HomeMy WebLinkAbout20210609Final_Order_No_35063.pdfORDER NO. 35063 1
Office of the Secretary
Service Date
June 9, 2021
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF SUEZ WATER IDAHO
INC.’S APPLICATION FOR AUTHORITY
TO INCREASE ITS RATES AND CHARGES
FOR WATER SERVICE IN IDAHO
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CASE NO. SUZ-W-20-02
ORDER NO. 35063
On September 30, 2020, SUEZ Water Idaho Inc. (“Company”) applied to increase its
rates and charges for water service in Idaho. The Company proposed to increase its rates by
$10,160,211—an average of 22.3%. The Company proposed to apply the rate increase uniformly
to all customer classes, including miscellaneous service charges and fees. The Company also
requested an October 31, 2020 effective date.
On March 17, 2021, a Stipulation and Settlement (“Settlement”) and a motion for
Commission approval of the proposed Settlement were filed with the Commission. See IDAPA
31.01.01.056, .272, .274. Under the proposed Settlement, the Company would be allowed to
implement revised tariff schedules designed to recover an additional $3.996 million, representing
an 8.75% increase in revenue.
On April 30, 2021, the Commission approved the Settlement, with rates effective May
1, 2021. Order No. 35030. In its order approving the Settlement, the Commission authorized the
Company to include $40,000 of presumed intervenor funding in its revenue requirement for the
May 1, 2021 through April 30, 2022 period, but noted that it would consider petitions for
intervenor funding in a future order. Id. at 10.
On May 3, 2021, SUEZ Water Customer Group (“SWCG”) filed a timely petition for
intervenor funding. On May 4, 2021, Community Action Partnership Association of Idaho
(“CAPAI”) filed a timely petition for intervenor funding.
SWCG’S PETITION FOR INTERVENOR FUNDING
SWCG’s petition includes an itemized list of expenses totaling $11,025.00—all legal
fees. SWCG Petition at 2. SWCG argues these expenses are reasonable given that SWCG’s legal
counsel charged an hourly rate of $225 per hour, well below his standard rate of $405 per hour. Id.
at 3. SWCG notes that the expenses it incurred as part of this proceeding are a financial hardship
because SWCG’s funding comes mostly from individuals, “most of whose contributions are
unpredictable, sporadic, and limited in amount.” Id.
ORDER NO. 35063 2
SWCG states that its proposed findings and recommendations can be found in its
November 10, 2020 petition to intervene, in which it asserted “the Applicant’s proposed rate
increase of 22.3% is unjust and unreasonable and threatens to impose considerable ‘rate shock’ on
[the Company’s] customers, and should therefore not be granted….” Id. SWCG asserts that its
maintenance of this position throughout the proceeding materially contributed to the Settlement.
Id. SWCG argues its contribution to the proceeding differed from Commission Staff’s, observing
that “Staff was an effective intermediary between the Intervenors and the [Company],” whereas
SWCG consistently maintained the proposed 22.3% rate increase was too high and, in addition
advocating for a lower increase, argued for phased-in rate increase approach. Id. at 4. “This
difference in focus contributed materially to the [Settlement] that was ultimately accepted by the
Commission.” Id. SWCG asserted its position and recommendation in the proceeding addressed
issues of concern to the general body of utility users and consumers. Id. at 4-5.
CAPAI’S PETITION FOR INTERVENOR FUNDING
CAPAI’s petition includes an itemized list of expenses totaling $11,067.00—all legal
fees. CAPAI Petition, Exhibit A. CAPAI argues these expenses are reasonable given CAPAI’s
legal counsel charged an hourly rate of $170, well below his standard rate of $225 per hour. Id. at
4. CAPAI asserts the expenses it incurred as part of this proceeding are a financial hardship for
many reasons, most notably because CAPAI’s federal funding “is never a certainty.” Id. at 5.
CAPAI notes that throughout the proceeding CAPAI argued the Company’s proposed
rate increase was much too high and would cause rate shock for the Company’s low-income
customers. Id. at 3. Additionally, CAPAI advocated for discussions with the Company to enhance
the Company’s “SUEZ Cares” bill assistance program. Id. CAPAI points to Paragraph 14 of the
Settlement, in which the Company agreed to meet with CAPAI to consider improvements to the
Company’s low-income assistance program. Id. CAPAI argues its contribution to the proceeding
differed from Commission Staff’s, observing that “CAPAI specifically represented the interests of
SUEZ’s low-income customers while Staff understandably focused on all customers and customer
classes.” Id. at 7.
COMMISSION FINDINGS AND DISCUSSION
Intervenor funding is available under Idaho Code § 61-617A, which declares it is the
“policy of [Idaho] to encourage participation at all stages of all proceedings before the commission
so that all affected customers receive full and fair representation in those proceedings.” The statute
ORDER NO. 35063 3
empowers the Commission to order any regulated utility with intrastate annual revenues exceeding
$3.5 million to pay all or a portion of the costs of one or more parties for legal fees, witness fees
and reproduction costs not to exceed a total for all intervening parties combined of $40,000. Id.
The Commission’s determination on an intervenor funding request shall be based on the following
considerations:
(a) The intervenor’s participation materially contributed to the Commission’s
decision;
(b) The costs of intervention are reasonable in amount and would be a
significant financial hardship for the intervenor;
(c) The intervenor’s recommendation differed materially from Commission
Staff’s testimony and exhibits; and
(d) The intervenor’s testimony and participation addressed issues of concern to
the general body of users or consumers.
See Idaho Code § 61-617A(2). To obtain an intervenor funding award, an intervenor must comply
with Commission Rules of Procedure 161 through 165. Rule 162 provides the form and content
for the petition. IDAPA 31.01.01.162.
We find that SWCG and CAPAI’s petitions satisfy the intervenor funding
requirements. Both parties intervened and participated in all aspects of the proceeding. Both
parties’ petitions show they worked closely with the Company and Staff throughout the case.
SWCG observed that by holding firmly throughout the negotiations to the position that the
Company’s proposed 22.3% rate increase was too high, SWCG contributed to the lower rate
increase reflected in the Settlement. Likewise, CAPAI noted that because of its efforts the
Settlement includes a provision between the Company and CAPAI to discuss improvements to the
Company’s low-income assistance program.
The Commission finds that SWCG and CAPAI materially contributed to the
Commission’s decision. Both parties’ recommendations materially differed from Staff’s
recommendations, and SWCG and CAPAI’s participation addressed issues of concern to the
general body of customers. Finally, we find the costs and fees incurred by SWCG and CAPAI are
reasonable in amount, and that both parties, as non-profit organizations, would suffer financial
hardship if the requests are not approved.
ORDER NO. 35063 4
Accordingly, we find it reasonable to award SWCG $11,025.00 and CAPAI $11,067.00
in intervenor funding, with the amounts to be recovered from the Company’s General Metered
Service customers. The Commission authorized the Company to include in its revenue requirement
the full $40,000 possible for intervenor funding in Order No. 35030 for rates effective from May
1, 2021 through April 30, 2022. See Idaho Code § 61-617A. This is a one-time payment and will
not be included in base rates after April 30, 2022. We now authorize a total of $22,092 be paid to
the above intervenors. The difference of $17,908 will be deferred and returned to customers as a
revenue requirement reduction in the Company’s next rate case.
O R D E R
IT IS HEREBY ORDERED that SWCG’S petition for intervenor funding is granted in
the amount of $11,025.00 to be recovered from the Company’s General Metered Service
customers.
IT IS FURTHER ORDERED that CAPAI’s Petition for Intervenor Funding is granted
in the amount of $11,067.00 to be recovered from the Company’s General Metered Service
customers.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within 21 days of the service date of this Order. Within seven days after any
person has petitioned for reconsideration, any other person may cross-petition for reconsideration.
See Idaho Code § 61-626.
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ORDER NO. 35063 5
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 9th day
of June 2021.
PAUL KJELLANDER, PRESIDENT
KRISTINE RAPER, COMMISSIONER
ERIC ANDERSON, COMMISSIONER
ATTEST:
Jan Noriyuki
Commission Secretary
I:\Legal\WATER\SUZ-W-20-02\Orders\SUZW2002_Order_Intervenor funding.docx