Idaho Public Utilities Commission

Case No. TRH-W-10-01

December 2, 2010

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

Website: www.puc.idaho.gov

PUC to conduct telephonic hearing for Troy Hoffman Water customers

The approximate 150 customers of Troy Hoffman Water Corporation will be able to phone in testimony to the three commissioners who will decide the water company’s request for a rate increase.

The telephonic hearing begins at 7 p.m. Pacific Standard Time on Thursday, Dec. 9. Customers can call toll-free 1-800-920-7487. Customers will be asked to enter a participant code, which is 76373262.

The water utility, which serves customers in Coeur d’Alene, is seeking commission approval to increase rates from a monthly basic charge of $5.50 to $13.31 for up to 3,000 gallons of use. For consumption in excess of 3,000 gallons, the company proposes an increase to $1.45 for every 1,000 gallons, up from the current charge of 60 cents. For commercial customers, the proposed increase in the basic charge is from $7.50 per month to $18.15 for the first 3,000 gallons. For use in excess of 3,000 gallons the proposed increase is also from 60 cents to $1.45 for every 1,000 gallons.

The commission suspended the effective date of the company’s June 7 request for up to six months to allow it time to review the application.

Concluding its investigation, commission staff is proposing a monthly basic charge of $11.52, compared to the company’s proposal of $13.31. Commission staff proposes a commodity charge of $1.05 for each 1,000 gallons in excess of 5,000 gallons. The company proposes a commodity charge of $1.45 for every thousand gallons in excess of 3,000 gallons. For commercial customers, staff proposes $15.50 per month for the first 5,000 gallons and $1.05 for every thousand gallons above that.

Troy Hoffman is requesting an increase of $58,413 to its annual revenue. Commission staff is proposing $40,931. The commission is seeking to recover $51,300 in expenses, while commission staff proposes $34,944.

Commission staff also proposes that the company test the accuracy of its production flow meter and at least 10 percent of its meters within one year of the final order in this case. Further, staff proposes that the company review and update all its notices, bills and other documents to be consistent with the commission’s rules and regulations.

The commission staff operates separately from the three commissioners who will decide the case. The commissioners may accept, modify or reject proposals from both the company and staff.

The company states it is necessary to raise rates due to increased operating expenses along with costs incurred from needed repairs and replacement of the main pump in 2009. This is the company’s first rate increase request in 14 years.

To listen in or to testify, customers may dial toll-free 1-800-920-7487. You will be asked to enter a “participant code,” with is 76373262. Participants are asked to place their calls within 10 minutes before the start of the 7 p.m. hearing although calls will be accepted after the hearing begins. The process will then continue as follows:

• After dialing the number and entering the participant code, customers are welcomed into the meeting and may listen to the entire hearing. The phones of all those listening will be muted except for the person testifying.
• If you would like to testify, press *1 (star one) on the phone key pad at any time and you will be placed in a queue of those wanting to testify. When it is your turn to testify, a prompt will say, “Ask your question.” At that time, you will be sworn in by a commissioner, asked to state your name and address, and then be able to offer your testimony.
• If, after indicating you want to testify you decide against testifying, push the # (pound) key and you will be taken out of the queue.
• Those providing testimony are asked to eliminate any background noise (TV, radio, etc.)
• At the conclusion of your testimony you may be asked questions.

Troy Hoffman’s application is available for review 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. TRW-W-10-01.