20230414Notice_of_Application_Order_No_35741.pdf

NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
ORDER NO. 35741 1
Office of the Secretary
Service Date
April 14, 2023
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF KOOTENAI HEIGHTS
WATER SYSYEMS’ APPLICATION FOR
AUTHORITY TO INCREASE ITS RATES
AND CHARGES FOR WATER SERVICE IN
THE STATE OF IDAHO
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CASE NO. KHW-W-23-01

NOTICE OF APPLICATION

NOTICE OF INTERVENTION
DEADLINE

NOTICE OF SUSPENSION OF
PROPOSED EFFECTIVE DATE

ORDER NO. 35741

On March 28, 2023, Kootenai Heights Water System (“Company”) applied for
authorization to increase its rates and charges for water service. The Company requested a May 1,
2023, effective date.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Company is a Commission-regulated water
corporation serving 11 residential customers in and around Kootenai in Bonner County, Idaho.
YOU ARE FURTHER NOTIFIED that the Company requested “a general 49.74%
increase in water rates” by increasing the “residential flat rate from $38.50 per month to $57.65
per month.” Application at 1.
YOU ARE FURTHER NOTIFIED the Company argued the rate increase “is justified to
cover expenses, such as, power, water testing, maintenance, and other expenses to maintain and
operate the water system, and to continue to provide safe and reliable water.” Id. The Company
stated it has not increased its rates since 2007.
YOU ARE FURTHER NOTIFIED the Company’s Application included a Rate Case
spreadsheet with Exhibits 1-4.1
YOU ARE FURTHER NOTIFIED that the Application and spreadsheet, containing
Exhibits 1-4, 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

1 The spreadsheet with supporting information and Exhibits 1-4 was filed separately on March 29, 2023.

NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
ORDER NO. 35741 2
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 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
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.
YOU ARE FURTHER NOTIFIED that the Commission has jurisdiction over the
Company, its filing, and the issues pertaining to this case pursuant to Title 61 of the Idaho Code.
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 APPLICATION
NOTICE OF INTERVENTION DEADLINE
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
ORDER NO. 35741 3

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 72 and 73, IDAPA 31.01.01.072 and
.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. Such persons shall also provide the Commission
Secretary with their email address to facilitate further communications. After the intervention
deadline runs, the Commission Secretary shall issue a Notice of Parties that identifies the parties
and assigns exhibit numbers to each party. Once the Notice of Parties has issued, Commission
Staff shall informally confer with the Company and any intervening parties about how to further
process this case and shall then report back to the Commission on a proposed case schedule.
YOU ARE FURTHER NOTIFIED that persons who would like to present their views
without parties’ rights of participation and cross-examination do not have to intervene but may
present their views by submitting written comments to the Commission.
YOU ARE FURTHER NOTIFIED that the following persons are designated as the
Company’s point of contact in this matter:
WATER SYSTEMS MGT., INC.
Jeff Cowley
Bob Hansen
67 Wild Horse Trail
Sandpoint, ID 83864
[e-mail]
[e-mail]

NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
The Company filed its Application on March 28, 2023, and proposed a May 1, 2023,
effective date. The Commission finds the Company’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 effective date for the proposed
changes for 30 days plus five months, or until the Commission issues a final order accepting,
rejecting, or modifying the Company’s proposed rate increase.

NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
ORDER NO. 35741 4
O R D E R
IT IS HEREBY 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,
complying with Rules 72 and 73, no later than 21 days from the service date of this Order.
IT IS FURTHER ORDERED that the May 1, 2023, effective date proposed by the
Company is suspended for 30 days plus five months, or until the Commission issues a final order
accepting, rejecting, or modifying the Company’s proposed rate increase.
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.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 14th day of
April 2023.

ERIC ANDERSON, PRESIDENT

JOHN R. HAMMOND JR., COMMISSIONER

EDWARD LODGE, COMMISSIONER
ATTEST:

________________________________
Jan Noriyuki
Commission Secretary

I:\Legal\WATER\KHW-W-23-01 rates\orders\KHWW2301_NtcApp_Int_Sus_md.docx