20060301Comments.pdf

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Gene Fadness
IDAHO P LIC UTILITIES O1ltfiAT hN((: r-
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PO Box 83720
Boise, In 83720-0074
Via facsimile. [phone]
Re:Case No. FLS-05-
Mr. Fadness:
I write this letter because I am concerned, as I know many Falls Waters customers are, about the
proposed rate increase (Commission Case Number FLS-O5-01). As a flat-rate residential
customer of Falls Water, my family is facing a nearly 65% increase (based on averages provided
by Falls Water) in annual rates- This is an astounding percentage, and yet even more astounding
to me is that it is not even the highest. I was shocked to read that multi-family residential
customers and commercial customers face even higher percentage increases. Additionally, rates
for exceeding the monthly allotment will more than double, to $0_85 per 1 000 gallons used.
Combining these increases with the proposed cuts in gallons of water allowed per customer adds
up to quite a drastic change. For seven months out ofthe year, my family will suddenly be
allowed less than half of what we were previously allowed (8 000 gallons instead of20 000),
while still paying more for those 8 000 than we currently pay for 20 000,
My understanding ITom the most recent press release posted on the Commission s web site
(dated 12/28/2005) is that the company has proposed these changes to increase revenues
necessary to pay for replacement of aged infrastructure and the creation of three new employee
positions necessary to cover the increased customer needs due to new customer growth. These
changes that they speak of, I do not believe came suddenly upon Falls Water, and to impose
sudden rate increases of this proportion to cover this seems to speak to a lack offoresight and
planning on the part of Falls Water.
The audit will likely prove that increased revenues are needed to meet Falls Waters increasing
costs, but I would submit that the increases should have been (and maybe they still can be)
gradual ones. Perhaps a smaller percentage each year over the course of three or four years
would be more appropriate. Additionally, a gradual separation of summer/winter rate schedules
and accordingly a gradual adjustment of water aUowance within those seasons would allow
customers time to either adjust their lifestyles to work within new limits, or adjust their budgets
to fit in the new rates.
I would also submit that the allowed water per season as outljned in the proposed schedule seems
backwards. Those residential customers with whom I have spoken have agreed - we need more
water available in the summer, and we use less in the winter. If part ofthe goal of Falls Water
were to encourage conservation in the summer, I believe there are better ways of approaching
this. Perhaps offering various plans or alternate levels of usage at different prices, giving
discounts to those who are more conservative with their water, or rebates for customers who
purchase water-saving appliances/equipment- Examples of encouraging customers to conserve
can easily be found in the strategies of energy companies throughout the country, and these
(Continued next page)
Mar 01 06 12: OSp 7144347350
Re: FLS-05-, page 2
methods generally go a long way in gently persuading citizens to conserve. I believe creative
methods such as these would apply well in the water industry.
I have mentioned briefly in this letter the discussions I have had with other Falls Waters
customers. Attached you will find names and addresses for these customers with whom I have
talked, who share my concerns as outlined in this letter.
Thank you for your time and consideration in reviewing these concerns. I have reviewed
information throughout the Commission s web site, and appreciate the Commission s efforts in
taking the concerns ofIdaho citizens seriously, and in consistently applying fairness in it'
decisions. I am confident that a reasonable solution can and will be reached in this matter.
Should you have any questions or need any further information from me, please don t hesitate to
contact me at any time.
Sincerely,
V~e~ "ner
Address: 357 Kimberly Dr, Idaho Falls, In 83401
Phone: [phone]
Email:
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