Idaho Public Utilities Commission

Case No. TTS-W-08-01, Order No. 30571

June 13, 2008

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

Website: www.puc.idaho.gov

 

Resort water company in Teton County issued certificate, seeks rate hike

 

The Idaho Public Utilities Commission has issued a certificate to a Teton County water company that serves nearly 300 customers within a resort development near Victor. When built out, the Teton Springs Water and Sewer Company could serve up to 581 single-family residential lots, 14 commercial lots and 143 residential multi-family units.

 

The commission suspended for up to six months a decision on the company’s request for a rate increase.

 

The Certificate of Public Convenience and Necessity issued to the company means that it is now a regulated utility under the commission’s jurisdiction. The commission will establish rates that allow the utility to recover its capital investment and its prudently incurred costs of doing business in addition to a rate of return, which is also established by the commission. In exchange for that guarantee, the utility promises to serve all the customers within its assigned territory with reliable service at just and reasonable rates.

 

Until new rates are established, the company will continue to charge its existing flat rate for the approximate 194 residential customers, 73 multi-family unit customers and five commercial customers.

 

The company is seeking commission approval to raise multi-family residential rates from $80 per quarter to $150 and commercial rates from $240 per quarter to $450. Single-family residential rates would actually decrease under the company’s proposal from $240 per quarter to $150, but the company wants to assess an “availability charge” of $75 per quarter to single-family residential lots and $225 per quarter to commercial lots. The availability charge would be assessed against inactive residential and commercial customers whose properties front an existing water main but who have not yet connected to the system.

 

The commission will later announce a public comment period on the proposed rates and may schedule workshops and hearings near the company’s service territory. June 27 is the deadline for parties wanting to file a petition to intervene in the case. Intervenors present evidence and have the right to cross-examine commission staff and other intervenors as well as to participate in settlement conferences.

 

Documents related to this case are available 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. TTS-W-08-01.