20230605Notice_of_Application_Order_No_35806.pdf

NOTICE OF APPLICATION
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 35806 1
Office of the Secretary
Service Date
June 5, 2023
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION
OF FALLS WATER CO., INC., FOR
AUTHORITY TO INCREASE ITS RATES
AND CHARGES FOR WATER SERVICE IN
THE STATE OF IDAHO
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CASE NO. FLS-W-23-01

NOTICE OF APPLICATION

NOTICE OF SUSPENSION OF
PROPOSED EFFECTIVE DATE

NOTICE OF
INTERVENTION DEADLINE

ORDER NO. 35806

On May 12, 2023, Falls Water Co., Inc., (“Falls Water” or “Company”) applied to the
Idaho Public Utilities Commission (“Commission”) for authorization to raise the rates it charges
for water service. The Company filed a corrected rate case application on May 15, 2023
(“Application”). The Company requested an approximate 47.3 percent increase in revenue
collected and a 7.71 percent rate of return. Application at 2. The Company requested a July 1,
2023, effective date. Id. at 4.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that Falls Water is a Commission-regulated water
corporation that provides service to the area north of the City of Ammon, northeast the City of
Idaho Falls, and currently serves approximately 6,510 residential and commercial customers in
Bonneville County, Idaho. See Idaho Code §§ 61-125 and 61-129; Application at 2. The Company
provides service under Amended Certificate of Public Convenience No. 236. See Idaho Code §
61-526; Application at 2.
YOU ARE FURTHER NOTIFIED that Falls Water’s most recent general rate case was
two years ago in Case No. FLS-W-20-03. Application at 2.
YOU ARE FURTHER NOTIFIED that Falls Water proposes a revenue increase of
approximately $1,174,000, representing a 47.3 percent increase. Id. at 2. The Company has
submitted proposed Schedule Numbers 1, 2, and 3 setting forth the proposed changes to be made
to customers rates. Attachment 1 to Application. The Company represents the average customer
bill for each customer type would change as follows:
NOTICE OF APPLICATION
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 35806 2

Customer Notice in Attachment 4 of Application; Application at 2.
YOU ARE FURTHER NOTIFIED that the Company represents that the proposed rate of
return under the revised rates and charges will be 7.71 percent. Application at 2.
YOU ARE FURTHER NOTIFIED that the Company represents that the revenue realized
under its presently authorized rates produces a rate of return of approximately -0.67 percent based
on an adjusted test year ending December 31, 2022. Id. Falls Water states that it seeks additional
revenues to recover increased operating expenses and costs associated with plant additions, and to
produce a fair rate of return. Id.
YOU ARE FURTHER NOTIFIED that the Company proposes to “consolidate the rates
for former Morning View and Taylor Mountain system customers into a single ratemaking area”
and would replace the Company’s current Schedule Numbers 4, 5, 6, and 7. Application at 3;
Attachments 1-2 to Application.

NOTICE OF APPLICATION
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 35806 3
YOU ARE FURTHER NOTIFIED that the Company proposes to “increase tiered rates for
three different usage bands” and have a “separate rate for secondary irrigation systems.”
Application at 3.
YOU ARE FURTHER NOTIFIED that Falls Water represents that notice to its customers
is being accomplished by news media releases simultaneously with the filing of this Application
and by an individual notice mailed to each customer, that copies of the press release and customer
notice are attached to its Application; and that a copy of the Application and proposed rate
schedules are available for public inspection at the Company’s office at 2180 North Deborah
Drive, Idaho Falls, Idaho, at any time during office hours.
YOU ARE FURTHER NOTIFIED that the Application and supporting documentation
have been filed with the Commission and are available for public inspection during regular
business hours at the Commission’s office. These documents are also available on the
Commission’s website at www.puc.idaho.gov. Click on the “WATER” icon, select “Open Cases,”
and click on the case number as shown on the front of this document.
YOU ARE FURTHER NOTIFIED that the Commission has designated this case as a
general rate case. As such, the Company’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. IDAPA 31.01.01.124.01.
YOU ARE FURTHER NOTIFIED that all of the Company’s retail rates and charges, both
recurring and non-recurring, including those of 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. IDAPA 31.01.01.124.02.
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 and may approve, reject, or modify existing or proposed
relationships among and between customer classes or rate groupings. Id.
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
NOTICE OF APPLICATION
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 35806 4
charges; abolish, reduce, or create customer classes or rate groupings; and abolish, reduce, or create
absolute or relative differences among and between existing classes or rate groupings of customers.
Id.
YOU ARE FURTHER NOTIFIED that the tariffs, practices, rules and regulations, service,
instrumentalities, equipment, facilities, classifications, and customer relations of the utility are at
issue, and the Commission may address any of them in its order. Id.
YOU ARE FURTHER NOTIFIED that the Commission has jurisdiction over Falls Water,
its filing, and the issues pertaining to this case pursuant to Title 61 of the Idaho Code and
specifically Idaho Code §§ 61-501, -502, -507, -520, -523, and -622.
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.
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
YOU ARE FURTHER NOTIFIED that Falls Water filed its corrected Application on May
15, 2023, 2022, and proposed a July 1, 2023, effective date. The Commission finds that Falls
Water’s proposed effective date does not provide adequate time for Commission Staff and
interested persons to evaluate the Company’s proposal. Pursuant to Idaho Code § 61-622, the
Commission suspends the proposed changes for five (5) months or until the Commission enters an
order accepting, rejecting, or modifying the proposed rate increases.
NOTICE OF INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this matter to
obtain parties’ rights of participation must file a Petition to Intervene with the Commission
pursuant to this Commission's Rules of Procedure 71-73, IDAPA 31.01.01.072-073. Persons who
wish to intervene as a party must file a Petition to Intervene no later than 21 days after the
date of service of this Order. Persons desiring to present their views without parties’ rights of
participation do not have to intervene and may present their comments without prior notification
to the Commission or the parties.
YOU ARE FURTHER NOTIFIED that the Commission Secretary shall issue a Notice of
Parties after the deadline for intervention has passed. The Notice of Parties shall assign exhibit
numbers to each party in this proceeding.
NOTICE OF APPLICATION
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 35806 5
YOU ARE FURTHER NOTIFIED that once the Notice of Parties is issued, Commission
Staff will informally confer with the parties to discuss a schedule to process this case and other
issues as may be raised by the parties.
YOU ARE FURTHER NOTIFIED that the following persons are designated as the
Company’s representatives in this matter:
Preston N. Carter
Morgan D. Goodin
Givens Pursley LLP
601 W. Bannock St.
Boise, ID 83702
[e-mail]
[e-mail]
[e-mail]

K. Scott Bruce
Falls Water Co., Inc.
2180 North Deborah Drive
Idaho Falls, ID 83401
[e-mail]

Eric W. Nelsen
Senior Regulatory Attorney
NW Natural
250 SW Taylor St.
Portland, OR 97204
[e-mail]

ORDER
IT IS HEREBY ORDERED that the July 1, 2023, effective date that Falls Water proposes
for its rate increases is suspended for five (5) months or until the Commission enters an earlier
order accepting, rejecting, or modifying the proposed rate increases.
IT IS FURTHER ORDERED that persons desiring to intervene in this case for the purpose
of obtaining parties’ rights of participation must file a Petition to Intervene with the Commission,
under Rules 71-73, IDAPA 31.01.01.071-073, no later than 21 days after the service date of this
Order.
IT IS FURTHER ORDERED that, after the Secretary issues a Notice of Parties, Staff will
informally confer with the parties to discuss the appropriate scheduling of this case.
IT IS FURTHER ORDERED that parties comply with Order No. 35375, issued April 21,
2022. Generally, all pleadings should be filed with the Commission electronically and will be
deemed timely filed when received by the Commission Secretary. See Rule 14.02. Service between
parties should continue to be accomplished electronically when possible. However, voluminous
discovery-related documents may be filed and served on CD-ROM or a USB flash drive.
NOTICE OF APPLICATION
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
NOTICE OF INTERVENTION DEADLINE
ORDER NO. 35806 6
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 5th day of
June 2023.

__________________________________________
ERIC ANDERSON, PRESIDENT

__________________________________________
JOHN R. HAMMOND JR., COMMISSIONER

__________________________________________
EDWARD LODGE, COMMISSIONER

ATTEST:

____________________________________
Jan Noriyuki
Commission Secretary

I:\Legal\WATER\FLS-W-23-01\orders\FLSW2301_Ntc_App_Int_Susp_cs.docx