20230216Final_Order_No_35680.pdf

ORDER NO. 35680 1
Office of the Secretary
Service Date
February 16, 2023
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF SUNBEAM WATER
COMPANY’S FAILURE TO COMPLY WITH
IDAHO PUBLIC UTILITIES COMMISSION
REPORTING AND FISCAL
REQUIREMENTS
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CASE NO. SNB-W-22-01

ORDER NO. 35680

This matter came before the Idaho Public Utilities Commission (“Commission”) on the
Commission Staff’s (“Staff”) request to order Sunbeam Water (“Sunbeam” or “Company”) to
appear and show cause why the Commission should not impose penalties for the Company’s
continued, willful violations of its requirements under state law and the Commission’s rules. These
violations include failing to submit required annual reporting and fiscal documents to the
Commission. Specifically, the Company failed to submit five years of Annual Reports including
income statements beginning with 2017 through 2022, failed to file its annual Gross Intrastate
Operating Revenue (“GIOR”) reports for years 2017 through 2021, and failed to pay several years
of regulatory fees, with interest, as required by Idaho Code §§ 61-1001 through 61-1005. See
Exhibit 1, Affidavit of Nancy Ashcraft attached to Staff’s November 22, 2022, Decision
Memorandum.1
On January 5, 2022, the Commission ordered a Show Cause Hearing (“SCH”). No
Company representative attended the SCH. As described below, the Commission now imposes
penalties and orders that several remedial actions be taken to ensure compliance.
Having reviewed the record in this case, we issue this Order denying the Company’s
Petition, directing the Company to file its Annual Reports for certain years, directing Staff to audit
the Company’s financials, directing Staff to hold a Public Workshop for Sunbeam customers, and
imposing penalties against the Company.

1 The Company filed its 2017 through 2021 annual GIOR statements on January 4, 2023. The 2022 GIOR will not be
due until April 15, 2023. Idaho Code § 61-405.
ORDER NO. 35680 2

BACKGROUND
On August 24, 2022, Staff communicated with the Company’s General Manager, Michael
Parrish (“Mr. Parrish”), through email2 and scheduled a conference call with him to discuss how
the Company might come into compliance with the Commission’s requirements.
On August 25, 2022, Staff conducted a conference call with Mr. Parrish. Some of what was
discussed on this call was outlined in a subsequent letter from Staff. Id. at Exhibit 2. During the
call, Staff discussed how neither the Company nor its preceding entity (Sunbeam Water Company,
Inc.,) had filed appropriate financial statements or statements that depict the Company’s GIOR for
multiple years. Staff also heard Mr. Parrish’s concerns about coming into compliance with the
Commission’s rules and regulations.
Following the August 25, 2022, call, several written communications were sent to Mr.
Parrish. On August 30, 2022, Staff emailed Mr. Parrish, a detailed account of which documents
and fees the Commission needed from Mr. Parrish. Staff’s email also provided a step-by-step
process (including hyperlinks) illustrating what the Company needed to do to become compliant
with the Commission’s requirements. Staff’s August 30, 2022, email also contained six relevant
attachments. Id. at Exhibit 3.3
On September 1, 2022, Staff emailed, and sent via certified mail, the letter referenced above
as Exhibit 2. The letter reiterated many of the same things as the August 30, 2022, email in addition
to ways that Mr. Parrish might bring the Company into regulatory compliance.
Since sending the September 1, 2022, letter, Staff continued to email Mr. Parrish reminders
of his need to comply with the Commission’s regulatory requirements. More than one of these
emails included the instructions on becoming compliant included in Exhibit 3.4
On December 9, 2022, pursuant to Staff’s recommendation, the Commission issued a
Notice of Hearing and Order to Show Cause requiring Mr. Parrish to appear physically before the
Commission on January 5, 2023, and explain why he should not be required to immediately

2 All of Staff’s subsequent emails to Mr. Parrish were sent to the address that Mr. Parrish had responded from to
coordinate the call.
3 These communications show that (1) the Company had the direct correspondence from the Commission telling the
Company what was expected of it, (2) the Company had step-by-step instructions that illustrated how the Company
could come into compliance, (3) that the Company had the ability to correspond with Staff should the Company have
wished for additional help, and (4) that the Company had more than four months to utilize all of this information
before the SCH.
4 Staff emailed Mr. Parrish on September 26, 2022, October 11, 2022, and November 1, 2022, asking for documents
to ensure compliance with Commission requirements.
ORDER NO. 35680 3
provide the Company’s required documentation and why the Commission should not impose a
penalty of $2,000 a day for non-compliance with filing requirements. Mr. Parrish was served via
certified mail on December 19, 2022. Order No. 35619.
On January 3, 2023, Staff communicated telephonically with Mr. Parrish. Affidavit of
Travis Culbertson, at p. 2, ¶ 7. During this phone call, Mr. Parrish informed Staff that he had
completed the requested GIOR’s. (A draft of which Mr. Parrish sent to Staff after the phone call
via email.) Id. Mr. Parrish’s Counsel, Craig Parrish (“Counsel”), filed a motion to continue
(“Petition”) the SCH. Neither Mr. Parrish nor his Counsel attended the SCH on January 5, 2023.
JURISDICTION
Sunbeam provides water service to the Garden Grove Estates Subdivision in Power
County, Idaho. The Company is a water corporation operating a water system as defined by Idaho
Code §§ 61-124 and 61-125. As such, the Company is a public utility subject to the jurisdiction of
the Commission. Idaho Code § 61-129. The Commission has jurisdiction over Sunbeam and the
issues in this case under the Public Utilities Law, Idaho Code §§ 61-101 et seq., including Idaho
Code § 61-501 (vesting the Commission with the “power and jurisdiction to supervise and regulate
every public utility in the state and to do all things necessary to carry out the spirit and intent of”
the Public Utilities Law), and Idaho Code § 61-701 et seq. (directing the Commission as to
enforcement, penalties, and interpretation of Public Utilities Law).
1. Idaho Code §§ 61-401 and 61-406
Idaho Code § 61-401 states, “[e]very public utility shall furnish to the commission, in such
form and such detail as the commission shall prescribe, all tabulations, computations and all other
information required by it to carry into effect any of the provisions of this act and shall make
answers to the best of their knowledge, to all questions submitted by the commission.” Further,
Idaho Code § 61-406 states, “[e]very public utility shall obey and comply with each and every
requirement of every order, decision, rule, or regulation made or prescribed by the commission in
the matters herein specified, and shall do everything necessary or proper in order to secure
compliance with and observance of every such order, decision, direction, rule, or regulation by all
of its officers, agents and employees.”
As outlined above and detailed in Exhibit A the Company has repeatedly failed to meet its
statutory duties and violated the Commission’s rules and regulations by failing to timely file its
annual reports and failing to regularly and fully pay its utility assessments on time.

ORDER NO. 35680 4
2. Idaho Code § 61-1001
Idaho Code § 61-1001 requires the Company to pay the Commission an annual regulatory
fee based on its annual verified return. The Company failed to file timely annual verified returns
beginning in 2017 and going through the available material for 2022. Each failure to file creates a
distinct and unique cause of action. Idaho Code § 61-707. Also, the Company has failed to timely
fully pay its annual regulatory fee for several years, as detailed in Exhibit A. The Commission
assessed $50 per year (the minimum regulatory fee the Commission may assess) because Staff
could not calculate an accurate assessment amount due to the Company’s failure to submit annual
verified returns. This amount could be adjusted once Staff obtains copies of Sunbeam’s verified
returns based upon the information contained therein.
3. Idaho Code §§ 61-706 and 61-707
The Company may be liable for civil penalties for violations of the above-referenced
statutes. Specifically, Idaho Code § 61-706 states:
Any public utility which violates or fails to comply with any provisions of the
constitution of this state or of this act, or which fails, omits or neglects to obey,
observe or comply with any order, decision, decree, rule, direction, demand or
requirement or any part or provision thereof, of the commission, under this act, in
a case in which a penalty has not hereinbefore been provided for, such public utility
is subject to a penalty of not more than $2,000 for each and every offense.

Furthermore, Idaho Code § 61-707 states:
Every violation of the provisions of this act or of any order, decision, decree, rule,
direction, demand, or requirement of the commission, under the provisions of this
act, or any part or portion thereof, by any public utility, corporation or person is a
separate and distinct offense, and in case of a continuing violation each day’s
continuance thereof shall be and be deemed to be a separate and distinct offense.
Accordingly, failure to comply with its statutorily enumerated duties exposes Sunbeam to up to
$2,000 per day for each of Sunbeam’s numerous late filings. A utility’s failure to comply with a
Commission order is also a violation. The Commission can also impose a penalty on the Company
of $2,000 for failure to comply with Order No. 35619. The exact amount of any penalty is within
the discretion of the Commission as discussed above.
STAFF RECOMMENDATION
Mr. Parrish sent his GIORs for the requested years to the Commission Secretary on January
4, 2023. Mr. Parrish worked with Staff to ensure that his GIOR forms provide the statutorily
required information. Accordingly, the reasons for the Commission to penalize the Company for
ORDER NO. 35680 5
failing to submit its GIOR reports have been mitigated according to Staff. From the unverified
documents provided by Mr. Parrish, Staff calculated that the Company has averaged a net loss of
$5,288 per year over the last five years. Culbertson Affidavit, at p. 2, ¶ 10. While the Company
provided some of the raw data required in the annual reports, it failed to file complete annual
reports. At $2,000 a day per violation5 related to the annual reports alone, Staff determined that
the Company could face the imposition of a significant financial penalty as a result.6
Staff recommended that the Commission order an audit of Sunbeam so it can verify the
information submitted, visit the service area, and schedule a public workshop with Sunbeam’s
customers. Id. at ¶ 12. To Complete this audit, Staff needs the following: “[a] list of water system
assets, [the relevant] depreciation schedule, installation date[s], well meter reading data (if
applicable) [a] customer list, and a copy of disconnection notice(s).” Id. at ¶ 9. Mr. Parrish has
stated that Sunbeam has no depreciable assets. Id.
COMMISSION FINDINGS AND DISCUSSION
The Commission finds it necessary to audit the Company’s financial records. To ensure
Staff can complete its audit in a timely fashion, the Commission orders Sunbeam to submit its
completed annual reports, and all associated fees, within 30 days of the service date of this Order.
Sunbeam shall also timely respond to requests from Staff relevant to the audit.
The Commission finds it necessary for Staff to physically visit the service area and inspect
the premises; this will also allow the Staff to hold a public workshop with customers within the
service area. Staff should visit the service area at least once and may conduct follow up visits if
necessary. Sunbeam has expressed concerns about coming into compliance with its statutory
mandates and operating in a financially sustainable manner in the future. At least one inspection
and public workshop will allow the Commission to develop an understanding of Sunbeam’s
situation to best assist Sunbeam going forward. Staff should report to the Commission results from
its inspection.
The Commission finds that the imposition of penalties is necessary in this case. For months
Staff tried repeatedly to contact Mr. Parrish using contact information that Mr. Parrish had
responded from previously. The Commission then ordered a SCH to take place on January 5, 2023.
Physically appearing before the Commission to explain the Company’s failure to comply with the

5 A violation would consist of each late day past April 15 of each year for each report. Idaho Code § 61-405.
6 For example, if the maximum penalty of $2,000 per day was imposed by the Commission for each ongoing violation
of the Commission’s authorities committed by the Company such penalties could be in the millions of dollars.
ORDER NO. 35680 6
Commission’s regulatory authority was mandatory. See Order No. 35619. When a utility fails to
meet is statutory duty for years the imposition of penalties is appropriate. The SCH was the
Company’s opportunity to provide the Commission with something, on the record, that the
Commission could potentially use to justify not penalizing the Company for ignoring Commission
mandates. The Company did not attend the SCH. Further, the Company’s last-minute Request to
Continue the SCH did not present sufficient justification to reschedule the SCH and does not
dissuade this Commission from imposing penalties for noncompliance with its regulatory
authorities.
As discussed above, the record provides numerous reasons that support the imposition of
penalties; despite the Company being offered an opportunity to provide its own rationale on the
record. Instead, we have a record that provides no convincing reason why penalties should not be
imposed. Therefore, pursuant to Idaho Code §§ 61-706 and 61-707, the Commission imposes a
penalty of $2,000 on the Company for its failure to file its 2021 annual report by April 16, 2022.7
The Commission also finds it appropriate to impose an additional penalty of $2,000 upon the
Company for its failure to physically attend the SCH as directed in Order No. 35619. The
Commission requires the documents previously requested to fulfill the Commission’s statutory
mandates. The Company is reminded that any continuing failure to comply with Commission
authorities and orders will lead to the imposition of additional penalties on the Company.
COMMISSION DECISION
IT IS HEREBY ORDERED the Company’s Petition to Continue is denied.
IT IS FURTHER ORDERED that within 30 days of the issuance of this Order, the
Company shall provide the Commission Secretary with its complete annual reports and associated
fees for 2017, 2018, 2019, 2020, and 2021.
IT IS FURTHER ORDERED that Staff shall audit the Company’s financials. The
Company will respond in a timely manner should Staff request any necessary information or
documentation necessary to complete this audit.
IT IS FURTHER ORDERED that Staff shall visit the Company’s service area to inspect
the premises and plant and hold a public workshop. Staff may conduct subsequent visits to the
extent that it deems necessary.

7 The Commission is penalizing the Company for one day of its failure to submit its 2021 annual report. This penalty
does not resolve or negate the Company’s need to submit its annual reports. Likewise, this penalty does not limit the
Commission’s ability to impose further penalties in the future for the remaining days that the Company failed to timely
submit its annual reports.
ORDER NO. 35680 7
IT IS FURTHER ORDERED that the Company shall pay a penalty of $2,000 for failing to
submit its 2021 annual report by April 16, 2022. The Company shall also pay a penalty of $2,000
for failing to attend the January 5, 2023, SCH as ordered by the Commission. Order No. 35619.
The Company shall have 45 days from the issuance of this Order to pay these penalties.
IT IS FURTHER ORDERED that parties comply with Order No. 35375, issued April 21,
2022. Generally, all pleadings should be filed with the Commission electronically and will be
deemed timely filed when received by the Commission Secretary. See Rule 14.02. Service between
parties should continue to be accomplished electronically when possible. However, voluminous
discovery-related documents may be filed and served on CD-ROM or a USB flash drive.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order with regard to any
matter decided in this Order. Within seven (7) days after any person has petitioned for
reconsideration, any other person may cross-petition for reconsideration. See Idaho Code § 61-
626.

ORDER NO. 35680 8

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 16th day of
February 2023.

__________________________________________
ERIC ANDERSON, PRESIDENT

__________________________________________
JOHN R. HAMMOND JR., COMMISSIONER

__________________________________________
EDWARD LODGE, COMMISSIONER

ATTEST:

__________________________________
Jan Noriyuki
Commission Secretary

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