20200612Decision Memo.pdf

DECISION MEMORANDUM
TO:C OMMISSIONER KJELLAI\DER
COMMISSIONER RAPER
COMMISSIONER AI\DERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:JOHN R. HAMMOND JR.
DEPUTY ATTORNEY GENERAL
DATE: JUNE 11,2020
STIBJECT:CDS STONERIDGE UTILITIES, LLC'S TARIFF ADVICE TO CHAITGE
RATES FOR NON-REFUNDABLE HOOK-UP FEE FOR A NEW WATER
CONNNECTION; CASE NO. SWS-W-20-01.
On June 4,2020, CDS Stoneridge Utilities, LLC ("Company") filed a Tariff Advice
requesting that it be allowed to "make a minor change to the Company's existing schedules"
pursuant to Rule 134 of the Commission's Rules of Procedure. Tariff Advice at l. The Company
represents the proposed changes affect the non-refundable hook-up fee for a new water service
connection ("Hook-up Fee"). Id. The Company's current Hook-Up Fee is $1,200.00. The
Company proposes to raise the Hook-Up Fee to $9,735.00. Id. The Company requests that its
proposed Hook-Up Fee take effect on July 27,2020. Id.
STAFF'S RECOMMENDATION
Staff asserts a proposed $8,535.00 increase in the Hook-up Fee is not "a minor change"
as the Company claims. Due to the size of the Company's proposed increase to the Hook-up Fee
Staff will need to engage in discovery and possibly visit the Company's site to investigate this
matter thoroughly. Further, customers of the Company must also be given time to consider the
Company's requests and to file comments or participate in further proceeding in this case.
Accordingly, Staffrecommends that the Commission suspend the effective date of the Company's
proposed Hook-up Fee for a period five months and thirty days from the date the Company's
request was filed with the Commission.
DECISION MEMORANDUM I
Staff also recommends that the Commission treat the Company's Tariff Advice as an
application and issue a Notice of Application and Notice of Modified Procedure. However, at this
time, Staff does not recommend that the Commission set written comment deadlines in its Notice.
Rather, Staff, at alater date, will request that the Commission set written comment deadlines and
order any other necessary proceedings in a separate order after Staffhas received responses to its
discoveryrequests and completed any site visit. Staffhas begun the discoveryprocess already and
will attempt to arrange for a site visit, if necessary, as soon as possible.
COMMISSION DECISION
Does the Commission wish to suspend the effective date of the proposed Hook-up Fee
for five months and thirty days from the date the Company's TariffAdvice was filed?
Does the Commission wish to treat the Company's TariffAdvice as an application?
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure without written comment deadlines at this time?
R. Hammond Jr.
Attorney General
I:U*gaI\WATER\SWS-W-204 l\SWSW200l_dommojh.docx
2DECISION MEMORANDUM