20120222notice_of_application_order_no_32467.pdf

Office of the Secretary
Service Date
February 22,2012
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF FALLS WATER COMPANY FOR AN )CASE NO.FLS-W-12-O1
ORDER AUTHORIZING INCREASES IN )
THE COMPANY’S RATES AND CHARGES )NOTICE OF APPLICATION
FOR WATER SERVICE )
)NOTICE OF
)INTERVENTION DEADLINE
)
_______________________________
)ORDER NO.32467
On January 30.2012,Falls Water Company applied to the Commission for authority to
increase its total revenue requirement by $295,059.75,or 26.52%.Application at 1,4.The
Company says the accompanying rate increase will increase the average customer’s bill by 26.8%.
Id.at 5.The Company asked that its Application be processed by Modified Procedure,and that the
proposed tariff changes take effect February 29,2012.Jd.at 2.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that Falls Water provides water service to more than
3,900 residential and commercial customers north of the City of Ammon and northeast of the City of
Idaho Falls in Bonneville County.Id.at 2.The Company last increased its basic rates and charges in
March 2010.Order No.31022.
A.Revenue
YOU ARE FURTHER NOTIFIED that the Application states that since its last rate case,
the Company has replaced manually-read meters with new touch-read meters and installed radio
transmitter units (MXUs)on all meters not already so equipped.The Company also has doubled its
rented office and warehouse space.and added an on-line billing option for customers.Id.at 2.As a
result of these and other expenditures,the Company now seeks to raise its rates to increase revenues
by $295,059.75 (26.52%).Id.at I,4.The Company proposes to increase its metered rates and
reduce the included maximum gallons allowed as follows:
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.32467 1
Meter Size Current Rate Proposed Rate %Change
3/4”or smaller $16.10 for up to 12,000 gallons $19.18 for up to 5,000 gallons 19.1%increase
1”$22.54 for up to 17,000 gallons $26.85 for up to 7,000 gallons 19.2%increase
$28.98 for up to 22,000 gallons $34.52 for up to 9,000 gallons 19.1%increase
2”$37.03 for up to 28,000 gallons $44.1 I for up to 12,000 gallons 19.1%increase
4”$66.01 for up to 49,000 gallons $78.64 for up to 20,000 gallons 19.1%increase
Commodity Rate
per 1,000 gallons $0.61 I $0.67 9.7%increase
Id.The Company’s Application proposes a 2011 test year.Id.at 2.
B.Rate Design
YOU ARE FURTHER NOTIFIED that Falls Water proposes to develop new rates as
follows:
Meter Size —Current Rate Proposed Rate
3/4”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 Y2”$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
per 1,000 gallons $0.61 I $0.67
Id.at 4.The Company says the average 3/4”metered-customer’s bill will increase 26.8%;the
average 1”metered-customer’s bill will increase 24.3%;the average I V2”metered-customer’s bill
will increase 26,1%;the average 2”metered-customer’s bill will increase 27.8%;and the average 4”
metered-customer’s bill will increase 28.1%.Id.at 4-5.
YOU ARE FURTHER NOTIFIED that the Company says its proposal decreases the ratio
of base charges from 66%to 65%and increases the ratio of commodity charges from 34%to 35%.
Id.at 5.
YOU ARE FURTHER NOTIFIED that the Company says the proposed rate design will
produce $1,407,749.70 in revenues,which is within $78.59 of the $1,407,671.11 revenue
requirement.The average customer’s bill will increase by 26.8%.Id.
C.Year-Round Meter Reading
YOU ARE FURTHER NOTIFIED that Falls Water also proposes that it be allowed to
read meters year-round on all of its metered rate schedules.Id.at 5.The Company presently reads
single-family residential meters from April through October but not during the winter due to difficult
meter access.However,the Company has finished installing radio-read units system-wide that will
enable the Company to read the meters year-round.Id.The Company says year-round meter reading
NOTICE OF APPLICATION
NOTICE OF 1NTERVENTION DEADLINE
ORDER NO.32467 2
benefits customers and conserves water because plumbing leaks will be detected sooner,Also,
customers would be able to pay for any water use above the minimum amount allowed as the
overages are incurred rather than being billed in April for excess water use that has accrued since
October.Id.
YOU ARE FURTHER NOTIFIED that consistent with Utility Customer Information
Rule 101,the Company filed a copy of its customer notice.On January 31,2012,the Company
also made arrangements for publication of the customer notice in the Post Register newspaper.
YOU ARE FURTHER NOTIFIEI)that the Application,supporting workpapers,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 workpapers are also
available on the Commission’s web site at www.puc.idaho,gov under the “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
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.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.32467 3
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 this 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 their 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.The Notice of Parties shall
assign exhibit numbers to each party in this proceeding.
YOU ARE FURTHER NOTIFIED that 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.Once a schedule is developed,the Commission will subsequently
issue a Notice of Hearing.In addition to the schedule,the parties may discuss discovery
logistics,electronic service,and other scheduling matters.
YOU ARE FURTHER NOTIFIED that the Commission has jurisdiction over this
matter pursuant to Title 61 of the Idaho Code and specifically Idaho Code §6 1-302,6 1-307,
61-502,61-503,61-507,61-622,and 61-623.The Commission may enter any final Order
consistent with its authority under Title 61.
YOU ARE FURTHER NOTIFIEI)that all proceedings in this matter will be
conducted pursuant to the Commission’s Rules of Procedure,1DAPA 31.01.01.000 ci seq.
SUSPENSION OF PROPOSED EFFECTIVE DATE
Due to the complexity of this case and other constraints on the Commission’s time,
the Commission finds that it cannot adequately review Falls Water’s requested rate increase
NOTICE OF APPLiCATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.32467 4
before the proposed effective date of February 29,2012.Pursuant to Idaho Code §61-307,61-
622 and 6 1-623,the Commission hereby suspends the proposed rates for a period of thirty (30)
days plus five (5)months from February 29,2012,or until such time as the Commission enters
an Order accepting,rejecting,or modifying the request in this matter.
ORDER
IT IS HEREBY ORDERED that the proposed schedule of rates and charges
submitted by Falls Water in this matter are suspended for a period of thirty (30)days plus five
(5)months from February 29,2012,or until such time as the Commission enters an Order
accepting,rejecting,or modifying the request in this matter.
IT IS FURTHER 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 fourteen (14)days from the service date of this Order.
IT IS FURTHER ORDERED that after the Notice of Parties is issued,the Staff shall
convene an informal prehearing conference with the parties to discuss the processing of this case.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of February 2012.
I
/,.
PAUL KJELLAJDER,PRESIDENT
S
/\
MACK A.REDFORD.COMMISSIONER
/
MARSHA H.SMITH,COMMISSIONER
ATTEST:
(.i7 2
/L
Ján D.Jewel!
Commission Secretary
O:FLS-W-I 2-()I kk
NOTICE OF APPLICAT1ON
NOTICE OF INTERVENTION DEADLINE
ORDER NO.32467 5