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HomeMy WebLinkAbout20211122Petition for Intervenor Funding.pdfNorman M. Semanko,lSB #4761 PaRsoNs BpHLp & Lertvrsn 800 W. Main Street, Suite 1300 Boise,ldaho 83702 Tel: (208) 562-4900 Fax: (208) 562-4901 Email: nsemanko@porsonsbehle.com . rl Fn I:.-* i uti;U :t:; i;lJ 3: PH 3: 3q Attorneys for Intervenor Eagle Water Customer Group BEFORE TIIE IDAHO PUBLIC UTILITIES COMMISSION TN THE MATTER OF THE JOINT APPLICATION OF SUEZ WATER IDAHO, [NC., TO ACQUIRE EAGLE WATER COMPANY Case Nos.: SUZ-W-I 8-02; EAG-W-I 8-01 EAGLE WATER CUSTOMER GROUP'S PETITION FOR INTERVENOR FUNDING Eagle Water Customer Group ("EWCG"), by and through its counsel of record, Parsons Behle & Latimer, pursuant to Idaho Code $ 6l-617A and Rules 053 and 16l through 165 of the Rules of Procedure of the Idaho Public Utilities Commission ("Commission"), Idaho Administrative Code ("IDAPA") 31.01.01, and hereby petitions the Commission for an award of intervenor funding. A. BACKGROUND EWCG is an unincorporated nonprofit association, formed and recognized under the laws of the State of ldaho, composed of ratepayers, taxpayers and concerned citizens, including customers of the Applicants. EWCG members stand to be impacted by significant rate increases resulting from the proposed acquisition. If granted, these rate increases would exceed 200Yo for residential customers and 300% for commercial customers. This threatens to impose considerable "rate shock" on current Eagle Water Company customers. The outcome of the proceedings could also impact service to customers and other aspects of the public interest. EAGLE WATER CUSTOMER GROUP'S PETITION FOR INTERVENOR FUNDING _ Page I (26573.00I) 4895-6549-0692.v1 EWCG was formed to oppose and respond to the proposed acquisition of Eagle Water Company by SLIEZ Water ldaho, including the proposed rate increases, potential impacts on service, and other aspects of the public interest. EWCG successfully petitioned to intervene and has actively participated in the proceedings, as necessary to protect the interests of its members. In accordance with IPUC Rule 053(07)(a), the facts upon which this Petition is based are delineated below, along with the relevant legal authority upon which they are based. In accordance with IPUC Rule 053(07Xd), the entity against which this Petition is brought is identified as Applicant SUEZ Water ldaho, Inc. ("Applicant" or "SUEZ Water Idaho"). B. AWARD OF COSTS OF INTERVENTION AI\ID CASE IN WIIICH INTERVENORS MAY APPLY FOR FUNDING Idaho Code $ 6l-617A(2) and IPUC Rule 16l are met because SUEZ Water ldaho is a regulated water utility with gross Idaho intrastate annual revenues exceeding $3,500,000. C. ITEMIZED LIST OF EXPENSES Pursuant to IPUC Rule 162(01), following is an itemized list of EWCG's costs and fees: Itemized legal work performed during acquisition proceedings Hours Review Application, Amended Application and Direct Testimony Review Commission Notices and Orders Prepare Petition to Intervene Review Petitions to Intervene, motions and responses filed by other parties Review Production Requests and Responses Meetings and communications with Commission Staffand other parties Meetings and communications with client group members Participate in settlement meetings and discussions; review proposals Review and draft comments on proposed stipulation and settlement Review other comments on settlement; client group briefing Prepare for and participate in Customer Hearing; review Applicant rebuttal Total hours worked -Norman M. Semanko EAGLB WATER CUSTOMER GROUP'S PETITION FOR INTERVENOR FLINDING - Page 2 pastt.wtl 4895-6549-0692,v1 4.5 2.2 2.7 2.5 18.6 13.2 9.0 17.5 4.0 1.7 3.0 78.9 Legal Fees: 78.9 hrs. @$200lhr.r= $15,780 D. STATEMENT OF PROPOSED FINDINGS AI\D MATERIAL CONTRIBUTION THEREFROM In accordance with IPUC Rule 162(02), the proposed findings and recommendations of EWCG can be found in Eagle Water Customer Group's Comments on Proposed Settlement dated October 27,2021; namely, that the Commission should: (l) reject and deny the Stipulation ond Settlement and underlying application pursuant to the factors considered under Idaho Code Section 6l-328, or (2) modify the structure and length of the proposed rate increase phase-in as reasonably necessary to mitigate the rate shock that would otherwise occur to existing Eagle Water customers, as it did for existing customers in the South County Water acquisition case. EWCG maintained this position throughout the proceedings, thereby contributing materially to the settlement that was agreed to by the Applicants and Commission Staff and proposed to the Commission. In addition, EWCG filed extensive comments with the Commission, setting forth the factual and legal basis for denying or conditioning the acquisition. The requirement of Idaho Code $ 6l-617\(2)(a) is satisfied because said proposed findings and recommendations materially contributed to the decision rendered by the Commission. E. STATEMENT SHOWING COSTS The fees and costs EWCG seeks to recover - as detailed above - are reasonable and, as such, meet the requirements of Idaho Code $ 6l-617A(2)(b) and IPUC Rule 162(03). Attomey Norman M. Semanko's standard hourly rate is $405 per hour, but in this case his services were rendered at a discounted rate of $200 per hour, resulting in legal fees totaling $15,780 for 78.9 I Norman M. Semanko's services were billed at a discounted rate of $200/hour (standard rate is $405/hour). EAGLE WATER CUSTOMER GROUP'S PETITION FOR INTERVENOR FUNDING - Page 3 (26s?3.001) 4895-6549-0692.v1 hours of time performing work in this matter. No witness fees or reproduction costs were incurred. F. EXPLANATION OF COST STATEMENT AI\D STATEMENT OF FINAI\ICIAL HARDSHIP EWCG's funding, as an unincorporated nonprofit association, comes predominantly from individuals, most of whose contributions are unpredictable, sporadic, and limited in amount. EWCG has incurred reasonable, but still considerable, expenses participating in this important proceeding. Even with intervenor funding, participation in this case constitutes a significant hardship because EWCG has incurred these expenses during the course of the proceeding. The fees and costs identified above constitute a significant financial hardship for EWCG, and the requirements of ldaho Code $ 6l-617A(2)(b) and IPUC Rule 162(04) are met. G. STATEMENT OF DIFFERENCE The Commission Staff provided valuable technical analysis regarding the proposed acquisition. Its role and position differed from those of the Intervenors. The Staff was an effective intermediary between the Intervenors and the Applicants. However, the lntervenors did not agree to the settlement that was reached between the Applicants and Staff. While other Intervenors were focused on various issues related to this matter, EWCG consistently took the position that the acquisition should be denied due to the magnitude of the rate increases for existing Eagle Water customers. The more than 200o/o residential and 300%o commercial rate increases proposed to be charged by SUEZ Water Idaho are significantly greater than could be expected under Eagle Water Company, even with improvements deemed necessary by Staff. These rate increases - even with the proposed phase-in - would impose considerable rate shock, both for residential and commercial customers. In particular, EWCG maintained that the proposed acquisition should either be denied or conditioned so that the rate increases do not EAGLE WATER CUSTOMER GROUP'S PETITION FOR INTERVENOR FLINDING - Page 4 pestt.oorl 48954549-0692.v1 result in such rate shock. In particular, EWCG focused its analysis on the factors set forth in Idaho Code Section 6l-328, which other parties did not focus on. This difference in focus contributed materially to the Commission's consideration and ultimate decision in this matter. The requirements of Idaho Code $ 6l-617A(2)(c) and IPUC 162(05) are met by the clear difference between EWCG's proposed findings from those of Staff and the other parties. H. STATEMENT OF RECOMMENDATION: EWCG ADDRESSED ISSUES OF CONCERN TO THE GENERAL BODY OF USERS AI\D CONSUMERS EWCG's position addressed issues of concern to the general body of utility users and consumers. As noted previously, EWCG is an unincorporated nonprofit association, composed of ratepayers, taxpayers and concerned citizens. EWCG's position against the acquisition and associated rate increases is because it would impose considerable rate shock on existing Eagle Water Company residential and commercial customers. These are issues of concern to EWCG users and customers. As such the requirements of ldaho Code $ 6l -617A(2)(d) and IPUC Rule 162(06) have been met. I. STATEMENT OF SHOWING CLASS OF CUSTOMER To the extent EWCG represents a specific customer class, it is predominantly the residential class. IPUC Rule 162(07). J. AWARDS The specific requirements of Idaho Code $ 6l-617A(2H5) and IPUC Rule 165(01)(af (e) have been met as indicated above. The award of intervenor funding is requested to be paid within twenty-eight (28) days of the order of the Commission awarding intervenor funding. IPUC Rule 165(02). EAGLE WATER CUSTOMER GROUP'S PETITION FOR INTERVENOR FUNDING - Page 5 (26s23.001) 4895-6549-0692.v1 The award of intervenor funding paid by SUEZ Water Idaho will be an allowable business/rate case expense and shall be chargeable to the class of customers represented by the intervenors. IPUC Rule 165(03). This Petition is permitted, as EWCG is not in direct competition with SUEZ Water tdaho and thus payment of EWCG's expenses is not prohibited by Idaho Code $ 6l-617A(5). WHEREFORE, Petitioner EWCG, pursuant to Idaho Code $ 6l-617A(5) and IPUC Rule 053(07)(c), includes the following prayer for relief: l. For an award of intervenor funding to EWCG in the amount of $15,780 against Applicant SUEZ Water Idaho as follows: 2. That such award of intervenor funding be paid within twenty-eight (28) days of the order of the Commission awarding intervenor funding; 3. That such award of intervenor funding be an allowable business/rate case expense and be chargeable to the class of customers represented by EWCG; and For such other and further relief as the Commission may determine to be just and proper. DATED this2,dday ofNovembet'2'2.' paRsoNsBprup&Leflvrsn Norman M. Semanko Attorneys for Eagle Water Customer Group EAGLE WATER CUSTOMER GROUP'S PETITION FOR INTERVENORFT NDING- Page 6 (26s73.001) 4895{549-0692.v1 -\ CERTIFICATE OF SERVICE I HEREBY CERTIFY that on the22il day ofNovember, 2021,a true and correct copy of the foregoing document was served on the following via email: EAGLE WATER CUSTOMER GROUP'S PETITION FOR INTERVENOR FLINDING - Page 7 pestt.oorl 48954549-0692.v| SUEZ WATER IDAHO. INC. Marshall Thompson SUEZ WarrnIoeHO INC. 8248 W. Victory Road Boise,ID 83709 E-mail: marshall.thompson@suez.com Michael C. Creamer Preston N. Carter GrvpNs PuRsr-ey llp POBox2720 Boise,lD 83701-2720 E-mail: mcc@givenspursley.com prestoncarter@gi venspursley.com EAGLE WATER COMPANY: Molly O'Leary BzCouNseLoR @ LAw, tLLc 1775W. State St. #150 Boise,ID 83702 E-mail : molly @bizcounseloratlaw.com Robert V. DeShazo, Jr., President Eacr-E Warpn ColreNY, INc. PO Box 455 Eagle,lD 83616-0455 E-mail : eaglewaterco@gmai l.com N. L. Bangle H2O Enclr AceursntoN, r-Lc 188 W. State Street Eagle,ID 83616 E-mail: nbangle@h2o-solutionsl lc.net COMMTSSION STAFF: Dayne Hardie Erick Shaner Deputy Attorneys General Ioeno PusI-tc UuLnlss ComrrssroN 47 2 W . Washington (837 02) PO Box 83720 Boise, ID 83720-0074 E-mail: dayn.hardie@puc. idaho.gov erick. shaner@puc. idaho. gov CITY OF EAGLE: B. Newall Squyres Murray D. Feldman Holr.aNp & Henrllc 800 W. Main St., Suite 1750 POBox2527 Boise,lD 83702-2527 E-mail : nsquyres@hol landhart.com m feldm an @ho I I andh art. com Jason Pierce Mayor Crv or Eeclp E-mail : jpierce@cityofeagle.org to sbom@ c ityofeaele. ors CITZENS ALLIED FOR INTEGRITY AND ACCOI.JNTABILITY: James M. Piotrowski Marty Durand PtorRowsrl DURAND, PLLC 1020 W. Main Street, Suite 440 PO Box 2864 Boise,ID 83701 E-mail : james@idunionlaw.com marty@idunionlaw.com CITY OF BOISE CITY Mary Grant Scott B. Muir Deputy City Attorney Botsp Crrv ATToRNEY's Oprrcs 150 N. Capitol Blvd. PO Box 500 Boise,ID 83701-0500 E-mail: boisecityattorney@cityofboise.org DATED this 22nd day of November, 2021. Norman M. Semanko EAGLE WATER CUSTOMER GROUP'S PETITION FOR INTERVENOR FLINDING - Page 8 (26573.00r) 489545494692.v\ -\