20150316final_order_no_33249.pdf

I,
Office of the Secretary
Service Date
March 13,2015
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER Of THE APPLICATION )
Of STONERIDGE WATER COMPANY FOR )CASE NO.SWS-W-06-O1
AN INCREASE IN RATES AND CHARGES )
AND TO MODIfY RULES AND )
REGULATIONS )ORDER NO.33249
________________________________________________________________________________________
)
On January 21,2015,the Commission received a request from CDS Stoneridge
Utilities,LLC (“Stoneridge”or “Company”)to revise the monthly surcharge applicable to
customers residing within the Happy Valley Ranchos Subdivision.Stoneridge also requested
approval of a change to its business name.The Company provides water service to more than
370 customers.
On February 23,2015,the Company’s Application was approved via a unanimous
voice vote by the Commission during its weekly decision meeting.
APPLICATION
In its Application,Stoneridge requests a reduction to its existing monthly surcharge
from $16.83 to $14.03.Additionally,the Company requests authorization to change the name
appearing on its tariff from CDS Stoneridge Associates-Land LC dba Stoneridge Water
Company to CDS Stoneridge Utilities,LLC consistent with the name of the utility as it appears
on Certificate of Public Convenience and Necessity (CPCN)No.395 issued on January 2,2004.
A.Surcharge Amount
Stoneridge obtained two loans from the State Drinking Water Revolving Fund to
provide service to its 107 customers residing in the Happy Valley Ranchos Subdivision.The
Phase I loan is the subject of this Order.
In June 2007,the Commission issued Order No.30342 authorizing the collection of a
Phase I loan amount of $278,000 and a Phase II loan amount of $160,457 from customers
residing in the Happy Valley Ranchos Subdivision.’The Company is authorized to recover the
aforementioned loan amount through a surcharge of $16.83 per month for a period of five years,
“Phase II loan amount to be included in rate base and the weighted cost of capital and thereby collected from all
customers.”Order No.30342 at 20.
ORDER NO.33249 1
or until July 2,2012.The Commission ordered that the surcharge should then be reduced to
$14.03 per month for another 15 years,or until July 2027.See Order No.30342 at 20.
Due to an oversight,the Company neglected to reduce the surcharge after the first
five years.In October 2014,Commission Staff reviewed the Company’s approved surcharges
and determined that the tariff schedule had not been changed and that the Company was still
billing the customers residing in Happy Valley Ranchos at the $16.83 per month surcharge rate.
Upon being informed by Staff,the Company corrected its error and began billing Happy Valley
Ranchos customers the reduced monthly surcharge rate of $14.03 beginning with their
November 1,2014 billing statement.
B.Name Change oii Tarjff
Stoneridge requests Commission approval to change its official business name.The
Company’s current tariff (Case No.SWS-W-06-Ol)incorrectly identifies the Company’s name
as CDS Stoneridge Associates-Land LC dba Stoneridge Water Company.The Company’s name,
as it appears on its Second Amended Certificate of Public Convenience and Necessity No.395,
issued January 2,2004,is CDS Stoneridge Utilities,LLC.The Idaho Secretary of State also lists
the Company’s name as CDS Stoneridge Utilities,LLC.Accordingly,Stoneridge seeks
Commission approval to change the name on its tariff to CDS Stoneridge Utilities,LLC
consistent with the name on its CPCN.
STAFF COMMENTS
Staff reviewed the Company’s Application and recommended approval of a reduction
in the surcharge for customers living in the Happy Valley Rancho Subdivision from $16.83 to
$14.03 per month.Staff recommended the Commission approve the revised tariff,including the
name change discussed above,as submitted by the Company,with an effective date of
November 1,2014.
Staff conducted a thorough audit which revealed that Stoneridge overcollected on its
authorized surcharge for approximately 27 months.According to Staff,the overcollection
reduces the amount of time to collect the loan amount from 20 years to less than 18 years.Staff
remarked that the Company corrected the problem immediately once it was brought to its
attention.Because the Company is already billing customers at the reduced amount,the
effective date of the tariff should be November 1,2014,to reflect the Company’s prior actions.
Staff added that if Stoneridge should apply for a rate increase before the loan amount is fully
ORDER NO.33249 2
recovered,the Company’s prior overcollection would be taken into account.Staff will monitor
collection of the surcharge and determine when the loan amount has been fully recovered.
COMMISSION FINDINGS
The Commission has reviewed Stoneridge’s Application and Staff comments.The
Commission finds that the Company’s request to reduce its monthly surcharge to $14.03 with an
effective date of November 1,2014,the date the Company actually reduced the surcharge in
accordance with Commission Order No.30342,is fair,just and reasonable.The Commission
approves the Company’s request for a name change to CDS Stoneridge Utilities,LLC matching
the name appearing on its CPCN and the Company’s registration with the Idaho Secretary of
State.
The Commission finds that,as of December 31,2014,Stoneridge has collected
$156,720.96 since the implementation of the monthly surcharge authorized by the Commission
in Order No.30342.See Attachment B.The Commission permits Stoneridge to recover a total
amount of $340,050.84 over a 228-month period.Id.Therefore,beginning December 31,2014,
Stoneridge shall be permitted to recover an additional amount of $183,329.88.Id.The
Company shall work in a cooperative manner with Staff in order to periodically monitor and
verify the ongoing recovery of surcharge funds until such time as the loan balance is fully
recovered.
ORDER
IT IS HEREBY ORDERED that Stoneridge’s Application seeking authorization to
reduce its monthly surcharge from $16.83 to $14.03 effective November 1,2014,is approved.
IT IS FURTHER ORDERED that the Company’s request to change the name
appearing on its tariff from CDS Stoneridge Associates-Land LC dba Stoneridge Water
Company to CDS Stoneridge Utilities,LLC is approved.
IT IS FURTHER ORDERED that beginning December 31,2014,the Company is
permitted to recover an additional amount of $183,329.88 in accordance with the monthly $14.03
surcharge authorized by the Commission in Order No.30342.
IT IS FURTHER ORDERED that the Company shall work cooperatively with
Commission Staff in its efforts to monitor the collection of the ongoing surcharge more fully
discussed above.
ORDER NO.33249 3
THIS IS A FINAL ORDER.Any person interested in this Order (or in issues finally
decided by this Order)or in interlocutory Orders previously issued in this Case No.SW$-W-06-
01 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 or in interlocutory Orders previously issued in
this case.Within seven (7)days afier any person has petitioned for reconsideration,any other
person may cross-petition for reconsideration.See Idaho Code §61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of March 2015.
PAUL KJELL ER,PRESIDENT
MACK A.REDFORD,COMMISSIONER
STINE RAPER,OMMISSIONER
ATTEST:
Jn D.Jewell UCommissionSecretary
O:SWS-W-06-O lnp
ORDER NO.33249 4
CDS Stoneridge Utilities LLC Attachment A
Schedule of Remaining Months
as of Dec 31,2014
Uncollected Surcharges $183,329.88
Monthly Amount $14.03
Customers 101
Monthly Total $1,417.03
Months Remaining 129
CYE Months
2015 12
2016 12
2017 12
2018 12
2019 12
2020 12
2021 12
2022 12
2023 12
2024 12
2025 9
Total Months 129
Difference 0.0
CASE NO.SWS-W-06-01
ORDER NO.33249
AUACHMENT A
CDS Stoneridge Utilities LLC Attachment B
Schedule of Collections Remaining
Commision Order No.30342
as of December 31,2014
Loan Reserve
Monthly Surcharge $2.80
Number of Customers 101
Cumulative Monthly Surcharge $282.80
Authorized Months 60
subtotal $16968.00
Regular Payments
Monthly Surcharge $14.03
Customers 101
Cumulative Monthly Surcharge $1,417.03
Authorized Months 228
subtotal $323,082.84
Total (20 Annual Payments)$340,050.84
Amount Collected ($156,720.96)
Amount Remaining $183,329.88
CASE NO.SWS-W-06-01
ORDER NO.33249
ATTACHMENT B