20080404Decision memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER REDFORD
CO MMISSI 0 NER SMITH
CO MMISSI 0 NER KEMPTON
COMMISSION SECRETARY
COMMISSION STAFF
FROM:SCOTT WOODBURY
DEPUTY ATTORNEY GENERAL
DATE:APRIL 3, 2008
SUBJECT:CASE NO. ISL-08-01 (Island Park Water)
GENERAL RATE CASE
On March 26, 2008, Island Park Water Company, Inc. (Island Park; Company) filed an
Application with the Idaho Public Utilities Commission (Commission) requesting a 224% increase in
rates , from $125 per year to $280 per year. Island Park is a regulated water utility operating under
Certificate of Public Convenience and Necessity No. 317. The service area of Island Park is comprised of
seven separate water systems located in Fremont County, Idaho. The Company currently has 310
customers. The Company s billing cycle is annual, from June 1 to May 31 each year.
Island Park contends that an increase in rates is necessary to meet increased operating
expenses, including the higher cost of electricity, lab fees for testing water, labor and materials for repairs
and maintenance to the pumps and water lines. The Company s existing rates were established in July
1992.
COMMISSION DECISION
Island Park Water Company has filed an Application for a general rate increase. No effective
date was requested. Staff requires time to investigate and audit the Company s water system and records.
Staff at this time recommends only that the Commission issue a Notice of Application. Staff intends to
hold a public workshop for customers and will make a recommendation regarding scheduling dates and
further procedure as its investigation proceeds. Does the Commission agree with Staffs recommended
procedure?
Scott D. Woodbury
Deputy Attorney General
bls!M:ISL-O8-01 sw