Idaho Public Utilities Commission

Case Nos. CAP-W-08-01 and CAP-W-08-02

Order Nos. 30690 and 30700

December 15, 2008

Contact: Gene Fadness (208) 334-0339, 890-2712

Capitol Water eliminates surcharge, but seeks rate increase

Customers of Capitol Water Company will notice the disappearance of a $3.55 per month surcharge on their bills, but, at the same time, the Boise-based company is seeking a rate increase to meet new expenses.

The company has about 2,560 residential customers and 150 commercial customers in an area bounded roughly by Northview Street north to Ustick Road and from North Maple Grove east to Curtis Road. The surcharge, in place since 2002, was to pay for $500,000 in improvements, including one well replacement and an upgrade to the company’s distribution system. For metered commercial customers the surcharge was about 26.6 percent. The company has collected enough to retire the debt.

However, Capitol Water is seeking a permanent rate increase of about 7.8 percent to recover costs related to the widening of Ustick Road, the failure of a pump and an increase in its electric rates.

The company claims is had to spend $102,000 to relocate distribution pipes, fire hydrants and customer service connections to accommodate the Ustick Road widening by the Ada County Highway District. In addition, the company seeks $11,235 to pay for a failure at a pump that is now back in service. Capitol Water is also asking the commission to let it put a mechanism in place that will allow it to increase its rates whenever increases in electric rates for Idaho Power are approved.

The company asked for a Jan. 1 effective date, but the commission suspended that for up to six months to allow time for further examination of the request.

The commission established a Dec. 23 deadline for those who would like to file Petitions to Intervene for the purpose of presenting evidence, cross-examining witnesses or participating in settlement discussions. Later, the commission will establish a comment period for customers and other interested parties and set dates for possible workshops or hearings.

The company’s application can be found on the commission’s Web site at www.puc.idaho.gov. Click on the water icon, then on “Open Water Cases,” and scroll down to Case No. CAP-W-08-02.