Suburban Water's Application

Suburban Water, Inc., d/b/a Suburban Water Company ("Suburban Water") filed an application with the Kansas Corporation Commission ("KCC") requesting an increase in its rates to recover from its customers the increase in the cost of the water supplies it purchases from the Kansas City, Kansas Board of Public Utilities ("BPU") and the cost of filing the application.  Suburban Water was seeking an increase in revenues of $44,913, which would result in an increase of $0.53 per 1,000 gallons.  The average residential customer using 5,000 gallons per month would be charged an increase of $2.65 per month if the application was approved.  A copy of Suburban Water's application can be obtained at www.suburbanwaterinc.com or can be viewed at Suburban Water's offices.

KCC Denial of Suburban Water's Request for A Purchased Water Adjustment

On March 19, 2010, Suburban Water filed an application asking the KCC to approve a Purchased Water Adjustment ("PWA").  Suburban Water was seeking to establish the PWA so it could pass along to its customers the increase in the cost of water supplies it purchases from BPU.  On November 3, 2010, the KCC issued an order denying Suburban Water's request.  Instead, the KCC concluded that a PWA was not an appropriate method for allowing Suburban Water to recover from its customers increased water charges by BPU.  The KCC determined in order to include the increased cost of water in its rates, Suburban Water must use the rate case process.  The KCC directed its Staff to work with Suburban Water to develop an appropriate abbreviated rate process.  A copy of the KCC's order in Suburban Water's PWA case can be found at www.kcc.state.ks.us/scan/201011/20101103140930.pdf, along with the application and testimony filed therein.

KCC Order on Suburban Water's Application

On June 3, 2011, the KCC issued its order on Suburban Water's Application.  The KCC approved Suburban Water's request to increase rates $0.53 per 1,000 gallons, but made this increase subject to true‑up or refund in subsequent rate case proceedings.  The KCC explained two primary problems with Suburban Water's operations that the utility has still not adequately addressed:

(1)           whether provisions of the contract between Suburban Water and BPU are enforceable; and

(2)           whether Suburban Water has secured a long-term water source to insure continuing efficient and sufficient service to its customers.

Important considerations discussed by the KCC included Suburban Water's significant increased reliance upon the BPU contract that provided 60% of the water used to serve its customers, making the customers particularly vulnerable to being left without water if this contract should at any time be deemed unenforceable.  Concerns about this contract continue to include (a) failure to clarify whether BPU is using "surplus water" to fulfill its wholesale contract with Suburban Water; and (b) consequences of passing through to customers as part of just and reasonable rates an unauthorized payment in lieu of taxes (PILOT) fee BPU has placed on wholesale customers like Suburban Water.  The KCC also detailed its concerns about Suburban Water's failure to engage in long‑term water planning to insure the utility will be able to provide efficient and sufficient services to customers in the future.  When Suburban Water returns to request further rate increases, the KCC indicated the utility must be prepared to provide evidence showing that steps have been taken to address problems identified regarding the BPU contract and to plan for a long‑term water service to provide efficient and sufficient service to its customers.

KCC Order on Reconsideration

On June 17, 2011, Suburban Water asked for reconsideration and/or clarification relating to whether it could provide this summary of the KCC's order and information on how a customer could obtain a copy of the KCC's order instead of mailing a copy of the order to every customer.  The KCC granted Suburban Water's request.

Suburban Water also asked for clarification as to whether it would be given an opportunity to seek recovery of expenses relating to its next rate case.  The KCC granted Suburban Water's request.

Suburban Water also asked the KCC to reconsider its decision to make the rate increase subject to refund.  The KCC denied this request and has required Suburban Water to address the water supply issues raised by the KCC in its next rate case.

KCC Order Available for Customers to Review

Any customer who wishes to receive a copy of the KCC Order may make such request by calling Suburban Water at 913-724-1800, or by emailing the request to This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Customers can also view a copy of the KCC Order at Suburban Water's offices, 1216 N. 155^th Street, Basehor, Kansas.

Customers can also view a copy of the KCC Order at Suburban Water's website, www.suburbanwaterinc.com; the Citizens' Utility Ratepayer Board's ("CURB") website, www.curb.kansas.gov; or the KCC's website, http://estar.kcc.ks.gov/estar/ViewFile.aspx?Id=41056b5f-db96-4446-8376-79cd94323db5.

To Obtain a Complete Copy of the Order

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