Falls Water Company Rate Hike Proposal Would Send Bills Soaring in Eastern Idaho

Higher rates on less water means monthly bills could skyrocket nearly 50 percent; AARP Idaho says issue shows need for a utility advocate office

BOISE, Idaho, March 2, 2012 /PRNewswire-USNewswire/ -- A proposal to impose higher monthly water bills on roughly 4,000 Eastern Idahoans may have more than a few heads swimming. A Falls Water Co. chart shows a 19 percent increase, while the rate case filed with the Idaho Public Utilities Commission pegs the increase at an average of 26.8 percent. But AARP says the utility company's fuzzy math is hiding a rate hike that could be as high as 49.2 percent for some consumers.

If approved, the request would mean $295,059.75 in higher rates for Eastern Idaho consumers – with the highest bills coming during the summer months when water usage is highest.

"Falls Water is only telling part of the story regarding their rate hike, comparing apples to oranges as far as what it'll mean for the average consumer, small family farms and businesses in the area," said Lynn Young, an AARP volunteer and member of AARP Idaho's executive council. "Charging a higher rate on a lower amount of water would hit consumers twice as hard. This is a prime example of why Idaho needs a utility consumer advocate office."

For example, the company shows a customer's current rate (for a 3/4" meter) as $16.20 for up to 12,000 gallons (and .611 cents for each 1,000 gallons over the amount). Under the new proposed rate, it would be $19.18 for up to 5,000 gallons (and 67 cents for each 1,000 gallons over) for an increase of just 19.1 percent, or a $3.08 a month increase. According to AARP, the calculation is misleading as it doesn't account for the difference of 7,000 gallons.  If the new figure reflected the same 12,000 gallons under the original rate, the increase would be 48 percent or $7.77 a month. 

An AARP apples-to-apples rate hike chart vs. Falls Waters' apples-to-oranges comparison:

In addition, AARP is calling on lawmakers to establish a utility consumer advocate office to represent consumers in rate hike and regulatory proceedings. Idaho is the only state in the West (and one of only a handful in the nation) without such an office.

According to a recent AARP survey, (http://bit.ly/wPuymH), more than 75 percent of registered voters, age 50-plus, said they would support the creation of a utility consumer advocate office.  

"It's time to change the utility game in Idaho and ensure consumers have a stronger voice and seat at the table when rate hikes are reviewed – an advocate office will do just that," Young said. "State lawmakers will have the chance to level the playing field in rate cases like this by establishing a utility consumer advocate office in Idaho this year."

The public can learn more about the case by visiting www.puc.org and clicking on the water icon; then click on "Open Water Cases" and scroll down to Case No. FLS-W-12-01. Comments can be filed by going to the PUC website and clicking "contact us" on the left hand side and then clicking case comment. (Be sure to mention the case number: FLS-W-12-01 when contacting the PUC).  

AARP is Idaho's largest membership organization with more than 180,000 members.
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SOURCE AARP Idaho