20240102Decision Memo.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER ANDERSON
COMMISSIONER HAMMOND
COMMISSIONER LODGE
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: MICHAEL DUVAL
DEPUTY ATTORNEY GENERAL

DATE: JANUARY 2, 2024

SUBJECT: IN THE MATTER OF CDS STONERIDGE UTILITIES, LLC’S
APPLICATION FOR AUTHORIZATION TO BORROW FUNDS FROM
RELATED ENTITIES OR MAKE ADDITIONAL CAPITAL
CONTRIBUTIONS TO COVER OPERATING LOSSES; CASE NO. SWS-
W-23-03.

On December 15, 2023, CDS Stoneridge Utilities, LLC (“Company”) filed an application
seeking approval from the Idaho Public Utilities Commission (“Commission”) to incur
$980,000.00 of debt (“Application”). The Company stated that this debt would be borrowed from
“Esprit Enterprises, LLC and/or JD’s Resort.” Application at 1. The Company stated that these
companies are related to it and share the same ownership. Because the lending entities share the
same ownership, Commission Staff (“Staff”) would like additional time to fully analyze and
process the facts of this case to ensure that the appropriate recommendation can be made for this
arm-in-arm transaction.
Idaho Code § 61-904 states that an application for the issuance of a security must be
disposed of within thirty days of the application’s filing unless the Commission determines that
there is good cause for a continuance. To continue the case beyond thirty days the Commission
must also enter an order fully stating the facts that undergird the Commission’s finding for that
continuance.
The Company noted that Staff had informed it of the default statutory 30-day window for
the processing of this case. However, the Company requested that an order approving the
Company’s Application be issued by February 15, 2024, rather than January 15, 2024.

DECISION MEMORANDUM 2
STAFF RECOMMENDATION
For the reasons stated above, Staff recommends that the Commission find good cause for
a continuance, to allow for a Final Order to be issued before February 15, 2024, and issue an order
explaining that finding.
COMMISSION DECISION
Does the Commission wish to find good cause for a continuance, to allow for a Final Order
to be issued before February 15, 2024, and issue an order explaining that finding?

_____________________________
Michael Duval
Deputy Attorney General

I:\Legal\WATER\SWS-W-23-03_securities\SWSW2303_dec_md.docx