Website: www.puc.idaho.gov
Commission denies United Water monthly billing
The Idaho Public Utilities Commission is rejecting a request by
United Water Idaho, Inc. to convert from bi-monthly to monthly billing and
charge residential customers about $1.15 per month to do so.
Even though commission staff and an organization representing
low-income customers endorsed the plan, the commission said a barrage of about
340 comments from the company's customers was a factor in persuading the
commission to reject the plan.
"It is clear United Water's customers fail to see a benefit,
at least one sufficient to justify the increased cost," the commission
said. "The commission rarely receives as many customer comments as it did
in the case." Further, the commission said, it did not receive
quantifiable evidence that there are conservation benefits to monthly billing.
United Water serves about 215,000 customers in the Boise
metropolitan area. Last September the company sought commission approval to
convert to monthly billings for four reasons: 1) a monthly bill is easier for
customers to pay, especially during summer when consumption is highest, 2)
monthly billing can enhance water conservation because customers would receive
four, rather than two, bills during the summer months of high use which allows
them to more quickly make adjustments, 3) monthly billing reduces the incidents
of high-bill complaints and 4) monthly billing would double the number of
visits to customers' properties by meter readers, enabling quicker detection
and troubleshooting of leaks or meter problems.
United Water estimated the additional annual cost to convert to
monthly billing would be about $1.12 million, including the cost of new
personnel for meter reading, preparation and mailing of bills on a more
frequent basis and increased processing and administrative expenses. United
Water proposed an increase of 3.75 percent in rates or about $1.15 per month
per household. Later, after discussions with commission staff, United Water
agreed to lower that increase to 2.95 percent and seek recovery of the
remaining amount in the company’s next rate case.
Commission staff as well as the Community Action Partnership of
Idaho (CAPAI) said the monthly billing would help households make their
payments and alter their consumption habits more quickly. But the vast majority
of written comments received from the company's customers said the bi-monthly
billing cycle works well enough for them and that rates are already high enough
to send a conservation signal.
The commission said it appreciated the effort United Water put
into its application, but customers overwhelmingly disputed the benefits
identified by the company. "Therefore, the commission cannot find that a
rate increase to pay for the program is in the public interest."
A full
text of the commission’s order, along with other documents related to this
case, are 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 Case No. UWI-W-07-04.
Interested parties may petition the commission for
reconsideration by no later than Feb. 22. Petitions for reconsideration must
set forth specifically why the petitioner contends that the order is
unreasonable, unlawful or erroneous. Petitions should include a statement of
the nature and quantity of evidence the petitioner will offer if
reconsideration is granted.
Petitions
can be delivered to the commission at 472 W. Washington St. in Boise, mailed to
P.O. Box 83720, Boise, ID, 83720-0074, or faxed to 208-334-3762.