20120130Application.pdf

FALLS WATER
im.:,N\r?Æ"~WE",*_mm_"i.m . ........ "'__",m~~ COMPANY_,~,_,,,';,;,.w~W,~_~"!íWßtr, ' , ,,';;, :w)-;Wø~ _ _ _
2180 N. Deborah Dr., Idaho Falls, Idaho 83401
Website: ww.fallswater.com
TeL.: [phone]
Fax: (208) 522~4099 ~..""
Co)::zc.o
-0::
;0m("m
Januar 30, 2012
Idao Public Utilities Commission
ATTN: Commission Secreta
472West Washington Street
Boise, Idaho 83702-5983
a-..N0"
Subject: Application to Increase Rates and Charges
Dear Commission Secreta:
Enclosed are an original and seven copies of an application together with supporting exhibits requesting an increase
in rates and charges of Falls Water Co., Inc. An extr copy is also enclosed. Please date stamp and retu this extr
copy to the company for our records.
The Company wil inform its customers ofthis application though a notice to be mailed on Januar 31, 2012. The
Company wil send a news release to the Post Register Newspaper in Idao Falls on Januar 31, 2012. Copies of the
notices are enclosed as Exhibits 6 & 7.
Also enclosed is a computer disc containing the application and work papers in electronic media to aid the
Commission Staff in its review of this application.
Sincerely,K~~
K. Scott Bruce
General Manager
.l ...
RECEIV
Z012 JAN 30' PH I: 26
K. Scott Bruce
Falls Water Company, Inc.
2180 North Deborah Drive
Idaho Falls, ID 83401
TeL. [phone]
Fax [phone]
E-mail: scott1~fallswater.com
Representative for Falls Water Company, Inc.
U:1 jÔIJ,,"l;O
UTILITIES
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF )
FALLS WATER COMPANY )
FOR AN ORDER AUTHdRIZING INCREASES IN)
THE COMPANY'S RATES AND CHARGES FOR)
WATER SERVICE IN THE STATE OF IDAHO )
CASE NO. FLS-W-12-1
APPLICATION
COMES NOW Falls Water Company Inc., ("Falls Water", "Applicant" or
"Company") and hereby makes application to the Idaho Public Utilties Commission,
("Commission") for an Order approving revisions to Applicant's schedules of rates and
charges for water service in the State of Idaho to become effective with service provided
on and after February 29, 2012. Applicant is requesting the Commission's authorization
to: 1) Change the water rates it charges its customers to produce an increase in the
Company's revenues by approximately 26.52%. The Company is proposing to increase
its metered rates and reduce the included maximum gallons allowed, as ordered in
Commission Order No. 31022 (Case No. FLS- W -09-1), as follows:
Meter Size Curent Rate Proposed Rate % Change
%" or smaller $16.10 for up to 12,000 $19.18 for up to 5,000 19.1%
gallons gallons Increase
1 "$22.54 for up to 17,000 $26.85 for up to 7,000 19.1%
gallons gallons Increase
1 lh"$28.98 for up to 22,000 $34.52 for up to 9,000 19.1%
gallons gallons Increase
2"$37.03 for up to 28,000 $44.11 for up to 12,000 19.1%
gallons gallons Increase
4"$66.01 for up to 49,000 $78.64 for up to 20,000 19.1%
gallons gallons Increase
Commodity Rate per $0.611 $0.67 9.7%
1,000 gallons Increase
1
....
2) The Company proposes it be allowed to read meters year round on all of its metered
rate schedules. The Company last increased its basic rates and charges pursuat to
Commission Order No. 31022 (Case No. FLS-W-09-1) dated March 10,2010;
Applicant is requesting this Application be processed under the Commissions
Rules of Modified Procedure. Applicant fuer requests an Order of the Commission
authorizing the new rates be effective for all water delivered after the first meter reading
on or about Februar 29,2012.
GENERAL
Applicant is a public utilty water corporation within the meaning of the Idaho
Public Utilty Law, is duly organzed and existing under the laws of the State of Idaho
and is engaged in conducting a general water utility business in an area generally north of
the City of Amon and norteast of the City of Idaho Falls in Bonnevile County, Idaho,
having its principal offce and place of business at 2180 North Deborah Drive, Idaho
Falls, Idaho. A copy of Applicant's Aricles of Incorporation together with all
amendments to date is on fie with the Commission. Applicant's current Certificate of
Convenience and Necessity is Certificate No. 236. Curently the Company provides
water service to over 3,900 residential and commercial customers.
GENERAL RATE INCREASE REQUEST
Enclosed, with this Application, are Exhibits Number 1 through 9 in support of
the increase in water revenue requested. Applicant is proposing the year 2011 as the test
year in this case adjusted to normalize and proform the test year for known and
measurable changes that have or will occur in the near futue.
RATE BASE
Exhbit NO.1 presents the Company's calculation of rate base. Colum (A) of
this exhibit presents the balances of accounts on the books of the Company at December
31, 2011. Colum (B) is the adjustment to the year-end account balances to include
assets put into service durng 2012. Colum (C) presents Applicant's proforma rate base
of $2,545,287.78.
Colum (B) is an adjustment to recognize the costs incured by the Company to
replace manually read meters with new touch read meters and install radio transmitter
units (MXU' s) on all meters not already so equipped. The meter and MXU installations
were completed Januar 13, 2012. The total adjustment to the rate base for the
installation of meters and MXU's is $839,878.35.
Line 20 is an allowance for working capital equal to 1/8th of operating expenses
shown on Exhibit NO.2. Tota Rate Base for ths case of $2,545,287.78 is shown on line
21.
2
RESULTS OF OPERATIONS
Exhibit NO.2 presents the Company's Results of Operations adjusted for known
and measurable changes. Colum (A) of the exhbit presents the actu recorded results
on the Company's books for the year 2011. These actual results are adjusted in Colums
(B) though (G) to develop the adjusted results shown in Colum (H) that is used to
determine the Company's revenue requirement on Exhibit NO.4.
The adjustment shown in Colum (B) of Exhibit No. 2 adjusts the Company's
revenues and expenses to recognize the elimination of an $158.33 loss on the sale of a
1986 Ford F-350, the removal of non-recuring employee benefit expense of $4,191.00
from operational expenses, the cost of mailing customer notices regarding this rate case
amortized over a two year period for $1,054.19 each year, the removal of $3,619.41 for
nomecurring Non-Utilty Income, and the removal of $19,879.53 for nomecuring Non-
Utility Expenses. This adjustment increases the Company's test year income by
$19,555.26 shown on line 64.
Colum (C) of this exhibit adjusts the Company's labor costs for wage and salar
levels which took effect on December 21, 2011. This adjustment decreases the
Company's test year income by $39,065.90 shown on line 64 Colum (C).
Colum (D) of Exhibit NO.2 recognzes the increased rental cost of tie office
and warehouse space, $4,255.30. The Company now rents all 8,000 squae feJ~f offce
and warehouse space in the building, whereas it had rented only 4,000 square feet of the
building. Ban service charges increase $3,737.75 due to adding an online bil pay
option as requested by our customers. Office utilties expense increases $2,234.98 due to
the new rental offce agreement. Trash expense increases $1,041.55 for trash service at
the main office. Data processing increases $1,317.00 due to increased costs for software
maintenance agreements. These adjustments decrease the Company's test year income
by $12,586.57 as shown on line 64 Colum (D).
Colum (E) of Exhibit NO.2 adjusts the Company's source of supply costs to
recognize increases in electric power costs, chemical costs and increases in water sample
test costs. Ths adjustment recognizes the effect on electric power and chemical costs for
the year-end 2011 level of customers served based upon historical average costs per
customer. Water sample testing costs are averaged over the nine year test cycle plan
outlined by the Deparment of Environmental Quality. The increases are based upon
curent costs. This adjustment decreases the Company's income by $36,239.53 as shown
in Colum (E) line 64.
Exhibit NO.2 Column (F) adjusts the Company's Non-Utility Income to anualize
rental income from Company property currently under a lease agreement. This
adjustment increases the Company's income by $426.00 as shown in Colum (E) line 64.
The adjustment shown in Colum (G) of Exhibit No. 2 is due to the additional
depreciation expense resulting from the meter and MXU upgrade completed in Januar
3
2012. This adjustment decreases the Company's income by $84,210.10 as shown on line
64 of Colum (G).
Colum (H) of Exhibit No. 2 presents the Company's proforma results of
operations for use in this case. The proforma results reflect a loss of $35,935.09 as
shown in Colum (H) line 64.
COST OF CAPITAL
Exhibit NO.3 presents the Company's capita structue and calculation of the
weighted cost of capital as of December 31, 2011. The overall weighted cost of capital
for Falls Water Company is 7.75%.
REVENUE REQUIREMENT
Exhbit NO.4 presents the calculation of the revenue requirement for Falls Water
Company. Lines 1 through 5 of this exhibit develop the net operating deficiency of
$233,076.64 shown on line 5 utilizing the rate base, rate of retur and operating results
from Exhibits No.1, 2 and 3. Lines 6 through 9 of Colums (B) and (C) calculate the
revenue increase necessar to overcome the income deficiency. The revenue gross-up
calculation is performed in two steps. Colum (B) calculates the incremental revenue
requirement of $36,811.59 necessar to overcome the Company's operating loss. These
incremental revenues wil not result in any income tax obligation since the revenue would
simply bring the Company to a break even point where revenue equal expenses. The
only costs associated with these revenues would be increased exposure to bad debts,
increased regulatory fees and increased ban charges for credit card payments. Colum
(C) calculates the incremental revenue requirement of $258,248.16 necessary to produce
the net operating income requirement of $197,141.55. These incremental revenues will
be subject to income taxes in addition to the bad debt exposure, regulatory fees and ban
service charges. The total revenue increase requirement of $295,059.75 is shown on line
10. This represents an increase in the Company's revenues of 26.52%.
RATE DESIGN
Exhbit 5 presents the Applicants proposal to develop new rates. The proposed
rates are shown in the table below:
Meter Size Curent Rate Proposed Rate
%" or smaller $16.10 for up to 12,000 gallons $19.18 for up to 5,000 gallons
1 "$22.54 for up to 17,000 gallons $26.85 for up to 7,000 gallons
1 lh"$28.98 for up to 22,000 gallons $34.52 for up to 9,000 gallons
2"$37.03 for up to 28,000 gallons $44.11 for up to 12,000 gallons
4"$66.01 for up to 49,000 gallons $78.64 for up to 20,000 gallons
Commodity Rate $0.611 $0.67
per 1,000 gallons
The average %" metered customer's bil wil increase 26.8%. The average 1" metered
customer's bil will increase 24.3%. The average 1 W' metered customer's bil will
4
increase 26.1%. The average 2" metered customer's bil will increase 27.8%. The
average 4" metered customer's bil will increase 28.1 %
As shown on lines 35 and 36 of this exhbit, the Company's proposal decreases the ratio
of base charges from 66% to 65% and increases the ratio of commodity charges from
34% to 35%.
The proposed rate design will produce $1,407,749.70 in revenues. The revenue
generated is within $78.59 of the revenue requirement of $1,407,671.11. As shown on
Exhibit 5, lines 1 though 14, the average customer wil experience an increase in their
average bil of approximately 26.8%.
YEAR ROUND METER READING
The Company curently reads residential customers monthly staring in April and
taes the last monthly reading in October. All multi-family and commercial customers
are read monthy year round.
The Company proposes that it be allowed to read meters on all customers year
round. In the past, residential customers were not read during the winter months because
access to meters was difficult due to snow. The Company has completed a system wide
meter upgrade that installed radio read units on all meters. The Company now has the
means to read the meters durng the winter. The benefits to the customer of winter reads
are 1) they wil be made aware of plumbing leaks sooner, 2) with the reduction of water
allowed in the minimum rate, excess usage is a real possibilty and the customer would be
financially more capable of paying for the overages as they are incured rather than being
biled in April for water excess usages that have been accruing since the prior October
reading.
Curently the customers, whose plumbing develops a leak durng the winter often
will not know of the leak until they receive their April biling and see that 200,000 or
more gallons have passed through the meter during the prior six months. Catching these
leaks early would assist in conserving water.
The reading of the meters curently is done by the ful-time servicemen during the
sumer months. No additional labor costs would be incured to read the meters during
the winter.
CUSTOMER NOTIFICATION & PRESS RELEASE
Exhibit 6 is a copy of the notice mailed to the Company's customers informing
them of the rate case.
Exhibit 7 is a copy of the press release e-mailed to the Post Register newspaper in
Idaho Falls, Idaho on Janua 31, 2012.
5
TARFFS
Exhibit No.8, a thee (3) page exhibit, is a marked-up copy of the Company's
curent rate schedules showing the proposed changes in rates for Schedule NO.1 and the
new Schedule NO.3 for Private Fire Sprinker and Service. Exhibit No.9, a three (3)
page exhibit is composed of the Company's new proposed rate schedules,
CONTACT INFORMTION
Questions regarding this application should be addressed to:
K Scott Bruce, General Manager
Falls Water Co.
2180 N Deborah Dr.
Idaho Falls, Idaho 83401
Ph: [phone]
e-mail scott1~fallswater.com
Please provide copies of all correspondence, notices and orders to the above individuaL.
Respectfully submitted,K~~
K. Scott Bruce
General Manager
6
T'
Q)
:: UlC lt
lt CD
a. Q)E ..o ltü 0:-ff 015 §s:¡.!.! ::
ro Ui. roü
I-
ã5Ix:W
('0 CO -.T'-.CO N LO (' CO CO -.LO 0)0)o CO CO('I.CO 0 ""T'0 CC r-CO 0) CO r-N -.LO 0) CO r-..T'c:C"T'.. cO T'cO cO N r-T'r--.ir cO cO r-
1§
N CO ('0)0) LO ('('-.T' 0 LO r-CO 0 CO T' CO COÛCO r-0)CO 0) LO T'T'CO LO -. CO CO -.N.LO CO CO N
~et 00 T'cD cr 00 cD ir cr ci 00 cD cD cr r-00 00 cD ir-T' co 0 T'T' -.ON LO CO (' N 0 CO T'CO NT'-.N -.-.-.0) CO T'CO LO 0 LO -. T'LO
N-T'cD T'ir Ñ N-Ñ
fß fß fß fß fß fß fß fß fß fß fß fßfß fß
.~"O LO LOe,m N ('('
a. Q) T'cO cOíIL.a.O r-r--,m EN CO COQ) C cr cr
~ 8'-('('
CO CO
('o CO -.T'-.CO r-LO (' CO CO 0)LO 0 T'
T'('LO CO 0 ""T'ONr-COO)CO ('N r-T'
"0 T'.... c: C"T'..cO C" cO cO N r-C"r-.. a)C 0 NCO('O)0)LO (' LO -. T' 0 LO 0)CO CO 0)
~W ~CO r- 0) CO 0)LO T'NCOLO-.CO r--.-._ co_
L!T'etoo""cD cr 00 cD ir cr ci 00 cD cD cr N ('lt ('T' CO 0 T'T'-.OCO LOCO (' N CO CO 0) 0Q)--N -.-.-.0) 0)T'r-LO -. 0)~N N-ir et-T'T'
jgC
Q)E~ ffa. Ul EUl E.~ .~ .. ~1:;; 0 .. i:CI-0) Ul cwQ)iïg¡ g¡ Q)cE
"0 L. ;iu Ul E 0 .9-c .a c a.:¡ ::lt U ~ ~ '(6 ':; -ê if.. 2 .9ol.9~ jg i:oolû5 ,ft e: ~e: L. ~ cW a.ol"O-~ Q) E lt Q) Q) e: ~ ê.!
~ æ~~ æ:: ß-~Q)-glE e: g.~ .. ;: ;: ø a. en ;: ~ :r 0 I- I-
Q)en('-.r-OT'OT'-.LOOT'('.5 g g g ~ ~ ~ ~ ~ ~ ;s ;s ;s..Clt
e:
T'N('-.LOCO r-COO)OT'N('T' T'~T'
~.~
Q)en
.5..Clt
e:
co:¡lt
'(3 Q)
~ U
ß- .~O~
"0 C
~~:: .!E a.
Ö Q)
;i Z
UlUl
Q)..
-. LOT' T'
co
t5c 2o T' ii
t5T' C C:: ~ ~ 0.J __ lt üê ~.~ õO -- t:N 0"0Ü T' E .-_- oeo Ul oe C"0 § "0 .;¡oe :¡ ,m c
C ::.! 0
.;¡ =ê :: :gC .. E ..o C ::'c.- 0 u.."Süuc..UloeO'C Ul Ul ü'EOUl..L. Q) Q)8ø..Z
UlUl
Q)..
CO r- COT' T' T'
Q)UlC
Q)a.xW
~CltC
,mc
ëü~
"0Clt
Co:¡
e:
Q)a.~ 0.~
Q)en
.5
T'Õ
T'
Q)Cllta.
õ
CO--T'-
c :æ
.! 'g.
~ ü Q)
Q) Cl Ulz.5 Æ
~ Q)0..S~
0) 0 T'T'NN
NI-iiI
~
g
c
'i .2~1i1iJ!C) '" 'ü II_! Q) 0U "0C Q._ CDo
j
'0 C CD
CD &! :i~ii c!!~~~
~ &&!- 0..ii
IICo:;
u ~
.. Q..00_00
.. J!S-'" :i
3: :II ii= '"
~ Ë
~ii
.1'0 l!
II CDO_ ca ~ c~! S~~ (I g- '0eii
II J!
'i g 8
ô II j g'-12-.-g S!
-.!! CD
:¡ 8"
'0
~ll ~J!ü"'.iUl_! as 0u..O..
.. oi
.E .5- ..c: ~ en~CD U E
ai E CD CD-i;a¡.=.~c'0 0ciz
$
'0S J!!l s._0~ I-
.-.-C)..U
i!
c'".,
NMI'""Oit"" 0"" 0)occoccMCOl'"" ON.. r- '" i..,O~Ñ~MM"" M0.
NMI'""Oit"" 0"" 0)occoccMCOI'""ON'V r- .. 10 .,Ô~Ñ~MM"" Mq
coo coMO "l~ ci .,
Cõ CõÑ Ñ.. .... ..
~~ ~~~ ~ ~ ~~ ~ ~ ~~~ ~ ~ ~~~ ~ ~ ~ ~~~ ~ ~~ ~ ~ ~ ~ ~~ ~~ ~ g ~ 8 ~ ~ ~ m~ ~ ~ ~ ~ g ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ N ~ ~ ~ ~~~~ ~~ ~q~ ~~~~qqM ~N ~m ~M ~q~ ~~~~~ Õ qlO ~~ ~..m..MMo..m~O~OM.. N ~ N m~M.,..~m -0 .,~MØNr-t- 10 NNN""'' IOMM__ --., __M.,., ., m
°°o
°°o
°it ° 0)M°0 "' I'M ItOMiòCD..0 N M° it I'N"'Ñ Ñ erMM
°It Cl It 00 I'°0 I' 0)It OM Itr.~..r. iò cOM M "'.. It ClI'N 0.MN ItM'Ñ ,.~Ñ..
°NO CO T"0)°°0 0) 0) Cl M r-ClMMaiCÔNccIt ° 0) CO N "'0) CO Cl It "'N.ÑcxCÔ"'c:N..
'õ
S Q)M M 0)~OlMMq..'"
cc cc C;~cO C-It It It M......q ..~!i
CO M MMM °""CÖ M..it ItCO.. "'Ñ i Ñ.. .... ..
t:g8~~.-=NOC'NSl&:~tõ~Ô "'côct.. .. ItCl
~~ ~ ~~~ ~ ~~~ ~ ~ ~ ~g 8 8 8 ~ ~ ~ ~ 8 ~re ~ 8~ ~~ ~ ci ~ ci ~ cö ci -= M N N ~ ~ ci ~ ~ cö ~ -= ~ N ~ ~ ~ ~ M -= M~ M 0 10 0 m.. 10 m m m m.... M co 10 N m ~., M V m..., m ~ co., 0__ 0 MM 10 m v M 10 m N.. M.. N.. m OM m.. ~.. CO m M m~,.r-CÔMoi"¡oicxOctòai-. Ñ M - ai..ai-=..crcô~N~"" ~ NNN-- VMM--
CD:ic:
~ :i
CD ii ¡¡J!êûiã)~_ CD :i ii c CD :0¡¡ã)~CD~ê'C:Eii=ifCD~&gjli-E_iiCDOC&!.~~¡¡~iiiì~'O~CDE'~g'c!! CDl!Eii~CD:;Oë iiS EE:(I l!'Ø& g'CDO:iCDU&l!
l( :;:¡ O:¡ 1i.!! O..w l!.....:¡.-1 &::~~~.;g'i8 ?~~~t:t::!e:.. ~g ~:iì: 0"1 1-"1'" UC C~-o
co
=t l!.! ft !CD l! Õ i. -Ulii .- 0ii CD ãCD &C ! ~~ !:; ã IIii..~ CD CDl! -CD "'CD:; IiCCDC"'l( ii c_ CQ.CDIIIi'" CDOIi
æ.... = &~w : ~ ~ãg'~~~!~¡¡~ll!¡¡¡~CDSCD :¡ ~CD: U l! mOøCDQ.cCDE~o¡¡CD~~CD~C~~ (lc CD~~oi i ~ 'OcliQ.~oQ.owEQ.~~w~~~~~p ~~ C ~:;~ g'CD 0 ~~ ~ e ~:;~o æci~w ~CD_ - '0 - II G - 0 CD ~ .. :; (I 0 .. - 0 ii w ~ m C CD oiii CDu.o' a: CD 'i 'i CD:: & ,cQ.1i CD a: c= CD :i,! "-0-0 'Co :i "'iii ii~ colU.....C~lIuuu~mCD ~uc:ioæu,co_ii CCD-"'CD- ~~~~£~~~ ~~~~.! ~E~8"~ ~ 1iJ!~Sjj ~l!~~OO.. =~
CD '" ",'0 Q.~~ CD o~ o=~mo c U ~ûi 0 l!:i~ '" c c ~:i~ ~S'O l!:i~ II
E ....ci E :i.!,c (10 ii 0 . . . wciii CD(II-OOC CD CD l! II~'O '" ",1-0_ co . wiiwo. . .-"'e?' 1-..... iiiiI-... ciiim. . . &U CDiøcocn. . . . ..cøtococococo.-.."I. "'e?"Icøto. . . ..-. . . .-.."1 l(
..!~ ~~~~ ~ ~ ~~ ~ ~ ~~~~~ ~~~~ ~ ~~; ~ ~ ~~¡ ~ ~ ~ ~~ wj & cø cø cø cø cø cø cø cø cø cø cø cø cø cø cø cø cø cø cø cø cø cø cø cø cø cø cø cø cø cø cø cø cø cø jo l( 1-0I- W
~NM~~ ~~ rom~~~~~~~~~~~N~~~~æ~~~~~~~~~~~~~~~~~;
45

N
e
t

O
r
d
i
n
a
r
y

I
n
c
o
m
e
46

O
t
h
e
r

I
n
c
o
m
e
/
E
x
p
e
n
s
e
47

O
t
h
e
r

I
n
c
o
m
e
48

4
1
9
.

I
n
t
e
r
e
s
t

E
a
r
n
e
d
49

4
2
1

.

N
o
n
-
U
t
i
l
i
t
y

I
n
c
o
m
e
50

T
o
t
a
l

O
t
h
e
r

I
n
c
o
m
e
51

O
t
h
e
r

E
x
p
e
n
s
e
52

4
0
3

.

D
e
p
r
e
c
i
a
t
i
o
n

E
x
p
e
n
s
e
53

4
0
8

.

T
a
x
e
s
54

4
0
8
.
1
1

.

P
r
o
p
e
r
t

T
a
x
e
s
55

4
0
8
.
1
2

.

P
a
y
r
o
l
l

T
a
x
e
s
56

4
0
9
.
1
1

.

S
t
a
t
e

I
n
c
o
m
e

T
a
x
57

T
o
t
a
l

40
8

.

T
a
x
e
s
58

4
0
8
.
1
0

.

R
e
g
u
l
a
t
o
r
y

F
e
e
59

4
2
6

.

M
i
s
c
.

N
o
n
-
U
t
i
l
t
y

E
x
p
e
n
s
e
s
60

4
2
6
.
1

.

D
o
n
a
t
i
o
n
s

-

T
a
x

D
e
d
u
c
t
i
b
l
e
61

4
2
7
.
3
'

I
n
t
e
r
e
s
t

E
x
p
e
n
s
e
62

T
o
t
a
l

O
t
h
e
r

E
x
p
e
n
s
e
63

N
e
t

O
t
h
e
r

I
n
c
o
m
e
64

N
e
t

I
n
c
o
m
e
EX
H
I
B
I
T

2
Fa
l
l
s

W
a
t
e
r

C
o
.
,

I
n
c
Pr
o
f
o
r
m
a

R
e
s
u
l
t
s

o
f

O
p
e
r
a
t
i
o
n
s
(A
)
(B
)
(C
)
(D
)
(E
)
(F
)
(G
)
(H
)
Ad
j
u
s
t
m
e
n
t

f
o
r
In
c
r
e
a
s
e
d
In
c
r
e
a
s
e
d
In
c
r
e
a
s
e
d
In
c
r
e
a
s
e
d
In
c
r
e
a
s
e
d
No
n
-
R
e
c
u
r
r
i
n
g
La
b
o
r
Mi
s
c
e
l
l
a
n
e
o
u
s
So
u
r
c
e
Pr
o
p
e
r
t

R
e
n
t
a
l
De
p
r
e
c
i
a
t
i
o
n
Ad
j
u
s
t
e
d
Ja
n

-

D
e
c

2
0
1
1
It
e
m
s
Co
s
t
s
Op
e
r
a
t
i
n
g

C
o
s
t
s

P
r
o
d
u
c
t
i
o
n

C
o
s
t
s
Re
v
e
n
u
e
Co
s
t
s
To
t
a
l
s
25
6
,
0
4
0
.
0
7
3,
2
9
5
.
1
4
(3
1
,
2
4
8
.
8
0
)
(1
2
,
5
8
6
.
5
7
)
(3
6
,
2
3
9
.
5
3
)
17
9
,
2
6
0
.
3
0
38
.
6
9
8,
3
0
5
.
4
1
ã,
71
,
6
8
2
.
0
2
24
,
5
5
2
.
1
1
31
,
3
9
2
.
7
6
20
.
0
0
55
,
9
'
ã
0.
0
0
20
,
5
5
1
.
5
3
0.
0
0
0.
0
0
l4
8
:
i
9
ã
-1
3
9
,
8
5
4
.
3
2
11
6
,
1
8
5
.
7
5
(3
,
6
1
9
.
4
1
)
(3
,
6
1
9
.
4
1
)
42
6
.
0
0
42
84
,
2
1
0
.
1
0
7,
8
1
7
.
1
0
7,
8
1
7
.
1
0
(1
9
,
8
7
9
.
5
3
)
(1
9
,
8
7
9
.
5
3
)
16
,
2
6
0
.
1
2
19
,
5
5
5
.
2
6
7,
8
1
7
.
1
0

-

-

8
4
,
2
1
0
.
1
0
(7
,
8
1
7
.
1
0
)

-

4
2
6
.
0
0

(
8
4
,
2
1
0
.
1
0
)
(3
9
,
0
6
5
.
9
0
)

(
1
2
,
5
8
6
.
5
7
)

(
3
6
,
2
3
9
.
5
3
)

4
2
6
.
0
0

(
8
4
,
2
1
0
.
1
0
)
Pa
g
e

2
o
f
2
38
.
6
9
5,
1
1
2
.
0
0
'5
15
5
,
8
9
2
.
1
2
24
,
5
5
2
.
1
1
39
,
2
0
9
.
8
6
20
.
0
0
63
,
7
8
1
.
9
7
0.
0
0
67
2
.
0
0
0.
0
0
0.
0
0
22
0
,
3
4
6
.
0
9
-2
1
5
,
1
9
5
.
4
0
-3
5
,
9
3
5
.
9
EX
H
I
B
I
T

3
Fa
l
l
s

W
a
t
e
r

C
o
m
p
a
n
y
,

I
n
c
.
Ca
p
i
t
a
l

S
t
r
u
c
t
u
r
e

a
n
d

O
v
e
r
a
l
l

R
a
t
e

o
f

R
e
t
u
r
n
Co
s
t

o
f

C
a
p
i
t
a
l

a
s

o
f

D
e
c
e
m
b
e
r

3
1
,

2
0
1
1
(A
)
(B
)
(C
)
(D
)
Pe
r
c
e
n
t

o
f
To
t
a
l
Li
n
e

N
o
.
De
s
c
r
i
p
t
i
o
n
Am
o
u
n
t
Ca
p
i
t
a
l
Co
s
t
Co
m
p
o
n
e
n
t
1
L
o
n
g

T
e
r
m

D
e
b
t

-

L
o
a
n

#

D
W
-
9
9
2
3
$1
9
1
,
4
9
9
2
Le
s
s
:

P
r
e
p
a
y
m
e
n
t

o
n

p
r
i
n
c
i
p
l
e
$1
8
,
7
6
4
3
Ou
t
s
t
a
n
d
i
n
g

L
o
a
n

A
m
o
u
n
t
$1
7
2
,
7
3
5
7.
1
6
%
3.
2
5
%
0.
2
3
%
4
L
o
n
g

T
e
r
m

D
e
b
t

(
W
e
l
l

#
9

&

W
a
t
e
r

R
i
g
h
t
)
$1
,
0
4
1
,
7
8
4
5
Le
s
s
:

P
r
e
p
a
y
m
e
n
t

o
n

p
r
i
n
c
i
p
l
e
$4
1
,
0
4
5
6
Ou
t
s
t
a
n
d
i
n
g

L
o
a
n

A
m
o
u
n
t
$1
,
0
0
0
,
7
3
9
41
.
4
7
%
3.
2
5
%
1.
3
5
%
7
P
a
i
d

i
n

C
a
p
i
t
a
l
$9
9
9
,
4
2
9
41
.
4
1
%
12
.
0
0
%
4.
9
7
%
8
C
o
m
m
o
n

E
q
u
i
t
y
$2
4
0
,
4
3
5
9.
9
6
%
12
.
0
0
%
1.
2
0
%
9
T
o
t
a
l
$2
,
4
1
3
,
3
3
7
10
0
.
0
0
%
7.
7
5
%
Pa
g
e

1

o
f

1
EXHIBIT 4
FALLS WATER COMPANY
CALCULATION OF REVENUE REQUIREMENT
(A)(B)(C)
1 Rate Base
2 Required Rate of Return
3 Net Operating Income Requirement
4 Net Operating Income Realized
5 Net Operating Income Deficiency
$ 2,545,287.78
7.75%
$ 197,141.55
(35,935.09)
$ 233,076.64
6 Revenue Increase necessary to overcome loss
7 Revenue Increase Necessary For Income Requirement
8 Gross-up Factor
9 Revenue Increase Requirement
10 Total Revenue Increase Required
Non-Tax Taxable
$35,935.09
$197,141.55
102%131%
$36,811.59 $258,248.16
$295,059.75
1,112,611.36
26.52%
11 Adjusted Test Year Revenue
12 Percent Increase Required
Falls Water Company, Inc.
Net to Gross Multiplier
Total Gross Revenues
Less Uncollectibles ( percentage)
Less 2011 Regulatory Fees (percentage)
Less Bank Service Charge Fees (percentage)
1.000000
0.009816
0.002297
0.011697
Net Revenue
State Income Tax Rate - 8%
0.976190
0.078095
Federal Income Tax Base 0.898094
Federal Income Tax Rate - 15%0.134714
Net Operating Revenue 0.763380
Net Income to Gross Revenue Multiplier 1.30996
Gross-up Factor to overcome loss 1.02439
Page 1 of 1
"'
l¡
ß
~
~ 8J§l;ë OJ!!.t oci'°~c::gë-~ai ~ m ~;: CD G =ic: a..5 0
¿
g
::
'"
§ CD î m
E ei c aJ:Š~ ~ ~::(4).5D.
:: '- U) '0
mii8.glS&.~~~~it5~§æoU..êi
~
"C E
Š~ ê CDQ. ::._ CO
it()~ë3'".!'"
Ò D:c: ..- Ql
¿,8-
~ e
l~~g~~
'"ü
§
c:
§ 8i'~ CD.5 1; ~ ãj~t3ga:u
~-g i ~ ~
8. ~ g g0= tV..il -c C9 .5
~
§
.. ~ _(I ~
~ ~ § ~c3~ ~~
b'- ~~ë"õ 8.£ ~-CD 0 (I m.Qo l: E ei O'~-8g~§liOO.,~
~
ë CD § Q)'" Õ E
8~~B
~
.. 'C U).0c: CD cO
§~~~U.. Cl.S
8
j
¡¡
l
'g..
J
IeD.
l-æ ¡c: Õ Eii f- glü õ~D. U
'#rf#.rf'#'##.rf"#rf"#ìf'##.i-IOCOO(J(Ø("IOLO"IC"(l..O(( 0).. 00.. C\ 10 00 i- 0 (' 0~..ció..c:ocici..oooo
#,'#'#;f#.rf'#'#rf'#rfrf'#rfØMIOOOOOIO..((O..COO((.eoóU"a)coo)coo~cór-c:C\C\.. N....c\NC"('C\C\
~~~c: _~
~ ãi E
~iB 5.. u
8~i; "'..COa)vNo)..CO~~fi '2~;~;g~~~~
Cß~~litllllillffEiliClffli
,. s
~ fJ ~§.. -g::.. .,oi:= 0:- In 0.. ii
~(l~ U)MOc;lOlO("O"'~~m i~;~~i~~~~
Eßlllltlfl WWWWfl l;(lWW
#.#.'#?f?f'#?f#.'#?f'$'$'è*("('(fC"("(f(I("("('('C"("("~~~~~~;;;;;;;;
..""...."'r-....i-r-..,..."co co co co to co co co co co co CD co co00000000000000
ff E.tßWllW li WW0 W Cß li W
~~&1::~~&1::;b~~&1::~~~~~~æ~;~~æ~~~
tß tlWWWW tß ff Eß flEiEi Ei Ei
88888888888888000000000000000000000000000000000000000000OvCO("O""CO("~OvCO("~""""""C\""""""C\o,""""""C\-.
l.1"(JNl.I"(JNOl.I"(JNO~ ~N ~N
Q) .~0) ~ $.. "'..~ § c:
u
§11"~~§~1"~~~8~1"~~~o ~~8 ~~~8 ~~~8 ~~oco~~~gco~~~..~~~..~~~~..~~~~
""""C\ """"C\-. """"C\-.
C\l"c\COC\I"NCO(JNI"NCO(J~~NN""''NNv~''NNv
......~........~ ~..............~..........~......~co co co co (D (D co co co co (D co co co00000000000000
Ei~ Ei Ei Ei.~~UiEi Eilß ~ ~~
~;g~~s;~~~oS!~~~o~~æ~~~æ~m~~æ~~
~Ei Ei Ei~~UiU) Ei Ei~ ~tß U)
C\I"NCOC\I"NCOmNI"NCO(J..~NN....NN"'~..NNv
¡0:
i i:: :: ~ ~.s~.s$ *ø::øøø::~CDf~:: (¡("~:æ:U("$::$$ 'ØØuiM
cöll .llCÖCD¿Q)Q)'~:U::iãi.s~~~.s~~~~~l.sll
~~=~~~~~~~.s~.s.s
:ê :ê :ê :ê .~ .~ .~ .~ .~ ~ E E ~ ~~~~~ E E E E e8!8!8!8!8!ë.i'(.i"(i)ëi. E E E E E:E:E:E:EECDQ)Q)Q)ooooo::::::::::0:0: 0: o:uuuuu::::::::::..N("Vl.co,.coms:~~~~
J
i
f
!
I
'õc:
~u
¿;
Ii.0E
ii'"0
Ii.0E-":-0Z
Ii
~.0
~
Ii.0
¿E
~(/
g I~ ~~~u
I~0EE
::8~
E ..
,g.,'"::c:'"~ '"-0: §"C ..'"
i~eD.
~¡;::
§.~
~
~I:..::
I ~
~..2.0'"LL
I?
§..::c:....
.,!l E
i ~ E Q)
G R~:£; ~~ e~~Ba. EO
o .i::
i CD ~ CDãi~õE~:= ~():5;BD. ::
e
3:
"'" E
~~..U
.,Sti0:
Q
z
"'1'1'"'~'"~~~""~U"
tß tß tß tß Ei Ei tß tß tß U) tß U) tß tß tß tß tß tß
("("CO(JI"(JCOOl.,.("..o("coioCO"'i ~~m~~~~æg
.. .. N("
~C:~ ~::~~~~lóS;t:C\ cO ~ . cO oj cr (" -. (" cO 0""("co NQ)COQ)NQ)("CON"C.. .. .. Nv NU"
g88g0000NO 0 co......"C
Ei tß lß Ei Ei Ei tß tß U) tß tß ~ tß tß ~ tß tß tß
COC\ml""Cl.l"co("..mv("..("covOi ir~oj..COCOOujcOg~~~.N~t&5m&5
0000000("ir 0 0""vOOl."'~'"
"' ~ I'",~o
o C\ cO"'''~",0""gÑEitßtßtßU) tß tßtßtß~tß ~ tß tß~lß tß Ei
"CNI" vl"Q)("("..NCÐ(J~;;~ i~¡~~~;:;;~~ i
~~:i ~N&5ù= ~gQ)&5;g'" .. C' ..
W tß ~ tß Ei tß Ei tß ~ tß tß tß tß tß tß tß tß tß
888~~eg~~~'"
"" "' '""'''0
~mg-ecn~
88 ("~g . ~:u:iis. ;t~g~CO..l. 0"'Ñ
co CJ 0 0l.N""1"
~ S; g ~m... co
Ei tß tß lß tß Ei Ei Ei tß tß tß tß tß tß tß ~ ~ tß
I"COV l.("..~"C0("~(J 00 ..~~~ i ~~~~;~~~i i gg . ~
mNI" mNCO~ NN..CO N§"-e "'Ñ. .
tßtß~~~~ ~ tßtß~lß lß lß Ei Eitßtß~
mf!~mr:;;~m:e 8~88~cx~~cr~~~~ .~~~~
"'0'""'~'"
~~~æ~ lßtßtß~~lß ~~~tß tß tß Ei Eitßtßtß
I"~I" (J~mi"Q)~Q)~co 00010~~~ i ~..~~~cr~~~ i ~~~~Ol. CONI"~..O("("(" ..NNCO"C ....(" C\N.. N..N
ID
lß tß Ei tß tß tß tß ~ tß tß ~ ~ ~ ~ ~ Ei tß lß
1"l.1" CÐCOl"l.eJCON..CO OOON
g~~' ~~~m~;~;~ i ggg~(".. NN..N .. NU"~ Ei Ei ~ ~ tß tß tß tß tß ~ tß ~ ~ lß ~Ei lß
1"l.1" NeJ..mNOCOCOl. OOO~~~~. ~~~~Ó~~~~ ,~~~..COl" ~io""N""I"N""1" I"COOV(".. C\~..N ..NU"lß ~ Ei Ei ~ ~ ~ tß ~ tß ~ tß ~ ~ ~ tß Ei tß
1"101" ONI"CO~COeJN(J 0g0l.~~~ i ~~~~~6~;~ i ~O~~COl" COl""CCO..~CJN.. COvNv~.. N~ NN.. N
U"
~ ~ tß tß tß tß tß tß tß tß Ei tß tß ~ Ei tß tß tß
1"101" COCO~vOvOl.l. OOOCOCOCO~ (JI"NNI"Ovl"(J 000l.g~~' ~~g~IDg~~g i ~~g~~.. ..N NN .. .... N
U"tßtß~ ~tßtßtß~ ~ ~ Ei Eilßtßtßtß ~~
~ õl :õ0(""-"'~"""'0'"
mÑ
i~~~~~~~p~~~ i~(õs!~&ì~;O~~co .. (" eJ .. ,. ,. l.
tß~ Ei Ei Ei~~~ ~ tß tßtß~~
~:g~::~ló~~ib~ló~~(Ó~~~:~~~;~~~~;~
~~~ ~ ~ Eitß~ Ei Ei Ei Eitßtß
m:e ~"M
NCO (J__NOCO..NV N "CN ..
i i:: ~ e i.~~'-$ Q)~~øllø::fCD~~:: Q)~~::š~l~ll£fl~e~ ø~~£~¿::~:::æ~l .ll~ æ~£ .~ 'i¿~¿¿ ::~:::: .~:~ ~ :~l.~: ~~: ~ ~ £ £ l ~l ¡
~~~~~~~~~~EE~~~~~ ~i æ ¡ s ~ ~ ~ ~ ~8!8!8!8!~8 § ~æ
~~~~ E E E E EEEEEE~ 82 Q)~ ~ ~~88888 ~~~ ~ ~ £ ~ ~~
10 W I"CO(J 0.. N ~ v~w I" Q) (J O_N.... __ ~.. NN N N NNNN N N ~ ~~
88~go"'"'::
"'''~~
~8""cn'".,.,
"'''1'1'cOcO"'~"'''""cn'".,.,
$ g:irir(01'"' '"ofi."' '".,.,
~""00~~""'"01'of..~'"
wZ;
"'~~'"
00 cO ~o"'''cöÑ~~.,.,
1'0"' '"oocr
g¡ ~~t.,.,
"'~l(0'"o,-."'~.."' '"'C:..Ñai ~c."'0.,;;"5 '".15 e-LL ..0; ~-~"'u("e-j~~ g¡ID i,U 0.,.,m ê.. 0"'''In U"'''E EC\C\,g ,gN 5l '"'"""Ñ ::::'"(0 c:c:.,.,gi '"'õ:-'"'""' (0 0:0:"00 "C "C '"
S~'"'"ll., .,00""Ñ 0. 0.(0 e e.,.,D.D.
0'"'õ 'õ" "Ll ia "'''
ù=~~~"'0
~ ~..~.,.,ææ
"'~'# #."" "'"' "'~~"'''~~""cn(0.,.,
",'"~",o ~'"o~","'I'~ "'0 oo:cr ""cO'""'''"'1'1''""'""I''"U"ai ai~""'"I'0"'0 °(Jvv."".
.,.,.,.,.,.,
"C""C'"c:::::c:"l l6'":-'""'":-,.0:0 1ñ
E .,S::S
:~
..
ii 0:0
~ ãi i '"::.5
~e- 0:8."Cti "Cc:~ß ~e ~0 D.
~::2J ~ a."C E
i ~:g &:* .gU E E "
~ ê
.,::! å.g 0c:S"'~In U .,~ ~~
äi .;E E '"'" "..::
,g ,g c:::o:c:
~E "
~ l ~"":-:::: '"
~ è)
~,. 0 c:c:0:ø
~~~ ~ ãj .,= õ '""" ::::o ~~~~e ii c:~~Cl c:giE 2 ¡;S .~"~ ::c: c: 0 t=~0:f- Z .. .. f-"'""~.~~:i¡¡"'''
EX
H
I
B
I
T

5
Ex
c
e
s
s

U
s
e

a
b
o
v
e

A
l
l
o
w
e
d

b
a
s
e
d

o
n

2
0
1
1

A
c
t
u
a
l
s

a
n
d

a
d
j
u
s
t
e
d

t
o

p
r
o
p
o
s
e
d

a
l
l
o
w
a
n
c
e
s
To
t
a
l
An
n
u
a
l

U
s
a
g
e
20
1
1
Ja
n
u
a
r
y
Fe
b
r
u
a
r
y
Ma
r
c
h
Ap
r
i
l
Ma
y
Ju
n
e
Ju
l
y
Au
g
u
s
t
Se
p
t
e
m
b
e
r
Oc
t
o
b
e
r
No
v
e
m
b
e
r
De
c
e
m
b
e
r
by

R
a
t
e

C
l
a
s
s
40

R
e
s
i
d
e
n
t
i
a
l

5
/
8

i
n
.

&

3
/
4

i
n
.

M
e
t
e
r
s

.
8,0
0
1
8,0
0
1
8,0
0
1
8,0
0
1
9,5
6
1
42
,
4
4
9
15
6
,
6
8
1
15
5
,
4
9
2
15
5
,
5
8
2
75
,
2
5
5
8,1
0
8
8,1
0
8
64
3
,
2
4
0
41

R
e
s
i
d
e
n
t
i
a
l

1

i
n
.

M
e
t
e
r
s
'
25
5
25
5
25
5
25
5
89
1,
1
3
0
6,3
4
8
5,
4
7
5
6,8
3
6
3,
0
3
3
25
1
25
1
24
,
4
3
3
42

R
e
s
i
d
e
n
t
i
a
l

1 1
/
2

i
n
.

M
e
t
e
r
s
'
11
11
11
11
1
37
8
1,
1
2
2
1,
0
0
6
1,2
0
1
62
1
11
11
4,
3
9
5
43

R
e
s
i
d
e
n
t
i
a
l

2
i
n
.

M
e
t
e
r
s

.
44

C
o
m
m
e
r
c
i
a
l

5
/
8

i
n
.

&

3
/
4

i
n
.

M
e
t
e
r
s
88
90
56
47
97
40
7
1,
3
6
5
1,0
0
7
1,2
3
2
75
4
19
2
21
9
5,
5
5
4
45

C
o
m
m
e
r
c
i
a
l

1
i
n
.

M
e
t
e
r
s
12
8
11
6
87
12
8
18
2
12
2
40
9
29
2
40
1
27
6
13
3
99
2,
3
7
3
46

C
o
m
m
e
r
c
;
a
l
l

1
/
2

i
n
.

M
e
t
e
r
s
26
9
36
1
32
3
30
1
26
7
38
6
2,5
0
3
2,3
1
4
2,
5
0
4
1,
4
4
7
13
4
14
8
10
,
9
5
7
47

C
o
m
m
e
r
c
;
a
l
2

i
n
.

M
e
t
e
r
s
37
2
56
8
48
7
44
5
47
1
80
7
3,5
4
9
3,0
5
8
3,
7
5
9
2,2
1
1
27
4
22
7
16
,
2
2
8
48

C
o
m
m
e
r
c
i
a
l

4

i
n
.

M
e
t
e
r
s
10
29
16
7
24
13
22
9
42
36
11
21
9
49

M
u
l
t
i
F
a
m

5
/
8

&

3
/
4

i
n
.

M
e
t
e
r
s
31
2
34
4
26
0
29
4
31
2
74
3
1,9
3
0
1,4
7
4
2,
0
3
3
1,
5
0
5
42
3
30
7
9,9
3
7
50

M
u
l
t
i
F
a
m

1

i
n
.

M
e
t
e
r
s
32
0
44
7
33
4
30
6
35
4
72
7
1,8
2
9
1,7
8
7
1,
5
3
6
1,0
0
1
65
5
47
4
9,7
7
0
51

M
u
l
t
i
F
a
m

1

1
/
2

i
n
.

M
e
t
e
r
s
25
36
28
23
52
10
7
16
3
12
0
12
7
14
4
91
40
95
6
52

M
u
l
t
i
F
a
m

2

i
n
.

M
e
t
e
r
s
28
5
16
7
10
5
10
4
20
8
62
5
1,0
3
7
1,0
1
0
1,
0
0
7
1,0
0
9
33
1
13
5
6,0
2
3
53

M
u
l
t
i
F
a
m

4

i
n
.

M
e
t
e
r
s
.
. N
o
v
e
m
b
e
r

t
o

A
p
r
i
l

e
x
c
e
s
s

u
s
a
g
e
s

a
r
e

a
n

a
v
e
r
a
g
e

o
f

t
h
e

n
e
t

o
f

r
e
s
i
d
e
n
t
i
a
l

u
s
a
g
e
s

f
o
r

t
h
e

6

m
o
n
t
h

p
e
r
i
o
d

l
e
s
s

t
o
t
a
l

u
s
a
g
e
s

o
f

a
l
i
o
w
e
d

g
a
l
i
o
n
s

o
r

l
e
s
s

f
o
r

t
h
e

6

m
o
n
t
h

p
e
r
i
o
d
.

N
o
v
e
m
b
e
r

a
n
d

D
e
c
e
m
b
e
r

2
0
1
1

r
e
s
i
d
e
n
t
i
a
l

u
s
a
g
e
s

w
i
l
i

u
s
e

t
h
e

a
s
s
u
m
p
t
i
o
n

t
h
a
t
us
a
g
e

w
i
l
i

b
e

t
h
e

s
a
m
e

a
s

t
h
e

p
r
i
o
r

w
i
n
t
e
r
.
Nu
m
b
e
r

o
f

A
c
t
i
v
e

C
u
s
t
o
m
e
r
s

a
s

o
f

J
a
n
u
a
r
y

2
4
,

2
0
1
2
:
54

R
e
s
i
d
e
n
t
i
a
l

5
/
8

i
n
.

&

3
/
4

i
n
.

M
e
t
e
r
s
55

R
e
s
i
d
e
n
t
i
a
l

1
i
n
.

M
e
t
e
r
s
56

R
e
s
i
d
e
n
t
i
a
l

1
1
/
2

i
n
.

M
e
t
e
r
s
57

R
e
s
i
d
e
n
t
i
a
l

2

i
n
.

M
e
t
e
r
s
58

C
o
m
m
e
r
c
i
a
l

5
/
8

i
n
.

&

3
/
4

i
n
.

M
e
t
e
r
s
59

C
o
m
m
e
r
c
i
a
l

1 i
n
.

M
e
t
e
r
s
60

C
o
m
m
e
r
c
i
a
l

1
1
/
2

i
n
.

M
e
t
e
r
s
61

C
o
m
m
e
r
c
a
l

2 i
n
.

M
e
t
e
r
s
62

C
o
m
m
e
r
c
i
a
l

4

i
n
.

M
e
t
e
r
s
63

M
u
l
t
i
F
a
m

5
/
8

&

3
/
4

i
n
.

M
e
t
e
r
s
64

M
u
l
t
i
F
a
m

1

i
n
.

M
e
t
e
r
s
65

M
u
l
t
i
F
a
m

1

1
/
2

i
n
.

M
e
t
e
r
s
66

M
u
l
t
i
F
a
m

2

i
n
.

M
e
t
e
r
s
67

M
u
l
t
i
F
a
m

4

i
n
.

M
e
t
e
r
s
.
35
9
7
75 7 o 42 6 9 21 2 40 28 1 12 o
3,6
7
9
80 81
68

A
c
t
v
e

c
u
s
t
o
m
e
r
s
38
4
0
Pa
g
e

2

0
1
2
EXHIBIT 6
NOTICE TO FALLS WATER CO., INC. CUSTOMERS
During the week of January 30, 2012, Falls Water Co., Inc. filed an application with the
Idaho Public Utilities Commission (I PUC) for a proposed general rate increase to
become effective February 29, 2012. The filing is a proposal, subject to public review
and a Commission decision before it can take effect.
Falls Water Co., Inc. seeks approval to increase rates to recover the increasing costs of
operations and maintenance, and replacing its aging infrastructure.
If the proposed rate increases are approved, the average %" metered customer's bil wil
increase 26.8%. The average 1" metered customer's bill wil increase 24.3%. The
average 1 %" metered customer's bil wil increase 26.1 %. The average 2" metered
customer's bill will increase 27.8%. The average 4" metered customer's bill will increase
28.1%
If approved the proposed increase would increase the Company's total annual revenues
by $295,059.75 (26.52%). A copy of the application is available for review at Falls Water
Co., Inc.'s office located at 2180 North Deborah Drive in Idaho Falls or on our website,
ww.fallswater.com. Copies of the application are on file at the Idaho Public Utilities
offices at 472 West Washington Street, Boise, Idaho 83702. The application is also
available for review on the Commission's web site at ww.puc.idaho.gov. Please send
any comments or questions to either Falls Water Company or the Idaho Public Utilities
Commission:
Idaho Public Utilities Commission
PO Box 83720
Boise, 1083720-0074
[phone]
Falls Water Company, Inc.
2180 North Deborah Drive
Idaho Falls, 10 83401
[phone]
Comments may be submitted to the Idaho Public Utilities Commission via e-mail by
going to the following website:
http://ww.puc.idaho.gov/comments-complaints/choose%20form.htm
Please refer to Case No. FLS-W-12-1 in all correspondence.
Page 1
EXHIBIT 7
News Press Release
During the week of January 30, 2012, Falls Water Co., Inc. filed an application with the
Idaho Public Utilities Commission (I PUC) for a proposed general rate increase to
become effective February 29, 2012. The filing is a proposal, subject to public review
and a Commission decision before it can take effect.
Falls Water Co., Inc. seeks approval to increase rates to recover the increasing costs of
operations and maintenance, and replacing its aging infrastructure.
If the proposed rate increases are approved, the average %" metered customer's bill wil
increase 26.8%. The average 1" metered customer's bil will increase 24.3%. The
average 1 %" metered customer's bill wil increase 26.1 %. The average 2" metered
customer's bil will increase 27.8%. The average 4" metered customer's bil will increase
28.1%
If approved the proposed increase would increase the Company's total annual revenues
by $295,059.75 (26.52%). A copy of the application is available for review at Falls Water
Co., Inc.'s office located at 2180 North Deborah Drive in Idaho Falls or on our website,
ww.fallswater.com. Copies of the application are on file at the Idaho Public Utilities
offices at 472 West Washington Street, Boise, Idaho 83702. The application is also
available for review on the Commission's web site at ww.puc.idaho.gov. Please send
any comments or questions to either Falls Water Company or the Idaho Public Utilities
Commission:
Idaho Public Utilties Commission
PO Box 83720
Boise, ID 83720-0074
[phone]
Falls Water Company, Inc.
2180 North Deborah Drive
Idaho Falls, ID 83401
[phone]
Comments may be submitted to the Idaho Public Utilities Commission via e-mail by
going to the following website:
http://ww.puc.idaho.gov/comments-complaints/choose%20form.htm
Please refer to Case No. FLS-W-12-1 in all correspondence.
Page 1
Falls Water Co., Inc.
Sheet 16
Replaces All Previous Sheets
EXHIBIT 8
Schedule No.1
General Metered Service Rates
Availabilty: To all metered customer not served under another schedule.
Minimum Customer Charge:
Meter Size Maximum Gallons Allowed in Minimum Charge
12,0005,000
17,0007,000
22,000 9,000
28,000 12,000
49,00020,000
Monthy
Minimum Charge
$16.10 $19.18
$22.54 $26.85
$28.98 $34.52
$37.03 $44.11
$66.01 $78.64
5/8" and %"
1 "
1 W'
2"
4"
Commodity Charge: Rate per 1,000 Gallons of Use
For all water use in excess of the maximum gallons allowed $0.611 $0.67
in minimum charge.
Contract Conditions:
The customer shall pay the total of the minimum customer charge plus the commodity charge.
The commodity charge is based on all metered water in excess of the maximum gallons allowed
in the minimum customer charge for the biling period. Consumption is expressed in 1,000
gallon units as expressed by the meter installed by the Company. The minimum customer charge
will apply even when service is provided for less than the entire biling period.
Meter Reading Schedule:
Meters for all residemial services for siagle family homes and to...m homes wil be read monthy
staring in April and endiag \vith the October readiag. Winter usage is stil metered; however the
biling for the commodity charge during the wimer months vAll be calculated an biled on the
April biling. The winter commodity chage is calculated by subtrctiag the maximum gallons
allowed in the minimu customer charge for the six vt'imer billng periods from the total usage
obtained from the April meter reading multiplied by applicable rate.
Meters for all customers, ResidentiaL, commercial, industrial, institutional, aparent buildings
with two or more unts, and condominiums wil be read monthy year round.
Issued March 10, 2010
Effective March 16,2010
Issued by Falls Water Co., Inc.
K. Scott Bruce, General Manager
Falls Water Co., Inc.
Sheet 17
Replaces All Previous Sheets
EXHIBIT 8
Schedule No. 2
Non-Recurring Char~
1. RECONNECT FEES:
This charge is applicable to all customers where water has been physically tured
off for non-payment of a delinquent bilL.
Rates:
During regular office hours (Monday through Friday 8am to 5pm)'
After office hours
Each Occurrence
$ 20.00
$ 40.00
2. FIELD COLLECTION FEE:
This charge is applicable to all customers who pay outstading bils for service at
the time that Company personnel arive at the customers' premises to terminate
service.
Rate:
Field Collection Fee
Each Occurrence
$15.00
3. HOOKUP CHARGES:
This charge is applicable when a new service is connected to the system for the first time.
Meter Size of New Connection
%" Meter
1" Meter
1 Yi" Meter
2" Meter
One time Charge
$ 500.00
$ 600.00
$ 930.00
$1,205.00
4. RETURNED CHECK CHARGE:
This charge is applicable to all customers where the customer's check or ban draft is retured
by the ban for insufficient fuds, closed account, or some other appropriate reason.
Rate:
Retued check charge each occurence
Each Occurrence
$20.00
Issued March 10,2010
Effective March 16, 2010
Issued by Falls Water Co., Inc.
K. Scott Bruce, General Manager
Falls Water Co., Inc.
Sheet 18
Replaces All Previous Sheets
EXHIBIT 8
Non-Recurring Charges (Cont'd)
5. METER TEST AT CUSTOMER REQUEST CHARGE:
This charge is applicable when the customer requests the Company to test the accuracy of a
meter in the case of a disputed bil.
Rate:
Error in meter registration of 1.5% or less
Each Occurrence
$10.00
6. LATE PAYMENT CHARGE:
This charge is based on the unpaid balance at the time of the next billng date.
Rate:
1 % of delinquent balance per month.
Issued March 10, 2010
Effective March 16,2010
Issued by Falls Water Co., Inc.
K. Scott Bruce, General Manager
Falls Water Co., Inc.
Sheet 19
Replaces All Previous Sheets
EXHIBIT 9
Schedule No. i
General Metered Service Rates
Availability: To all metered customer not served under another schedule.
Minimum Customer Charge:
Meter Size Maximum Gallons Allowed in Minimum Charge
5,000
7,000
9,000
12,000
20,000
5/8" and %"
1 "
1 lh"
2"
4"
Commodity Charge:
For all water use in excess of the maximum gallons allowed
in minimum charge.
Monthly
Minimum Charge
$19.18
$26.85
$34.52
$44.1 1
$78.64
Rate per 1,000 Gallons of Use
$0.67
Contract Conditions:
The customer shall pay the total of the minimum customer charge plus the commodity charge.
The commodity charge is based on all metered water in excess of the maximum gallons allowed
in the minimum customer charge for the biling period. Consumption is expressed in 1,000
gallon units as expressed by the meter installed by the Company. The minimum customer charge
will apply even when service is provided for less than the entire biling period.
Meter Reading Schedule:
Meters for all customers, Residential, commercial, industrial, institutional, aparent buildings
with two or more unts, and condominiums wil be read monthy year round.
Issued March 10, 2010
Effective March 16, 2010
Manager
Issued by Falls Water Co., Inc.
K. Scott Bruce, General
. '
Falls Water Co., Inc.
Sheet 20
Replaces All Previous Sheets
EXHIBIT 9
Schedule No. 2
Non-Recurring Char~
7. RECONNECT FEES:
This charge is applicable to all customers where water has been physically tured
off for non-payment of a delinquent bilL.
Rates:
During regular office hours (Monday through Friday 8am to 5pm)
After office hours
Each Occurrence
$ 20.00
$ 40.00
8. FIELD COLLECTION FEE:
This charge is applicable to all customers who pay outstading bils for service at
the time that Company personnel arve at the customers' premises to terminate
service.
Rate:
Field Collection Fee
Each Occurrence
$15.00
9. HOOKUP CHARGES:
This charge is applicable when a new service is connected to the system for the first time.
Meter Size of New Connection
%" Meter
1" Meter
1 Yi" Meter
2" Meter
One time Charge
$ 500.00
$ 600.00
$ 930.00
$1,205.00
10. RETURNED CHECK CHARGE:
This charge is applicable to all customers where the customer's check or ban draft is retued
by the ban for insuffcient fuds, closed account, or some other appropriate reason.
Rate:
Retured check charge each occurrence
Each Occurrence
$20.00
Issued March 10, 2010
Effective March 16,2010
Manager
Issued by Falls Water Co., Inc.
K. Scott Bruce, General
~ '
Falls Water Co., Inc.
Sheet 21
Replaces All Previous Sheets
EXHIBIT 9
Non-Recurring Charges (Cont'd)
11. METER TEST AT CUSTOMER REQUEST CHARGE:
This charge is applicable when the customer requests the Company to test the accuracy of a
meter in the case of a disputed bilL.
Rate:
Error in meter registration of 1.5% or less
Each Occurrence
$10.00
12. LATE PAYMENT CHARGE:
This charge is based on the unpaid balance at the time of the next billng date.
Rate:
1 % of delinquent balance per month.
Issued March 10, 2010
Effective March 16,2010
Manager
Issued by Falls Water Co., Inc.
K. Scott Bruce, General