20221027Comments.pdf

MICHAEL DUVAL
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BARNO. II7I4
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Street Address for Express Mail:
I I33I W CHINDEN BLVD, BLDG 8, SUITE 201-A
BOISE, ID 83714
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF VEOLIA WATER
IDAHO,INC.'S APPLICATION TO AMEND
BRIAN WATER SURCHARGE AND REFUND
CUSTOMERS
CASE NO. VEO-W-22-03
COMMENTS OF THE
COMMISSION STAFF
STAFF OF the Idaho Public Utilities Commission, by and through its Attorney of
record, Michael Duval, Deputy Attorney General, submits the following comments.
BACKGROUND
On August 18,2022, Veolia Water Idaho, Inc. ("Company") applied to amend Schedule
No. lC, Brian Subdivision Surcharge and to refund customers due to a computational error that
produced a surcharge that was $2.87 too high for customers that paid the bimonthly customers
($1.43 for monthly customers).
The Commission authorized the Company to collect from customers living in the Brian
Subdivision "a fixed surcharge . . . every other month for [ten] years once interconnection with
[the Company's] system is complete and final costs are determined." Order No. 33195 at 6.
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1STAFF COMMENTS ocToBER 27 ,2022
The Company's current tariff reflects a bimonthly surcharge of $141.35, or a monthly
surcharge of $70.67 for Budget Billing customers.l The Company proposes to amend the
bimonthly surcharge to $138.48 and monthly Budget Billing surcharge to $69.24 to reflect the
correction of the prior computational error.
The Company proposes to refund customer overpayments, including interest at2Yo,the
amount of interest on customer deposits, to current customers through bill credits and former
customers through checks mailed to their last known addresses.
STAFF REVIEW
Staff reviewed the Company's Application and proposed tariff revisions, along with the
computational error that led to the alleged overpayments. Based on its review, Staff
recommends the Commission approve the tariff revisions proposed by the Company with an
additional amendment to include language indicating that a customer's surcharge shall end when
the customer's balance is paid in full. Staff does not support the Company's proposal to refund
customers with a bill credit or a refund check.
The Company states, "there was a computational error in the surcharge amount. This
error flowed from a formula in the Excel spreadsheet that had been used incorrectly. The error
resulted in a surcharge that was $2.87 too high for customers that paid a bimonthly surcharge."
Application at 2. Staff reviewed the workpapers from Case No. SUZ-W-18-01 and confirmed
that the rates approved by the Commission in its Decision Meeting on October 30,2018, were
higher than necessary for customers to pay off the fixed surcharge balance in the ten-year period
approved in Order No. 34153. However, the Company correctly and properly charged the
approved rates on Schedule No. 1C. The tariff was filed with, and approved by, the Commission
with an effective date of November 12,2018.
Because customers were charged the approved tariff rate, there is no overpayment. An
overpayment could only exist if the Company charged more than the amount on the approved
tariff, or if a customer paid off its surcharge balance and continued to make payments. Any
payments made under the tariff was a payment towards the balance owed by the customer and
the current balance must be adjusted to reflect the payments. The Company has been following
I The Company's Application incorrectly stated that the current surcharge for monthly Budget Billing customers was
$69.24. This is the amount the Company proposes to collect in the amended tariff.
2STAFF COMMENTS ocroBER 27,2022
its tariff as approved by the Commission and as such, a refund is not required by Commission
Rules. IDAPA 31.21.01.203.
Staff recommends that the alleged overpayments identified by the Company should be
properly credited to the individual customer principal balances on the date the payments were
made. Crediting the payments on the dates they were received ensures that customer balances
are accurate and do not include any additional interest. If the Company credits customers'
principal balances for the amount of the alleged overpayments plus the proposed 2oZ customer
deposit rate, customers would be inappropriately paying the Company additional interest. The
Company is currently charging interest on the unpaid balance at its weighted average cost of
capital, 7.549%.
There are currently 25 customers paying the bi-monthly surcharge and two customers that
have a negative principal balance because their individual surcharge balances have been paid in
full. Response to Staff Production Request No. l. These two customers should be refunded the
overpayment with interest.
CUSTOMER NOTICE AND PRESS RELEASE
Rule 125.01 of the Commission's Rules of Procedure. (IDAPA 31.01.01.125) requires a
customer notice and a press release when there is a change in rates. No press release has been
sent by the Company. The Company believes the Rule does not apply to this case. After review
of the Rule, Staff agrees.
In correspondence between the Company and Staft the Company stated its intent to
notiff the customers after the Commission authorized the change in the schedule and approved
the process for the refund. Staff suggested in response, and the Company agreed, to send a
customer notice while the case is in process, to veriff the mailing addresses for customers who
have moved from the subdivision and are owed a refund.
As of Wednesday, October 26,2022, the Company has not received any returned
correspondence.
As of Wednesday, October 26,2022, the Commission has not received any comments.
JSTAFF COMMENTS ocToBER 27 ,2022
STAFF RECOMMEIYDATION
Staffrecommends the Commission order the Company to:
1. Apply all payments received by customers under Schedule lC, Brian Subdivision
Surcharge to the customers' surcharge balance on the date payments were received.
2. Amend its proposed Schedule lC to include a statement a customer's surcharge shall
end when the customer's surcharge balance is paid in full.
Respecttully submitted this Z 1tt of october 2022.
Michael Duval
Deputy Attomey General
Technical Staff: Kathy Stockton
Chris Hecht
i:umisc/comments/veow22.3mdklscwh comments
4STAFF COMMENTS ocToBER 27,2022
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 27TH DAY OF OCTOBER}O2Z,
SERVED THE FOREGOING COMMENTS OF THE COMMISSTON STAFF, IN
CASE NO. VEO-W.22-03, BY E.MAILING A COPY THEREOF, TO THE
FOLLOWING:
PRESTON N CARTER
MORGAN GOODIN
GIVENS PURSLEY LLP
PO BOX 2720
BOrSE tD 83701-2720
E-MAIL : prestoncarter@.givenspurslev.com
morgansoodin@ sivenspursley. com
Jo 0Z--rt
SECRETARY /
CERTIFICATE OF SERVICE