Idaho Public Utilities Commission

Case No. EAG-W-09-01, Order No. 30878

August 14, 2009

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

PUC to conduct workshop regarding Eagle Water surcharge

Staff from the Idaho Public Utilities Commission will be conducting a public workshop on Wednesday, Aug. 26, at 7 p.m. at Eagle City Hall to allow customer input regarding a surcharge currently assessed customers of Eagle Water Company.

Eagle Water Co. serves about 3,000 residential customers and 415 business customers in Eagle and the surrounding area. It is not the same as the City of Eagle Water, a municipal water system.

Since Feb. 23, Eagle Water has assessed its customers a 48 percent surcharge on consumption of more than 600 cubic feet per month. The surcharge is intended to pay for $1.6 in capital improvements and expenses. When the commission granted the surcharge it said it would later review the expenses incurred to ensure they were reasonable and prudent. Amounts not found reasonable or prudent could be subject to refund.

The same order granting the surcharge said Eagle Water would also be able to secure a $995,500 loan from Idaho Banking Company. The company could use surcharge revenue to pay back the loan over seven years.

Surcharge expenses were to be used to construct two new wells, Wells No. 7 and No. 8, as well as a booster station. Well No. 7 is complete and Well No. 8 is still in progress, according to the company. Completion of Well No. 8 was intended to provide the company with enough back-up supply so that it will no longer need to pay the City of Eagle’s municipal water system $10,000 per month for providing back-up support during emergencies. The state Department of Environmental Quality placed Eagle Water Co. under a moratorium that prohibited the company from adding new customers until the system’s capacity was increased. The moratorium was lifted when Eagle Water entered into an agreement with the City of Eagle to provide back-up water in times of emergency.

The purpose of the workshop is to provide customers with an overview of the case and advise them how to participate in the review process. Customers will be able to ask questions of commission staff. Representatives of the company may also be available.

The workshop begins at 7 p.m. at Eagle City Hall, 660 East Civic Lane.