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CUSTOMER NOTICE

| August 21, 2007 9:00 PM

An application has been filed with the Idaho Public Utilities Commission (IPUC) for approval of a rate increase of 70% for residential and 42% for commercial water use effective November 1, 2008. We are requesting that the fee for residential water use be increased from $17.59 per month to $30 and commercial use from $28.15 per month to $40 per month. There has not been a rate increase for many years. Over the past two years major repairs have been made to the water lines costing thousands of dollars. We find it necessary to increase the fees to maintain the quality of the system.

This application is a proposal, suject to public review and a Commission decision. A copy of the application is available for review at the office of the Commission or by appointment only at the office of Algoma Water Company by calling (208) 263-8946. The application may also be viewed on the IPUC website at www.puc.idaho.gov. The application and other case information may be found by clicking on the "WATER" icon, then on "OPEN WATER CASES" and scrolling down to Case No. AWS-W-07-01.

Interested parties may mail written comments to the Idaho Public Utilities Commission, PO Box 83720, Boise, ID 83720-0074. Comments may be submitted by email on the IPUC website by clicking on the "Contact Us" link.

Algoma Water

Legal SNP 8891

August 16, 2007