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HomeMy WebLinkAbout20051121_1395.pdfDECISION MEMORANDUM TO:COMMISSIONER KJELLANDER COMMISSIONER SMITH COMMISSIONER HANSEN COMMISSION SECRETARY COMMISSION STAFF LEGAL FROM:SCOTT WOODBURY DATE:NOVEMBER 17, 2005 SUBJECT:CASE NO. FLS-05-1 (Falls Water) APPLICATION TO INCREASE RATES AND CHARGES On November 4, 2005 , Falls Water Company, Inc. (Falls Water; Company) filed an Application with the Idaho Public Utilities Commission (Commission) requesting authority to increase its revenue requirement by $258,363 (48.2%). The Company also submitted proposed changes in base rates and commodity charges for water service. Falls Water is an Idaho not-for- profit corporation and holder of Certificate of Public Convenience and Necessity No. 236. Falls Water provides water service in the Idaho Falls area to approximately 2 147 metered residential customers, 49 multi-family residential customers, 41 metered commercial customers, and 583 flat rate residential customers. The Company maintains that an increase in rates is needed to keep up with the increasing costs of operations and maintenance and to replace its aging infrastructure. Falls Water is seeking a reduction in the amount of water included in the minimum billing charge, and proposes to create a summer and winter rate schedule for metered residential customers.The Company proposes a new metered residential tariff for customers in subdivisions that were allowed to connect to Falls Water on condition that the Company would only provide potable domestic in-house water. Also proposed by the Company is a planned phase-out of its flat rate and a field collection fee for past due balances The changes in rates and charges proposed by the Company are as follows: DECISION MEMORANDUM Schedule Description Existinl!Proposed Existing: Residential $11.50/month minimum Summer Apr. -Oct. Metered Service $12.75/billing cycle $O.4l1thousand gallons for mInImUm Proposed: Residential all water used in excess of Metered Service for 000 gallons/month $0.85/thousand gallons customers not living in for all water used in developments required to excess of 8 000 use secondary irrigation gallons/billing cycle Winter Nov.March $15.50/billing cycle minImUm $0.85/thousand gallons for all water used in excess of 15 000 gallons/billing cycle Residential Flat Rate $17.50/month $19.25/month Service Residential Multi-Family $11.50/month minimum $12.7 5/billing cycle mInImUm $O.4l1thousand gallons for all water used in excess of $0.85/thousand gallons 000 gallons/month for all water used in excess of 8 000 gallons/billing cycle Metered Residential with $12.75/billing cycle Secondary Irrigation minimum $2.50/thousand gallons for all water used in excess of 8 000 gallons/billing cycle Metered Commercial $11.50/month minimum $12.75/billing cycle Service mInImum $O.4l1thousand gallons for all water used in excess of $0.85/thousand gallons 000 gallons/month for all water used in excess of 8 000 gallons/billing cycle Schedule Field Collection Fee (of $15. past due balance) DECISION MEMORANDUM If the proposed changes in rates are approved, the average annual rates for metered residential customers would increase from $179.49 to $295., an increase of$116.06 or 64.7%. The average annual rates for metered commercial customers would increase from $323.46 to $569., an increase of $246.29 or 76.1 %. Annual rates for non-metered residential customers would increase from $210 to $231 , an increase of $21.00 or 10%. Annual rates for multi-family residential customers would increase from $181.64 to $344., an increase of$163.18 or 89.8%. The Company requests an effective date of April 15, 2006. COMMISSION DECISION Staff recommends that the Commission issue a Notice of Application in Case FLS- W -05-1 and establish a deadline for intervention. Staff will recommend further procedure and scheduling after its initial review and audit of the Company s operations and records. Does the Commission agree with the Staffs proposed procedure? Scott D. Woodbury bls/M:FLS-OS-OI sw DECISION MEMORANDUM