20210504Decision Memo.pdf

RE
DECISION MEMORANDUM
TO COMMISSIONER KJELLAIIDER
COMMISSIONER RAPER
COMMISSIONER AI\DERSON
COMI\{ISSION SECRETARY
LEGAL
WORKING FILE
FROM:JOHN R HAMMOI\D, JR.
DEPUTY ATTORNEY GENERAL
DATE: MAY 4,2021
IN TIIE MATTER OF THE APPLICATION OF CDS STONERIDGE
UTILITIES, LLC TO CHAI\GE RATES FOR NON.REFUI\DABLE
HOOK-UP FEE FOR NEW WATER CONNECTIONS, CASE NO.
sws-w-20-01
BACKGROUND
On June 4,2020, CDS Stoneridge Utilities, LLC (*Stoneridge", or "Company") applied
to increase the fee for a new customer to physically connect Stoneridge's water system from
$1,200 to $9,735. Stoneridge requested an effective date of July 27,2020.
On June 25,2020, the Commission ordered the Application to be processed by modified
Procedure, and suspended Stoneridge's proposed effective date to January 26,2021. Order
No.34702.
On January 5,2021, the Commission extended the suspension period and set a comment
deadline of January 26,2020, and a reply comment deadline of February 9,2021. Order
No.34886.
On March 25,2021, the Commission issued Final OrderNo. 34969, authorizing
Stoneridge to charge hook-up fees as set forth in the Order; directing Stoneridge to charge the
minimum monthly rate for a%-inchmeter, and modifu its tariffto reflect this change; directing
the Company to modi$ its tariffto reflect a single $65 reconnect fee; and approving
modifications to the definitions section as proposed by Staff. The Commission also ordered
Stoneridge to file a conforming tariffwithin 10 days of the issuance of its order.
On April 8,2021, Stoneridge submitted a modified tariffto the Commission. On
1DECISION MEMORANDUM MAY 4,2021
April22,202l,theCommissionrejectedtheCompany'smodifiedtariff(OrderNo.35017).On
May 3, 2021, the Company submitted a Second Modified Tariff("Second Modified Tariff') to
the Commission and requested an effective date of May 4,2021.
STAFF'S ANALYSIS
Staffreviewed the Second Modified Tariffand found it to be in conformance with
Commission OrderNos. 34969 and 35017.
Staff requested hook-up connection information after the issuance of Order No. 34969.
Post Order No. 34969 and prior to Order No. 35017, the Company hooked up two (2) customers
and charged them $3,500. Staffasks the Commission to determine the appropriate fee to be
charged to these two customers. Should it be the $3,500 fee charged per Order No. 34969 or the
$1,200 fee authorized per Order No. 35017?
STAFFIS RECOMMENDATION
Staff recommends that the Commission approve the Second Modified Tariff submitted by
Stoneridge on May 3,2021, with an effective date of May 4,2021.
COMMISSION DECISION
Does the Commission wish to approve the Second Modified Tariff submitted by the
Company on May 3,2021, with an effective date of May 4,2021?
Should the Company refund $2,300 each to the two customers or allow the Company to
charge the $3,500 hook-up fee?
R. Hammond, Jr
Attorney General
Udmernos/SWS-W-20-0 I Decision Memo
DECISION MEMORANDUM -2-MAY 4,2021