20200625Notice_of_Application_Order_No_34702.pdf

NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34702 1
Office of the Secretary
Service Date
June 25, 2020
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

APPLICATION OF CDS STONERIDGE
UTILITIES, LLC TO CHANGE RATES FOR
NON-REFUNDABLE HOOK-UP FEE FOR
NEW WATER CONNECTIONS
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CASE NO. SWS-W-20-01

NOTICE OF APPLICATION

NOTICE OF
MODIFIED PROCEDURE

ORDER NO. 34702

On June 4, 2020, CDS Stoneridge Utilities, LLC (“Company”) filed a tariff advice
requesting that it be allowed to increase the hook-up fee (“Hook-up Fee”) for a new water service
connection from $1,200.00 to $9,735.00 pursuant to Rule 134 of the Commission’s Rules of
Procedure. Application at 1.
Due to the significant, proposed increase to the Hook-up Fee and the complexity of
issues surrounding it, the Commission treats the Company’s tariff advice as an application
(“Application”),1 issues this Notice of Application and Notice of Modified Procedure, and
suspends the effective date of the proposed change to the Company’s Hook-up Fee.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Company claims recent installation costs and
bids it has received for new hook-ups are significantly higher than the $1,200 Hook-up Fee it is
authorized to charge to a customer for a new water service connection. Application at 1.
YOU ARE FURTHER NOTIFIED that the Company asserts design plans for the
Stoneridge subdivision did not require the installation of corporation stops and service lines into
lots. The Company alleges this was an oversight and now contractors or the Company must cut
into paved streets to connect new customers to water mains, increasing costs above the authorized
Hook-up Fee. Id.

1 Public utilities, such as the Company, occasionally file tariffs that advise the Commission the utility would like to
make “minor changes” to its schedules. See Rule 134 of the Commission’s Rules of Procedure (IDAPA 31.01.01.02).
Unless the Commission orders otherwise, these “tariff advices” can take effect 30 days after they are filed, or on the
proposed effective date, whichever is later. Here, the Commission finds the Company is not proposing “minor
changes” and that those changes should not be made through a mere tariff advice. The Commission thus finds it
appropriate to open this formal proceeding and treat the tariff advice as an application.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34702 2
YOU ARE FURTHER NOTIFIED that the Company asserts that persons who seek
new connections in the Stoneridge subdivision typically request 1-inch service meters rather than
¾ inch meters, which also increases costs.
YOU ARE FURTHER NOTIFIED that, in support of its Application, the Company has
submitted copies of an engineer’s cost estimate, recent bids received, and a receipt for a typical
installation at the Stoneridge subdivision.
YOU ARE FURTHER NOTIFIED that the Company requests that its proposed Hook-
up Fee take effect on July 27, 2020. Id.
YOU ARE FURTHER NOTIFIED that the Application is available for public
inspection during regular business hours at the Commission’s office. These documents are also
available on the Commission's web site at www.puc.idaho.gov. Click on the "Water" tab on the
left side of the page, then select "Open Cases" and click on the case number as shown on the front
of this document.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission's jurisdiction under Title 61 of the Idaho Code and specifically Idaho
Code §§ 61-501, 61-502 and 61-503.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted
pursuant to the Commission's Rules of Procedure, IDAPA 31.01.01.000 et seq.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the public
interest may not require a formal hearing in this matter, and that it will proceed under Modified
Procedure pursuant to Rules 201 through 204 of the Commission's Rules of Procedure, IDAPA
31.01.01.201 through .204. The Commission notes that Modified Procedure and written comments
have proven to be an effective means for obtaining public input and participation. Because the
breadth of discovery necessary to process this case is uncertain, comment deadlines will be set
through a subsequent order. This will allow Staff sufficient time to conduct discovery, and provide
the Company an adequate opportunity to respond.
SUSPENSION
YOU ARE FURTHER NOTIFIED that the Company’s Application proposes a July
27, 2020, effective date. This matter is sufficiently complex, and the proposed rate increase is
significant, to warrant the Commission, parties, and public having a longer period to assess the
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34702 3
Application. The Commission thus finds it appropriate to suspend the Company’s proposed
effective date for a period of five months and thirty days, from July 27, 2020 to January 26, 2021,
unless the Commission issues an earlier order accepting, rejecting, or modifying the Company’s
Application. See also Idaho Code § 61-622(4).
YOU ARE FURTHER NOTIFIED that the Commission will treat the Company’s
filing as an Application rather than a tariff advice. See Commission Rule of Procedure 134.02.
ORDER
IT IS HEREBY ORDERED that the Company’s tariff advice be deemed an application.
IT IS FURTHER ORDERED that the Company’s Application be processed by
Modified Procedure, Rule 201-204 (IDAPA 31.01.01.201-.204).
IT IS FURTHER ORDERED that the proposed effective date for the Company’s
proposed increase to its Hook-up Fee is suspended five (5) months and thirty (30) days, from July
27, 2020 to January 26, 2021, unless the Commission issues an earlier order accepting, rejecting,
or modifying the Application. Idaho Code § 61-622(4).
IT IS FURTHER ORDERED that parties continue to comply with Order No. 34602,
issued March 17, 2020. All pleadings should be filed with the Commission electronically and shall
be deemed timely filed when received by the Commission Secretary. See Rule 14.02. Service
between parties should also be accomplished electronically. Voluminous discovery-related
documents may be filed and served on CD-ROM or a USB flash drive.
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NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34702 4
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 25th day
of June 2020.

PAUL KJELLANDER, PRESIDENT

KRISTINE RAPER, COMMISSIONER

ERIC ANDERSON, COMMISSIONER

ATTEST:

Diane M. Hanian
Commission Secretary

I:\Legal\WATER\SWS-W-20-01\SWSW2001_Ntc of App_jrh.docx