Checking/Savings 129. FWC.BofCommerce 130. FWC.First Security Bank Tolal Checking/Savings Other Current Assets 129.1' FWC Growth Fund 132. Undeposlted Funds 140 . Accts Receivable 141 - Gust Accts Receivable 143 . Uncollectable Allowance Total 140. Accts Receivable Total Other Current Assets Total Current Assets Fixed Assets 101 . Utility Plant 303. Land & Land Rights 304. Structures and Improvements 307. Wells 310. Generators 311, Pumping Equipment 320 . Purification System 330 . Tanks 331 . Water Mains 334, Meters 340 . Office Furn & FIx! 341 . Transportation Equipment 343 ' Tools & Equipment Total 101 , Utility Plant 108 - Plant Depreciation Total Fixed Assets TOTAL ASSETS LIABILITIES & EQUITY LIabilities Current Llabililies Accounts Payable 232 - Accts Payable Total Accounts Payable Other Current LIabilities 231 - FWC Accounts Payable 231_2 - Payable to MHE/Labor Gravco 231_3' Payable to WCC/CD Crossing 231_4 - Payable toWCCIWell3 231_5 - Payable toWCC/Generator 231_6 - Payable to Wee/Repairs 231_7 - Payable to WCCIWell6B 231_8 - Payable on Summit Park 231_9 - Crimson Valley Water Main Tola1231 . FWC Accounts Payable 233. PJP to Associated Companies 236. Taxes Payable 236.3' Other Taxes Payable Total 236. Taxes Payable Total Other Current Liabilities Total Current Llabililles Long Term LIabilities 223. Advances from Associated Co. 271 - Contrib- In Aid of Construction 272, Accum Amort - Contrib Aid Canst Total Long Term Liabilities Total liabilities Equity 201 . Capital Stock 215 - Retained Earnings Net Income Total Equity TOTAL LIABILITIES & EQUITY December 31 2000 December 31 2001 December 31 2002 178.85 11.924_607_ 924_607_178_ 000_ 028_556_ 843_686_384.41 642_300_300_ 201_386_084_ 201_28,415_640_ 32.125_022_819.43 328_328-328_ 707_8,707_ 52.805_52.805.40 805.40 693_693_693_ 143 276.46 187719_195 807_ 865.23 865_865.23 494_494_494_ 770_91.770_133 121_ 96,601_118.735_134 082_ 344_7,475_7,475_ 13.261.261.261.28 582_582_10,842. 449022.49 526 438_592,484_ 271 968.77 293 711_316826_ 177053.72 232 726.24 275657_ 209 179_267 748_321,477.41 031_282_ 031_282_ 139_ 950_ 880_ 075_ 316_ 923_ 022_ 500_ 134 284_21.522_ 047.20 819.50 364_ 819_364_ 134 284_819_28,934_ 134 284_851.78.217_ 134 284_122541_ 200_ 658.08 134.284_166 083_ 134 284_152 135_244,300_ 25.000_000_000_ 69,779_717_187_ 19,883.105_009_ 895.115,612.177_ 209 179.267,748.321 477- Falls Water Rate Application -- Attachment #2 FALLS WATER COMPANY, INC- Comparative Income Statement for the calendar years of 2000, 2001, 2002 Ordinary Income/Expense Income 400 . Operating Revenue 460 . Unmetered Revenue 461.1' Metered Residential 461_2' Commercial Revenue 469 - Hookup Fees 474 - Other Utility Revenue 400 - Operating Revenue - Other Tola1400 - Operating Revenue Total Income Expense 601.5 - Labor Field 601.7 - Labor Meter Reading 601,8 . Labor Office 601_9' Admin. Labor 610, Purchased Water 615. Electrical Power 620,2 . Source M&S 620_6 ' Distribution M&S 620_7' Poslage 620_8' Office 620.81 . Telephone Expense 620_82 . Bank service charges 631.1' Engineering 631_2' Accounting 631_3' Attorney 635 . Testing 636.2 . Source Contract Repairs 636_3 ' Trash 636,6 - Distribution Contract Repairs 636.7 - Dala Processing 636.9' Contract Others 641 . Rental of Property 642 . Rental of Equipment 650 . Transportation Expense 656 - Insurance Expense 660 - Advertising Expense 670 - Bad Debt Expense 675.1 - Training Expenses 675,2 . Dues & Publications 675_4 . IDHW Fee Expense Total Expense Net Ordinary Income Other IncomelExpense Other Income 421 ' Non-Utility Income Total Other Income Other Expense 403 - Depreciation Expense 408 - Taxes 408.11' Property Taxes 409_11 - State Income Tax Tola1408 - Taxes 408.10 - Regulatory Fee 426 . Misc. Nonutillty Expenses 427,2 - Interest on Short-Term Debt 427.3 - Interest Expense 615.1' Electrical Power. Black Hawk 615_2' Andco Well- Electricity 620_21 ' Source M&S . Black Hawk Estates 620_61 . Black Hawk Dlstr M&S 620.62' Andco Distr M&S 620.811 . Telephone' Black Hawk Eslates 635,2 - Testing - Andco System Total Other Expense Net Other Income Net Income Jan. Dee 2000 Jan. Dee 2001 Jan. Dee 2002 87,270.87,487_104,171_ 198 794_210 877.57 227 542_ 673_590_283_ 24,179_951.43 322.1,460_ 313 917_329229_340,457_ 313,917_329 229_340,457_ 27,513_360.783_ 800_800_280_ 000_000_000_ 47,410_50,400_000_ 224_112_ 852_602_857_ 942_340_924_ 855.23 621_215_ 894_440_372_ 633_382_538.90 818_525_380_ 341_696_743_ 680_210_ 966_175_000_ 855_707_367_ 359_837-808.45 42,506_056_311_ 164.45 179.40 169.29 750.43 155_299_ 300_725_800_ 135_65_ 200_250_300_ 1,431.26 111_ 535_886.29 028.66 918_ 832.40 511.081_ 715_793_619_ 390_500_290. 762.825_860_ 335_720_860_ 318,091_312,913_342,242_ 174_316_764_ 425_734_125_ 3,425_734_25,125_ 15,494_20,345.22,030_ 793.48 854_647.40 30_30_30_ 823.48 884.677.40 809.905_848.42 18,513. 20. 022_ 927. 657_ 494_ 843_ 320_ 15_ 134_24,155_61,350.28 709_21,421_225. '19 883.105.-38009, Falls Water Rate Application -- Attachment #3 FALLS WATER COMPANY , INC. Calculation of Rate Base for rate case submitted July 24, 2003 Rate Base 2002 Utility Plant in Service Working Capital ( 1/8 of Operating Expenses) Subtotal Less: Accumulated Oepreciation Total Rate Base 592,484. 780. 635 264. 293 711. 341 552. Return on Rate Base Return ~12% (Total Rate Base x 12%)986.30 Falls Water Rate Application -- Attachment #4 Falls Water Company, Inc. Comparison of Income at Present Rate and Income at Proposed Rate for explanation of adjustments proposed by rate case. Jon - Dec 02 Adjustmenls Proposed Ordinary Income/Expense Income 400 - Ope..tlng Revenue 460 - Unmetered Revonue 104 171_19,812.123 984.See Note 1 461,1 - Metered Residential 227,542_104.008.331 550.See Note 1 461_2 - Commercial Revenuo 283.743_026_See Nole 1 474 - Other Utility Revenue 1,460_1,460. Total 400 - Ope..tlng Revenue 340,457.45 470021. Total Income 340,457.45 470,021. Expense 338997.45 601.5 - Labor Field 783_777_108,560_See Note 2 601.7 - Labor Meter Reading 280.347_627_See Note 3 601_8-LaborOffice 000_(26 700.00)300.See Note 4 601.9 - Admin - Labor 52,000_168.168_See Nole 3 603 - Salary Officers & Directors 13.704.13.704_See Note 5 604 - Employee Benefits 800_800.See Note 6 610' Purchased Water 112_112. 615 - Electrical Power 857_857_ 620_2 - Source M&S 924.25 145_069_See Note 7 620_6 - Distribution M&S 215.6S2-897_See Note 7 620_7 - Postage 372.46 627.12,000.See Nole 8 62o.a - Office 538_646.1S5_See Note 9 620.81 - Telephone Expense 380.380_ 820.82 - Bank service charges 743.48 (743.48)See Nole10 831_1 - Engineering 210_(21,000_00)14.704.See Nole 11 831_2 - Accounting 000_000_ 831_3-Atlomey 367_278.46 643.48 See Note 7 835 - Testing 808.526_335.See Note 7 838_2 - Source Cont..ct Repairs 311_811_122.49 See Nole 7 836_3 - T..sh 169_20_189_See Note 12 836_8 - Distribution Contract Repairs 299_769_068_See Note 7 836_7 - Data Processing 800_800_00)000.See Note 13 641 - Rental of Property 300.050_350.See Nole 14 642 - Rental of EQUipment 111_111_ 850 - T..nsoortatlon Expense 028_028_ 856 - Insu..nce Expense 918_980_898.See Note 12 660 - Advertising Expense 081.32 081. 870 - Bad Debt Expense 619_619_ 875_1 - T"lning Expenses 290_100.390_See Note 7 875_2 - Dues & Pubtlcatlons 860_40.900_See Note 9 675_4 - IDHW Fee Expense 860.01 180. Total Expense 681 239_398284.23 Net Ordinary Income 340,782.71,737_ Other Income/Expense Other Income 421 - Non-Utility Income 125_(17173.98)951.05 See Note 15 & 16 Total Other Income 125_ Other Expense 403 - Depreciation Expense 030_22,03080 408 - Taxes 408_11- Property Taxes 647_971.819.See Note 12 409_11 - State Income Tax 30.30. Total 408 - Taxes 677.40 ---:;:649T6 408_10 - Regulatory Fee 848.42 848_ 428 - Mlsc- Nonutlllty Expenses 513.(13 179.88)333.See Note 16 427_3 - Interest Expense 022.492-515_See Note 18 815.1 - Electricai Power - Black Hawk 927.(5,927 24)See Nole 15 815.2 - Andco Well- Electricity 657.(657.29)See Note 17 820,21 - Source M&S - Black Hawk Estates 494.(494.66)See Note 15 820,81 - Bleck Hawk Dlstr M&S 843.(843.55)See Nole15 820,82 - Andco Distr M&S See Nole 17 620,811 - Telephone - Black Hawk Estates 320_(320_12)See Note 15 835_2' Testing - Andco System 15_(15_00)See Note 17 Total Other Expense 61,350.377.15 Net Other Income 225.25 Net Income -377,007_ Notes: 1) Increase Is based on Proposed rate changes 2) Hinod 1 new employee 043.2003 pay raise for System Operalor 2524.49 Proposed salary for another maintenance woOle 28208_Total of proposed change $ 58777_ 3) 2003 pay ..ise 4) Realignment of office staff duties and costs 5) Salary for 2 officers (2 x $571.00 per month). Was part of Office labor cost 6) Health Insurance benefits for employees 4 employees at $225_00 each per month 7) Amount is based on 3 year a""rage of expenses In this category- 8) Mailings of monthly billings by 3m party lID about $900_00 per month ($10 800 annualty) and $1 200 for mise mailings (ie. Coltection notices, new customer Information, etc- 9) Based on 3 year trend In category- 10) Closed Bank accounl wllh service charge & opened new account 11) Estlmaled engineenng costs for 2003 12) Change based on actual fee increases lrom Vendor 13) Data Processing fee is changing to a leased buyoul of the biltings software and computers used in Folts Water Co offices. 14) Increase is based on $50.00 Increase In welt lot lease from Evans Grain Co. and $250.00 per month officespace rental 15) Faits Waler Co will cease operating & maintaining Black Hawk Estates Waler system on February " 2004. Category amount reflects the removal 01 associaied re""nues andlor expenses- 16) Remo""d one time re""nue & expense lIem from calegory 17) Fait Waler Co IS not operating or maintaining the Andco Waler System. Ait associated re""nues andlor expenses ha"" been removed lrom catagones. 18) Interest Expense Increase IS due 10 purchase of 2002 Chevy van. Falls Water Rate Application - Attachment #5 p..., 011 Calculation of Rate by Customer Class: Present Rates: Flat Rate Customers: Number of Customers X Present Rate of $13. X 12 Months Multi-family Residential:: Number of Customers X Present Rate of $13. X 12 Months Total Flat Rate Residential Revenues Metered Commercial: Number of Customers X Present Rate of $10. X 12 Months Annual Excess Usage in 1000's of Gallons Annual Excess (g1 $0.33 per 1000 gal. Total for Metered Commercial Metered Residential: Number of Customers X Present Rate of $10. X 12 Months Annual Excess Usage in 1000's of Gallons Annual Excess (g1 $0.33 per 1000 gal. Total for Metered Residential Total Revenue at Present Rates 574 $ 7 881. $ 94 572. 796. 556. $104 128. 300. 600. 517 6,440. $ 10 040. 352 $ 13 520. $ 162 240. 234,426 360. $ 239 600. $ 353 769. Falls Water Rate Application -- Attachment 6 (page 1 of 2) Calculation of Rate by Customer Class: Proposed Rates: Flat Rate Customers: Number of Customers X Present Rate of $18. X 12 Months Multi-family Residential:: Number of Customers X Present Rate of $14. X 12 Months Annual Excess Usage in 1000's of Gallons Annual Excess (Q2 $0.40 per 1000 gal. Total for Metered Commercial Metered Commercial: Number of Customers X Present Rate of $14. X 12 Months Annual Excess Usage in 1000's of Gallons Annual Excess (Q2 $0.40 per 1000 gal. Total for Metered Commercial Metered Residential: Number of Customers X Present Rate of $14. X 12 Months Annual Excess Usage in 1000's of Gallons Annual Excess (Q2 $0.40 per 1000 gal. Total for Metered Residential Total Revenue at Present Rates 58. Falls Water Rate Application -- Attachment 6 (page 2 of 2) 591 435. 517 352 $ 19 604. 234,426 574 332. 696. 836.40 220. 806. $ 235 248. $ 93 770.40 $ 123 984. 532.40 $ 13 026. $ 329 018.40 $468,561. Original Sheet No. FALLS WATER COMPANY, INC. SCHEDULE NO. R- RESIDENTIAL FLAT RATE SERVICE RATE:$13 $18.00 PER MONTH AVAILABLE TO ALL RESIDENTIAL CUSTOMERS LOCATED IN THE SW1/4 OF SECTION 14 , T. 2 N., R. 38 E.M" BONNEVILLE COUNTY IDAHO (MOBILE HOME ESTATES SUBDIVISION, MONTE VISTA ESTATES, AND FIRST STREET MOBILE PARK). Issued Effective Issued by FALLS WATER COMPANY, INC.By Title MANAGER K, Scott Bruce ariffNo. 1 u.e!. No. Canceling u.e!. No. Name ot Utility Original Sheet No. FALLS WATER COMPANY, INC. SCHEDULE NO. R- RESIDENTIAL METERED SERVICE RATE:$10 $14.50 PER MONTH MINIMUM 32984 $0.40 PER THOUSAND GALLONS ADDITIONAL FOR ALL WATER USED IN EXCESS OF 000 000 GALLONS PER MONTH AVAILABLE TO ALL RESIDENTIAL CUSTOMERS EXCEPT THOSE QUALIFYING FOR RATE SCHEDULE R- Issued July 15, 2003 Effective October 15, 2003 Issued by FALLS WATER COMPANY, INC.By Title MANAGER K. Scott Bruce Tariff No. 1 u.c.!. No. Canceling c.!. No. ~ame ot lJ'tility Original Sheet No. FALLS WATER COMPANY, INC. SCHEDULE NO. R- RESIDENTIAL MULTI-FAMILY RATE:$13 73 PER COMPLETED D\"!ELLING UNIT PER MONTH '."!HETHER VACANT OR OCCUPIED $14.50 PER MONTH MINIMUM $0.40 PER THOUSAND GALLONS ADDITIONAL FOR ALL WATER USED IN EXCESS OF 17,000 GALLONS PER MONTH J\V!\ILABLE TO RESIDENTI!\L APARTMENT BUILDINGS /\ND MOBILE HOME PARKS '"11TH FOUR OR MORE UNITS AVAILABLE TO RESIDENTIAL DUPLEXES, FOUR-PLEXES, AND APARTMENT BUILDINGS WHERE INDIVIDUAL UNITS IN A BUILDING ARE NOT METERED SEPERATEL Y OR LIVING UNITS CANNOT BE SOLD SEPERATEL Y. Issued July 15, 2003 Effective October 15, 2003 Issued by FALLS WATER COMPANY, INC.By Title MANAGER K. Scott Bruce :rariffNo. 1 c.!. No. Canceling !. No. "lame or Utility Original Sheet No. FALLS WATER COMPANY, INC. SCHEDULE NO. C- METERED COMMERCIAL SERVICE READ YEAR-ROUND RATE:$10 $14.50 PER MONTH MINIMUM 32984 $0.40 PER THOUSAND GALLONS ADDITIONAL FOR ALL WATER USED IN EXCESS OF 000 000 GALLONS PER MONTH AVAILABLE TO ALL NON-RESIDENTIAL CUSTOMERS. Issued July 15, 2003 Effective October 15, 2003 Issued by FALLS WATER COMPANY, INC.By Title MANAGER K. Scott Bruce