20120824order_no_32626.pdf

Office of the Secretary
Service Date
August 24,2012
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF FALLS WATER COMPANY FOR AN ) CASE NO. FLS-W-12-01
ORDER AUTHORIZING INCREASES IN )
THE COMPANY'S RATES AND CHARGES ) ORDER NO. 32626
FOR WATER SERVICE )
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 said the accompanying rate increase would take effect on February 29, 2012, and would
increase the average customer's bill by 26.8%. Id. at 2 and 5. On February 22, 2012, the
Commission suspended the proposed schedule of rates and charges for an initial period of thirty (30)
days plus five (5) months from the proposed February 29, 2012 effective date, until August 28, 2012.
Order No. 32467, Idaho Code § 61-622. On March 16, 2012, the Commission issued a Notice of
Public Workshop, Notice of Modified Procedure, and Notice of Public Hearing setting comment
and reply deadlines and a public workshop and customer hearing. See Order No. 32487 and
corresponding Errata. The workshop and customer hearing occurred, Staff and members of the
public filed written comments, and the Company filed a written reply.
With this Order the Commission suspends the Company's proposed schedule of rates
and charges for an additional period of twenty-one (21) days, to September 18, 2012.
LEGAL STANDARD
Idaho Code § 61-622 sets forth the Commission's authority to suspend the effective
date of a proposed rate increase. The section states, in pertinent part:
No public utility shall raise any rate ... under any circumstances whatsoever
except upon a showing before the commission and a finding by the
commission that such increase is justified. The commission ... is hereby
given authority.., to enter upon a hearing concerning the propriety of such
rate ... and pending the hearing and decision thereon, such rate ... shall not go
into effect; provided, that the period of suspension of such rate ... shall not
extend beyond thirty (30) days when such rate ... would otherwise go into
effect, pursuant to section 61-307, Idaho Code, unless the commission in its
discretion extends the period of suspension for an initial period not exceeding
five (5) months, nor unless the commission after a showing of good cause
on the record grants an additional sixty (60) days....
Idaho Code § 61-622 (emphasis added).
ORDER NO. 32626 1
The Idaho Supreme Court addressed the Commission's additional suspension
authority under this section in Washington Water Power Co. v. Idaho Pub. Util. Comm'n, 101
Idaho 567 617 P.2d 1242 (1980). The Court held that "a showing of good cause on the record"
means the record in the case must disclose that the additional days are necessary, as opposed to
allowing the Commission to act with absolute discretion. Id. 101 Idaho at 571, 617 P.2d at 1246.
The Court rejected the utility's contention that the statute required proper notice, opportunity to
be heard, and a showing of good cause before the additional 60-day suspension could be granted,
and stated that this requirement "could likely result in many of the additional sixty days being
utilized solely in determining whether to grant the additional days." Id. Finally, the Court held
that the Commission acted properly in determining from the record that good cause existed to
suspend the rates for the additional 60 days because of the size of the increase requested, the
complexity of the cases presented by the Company, and the current workload of the Commission.
Id. 101 Idaho at 572, 617 P.2d at 1247.
DISCUSSION AND FINDINGS
The Commission has reviewed the record in this case, which includes the hearing
transcript, exhibits, pleadings, Staff and public written comments and the Company's written
reply. We also have reviewed our current workload, and the applicable laws of this state and
riles of the Commission. Based on this review, we find that good cause exists to order an
additional period of suspension during which the Commission may issue its final Order in this
matter.
This case involves a water utility requesting a large general rate increase, which
necessarily involves numerous complex and technical issues in reaching a final decision and
Order. In addition to the size of the requested rate increase, the complexity of this particular case
is compounded by the fact that there is a large disparity between the Company's case and the
recommendations of Commission Staff. For example, while the Company initially requested an
overall revenue increase of $295,059.75, or 26.52%, which the Company calculated using a
$2,545,288 rate base, Staff recommended a revenue increase of $15,832, or 1.4%, which Staff
calculated using a $1,821,140 rate base.
More time is needed to review the entire record in this proceeding. We find that there
is good cause for the suspension period in this case to continue. The Commission finds that the
two remaining business days before the initial suspension period ends on August 28, 2012 are
ORDER NO. 32626 2
insufficient to render a well-considered decision in this matter. Due to the complexity of the
issues in this case, the size of the increase requested by the Company and the current obligations
of the Commission, we find that there is good cause to continue the suspension period for an
additional 21 days, until September 18, 2012. Idaho Code § 61-622.
Although we are sensitive to the Company's desire to process this case within the
time frame of the original suspension period, the additional time will enable the Commission to
give the issues raised in this case the consideration and informed reflection they deserve.
1UI :iu
IT IS HEREBY ORDERED that the Company's Application shall be suspended for
an additional 21 days, until September 18, 2012, unless the final Order is issued sooner.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of August 2012.
PAUL KJELLA D R, PRESIDENT
MACK A. REDFORD, COMMISSIONER
ATTEST:
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In D. Jewell (J C'ommission Secretary
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ORDER NO. 32626 3