20200724Decision Memo.pdf

DECISION MEMORANDUM
TO COMMISSIONER KJELLAI\IDER
COMMISSIONER RAPER
COMMISSIONER AI\DERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:DAYN HARDIB
DEPUTY ATTORNEY GENERAL
DATE: JULY 22,2020
SUBJECT:SUEZ WATER'S PETITION FOR AUTHORIZATION TO ELIMINATE
COLLECTION OF GROSS.UP PAYMENTS ASSOCIATED WITH
CONTRIBUTIONS IN AID OF CONSTRUCTION; CASE NO. SUZ-W-20-
01.
On June 22,2020, Suez Water ("Company") filed a Petition requesting a Commission
order permitting the Company to no longer collect the federal and state income tax gross-up
amount related to the Contribution in Aid of Construction ("CIAC") from developers. The
Company proposes to modify the CIAC income tax collection method by paying the tax itself and
recovering the increased revenue requirement through revenues generated from the new customers
served. The Company also requested to update its tariffs to reflect the proposed changes. The
Company requested its Petition be processed by Modified Procedure.
STAFF'S RECOMMENDATION
Staff recommends the Commission issue a Notice of Petition and Notice of Modified
Procedure, with public comments due September 15, 2020 and Company reply comments due on
September 22,2020.
COMMISSION DECISION
Does the Commission wish to issue a Notice of Petition and Notice of Modified
Procedure establishing a public comment deadline of September 15, 2020 and a Company reply
deadline of Septemb er 22, 2020?
oiyn uardie'
Deputy Attorney General
Ij\LegaI\WATER\SUZ-W-20{l\N{emo\SUZW200l dec_dh.docx
IDECISION MEMORANDUM