20231116Comments in Support of Stipulation and Settlement.pdf

COMMENTS IN SUPPORT OF STIPULATION AND SETTLEMENT PAGE 1 OF 6
Preston N. Carter, ISB No. 8462
Morgan D. Goodin, ISB No. 11184
GIVENS PURSLEY LLP
601 West Bannock Street
P.O. Box 2720
Boise, Idaho 83701-2720
Office: [phone]
Fax: [phone]
[e-mail]
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18057642.6

Attorneys for Falls Water Co., Inc.
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF FALLS WATER CO., INC. FOR THE
AUTHORITY TO INCREASE ITS RATES
AND CHARGES FOR WATER SERVICE
IN THE STATE OF IDAHO

Case No. FLS-W-23-01

COMMENTS IN SUPPORT OF STIPULATION
AND SETTLEMENT

Falls Water Co., Inc. (“Falls Water” or “Company”) files these comments in support of
the stipulation and settlement (“Settlement”).
Background and course of the proceedings
On May 12, 2023, Falls Water filed its application in this case, which requested, among
other things, a rate increase of approximately 47.3%; consolidation of rates for former customers
of the Morning View and Taylor Mountain systems; implementation of increased tiered rates for
different usage bands; and implementation of a separate rate for secondary irrigation systems.
After the application was filed, Idaho Public Utilities Commission (“Commission”)
provided notice of the application and set a deadline for intervention. No parties intervened, and
the Commission issued a notice that the case would be processed by modified procedure, set a
customer workshop, and set comment deadlines.
RECEIVED
Thursday, November 16, 2023 12:11:33 PM
IDAHO PUBLIC
UTILITIES COMMISSION

COMMENTS IN SUPPORT OF STIPULATION AND SETTLEMENT PAGE 2 OF 6
During this time, Commission Staff began its investigation, which included six sets of
production requests, nearly one-hundred individual production requests, and several discussions
between Staff and the Company. As part of this process, Falls Water provided narrative
responses to all the production requests and produced thousands of pages of documents. Staff
held a customer workshop, and the Commission has received comments from the public.
In September and October, the Company and Staff held two settlement meetings in which
Staff and the Company presented their respective positions on the issues addressed in the
Application. After these meetings, the Company and Staff continued to exchange information
and to engage in negotiations, which ultimately culminated in the Settlement. The Settlement
was filed, and the Commission has set a deadline for the parties and the public to comment on
the Settlement, as well as a customer hearing. All told, this case involved significant
participation by the public; a thorough investigation by Commission Staff; and a robust process
that vetted the bases of the requests in the Company’s application.
The Company anticipates that the Commission will accept additional comments from the
public related to the Settlement.
Terms of the Settlement
The key terms of the Settlement include the following, as described in more detail in the
Settlement and exhibits. The Settlement is contingent upon the Commission’s review and
approval.
Revenue requirement. In the Settlement, Falls Water and Staff agree that Falls Water
should be allowed to implement tariff schedules designed to recover $3,199,665 in total revenue
requirement, which reflects an increase to revenues of approximately 28.8%. The components of
this revenue requirement are described in the Settlement and exhibits, and include a return on
equity of 9.7%, a balancing account for recovery of water mitigation expenses, updated

COMMENTS IN SUPPORT OF STIPULATION AND SETTLEMENT PAGE 3 OF 6
depreciation rates, and a number of adjustments to the revenue requirement proposed in the
Application.
Rate design and consolidation. Under the Settlement, the revenue requirement will be
collected in accordance with a rate design that, among other things, consolidates the basic
charges for the Taylor Mountain and Falls Water systems by meter size and establishes basic
charges for the Morning View water system by acre size rather than meter size. This
accomplishes partial consolidation while recognizing some differences between the systems, and
will result in a 20% increase to the basic charges for Taylor Mountain and Falls Water systems
and a reduction of $5 to the basic charges for each lot size for the Morning View system. In
addition, to move towards consolidation, each system will have the same volumetric rates and
three-block tier structure.
Rate effective date. The Settlement proposes an effective date of December 15, 2023, for
the new rates contained within the Settlement.
Other matters. The Settlement also addresses a number of other matters, including
establishment of a secondary irrigation rate; provision of facility plans for the Taylor Mountain
and Morning View systems by February 1, 2024; development of plans to identify and address
the root causes of water losses and provision of those plans to Staff by June 1, 2024; and
development of plans to implement a meter accuracy testing program and provision of those
plans to Staff by June 1, 2024.
The Settlement is in the public interest
The Company believes that the Settlement will result in rates that are fair, just, and
reasonable, and that approval of the Settlement is in the public interest.
First, the Settlement reflects a substantial compromise of the issues presented in the
Application. While Falls Water believes that the requests made in its Application were

COMMENTS IN SUPPORT OF STIPULATION AND SETTLEMENT PAGE 4 OF 6
reasonable, it recognizes that settlement can avoid expense, uncertainty, and delay associated
with a full proceeding, and also allows the parties to address issues that do not fall within the
four corners of the Application. Falls Water believes that the Settlement is based on a thorough
review of the Application and reflects a substantial though reasonable compromise of its
positions regarding the issues presented in the Application.
Second, the Settlement resolves a number of issues that are outside the scope of the
Application and therefore would not be resolved in a fully processed case. The Settlement
establishes, among other things, requirements and timelines for the Company to develop and
provide to Staff facilities plans, plans to identify and address water loss, and plans for meter
testing. The Company believes that these plans will enable progress on items of importance to its
customers. This demonstrates one advantage of the settlement process: the parties are free to
agree upon issues that are in the public interest but outside the scope of a litigated proceeding.
Third, the Settlement provides for partial consolidation of Falls Water rate schedules.
While Falls Water believes that full consolidation would have been appropriate, the Settlement
reflects a compromise that takes an important step towards consolidation, while reflecting the
current difference between customers on the Falls Water, Taylor Mountain, and Morning View
systems.
Conclusion
For these reasons, Falls Water respectfully requests that the Commission approve the
Settlement without change, and that approval occur as soon as possible after acceptance and
consideration of public comments to allow Falls Water to implement the new rates effective
December 15, 2023, which aligns with the Company’s mid-month meter-reading schedule.

COMMENTS IN SUPPORT OF STIPULATION AND SETTLEMENT PAGE 5 OF 6
DATED November 15, 2023.

GIVENS PURSLEY LLP
By:
Preston N. Carter
Attorneys for Falls Water Co., Inc.

COMMENTS IN SUPPORT OF STIPULATION AND SETTLEMENT PAGE 6 OF 6
CERTIFICATE OF SERVICE
I hereby certify that on November 15, 2023, I caused to be served a true and correct copy
of the foregoing document to the person(s) listed below by the method indicated:
Jan Noriyuki, Commission Secretary
Idaho Public Utilities Commission
11331 W. Chinden Blvd., Bldg. 8, Suite 201-A
Boise, ID 83714

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_________________________________________
Preston N. Carter