Idaho Public Utilities Commission

Case No. EAG-W-07-01, Order No. 30605

August 8, 2008

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

Eagle Water seeks continuation of surcharge

The Idaho Public Utilities Commission is taking public comment through Aug. 21 on an application by Eagle Water Company to continue a surcharge on customers in order to collect $201,434 in professional engineering and legal fees.

Eagle Water Company, which serves about 3,000 residential customers and 415 business customers, is not the same as the City of Eagle Water, a municipal water system.

The surcharge, first implemented after a commission order in October 2005, increases customers’ commodity charge from 45 cents for every 100 cubic-feet of water used beyond 600 cubic-feet (about 4,500 gallons) to 64.2 cents. The monthly customer charge of $7.84 for the first 600 cubic-feet would remain.

Acceptance of the company’s application would not increase current rates, but would make the current surcharge last longer.

The surcharge was initially implemented to collect $112,414 in legal and engineering fees related to an engineering report ordered by the commission in 2005 to address chronic low-pressure problems in the Eagle Water system and to project water supply needs for the future.

In this application, the company asserts that the cost of preparing the engineering report greatly exceeded the amount authorized by the commission. Eagle Water seeks to recover an additional $201,434. In its comments, commission staff recommends allowing the company to collect $144,397, instead of $201,434. The company was also allowed to access the existing surcharge account to pay for a $110,000 bank loan conditioned on a future review by the commission to determine the reasonableness of the expenses associated with the loan. After completion of this proceeding, the company is expected to file a new application seeking to recover expenses for the cost of two new wells, a booster pump and the costs of interconnecting with the City of Eagle. Through June 30, the surcharge had collected $304,000.

Comments are accepted via e-mail by accessing the commission’s homepage at www.puc.idaho.gov and clicking on "Comments & Questions." Fill in the case number (EAG-W-07-01) and enter your comments. Comments can also be mailed to P.O. Box 83720, Boise, ID 83720-0074 or faxed to (208) 334-3762.

A full text of the commission’s notice, along with the company’s documents and staff comments, is 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 the above case number.