Boise Water Corp., Application of
Decision Date | 23 February 1960 |
Docket Number | No. 8755,8755 |
Citation | 82 Idaho 81,349 P.2d 711 |
Parties | Application of BOISE WATER CORPORATION for Authority to Increase Certain Water Rates. |
Court | Idaho Supreme Court |
Raymond D. Givens, Boise, for appellant Consumers Water corporation.
Carey H. Nixon, Boise, for applicant-respondent.
Frank L. Benson, Atty. Gen., and William P. Roden, Asst. Atty. Gen., for Idaho Public Utilities Commission.
Boise Water Corporation made application to the Public Utilities Commission for revised rules and regulations, and revised rates. The Consumers Water Corporation protested the Boise Water Corporation's public Utilities Commission. The protestant asserted the increase should apply only to the lawn sprinkling rates. Based upon its findings, the Public Utilities Commission granted a modified increase in the schedule of rates to the applicant. This appeal is taken from two orders of the Commission granting the revised schedule of rates.
Protestant does not raise issues as to the necessity for modification of the rates, the amount of the plant investment, nor as to the efficiency of the operation of Boise Water Corporation. Objection is made solely to the lawn sprinkling rate in that it is too low, and adversely affects the protestant, which is a supplier of low-pressure water for lawn irrigation to a portion of Boise residents, who are described as about one-third of the population or less.
Protestant urges that its suggested schedule of rates will permit Boise Water Corporation to retain its present rate for domestic water while increasing only the lawn sprinkling rate. By making this type of revision in the rates, the protestant argues that it will procure some of the Boise Water Corporation customers, thereby permitting the protestant profitably to stay in business.
Boise Water Corporation has 17,700 water services to 16,175 customers, and 214 miles of distribution mains. Its source of supply is 15 deep wells having a combined capacity of 20,000,000 gallons per day. It also has a storage system of 8.45 million gallons.
Boise Water Corporation's existing rates at the time of the hearing for domestic use were as follows:
For the first 3,000 cubic feet per month per 100 cubic feet 28
For the next 7,000 cubic feet per month per 100 cubic feet 21cents
For the next 10,000 cubic feet per month per 100 cubic feet 14cents
For all over 20,000 cubic feet per month per 100 cubic feet 10cents
Lawn sprinkling rate was 11 cents per 100 cubic feet.
The Utilities Commission modified the requested schedule of revised rates to produce $99,939 instead of the requested amount of $146,428, part of which was to be derived from the lawn sprinkling rate, increased to 12 cents per 100 cubic feet. The modified domestic use rates are not set out herein, because that schedule is not part of the record here on appeal.
The Boise Water Corporation president stated that in accordance with water business experience the rates and charges are just, fair, reasonable, equitable, and not excessive.
On the other hand, the protestant, in seeking to readjust the rate schedule, proposes that one rate be applied to all water supplied, because investment and operational costs are constant as to all of the water supplied, and rates should be in direct ratio thereto. They argue, further, that a very reasonable sprinkling rate results in an unjustifiable discrimination between users.
The Public Utilities Commission, in its order, found:
The finding of the Commission in this regard is as follows:
'That there is insufficient evidence before the Commission that the Protestant will be adversely affected by the granting of increased rates as hereinafter ordered.'
This Court has stated, in the case of In re Union Pacific R. Co., 65 Idaho 221, 142 P.2d 575, 578:
As to the case at hand, we would have to find that the Commission abused its discretion in establishing the schedule of rates which it has; however, there is sufficient evidence and precedent upon which to base the order.
The Commission had before it evidence from the president of the protestant concerning his interpretation of the water rate manual of the American Waterworks Association, and an interpolation of Boise Water Corporation data in relation to that manual. There may be merit in protestant's urging that the Commission use different formulae for establishing of rates; however, there is an insufficiency in this record to make a detailed examination in relation to the attributes of each formula.
It is the province of the Commission to establish a rate structure and reasonable rates based thereupon. It was stated in the case of Petition of Mountain States Tel. & Tel. Co., 76 Idaho 474, 284 P.2d 681, 685:
'It was entirely within the province of the commission to determine whether the...
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