Website:
www.puc.idaho.gov
Commission
approves rate increase for Capitol Water customers
The
Idaho Public Utilities Commission today approved an average 31.3 percent rate
increase for customers of Capitol Water Corp. of Boise. The company serves
about 2,875 households in the west bench area. The new rates are effective Jan.
1, 2007.
Capitol Water said the increase is necessary to implement capital improvements such as well and customer service line replacements. Capitol originally sought an effective date of Aug. 1, but the commission suspended that date to allow time for commission staff to audit general ledger accounts and supporting vouchers and invoices and verify physical plant and property. Staff also conducted a public workshop and solicited written comments.
The
rate increase adds $148,908 to annual revenues for a total annual revenue
requirement of $624,713. The revenue requirement includes an authorized 12
percent rate of return on equity.
For
the majority of customers who are not on meters, the monthly flat rate
increases from $8.65 to $10.57 for customers on a ¾” pipe. Monthly rates
gradually increase for customers with a larger pipeline capacity. For metered
customers, the increase on the minimum monthly charge is from $5.54 to $7.70
for use up to about 5,200 gallons. The rate gradually increases for consumption
beyond that point.
The
commission decided against requiring that all customers be metered. The cost to
install meters could be as high as $1.5 million resulting in a 35 percent or
greater impact on customer rates. After consulting with the Idaho Department of
Water Resources, commission staff concluded that while consumption by the
company is significantly higher on an annual basis than surrounding water
companies, it does not adversely impact the aquifer.
The
commission denied the company’s request to extend the summer billing period by
one month to include April. The current summer billing period is May through
September. The commission said including April in the higher summer rates would
not be consistent with other water companies in the area. The company’s power
consumption and energy use did not demonstrate that April’s use was comparable
to that from May to September. In fact, the company’s water use is
substantially less during April than in the summer months.
The
commission made some other minor adjustments to the company’s revenue
requirement in relation to the company’s use of vehicles and its water testing
expenses. Existing surcharges for power and chemical expenses were ordered to
be included in base rates rather than in surcharges.
A full text of the
commission’s order, along with other documents related to this case, are
available on the commission’s Web site at www.puc.idaho.gov.
Click on “File Room” and then on “Water Cases” and scroll down to CAP-W-06-01.
Interested parties may petition the commission for reconsideration by no later
than Jan. 3, 2007. Petitions for reconsideration must set forth specifically
why the petitioner contends that the order is unreasonable, unlawful or
erroneous. Petitions should include a statement of the nature and quantity of
evidence the petitioner will offer if reconsideration is granted.
Petitions can be delivered
to the commission at 472 W. Washington St. in Boise, mailed to P.O. Box 83720,
Boise, ID, 83720-0074, or faxed to 208-334-3762.