20231107Notice_Settlement_Customer_Hearing_Comment_Deadline_Order_No_35988.pdf

NOTICE OF PROPOSED SETTLEMENT
NOTICE OF CUSTOMER HEARING
NOTICE OF COMMENT DEADLINES
ORDER NO. 35988 1
Office of the Secretary
Service Date
November 7, 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 PROPOSED
SETTLEMENT

NOTICE OF CUSTOMER
HEARING

NOTICE OF COMMENT
DEADLINES

ORDER NO. 35988

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 Application on May 15, 2023 (“Application”). The Company
requested to increase rates by about $1.15 million—an approximate 47.3 percent increase in revenue
collected. The Company requested a July 1, 2023, effective date.
On June 5, 2023, the Commission issued a Notice of Application, Notice of Suspension of
Proposed Effective Date, and Notice of Intervention Deadline.1 Order No. 35806.
On August 2, 2023, the Commission issued a Notice of Modified Procedure and scheduled a
virtual public workshop. Order No. 35872.
On September 7, 2023, the Commission scheduled a customer hearing for October 23, 2023.
Order No. 35914.
On October 13, 2023, the Commission issued a Notice of Amended Comment Deadline
moving the public comment deadline to October 26, 2023. Order No 35960.
On October 20, 2023, the Commission issued a Notice of Vacated Customer Hearing and a
Notice of Continued Suspension changing the suspended effective date until December 15, 2023, and
vacating the established customer hearing until a later one can be scheduled. Order No. 35963.
On October 27, 2023, the Company filed a Stipulation and Settlement (“Proposed
Settlement”) and Motion to Approve Stipulation and Settlement. The Proposed Settlement was signed
by Staff and the Company (collectively, the “Parties”)—the only parties in the case.

1 Order No. 35806 suspended the Company’s proposed effective date for five months opposed to the standard 30 days
plus five months as allowed under Idaho Code § 61-622(4).
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF CUSTOMER HEARING
NOTICE OF COMMENT DEADLINES
ORDER NO. 35988 2
On October 30, 2023, the Commission issued an Order vacating the public comment and
Company reply deadlines. Order No. 35975.
We now issue this Order noticing the proposed settlement, a customer hearing, and establish
public comment and Company reply deadlines.
NOTICE OF PROPOSED SETTLEMENT
YOU ARE HEREBY NOTIFIED that the Parties agree that the Company should be allowed
to recover $3,199,665 in total revenue requirement (the “Revenue Requirement”). This is an increase
of approximately $714,562, or approximately 28.8% if approved by the Commission. The Parties
agree that the Revenue Requirement includes a total rate base of $9,589,322 and a Return on Equity
(“ROE”) of 9.7%.
YOU ARE FURTHER NOTIFIED that the Parties agreed to the following adjustments to
determine the Revenue Requirement2 for the Proposed Settlement:
Adjustment
Revenue
Requirement
Impact ($)
Company Initial Application 1,174,356
a. Gross Revenue Multiplier (17,397)
b. Change Interest on Debt (34,464)
c. Change ROE to 9.7% (37,944)
d. Water Assessment to Actuals (64,268)
e. Water Mitigation Amortization (34,517)
f, Rate Case Amortization to 3 Years (31,746)
g, Amortization Expense Reclass (2,234)
h. Update Depreciation Rates (75,637)
i. Proforma Plant in Service Removal (90,692)
j. Proforma Plant Accumulated Depreciation 2,379
k. Proforma Depreciation Expense (16,933)
l. Proforma Plant to Actual Cost 1,173
m. Restricted Stock Unit Benefit (29,437)
n. Employee Bonuses (11,071)
o. Actual 401k Expense (4,876)
p. Seasonal Employee (9,754)
q. Normalize Purchase Power (2,376)
Agreed Revenue Requirement 714,562

2 These adjustments are discussed in further detail on pages 3-6 of the Proposed Settlement.
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF CUSTOMER HEARING
NOTICE OF COMMENT DEADLINES
ORDER NO. 35988 3
YOU ARE FURTHER NOTIFIED that the Parties agreed the Company will update its
depreciation rates (adjustment h) and included a table with the new depreciation rates in the Proposed
Settlement.
YOU ARE FURTHER NOTIFIED that the Parties agreed to rate design wherein the basic
charges for the Taylor Mountain and Falls Water systems will be consolidated by meter size, and
basic charges for the Morning View water system will be separated by acre size regardless of meter
size. Taylor Mountain and Falls Water basic charges increased 20 percent from Falls Water current
basic charges and Morning View’s basic charges reduced $5 for each lot size. The rate design is
included as Exhibit No. 3 to the Proposed Settlement. The Parties also agreed to move towards
consolidation of the three water systems, each system will have the same volumetric rates of $0.64
and $1.439 per 1,000 gallons for second and third block allotted usage, respectively. All systems will
share a three-block tier structure.
YOU ARE FURTHER NOTIFIED that the Parties agreed to include the Equal Pay Plan option
which will allow customers to “flatten” their bills by using an estimate of annual consumption spread
over the following year to create levelized payments.
YOU ARE FURTHER NOTIFIED that the Parties agree that the Company will provide
facility plans for the Morning View and Taylor Mountain systems to Commission Staff by February
1, 2024.
YOU ARE FURTHER NOTIFIED that the Parties agree that the Company will develop plans
to identify root causes of water losses and related mitigation measures to address them and provide
them to Commission Staff, no later than June 1, 2024.
YOU ARE FURTHER NOTIFIED that the Parties agree that the Company will develop
plans to implement a meter accuracy testing program and provide them to Commission Staff, no
later than June 1, 2024.
YOU ARE FURTHER NOTIFIED that the Parties believe that the Proposed Settlement
represents a fair, just, and reasonable compromise of the positions of the Parties in this case, and that
the Proposed Settlement is in the public interest.
YOU ARE FURTHER NOTIFIED that under Commission Rule 275, “[p]roponents of a
proposed settlement carry the burden of showing that the settlement is reasonable, in the public
interest, or otherwise in accordance with law or regulatory policy.” IDAPA 31.01.01.275.
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF CUSTOMER HEARING
NOTICE OF COMMENT DEADLINES
ORDER NO. 35988 4
YOU ARE FURTHER NOTIFIED that the Commission is not bound by the Proposed
Settlement reached by the Parties. The Commission will independently review any proposed
settlement to determine whether the settlement is just, fair, and reasonable, and in the public interest,
or otherwise in accordance with law or regulatory policy. The Commission may accept a settlement,
reject a settlement, or state additional conditions under which a settlement will be accepted. IDAPA
31.01.01.274-.276.
YOU ARE FURTHER NOTIFIED that if the Commission rejects any part or all of the
Proposed Settlement or imposes any additional material conditions on its approval, each Party
reserves the right to withdraw from the Proposed Settlement within fourteen (14) days of such order.
YOU ARE FURTHER NOTIFIED that the Proposed Settlement in Case. No. FLS-W-23-01
is available for public inspection during regular business hours at the Commission’s office or on the
Commission’s website at www.puc.idaho.gov. Click on the “WATER” tab in the left-hand column
of the home page, click “Open Cases,” and select the case number as shown on the front of this
document.
NOTICE OF CUSTOMER HEARING
YOU ARE FURTHER NOTIFIED that the Commission will hold a customer hearing in this
matter in Idaho Falls, Idaho, on MONDAY, NOVEMBER 27, 2023, starting at 11:00 a.m. and
ending at 1:00 p.m. (local time), or after all customer testimony has been taken, whichever
comes first. The Commission, in its discretion, may adjust the scheduled times as necessary. The
customer hearing will be held at the Idaho Falls Elks Lodge 640 E. Elva Street, Idaho Falls, ID
83401. Persons attending the hearing in-person will have an opportunity to provide testimony.
Persons may also listen to the live testimony and proceedings at the hearing by calling 1-415-655-
0001, and then entering code 2633 827 9150 when prompted. However, persons will not be able to
provide testimony by phone.
YOU ARE FURTHER NOTIFIED that the customer hearing in this matter will be held in a
facility meeting the accessibility requirements of the Americans with Disabilities Act (“ADA”).
Persons needing the help of a sign language interpreter or other assistance to participate in or to
understand testimony and argument at a public hearing may ask the Commission to provide a sign
language interpreter or other assistance at the hearing. The request for assistance must be received at
least five (5) working days before the hearing by contacting the Commission Secretary at:

NOTICE OF PROPOSED SETTLEMENT
NOTICE OF CUSTOMER HEARING
NOTICE OF COMMENT DEADLINES
ORDER NO. 35988 5
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
Telephone: [phone]
Facsimile: [phone]
Email: [e-mail]

NOTICE OF COMMENT DEADLINES
YOU ARE FURTHER NOTIFIED that the Commission seeks comments from the public on
the Proposed Settlement. Persons desiring to state a position on the Proposed Settlement may file a
written comment explaining why the person supports or opposes the Proposed Settlement. Persons
must file comments by November 15, 2023. Comments must be filed through the Commission’s
website or by e-mail unless computer access is unavailable. To comment electronically, please access
the Commission’s home page at www.puc.idaho.gov. Click the “Case Comment Form” and complete
the form using the case number as it appears on the front of this document.
YOU ARE FURTHER NOTIFIED that to file by e-mail, persons must e-mail the comments
to the Commission Secretary and the Company at the e-mail addresses listed below. Persons
submitting a comment by e-mail must provide their name, address, and the Case Number under which
they are commenting. Persons submitting a comment by e-mail also acknowledge that submitting a
comment in an open case constitutes a public record under Idaho Code § 74-101 (13), and all
information provided by such person is available for public and media inspection.
YOU ARE FURTHER NOTIFIED that if computer access is unavailable, then comments may
be mailed to the Commission and Company at the addresses below. Persons submitting a comment
by mail must provide their name, address, and the Case Number under which they are commenting.
Persons submitting a comment by mail also acknowledge that submitting a comment in an open case
constitutes a public record under Idaho Code § 74-101 (13), and all information provided by such
person is available for public and media inspection.
NOTICE OF PROPOSED SETTLEMENT
NOTICE OF CUSTOMER HEARING
NOTICE OF COMMENT DEADLINES
ORDER NO. 35988 6
For the Commission:

Commission Secretary
Idaho Public Utilities Commission
P.O. Box 83720
Boise, ID 83720-0074
[e-mail]

Street Address for Express Mail:

11331 W. Chinden Blvd.
Building 8, Suite 201-A
Boise, ID 83714
For the Company:

Preston N. Carter
Morgan D. Goodin
Givens Pursley LLP
601 W. Bannock St.
Boise, ID 83702
[e-mail]
[e-mail]
[e-mail]

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

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

YOU ARE FURTHER NOTIFIED that the Company must file any reply comments by
November 22, 2023.
ORDER
IT IS HEREBY ORDERED that the Commission shall hold a customer hearing in Idaho Falls,
Idaho, on MONDAY, NOVEMBER 27, 2023, starting at 11:00 a.m. and ending at 1:00 p.m. (local
time), or after all customer testimony has been taken, whichever comes first.
IT IS FURTHER ORDERED that persons desiring to submit public written comments must
do so by November 15, 2023. The Company must file any reply comments by November 22, 2023.
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. 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 PROPOSED SETTLEMENT
NOTICE OF CUSTOMER HEARING
NOTICE OF COMMENT DEADLINES
ORDER NO. 35988 7

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 7th day of
November 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 Sett Cmts_dh.docx