20230828Second Reconsideration Order No. 35905.pdf

ORDER NO. 35905 1
Office of the Secretary
Service Date
August 28, 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. 35905

This matter came before the Idaho Public Utilities Commission (“Commission”) on the
Commission Staff’s (“Staff”) request to order Sunbeam Water (“Company”) to appear and show
cause why the Commission should not impose penalties for the Company’s violations of its
obligations under state law and the Commission’s rules.
On December 9, 2022, the Commission issued a Notice of Hearing and Order to Show
Cause directing the Company to appear at a show cause hearing (“Hearing”) to show cause why
the Commission should not impose penalties for violations of Idaho Public Utilities Law. Order
No. 35619.
On February 16, 2023, after the Company failed to appear at the Hearing scheduled for
January 5, 2023, the Commission issued Order No. 35680 imposing penalties and ordering that
several remedial actions be taken to ensure compliance. Order No. 35680 gave the Company (1)
30 days to submit its annual reports and pay its associated assessment fees;1 and (2) 45 days to pay
the penalties assessed in that Order.
On March 28, 2023, the Company petitioned for reconsideration of Order No. 35680. On
April 18, 2023, this petition was denied. Order No. 35749.
On April 25, 2023, Staff submitted audit requests to the Company—with responses due by
May 16, 2023. The Company provided the necessary documentation before the May 16, 2023,
deadline.
On May 30, 2023, the Commission issued a Notice a Public Workshop, setting a public
workshop on June 28, 2023.2 Order No. 35797.

1 The Company filed its 2017 through 2021 annual Gross Intrastate Operating Revenue (“GIOR”) statements on
January 4, 2023. While not explicitly ordered in Order No. 35680, the Company also met its statutory duty and filed
its 2022 GIOR in a timely manner. The Company likewise filed its 2017 through 2022 annual reports on March 17,
2023. The Company has not yet paid its assessment fees.
2 Staff inspected the Company’s water system on June 28, 2023, the same day it held a public workshop. See Order
Nos. 35680 and 35797.
ORDER NO. 35905 2
On July 31, 2023, the Company submitted a Second Motion to Reconsider Penalties
(“Petition”) as well as an Affidavit in Support of the Second Motion to Reconsider Penalties
(“Affidavit”).3
This Commission now issues this Order dismissing the Company’s Petition, as discussed
in detail below.
SECOND PETITION FOR RECONSIDERATION
The Petition noted that the Commission imposed penalties in this case for previous
omissions by the Company. The Company explained that it complied with the Commission’s filing
requirements, and that the Company is financially unable to pay the previously imposed penalties
and other costs.
In its Affidavit the Company stated that it had complied with all the requirements of Order
No. 35680. The Company further stated that it did not have the ability to pay either the penalties
or the assessment fees plus interest imposed in this case. The Company noted that it had no cash
reserves and was operating at a deficit. The Company also explained that the disclosures the
Company provided previously could be referenced to confirm its financial situation. The Affidavit
noted that the Company was investigating the possibility of filing a rate case and has explored—
and continues to explore—the prospect of selling the Company to another provider.
LEGAL STANDARD ON RECONSIDERATION
Reconsideration affords parties an opportunity to bring to the Commission’s attention any
matter previously determined and provides the Commission opportunity to rectify any mistake
before the matter is appealed to the Supreme Court. Washington Water Power Co. v. Idaho Public
Utilities Comm’n, 1980, 101 Idaho 567, 617 P.2d 1242. Any person or public utility has the right
to petition for reconsideration in respect to any matter determined in a Commission order. Idaho
Code § 61-626(1). The petitioner has 21 days from the date of the Final Order in which to ask for
reconsideration. Id. “Within twenty-eight (28) days after the filing of a petition for reconsideration
the commission shall determine whether or not it will grant such reconsideration, and make and
enter its order accordingly.” Idaho Code § 61-626(2). “If after reconsideration, including
consideration of matters arising since the making of the order, the commission shall be of the
opinion that the original order or any part thereof is in any respect unjust or unwarranted or
should be changed, the commission may abrogate or change the same.” Idaho Code § 61-626(3).

3 Craig W. Parrish, the attorney for the Company, is the affiant.
ORDER NO. 35905 3
Idaho Code § 61-624 also allows for the Commission to rescind, alter, or amend a decision
“at any time” provided that those affected have had an opportunity to be heard. Citing this statute,
Commission Rule of Procedure 326 states that any party may petition the Commission to rescind,
alter, or amend an order under Idaho Code § 61-624 if that party is able to show that their
circumstances have changed, new information has become available, or show that “other good and
sufficient reasons exist” that support the changing of the previous order. IDAPA 31.01.01.326.01.
Commission Rule of Procedure 326 likewise allows the Commission to change an order on its own
motion if all interested parties have a chance to weigh on the matter through an evidentiary hearing
or written filings. IDAPA 31.01.01.326.02.
Commission Rule of Procedure 332 authorizes the Commission to grant reconsideration
on its own motion or on the motion of an interested party. IDAPA 31.01.01.332. This Rule also
allows the Commission to dismiss issues on reconsideration when those issues are not supported
by a specific explanation relevant to the case. Id. “Petitions for reconsideration must specify (a)
why the order or any issue decided in it is unreasonable, unlawful, erroneous or not in conformity
with the law, and (b) the nature and quantity of evidence or argument the petitioner will offer if
reconsideration is granted.” IDAPA 31.01.01.331.01.
COMMISSION FINDINGS AND DECISION
In Order No. 35680 the Commission imposed “a penalty of $2,000 on the Company for its
failure to file its 2021 annual report by April 16, 2022.” Order No. 35680 at 6. The Commission
also imposed a $2,000 penalty on the Company for its failure to attend a Show Cause Hearing the
Company was ordered to appear at. See Order Nos. 35619 and 35680.
The Company’s Petition does not explicitly state why Order No. 35680 was “unreasonable,
unlawful, erroneous or not in conformity with the law” as required by Commission Rule of
Procedure 331.01. However, the Company implied that the regulatory fees, interest, and penalties
due in this case were unreasonable due to financial difficulties it is experiencing. The Company
also does not explicitly outline “the nature and quantity of evidence” that would undergird a
Commission determination to grant the relief requested. Id. While it did not expressly cite to the
record or provide any exhibits, the Company previously complied with Staff’s audit of the
Company’s financials and the Affidavit referred to the “disclosures provided” to justify its inability
to pay. Affidavit at 1. The Company’s GIOR reports from 2017 onward are a part of the record for
ORDER NO. 35905 4
this case. Of note, Staff concluded that the Company has operated at a net loss averaging “$5,288
per year” for the last five years. Affidavit of Travis Culbertson at 2.
Idaho Code § 61-1001 et seq., requires the assessment and payment of regulatory fees. The
Company did not claim that any of the assessed regulatory fees were excessive in a timely fashion.
See Idaho Code § 61-1007. Thus, the Commission cannot waive the Company’s remaining unpaid
assessment fees and all accrued interest. Idaho Code §§ 61-1001 et seq. The Company did not
fully pay its assessment fees from 2012 onward. The unpaid amount from those years is due with
6 percent interest for each year that each unpaid fee was late. Accordingly, the Company owes
$1,043.21 in assessment fees and accrued interest (as of the publishing of this Order).
Idaho Code §§ 61-624, 61-626(3), and IDAPA 31.01.01.326 does give the Commission
latitude to waive the previous imposition of penalties on the Company if the Commission so
chooses. IDAPA 31.01.01.326.01 allows the Commission to do this if it believes that the Company
has stated that circumstances have changed, provided new information, or shown other good
reasons to support the waiver of the penalties imposed. Likewise, the Commission could waive
these penalties on its own motion if it determines that circumstances have changed. IDAPA
31.01.01.326.02. The Company filed its annual reports but did not pay its assessment plus all
accrued interest. Further, the Company has not addressed why it failed to appear at the Show Cause
Hearing. As a result, the Commission is currently unwilling to waive the penalties imposed in
Order No. 35680. However, as discussed below, the Commission is willing to provide the
Company an opportunity to redeem itself.
The Commission finds that it is fair, just, and reasonable to conditionally suspend
enforcement of the penalties imposed in Order No. 35680 in recognition of its efforts to partially
comply with the requirements set forth in Order No. 35680. The Company has not fully complied
with the Commission’s requirements as it stated in its Petition and Affidavit. Specifically, meeting
its financial obligations with the Commission was required by Order No. 35680. While the
Commission has extended leniency to the Company, the Commission reminds it that the Company
has only imposed a small fraction of the available, potential penalties upon the Company in Order
No. 35680. The Commission has full authority to later lift the suspension of the enforcement of
the penalties imposed by Order No. 35680 as well as the authority to impose additional penalties.
The Commission will be increasingly motivated to exercise this authority should the Company
ignore the Commission’s mandate to pay its assessment fees and accrued interest. The Commission
ORDER NO. 35905 5
has a statutory and mandate to collect this minimum amount of assessment fees and accrued
interest. Given the Company’s recent increased efforts to come into compliance, the Commission
is hopeful that the Company will pay its assessment fees of its own volition in a timely manner.
The Commission does not believe that the Company has shown why Order No. 35680 was
“unreasonable, unlawful, erroneous or not in conformity with the law.” IDAPA 31.01.01.331.01.
However, the Commission finds that certain circumstances have changed in this case. Specifically,
the Company has submitted its annual reports, submitted its GIORs, and coordinated with Staff in
facilitating a public workshop and an inspection of the service area. Therefore, in recognition of
the Company’s efforts to come into compliance, the Commission shall suspend the enforcement
of the penalties imposed by Order No. 35680 for the present time pursuant to Idaho Code § 61-
626(3) and IDAPA 31.01.01.326. All other requests for relief in the Company’s Petition are
dismissed.
ORDER
IT IS HEREBY ORDERED that the Company’s Petition for a waiver of its penalties and
assessment fees is denied. However, the Commission shall conditionally suspend the enforcement
of the penalties imposed by Commission Order No. 35680 until such a time as a Commission order
shall dictate otherwise.
IT IS FURTHER ORDERED that the Company must pay its past due assessment fees and
accumulated interest in coordination with Staff.
THIS IS A FINAL ORDER DENYING RECONSIDERATION. Any party aggrieved by
this Order, or other final or interlocutory Orders previously issued in this case, may appeal to the
Supreme Court of Idaho within forty-two (42) days pursuant to the Public Utilities Law and the
Idaho Appellate Rules. Idaho Code § 61-627; I.A.R. 14.

ORDER NO. 35905 6
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 28th day of
August 2023.

ERIC ANDERSON, PRESIDENT

JOHN R. HAMMOND JR., COMMISSIONER

EDWARD LODGE, COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

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