IPUC approves Gem State Water rate hike

The Idaho Public Utilities Commission recently approved a request for an increase in rates and charges for a North Idaho water utility.

Gem State Water Company, LLC had sought commission approval to increase rates between 53 and 79% for six systems, a press release said. The monthly bill for an average customer receiving water from a 1-inch meter would increase between $21.65 and $27.65, depending on which system was serving them.

In its application to the commission, the utility sought approval for an increase of $602,050 in its annual revenue requirement. 

"Gem State Water said the increase was needed to recover the current cost of operating and maintaining the water systems, the cost for system improvements and investments to replace aging infrastructure," the release said. "The utility said it spent money on improvements that included generators, meters and pipes."

Customers will see an increase in their minimum monthly charge and the commodity rate per 1,000 gallons of water based on the size of their meter and which system is serving them. 

Customers served by the Bar Circle S and Spirit Lake water systems and who have 1-inch meters will see their monthly charge increase from $35 per month to $46 per month.

The commission set the commodity rate at $4.07 per 1,000 gallons after customers use their allotted number of gallons. Some customers are allotted 7,500 gallons before the $4.07 charge per 1,000 gallons starts, while other customers are allotted 15,000 gallons before the charge starts. These changes apply to customers with 1-inch meters.

The increase in the monthly charges and commodity charge will give the utility an increase in its annual revenue requirement of $373,888, the release said.

A group of residents in the Troy Hoffman Water System in Coeur d'Alene served by Gem State Water is appealing the IPUC's decision to Idaho's Office of the Attorney General.

Their letter cites a number of concerns regarding rates, service and water safety.

"Many customers, in fact probably all have commented that it is unfair that Gem State is bundling all of their systems together as to the amount of increase they are requesting," the letter stated. "We believe that our rates  should only be based on our Troy Hoffman needs. We should only be covering the needs of our system. Not any of the other systems owned by Gem State."

Names on the letter include Martin Reighard, Diane Pryor, Peggy Cooper, Ian Kuchenski and Kim Heistuman.

The commission also approved three new non-recurring charges that Gem State Water asked for. 

The utility will be allowed to collect a $2,500 deposit for a meter assembly to connect to a fire hydrant and purchase water during construction work. 

"The commission determined it was a reasonable way for the utility to encourage customers to return the meter assembly in good condition," the release said.  

Gem State Water also will be allowed to charge $20 for a final meter reading on an account and to provide a final bill to a title company when a property is sold.

Additionally, the utility will be allowed to charge $30 annually when the installation and subsequent removal of irrigation meters each take a single visit. The utility will be allowed to charge $50 if repeat visits are necessary.

Troy Hoffman on Wednesday said it had resolved a possible water contamination of the Troy Hoffman Water System, which it alerted customers to Aug. 1.