20170413Customer Notice.pdf

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'iil ,':',- i3 Fi'i Lr: 02Grouse Point Water Company,LLc
PO Box 9906
Boise, lD 83707
CUSTOMER NOTICE
4/t/2017
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To Customers of Grouse Point Water Company, LLC
An Application has been filed with the Idaho Public Utilities Commission (IPUC) for approval
of changes in rates and charges for residential water use effective April 15, 2017. The
Application is a proposal subject to review, public comment and a decision by the IPUC, which
may accept, modify or reject in whole or in part the proposed increase.
Currently, the base rate is $22.00 per month plus $0.50 per 1,000 Gal consumptive charge for all
consumption in excess of 8,000 Gal per month.
On average, Grouse Point Water Company (the Company) has collected approximately 40Yo of
the revenue requirement to offset basic operation and maintenance expenses of the system during
the four year period of 2012-2015. In addition, the Company did not file for rate recovery of
significant capital improvements totaling $l19,018 in 2009 and $8,423 in 2013. The Company has
been collecting insufficient revenue to offset its basic operational and maintenance expenses since
2003. In its Application, the Company is requesting $17,010 to fully recover annual operation and
maintenance expenses of the system. During the period of 2012 -2015, the Company collected
approximately $6,842 of metered annual revenue on average, which is significantly less than
Company expenses of approximately $17,010 in basic operation and maintenance during the same
period.
As part of this fiIing, the Company will apply for capital rate base additions to the water system
that were constructed as part of the 2009 and 2013 projects. The 2009 capital improvement projects
were associated with construction of a new well and associated mechanical piping and pumping
equipment. These projects were required to replace an existing well that supplied water to the
customers with water quality in excess of EPA's uranium primary drinking water standard. In lieu
of providing water treatment at the existing well, a new well was constructed into a unique aquifer
zone that produced water in compliance with primary drinking standards. The 2009 capital
improvement project was completed to replace a failing well pump.
Both capital improvement projects were required to meet regulatory and system operational issues.
Total project costs of the 2009 and 2013 projects were $127,441. In its Application, Grouse Point
is requesting rate base additions in the amount of $96,930 which is the total cost of construction
minus accumulated depreciation. Annual depreciation expense associated with the net rate base is
calculated at $4,599. Additionally, a l2o/o return on net rate base equating to $l1,632 annually is
being proposed. The Company has estimated the total revenue requirement for the water systems is
approximately $36,997. The revenue requirement request includes annual operation and
maintenance expenses, depreciation expense, a return on rate base and the cost of filing the
Application.
In its Application, the Company is requesting that the base rate be increased by 4l8o/o from $22.00
per month to $l13.86 per month, plus increasing the rate block structure for consumptive charges
to the following:
Block 1: From $0.50 per 1,000 gallons of use to $1.83 per 1,000 Gal consumptive charge for all
consumption less than or equal to 8,000 Gal per month, a2660/o increase.
Block 2: From $0.50 per 1,000 gallons of use to $5.00 per 1,000 Gal consumptive charge for all
consumption greater than 8,000 Gal per month, a 900Yo increase.
The proposed increase in base rate along with the new proposed block structure are subject to
review, public comment and a decisions by the IPUC, which may accept, modify or reject in
whole or in part the proposed increase. On behalf of Grouse Point Water Company, Mountain
Waterworks (the Company's Engineer) has a complete copy of the proposal on file and
available for review at the Mountain Waterworks' business office located at I I 16 W. River St
Suite 130, Boise, Idaho. A copy is also posted on the Idaho Public Utilities Commission's
website at www.puc.idaho.gov . Anyone may subscribe to the Commission's RSS feed to
receive periodic updates via email about the case.
Written comments may also be submitted to the Idaho Public Utilities Commission on its website
by going to the "Consumers" section and using the link to the "Case Comment Form" or by letter
sent to the Commission mailing address below. The assigned case number, GPW-W-17-01, should
be identified in all correspondence with the Idaho Public Utilities Commission.
Grouse Point Water Company,LLC
PO Box 9906
Boise, ID 83707
Phone: [phone]
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Idaho Public Utilities Commission
PO Box 83720
Boise, lD 83720-0074
Phone: [phone]
Phone: [phone]