20190226Suez Answer to CAIA.pdf

Michael C. Creamer (ISB No. 4030)
Preston N. Carter (ISB No. 8462)
Givens Pursley LLP
601 W. Bannock St.
Boise, ID 83702
Telephone: [phone]
Facsimile: (208) 388-1 300
mcc@ givenspursley. com
prestoncarter@ givenspursley. com
14556455 2.doc (30-1'74)
Attorneys for SUEZ Water ldaho Inc.
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IiiiJ rEB 26 AH g: tr6
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IN THE MATTER OF THE JOINT
APPLICATION OF SUEZ WATER
IDAHO AND EAGLE WATER
COMPANY FOR THE ACQUISITION
OF EAGLE WATER COMPANY
Case Nos. SUZ-W-18-02/
EAG-W-18-01
SUEZ,S ANSWER TO CITIZENS
ALLIED FOR INTEGRITY AND
ACCOUNTABILITY'S MOTION
FOR EXTENSION OF TIME TO
RESPOND TO DISCOVERY
COMES NOW SUEZ Water Idaho Inc. ("SUEZ"), through undersigned counsel of
record, Givens Pursley LLP, and pursuant to Commission Rule 57.03 (IDAPA 31.01.01.057.03),
hereby files its Answer to Citizens Allied for Integrity and Accountability's ("CAIA") Motion
for Extension of Time to Respond to Discovery ("Motion"). For the reasons set out below,
SUEZ requests that the Commission order CAIA to serve its responses to SUEZ's First
Production Request to CAIA on or before March 7,2019, which is the date that is twenty-one
days following the date the Production Requests were served on CAIA. [n the alternative, SUEZ
requests that CAIA be ordered to serve its responses within a reasonable time after the current
response deadline of March l, which SUEZ submits should be no more than fourteen days under
the circumstances.
ORICINAL
SUEZ'S ANSWER TO CITIZENS ALLIED FOR INTEGRITY AND ACCOUNTABILITY'S
MOTION FOR EXTENSION OF TIME TO RESPOND TO DISCOVERY - 1
1. BACKGROUND
CAIA was granted intervenor status in this docket by Commission Order 34229 issued on
January 10,2019. In its Petition to Intervene, CAIA asserted, among other things, that CAIA is a
preexisting advocacy goup whose mission "is broad enough to include the current Petition"
because its members have an interest in maintaining high quality water resources that adequately
support current users and future development in Eagle, in maintaining local control of resources,
and protecting citizens from rate hikes. Id. at2. CAIA also asserted its members stand to be
impacted from "possible environmental harms stemming from the merger;" that the proposed
phased-in rate increase threatens to impose substantial financial hardship on Eagle Water
customers who are single parents, elderly or living with disabilities on fixed and limited
incomes; and that "[n]o other party can adequately represent the interests of CAIA." Id. CAIA
did not identifu how many mernbers it has, the classes of persons that it purports to represent
(Eagle Water customers, elderly, disabled, those on fixed and limited incomes, other?) or the
basis for its asserted impacts from possible environmental harms.
A hearing scheduled for this matter has yet to be discussed by the parties or set by the
Commission due to an assertion by intervenor City of Eagle that it has a contractual right of first
refusal ("ROFR") to acquire Eagle Water Company ("Eagle Water") or its assets. The original
scheduling conference among the parties was postponed to January 30 to allow the City and
Eagle Water Company time to evaluate whether the City intended to enforce its alleged ROFR.
At the January 30th meeting of the parties and staff, the scheduling conference was postponed
again-until March 4th. At both meetings, SUEZ agreed to the extensions so long as this case,
including discovery in this case, should continue in the interim. No parties objected. In the
meantime, Commission Staff has served SUEZ, Eagle Water and the City of Eagle with
SUEZ'S ANSWER TO CITIZENS ALLIED FOR INTEGRITY AND ACCOUNTABILITY'S
MOTION FOR EXTENSION OF TIME TO RESPOND TO DISCOVERY - 2
Production Requests, to which SUEZ has timely responded. Staff also scheduled an
informational meeting, during which SUEZ responded to questions posed by Staff and conducted
a presentation on information it had provided. All parties were invited, and all but CAIA and
CAPAI attended.
On February 8,2019 SUEZ served its First Production Requests on CAIA, City of Eagle
and the Eagle Water Customer Group, making March 1,2079 the deadline for responding.
Eleven days later, on February 19 counsel for CAIA emailed SUEZ's counsel Preston Carter
requesting a sixty-day extension of the time to respond to SUEZ's production requests, asserting
that it would be a waste of resources to provide responses because of the pending contractual
issue between the City of Eagle and Eagle Water. Mr. Carter responded the following day
indicating that SUEZ was not inclined to agree to the requested sixty-day extension. The grounds
for this response were that the Production Requests were not burdensome, particularly as they
seek information that should be easily accessible to CAIA and its counsel-information such as
how many members it has, how they become members, who its officers or directors are, and
information supporting the contentions CAIA made in its Petition to Intervene. Mr. Carter also
indicated to CAIA's counsel that if CAIA needed more time to gather documents SUEZ could
consider agreeing to an extension of time to produce those documents, but would still want
CAIA's narrative responses to the Production Requests. A true and correct copy of the email
exchange between counsel is attached as Attachment A hereto. SUEZ's counsel anticipated
further discussion, and perhaps a more limited request for extension of time. Instead, CAIA filed
its Motion on February 22,2019.
Under Commission Rule 057.03 the deadline for answering CAIA's Motion is March 8,
2019. Therefore, this Answer is timely.
SUEZ'S ANSWER TO CITIZENS ALLIED FOR INTEGRITY AND ACCOUNTABILITY'S
MOTION FOR EXTENSION OF TIME TO RESPOND TO DISCOVERY - 3
2. ARGUMENT
SUEZ reiterates that this matter currently is not stayed. SUEZ, Eagle Water and Staff
have been proceeding accordingly consistent with the understandings developed in the previous
two meetings of the parties.
In its Answer to the Petitions to Intervene, SUEZ pointed out that it had genuine
questions concerning the nature and bona fides of the CAIA and EWCG organizations and their
membership. SUEZ's Production Requests were limited and tailored to learn who these groups
actually represent, what the basis for their asserted concerns about the Joint Application were
and what these organizations were telling members or would-be members about the Joint
Application. These requests all involve production of information that one must assume is
readily at hand to CAIA.
In addition, in his response to CAIA's counsel, Mr. Carter suggested the possibility of
providing CAIA an extension of time to respond with respect to those of its requests that
contemplated documents would need to be collected and produced. CAIA did not follow up on
that proposal or request anything other than a sixty-day extension.
SUEZ is certainly sensitive to the fact that the City of Eagle has asserted contractual
rights with respect to Eagle Water Company. If litigation is filed, or if the City takes other
actions pursuant to its purported legal rights, those actions may impact this case. This is why
SUEZ did not object to postponing a final schedule in this matter. SUEZ is committed to
working with the other parties and the Commission to resolve this case in a reasonable manner,
which will be determined as the situation further unfolds.
SUEZ is, however, understandably concerned that the City's assertion of legal rights not
derail this case at such an early stage. Any sale of Eagle Water will be somewhat controversial,
SUEZ'S ANSWER TO CITIZENS ALLIED FOR INTEGRITY AND ACCOUNTABILITY'S
MOTION FOR EXTENSION OF TIME TO RESPOND TO DISCOVERY - 4
and if controversy is allowed to derail or delay a case, controversy (real or imagined) is what
SUEZ and the Commission can expect going forward whenever the topic is broached. By
declining to agree to a 60-day extension, and by requesting that discovery be answered, SUEZ is
merely asking that the Commission allow the case to play out without, in effect, granting a stay.
At this point, what rights the City of Eagle may have with respect to Eagle Water,
whether it ultimately may seek to enforce them, whether it can enforce them, what remedies it
might have, and whether it could convince City electors to pass a revenue bond if it does have
enforceable rights that it chooses to enforce are all questions without answers.l In any event, the
City-not the Commission, SUEZ or Eagle Water-is in complete control over whether and
when it may elect to press its claimed ROFR. CAIA essentially is asking for a stay of this
matter, which the other parties have not agreed to and the Commission has not ordered.
For the foregoing reasons, SUEZ respectfully submits that CAIA should be ordered to
respond to SUEZ's pending Production Requests, if not within the twenty-one day period
established by Commission Rules, then within a reasonable time thereafter, which SUEZ asserts
should not be more than an additional fourteen days.
DATED this 26th day of February, 2019.
SUEZ Water Idaho Inc.
Michael C. Creamer
Givens Pursley LLP
Attorneys for SUEZ Water ldaho Inc.
rAbsent a pending application seeking approval of a sale of assets by Eagle Water to the City it also would be pure
speculation as to whether this Commission would approve such a sale.
SUEZ'S ANSWER TO CITIZENS ALLIED FOR INTEGRITY AND ACCOUNTABILITY'S
MOTION FOR EXTENSION OF TIME TO RESPOND TO DISCOVERY - 5
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the26th day of February,2019, a true and correct copy of the
foregoing document was served on the following in the manner indicated:
Diane M. Hanian
Commission Secretary
Idaho Public Utilities Commission
47 2 W est Washington Street
Boise,Idaho 83702
IPUC
Brandon Karpen
Sean Costello
Deputy Attorneys General
Idaho Public Utilities Commission
47 2 W est Washington Street
Boise,Idaho 83702
Attorneys for IPUC
Molly O'Leary
BizCounselor at Law
1775W. State St. #150
Boise,ID 83702
Counselfor Eagk Water Company
Robert DeShazo
Eagle Water Company, Inc.
188 W. State Street
Eagle, Idaho 83616
Petitioner
N.L. Bangle
188 W. State Street
Eagle,ID 83616
Petitioner
Stan Ridgeway, Mayor
City of Eagle
660 E. Civil Lane
Eagle,ID 83616
Intervenor City of Eagle
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diane.hanian@puc. idaho. eov
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sbergmann@ cityofeaele. ore
SUEZ'S ANSWER TO CTTIZENS ALLIED FOR INTEGRITY AND ACCOUNTABILITY'S
MOTION FOR EXTENSION OF TIME TO RESPOND TO DISCOVERY - 6
B. Newal Squyres
Murray D. Feldman
Holland & Hart LLP
800 W. Main Street, Suite 1750
P.O.Box2527
Boise, ID 83702-2527
Attorneys for Intervenor City of Eagle
Norman M. Semanko
Parsons Behle & Latimer
800 West Main Street, Suite 1300
Boise,Idaho 83702
Attorneys .for Intervenor Eagle Ll'ater
Customer Group
Abigail R. Germaine
Deputy City Attorney
Boise City Attorney's Office
150 N. Capitol Blvd.
P.O. Box 500
Boise, Idaho 83701 -0500
Attorneys for Intervenor, City of Boise
James M. Piotrowski
PIOTROWSKI DURAND, PLLC
P.O. Box 2864
1020 W. Main Street, Suite 440
Boise,ID 83701
Attorneys .for Intervenor Citizens Allied for
Integrity and Accountability
Brad M. Purdy
Attorney atLaw
2019 N. lTth Street
Boise,lD 83702
Attorney for Community Action Partnership
Association of ldaho
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ecf@ra$an$ahlqcaxl
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Creamer
SUEZ'S ANSWER TO CITIZENS ALLIED FOR INTEGRITY AND ACCOUNTABILITY'S
MOTION FOR EXTENSION OF TIME TO RESPOND TO DISCOVERY - 7
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ATTACHME,NT A
CASE NOS.:
slJZ-\M-18-02
EAG-W-I8-01
SUEZ'S ANSWER TO CITIZENS ALLIED FOR INTEGRITY AND ACCOUNTABILITY'S
MOTION FOR EXTENSION OF TIME TO RESPOND TO DISCOVERY - 8
Sent:
To:
Cc:
From:Preston N, Crrtrr < pr*lonadirQgiwnspunlcy.camt
Wedneodry, Febury e0, e0l9.l:38 PM
'Jem$ ttificrvski'
Michr?lC Cnrmrc Krrdn tloffmrn
RE: Jcint Appliatbn of SUEZ Wrt?r ld Ergle WrEr Co fur thc Aoquisition of Ergh
Wrtcr - Crse ['lo. SUZ-W-18-0I md EA6-W-18-01: Prpduction RequetBto Citit?ru
alfird for lntcgnty rnd Accountrbili$ [IWOV-GPDMSF|D834574)
James,
Thanks for your email. Apologies on the delay in responding. At thas time, SUEZ is not lnclined to grant en extension of
time for respondlng to dlscovery. The requests should not be burdensome, as they focus on easlly actesslble
lnformetlon, such as membershlp, and assertlons that CAIA hes already made ln the proceedlng. Many are, ln fact, yes-
or-no questlons that should not requlre expendlture o{ signiftcant resources.
ln addltion, SUEZ hes mede very deer thet lt has agreed to the lt0day scheduling extensions on the condltion thst the
proceedlng advance ln the lnterlm. There ls no stay ln the proceedlng and SUEZ ls not prepared to ect e3 lf there were.
SUEZ has been dlllgently answerlng dlscovery and attendlng informatlonal meetings to whlch the p€rtl€s haw been
lnvlted.
lf CAIA ne€ds some addltbnal tlme to gather documents, that's something we cen perhaps consider. Horriever, SUEZ
wouH still want Umely nerrative responses to the questions even lf edditlonal time is needed to gather and produce
documents.
Please let me know lf you have questbns or wouH llke to discuss further
Preston
From: Jrmtt Plotrowkl <lrmcseHunlonhw.qgm>
$rnt: ruosdr% Frbrurry 19. 2019 10:10 AM
To: Xcndn l{offmm <kcndnhtp$rr*nlpursley.com>; Pnstgn N. firtir +rc$tgnc|rtgrp3lwnspurlcy.com>
$ubirct: RE: lolnt Appllsrtlon of $UEI Wrtrr rnd Er$r Wrtrr Co f!,r thc Acqutrltton of Ergh Wrttr - C.se ilo, $UZ-W'18-
0l rnd EAG'W.IS{I: Productlon Bcqurstr ts OU:rns Alllrd for lntgrlty rnd Acsountrblllty [IWOV-6PDM$,F|D8i4574|
Mr. Ctrter,
ln llght of thr $lrront rtrtur of thlr mrttir, rnd ln ordr to rvold wrstlry rtsgurc?r, I rm BquerthB r mday ?xtenrlsn
of tlme to provldr rEspgnler to yuur dlrovery requstr. At prurnl thlr c$r b irrcnthlty on hold whlle thc City uf
Erglc rnd Ergh Wrttr mrkc rt lcrst romr profresj in detrmlnlng how tlpy will rcmlw their contrrcturl
dlrpute. Snendln3 tlmr rnd money on dBcEvery rcquitB in r ilil thrt dgrn't ivon hrvt r rchedullry order ln phca lr
wrsteful. will you .gree to r 6sdry rncnrion rt thir timr?
Jrmcl Plotrowrkl
PlotrowsklDunnd, PLLC
Attornryr br (AlA
SUEZ'S ANSWER TO CITIZENS ALLIED FOR INTEGRITY AND ACCOUNTABILITY'S
MOTION FOR EXTENSION OF TIME TO RESPOND TO DISCOVERY . 9
SubJrct: