Idaho Public Utilities Commission

CAP-W-08-02, Order No. 30713

April 8, 2009

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

Rates increase 4.3 percent for Capitol Water customers

Rates for the approximate 2,700 Boise customers of Capitol Water Co. will increase by 4.3 percent effective May 1.

The company last November asked the Idaho Public Utilities Commission for a 7.8 percent increase.

Capitol Water 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.

Capitol Water asked for the increase to cover $102,000 in expenses to relocate distribution pipes, fire hydrants and customer service connections to accommodate the Ustick Road widening. The company also requested $11,235 to pay for the October 2008 failure of a pump and asked the commission to let it put a mechanism in place that would allow Capitol Water it to increase its rates whenever increases in electric rates for Idaho Power are approved.

The commission allowed recovery of expenses for the Ustick widening project and for the pump failure repairs, but denied the company’s request to increase rates when electric rates increase. The commission said the company’s electric rates did not increase as dramatically as claimed, actually dropping from 2005 to 2007 and slightly increasing in 2008.

The company last had a rate case in 2006. On Jan. 1 of this year, a customer surcharge of $3.55 per month was removed from customer bills. In place since 2002, the surcharge paid for $500,000 in improvements, including one well replacement and an upgrade to the company’s distribution system.