20090902notice_of_application_order_no_30893.pdf

Office of the Secretary
Service Date
September 2, 2009
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF FALLS WATER COMPANY FOR
AUTHORITY TO INCREASE ITS RATES
AND CHARGES.
NOTICE OF APPLICATION
CASE NO. FLS-09-
NOTICE OF
INTERVENTION DEADLINE
ORDER NO. 30893
On August 4, 2009, Falls Water Company filed an Application for authority to
increase its total revenue requirement by $143 496., or 14.39%. The Company requests that
the Application be processed by Modified Procedure and that the tariff changes become effective
September 10, 2009.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that Falls Water provides water service to more
than 3 600 residential and commercial customers in an area generally north of the City of
Ammon and northeast of the City of Idaho Falls in Bonneville County. Application at 2. The
Company last increased its basic rates and charges in January 2008. Order No. 30484. Since
that time, the Company has put a new well into service (Well #9), began installing meters and
MXU transmitters in an effort to upgrade its system, moved offices and acquired new office
furniture, and replaced a hydrant on the water system. ld at 2. As a result, the Company
requests an increase in its total revenue requirement of$143 496.81.
YOU ARE FURTHER NOTIFIED that Falls Water proposes to increase the base
rate for all metered schedules from $14.00 to $18., an increase of 29%. However, the
Company proposes to decrease the commodity rate from $0.667 per 1 000 gallons to $0.601 per
000 gallons, a decrease of 10%. The Company maintains that these changes will cause the
average residential metered customer to experience an increase of approximately 14.88%; the
average multi-family residential customer to experience an increase of 8.51 %; and the average
commercial customer to experience an increase of 4.22%. The Company has placed more
emphasis on the basic charge to alleviate winter cash flow issues. ld at 5. Furthermore, because
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30893
all of its customers are metered, the Company proposes to cancel the Residential Flat Rate
Schedule 2. ld The Company requests a return on its common equity of 12%. ld at 4.
YOU ARE FURTHER NOTIFIED that the Company proposes a new non-recurring
charge of $10.00 for testing meters. The Company explains that many customers question their
bills at the beginning of the summer irrigation period, but their meters rarely test inaccurately. A
charge for testing meters would place the burden on the customers responsible for causing the
cost to be incurred and remove it from the general body of ratepayers. I The Company also
requests a new charge of $20.00 for returned checks and a late payment charge of 1 % per month.
YOU ARE FURTHER NOTIFIED that the Company proposes use of a 2008 test
year. The Company requests that its Application be processed by Modified Procedure with tariff
changes to become effective September 10 2009.
YOU ARE FURTHER NOTIFIED that the Application and supporting workpapers
testimonies and exhibits have been filed with the Commission and are available for public
inspection during regular business hours at the Commission offices. The Application and
testimonies are also available on the Commission s web site at www.puc.idaho.gov by clicking
on "File Room" and then "Water Cases.
YOU ARE FURTHER NOTIFIED that Falls Water s intrastate revenue requirement
and every component of it, both rate base and expense, are at issue. The Commission may grant
deny, or modify the revenue requirement requested and may find a revenue requirement different
from that proposed by any party is just, fair and reasonable.
YOU ARE FURTHER NOTIFIED that the rates and charges for all Falls Water retail
customers, both recurring and non-recurring, including those of any special contract customers
are at issue, and every component of every existing and proposed rate and charge is at issue. The
Commission may approve, reject or modify the rates and charges proposed and may find that
rates and charges different from those proposed by any party are just, fair and reasonable.
YOU ARE FURTHER NOTIFIED that the Commission may approve, reject or
modify existing or proposed relationships between and among rates and charges within, between
1 If the customer s meter tested outside the manufacturer s specification of plus or minus 1.5% of the factorycalibrated test meter the Company would replace the meter and waive the $10 fee.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30893
or among customer classes or rate groupings. The Commission may approve, reject or modify
existing or proposed relationships among and between customer classes or rate groupings.
YOU ARE FURTHER NOTIFIED that the Commission may abolish, reduce or
create rate blocks or categories of rates and charges; abolish, create or reduce components of
rates and charges; abolish, reduce or create customer classes or rate groupings; and abolish
reduce or create absolute or relative differences among and between existing customer classes or
rate groupings of customers.
YOU ARE FURTHER NOTIFIED that the tariffs, practices, rules, serVIces
instrumentalities , equipment, facilities, classifications and customer relations procedures of Falls
Water are at issue, and the Commission may address any of them in its final Order.
DEADLINE FOR INTERVENTION
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this matter
for the purpose of presenting evidence or cross-examining witnesses at hearing must file a
Petition to Intervene with the Commission pursuant to the Commission s Rules of Procedure 72
and 73 , IDAPA 31.01.01.072 and .073. Persons intending to participate at hearing must file a
Petition to Intervene no later than 14 days from the service date of this Order. Persons
seeking intervenor status shall also provide the Commission Secretary with an electronic mail
address to facilitate further communications in this matter.
YOU ARE FURTHER NOTIFIED that persons desiring to present their VIews
without parties ' rights of participation and cross-examination are not required to intervene and
may present their comments without prior notification to the Commission or to other parties.
YOU ARE FURTHER NOTIFIED that once the deadline for intervention has
passed, the Commission Secretary shall issue a Notice of Parties. After the Notice of Parties is
issued, the Commission anticipates that the parties will informally convene to devise a
recommended schedule to process this case. In addition to the schedule, the parties may discuss
discovery logistics, electronic service, and other scheduling matters. The Notice of Parties shall
assign exhibit numbers to each party in this proceeding.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission s jurisdiction under Title 61 of the Idaho Code and specifically
Idaho Code ~~ 61-124, 61-125, 61-129, 61-622 and 61-623. The Commission may enter any
final Order consistent with its authority under Title 61.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30893
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission s Rules of Procedure, IDAPA 31.01.01.000 et seq.
SUSPENSION OF PROPOSED EFFECTIVE DATE
Due to the limited time between when the Company filed its Application and when it
requests that the rate become effective, the Commission finds that it cannot complete the
processing of Falls Water Company s Application before the proposed effective date of
September 10, 2009. Pursuant to Idaho Code ~~ 61-622 and 61-623, the Commission hereby
suspends the proposed changes for a period of 30 days plus 5 months from September 10, 2009
or until such earlier time as the Commission enters an Order accepting, rejecting or modifying
the request in this matter.
ORDER
IT IS HEREBY ORDERED that persons desiring to intervene in this case for the
purpose of presenting evidence or cross-examination at hearing shall file a Petition to Intervene
with the Commission no later than 14 days from the service date of this Order.
IT IS FURTHER ORDERED that Falls Water Company s proposed changes are
suspended for a period of thirty (30) days plus five (5) months from September 10, 2009, or until
such time as the Commission enters an Order accepting, rejecting or modifying the request in
this matter.
IT IS FURTHER ORDERED that after the Notice of Parties is issued, the Staff shall
informally convene a prehearing conference with the parties to discuss the processing of this
case.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30893
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this ~1Id.
day of September 2009.
D. KEMPTO , P IDENT
LJ~
ARSHA H. SMITH, COMMISSIONER
---'--.. .
MACK A. REDFORD, CO
ATTEST:
O:FLS-O9-01 ks
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 30893