HomeMy WebLinkAbout20241010Customer Hearing Transcript Vol I.pdf In The Matter Of:
Re: Stoneridge Utilities, LLC's Application
Transcript of Hearing
October 10, 2024
SWS-W-24-01
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Original File Hear 10 1 024.txt
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SWS-W-24-01 1
1 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
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IN THE MATTER OF CDS ) CASE NO . SWS-W-24-01
5 STONERIDGE UTILITIES, )
LLC' S APPLICATION FOR )
6 AUTHORITY TO INCREASE )
ITS RATES AND CHARGES )
7 FOR WATER SERVICE IN )
THE STATE OF IDAHO )
8 )
ORDER NO . 36323
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12 CUSTOMER HEARING
AT BLANCHARD COMMUNITY CENTER, 685 RUSHO LANE
13 BLANCHARD, IDAHO
October 10, 2024 , at 10 : 03 a .m.
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REPORTED BY : Amelia Macy, RPR, CSR
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SWS-W-24-01 2
1 A P P E A R A N C E S
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COMMISSIONER JOHN HAMMOND, JR.
3 COMMISSIONER ERIC ANDERSON
DEPUTY ATTORNEY GENERAL MICHAEL DUVAL
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SWS-W-24-01 3
1 I N D E X
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TESTIMONY : PAGE
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Heather Scott, District Representative 8
4 Catherine Rapalli 9
Kathi Malakowsky 13
5 Michael Kizer 24
Bill Postemus 28
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Transcript of Hearing - October 10, 2024 4
SWS-W-24-01
1 THE HEARING BEFORE THE IDAHO PUBLIC UTILITIES
2 COMMISSION was held on this 10th day of October, 2024 ,
3 at the Blanchard Community Center at 685 Rusho Lane,
4 Blanchard, Idaho, before M & M Court Reporting, LLC, by
5 Amelia Macy, Court Reporter and Notary Public within and
6 for the State of Idaho, to be used in an action pending
7 before the Idaho Public Utilities Commission of the
8 State of Idaho, said cause being Case No . SWS-W-24-01 .
9 AND THEREUPON, the following testimony was
10 adduced, to wit :
11
12 COMMISSIONER HAMMOND : Good morning. This is
13 the time and place for a customer hearing in case number
14 SWS-W-24-01, also referred to as : In the Matter of CDS
15 Stoneridge Utilities, LLC ' s application for authority to
16 increase its rates and charges for water service in the
17 State of Idaho . The purpose of this hearing is to take
18 testimony from members of the public in reference to CDS
19 Stoneridge Utility, LLC ' s request that was filed with
20 the commission on February 28th, 2024 .
21 My name is John Hammond, Jr . I am the Chair
22 of today ' s proceedings . And to my left is Commissioner
23 Eric Anderson, President -- or to my right; I don ' t know
24 my right and left, apparently -- to my right is
25 President Commissioner Anderson . Commissioner Edward
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1 Lodge is also a member of the Commission but was unable
2 to attend today. Had an unfortunate ranching/horsing
3 incident, and he ' s okay but couldn ' t fly. So the three
4 of us comprise the Commission and we will be making the
5 final decisions in this case .
6 To this point, Commission Staff has held
7 workshops here on location that I understand were very
8 well attended, and this hearing is to take testimony and
9 the transcript of this hearing will be added to the
10 underlying record in this case . The Commissioners will
11 review the facts and evidence in this record to make its
12 final decision .
13 As an initial matter, let ' s document for the
14 record the parties that are present and their counsel .
15 I ' ll start with the Commission Staff representation
16 through its deputy attorney general .
17 MR. DUVAL : Mike Duval representing the
18 Staff .
19 Thank you, Commissioner .
20 COMMISSIONER HAMMOND : And for Stoneridge
21 Utilities, LLC, is there anyone here representing the
22 company this morning?
23 And then next let ' s go to intervenors .
24 Stoneridge Recreational Club Condominium Owners
25 Association, Inc . , is there anybody here from that
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1 organization or their counsel?
2 The next is the Stoneridge Property Owners
3 Association, Inc . , and is there anybody here today
4 representing that organization or their counsel?
5 Okay . Randolph Lee Garrison?
6 Okay . And I would like to recognize if there
7 are any elected officials here from the area . I know we
8 have one . We ' re honored to have Representative Scott
9 here in attendance today, and we ' d like to thank her for
10 attending here .
11 And if you wish to testify we ' ll allow you to
12 go first and -- yeah .
13 So let me convey the most important
14 information . The bathrooms are out in the hallway. You
15 probably already know that better than me and, of
16 course, if there ' s some incident or whatever, the door,
17 the exit is of course right there .
18 Let me explain the procedures for today' s
19 hearing briefly. We will call your name to testify .
20 Please come up to this microphone here . Make sure
21 you ' re speaking close to the microphone . We have
22 learned that you need to be a little closer so it
23 catches your voice . We want that loud enough so that
24 the court transcript comes through clearly.
25 Prior to starting to testify you will be
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1 sworn in . Some of you were here last night and saw
2 that . Mr . Duval will ask you to identify yourself for
3 the record, which you ' ll include your name, spelling
4 your last name, your address, and whether you are a
5 customer of Stoneridge Utilities, LLC .
6 We don ' t have a giant group today, so I don ' t
7 believe there ' s a need to limit or time limit people ' s
8 testimony. We have time for everyone to speak their
9 peace and we, of course, welcome that . That ' s why we ' re
10 here .
11 When you have completed your testimony,
12 attorneys for the parties have an opportunity to ask you
13 questions as well as the commissioners, maybe
14 clarifying, maybe asking more information . Please don ' t
15 let that discourage you from testifying. These hearings
16 are almost always very friendly and generally the
17 questions that you may get are limited and are only
18 meant to clarify the record or add to the record.
19 We do use a court reporter for the hearings .
20 Today we have Amelia Macy with M & M Court Reporting
21 over here to my right, and she is creating the official
22 transcript for our record. We ask people to refrain
23 from clapping or cheering, as that can interfere
24 sometimes with a clear record or clear transcript . When
25 you ' re speaking and testifying, take your time, speak
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1 clearly. We want to make sure that we ' re getting your
2 testimony accurately in that transcript .
3 The comment period technically is closed --
4 the written comment period. Many of you have submitted
5 written comments, but we are accepting written comments
6 if you submit them today. So if you want to submit
7 something initial in writing, please do so today.
8 Unless my colleagues find that I have missed
9 something, that leads to calling our first witness . And
10 what I would like to do is call Representative Heather
11 Scott, if she would like to testify.
12 MR. DUVAL : Representative Scott, would you
13 raise your hand to the square and would you state your
14 first and last name, spelling your last name, please?
15 HEATHER SCOTT : Heather Scott, S-c-o-t-t .
16 MR. DUVAL : And where do you live?
17 HEATHER SCOTT : Blanchard, Idaho .
18 MR. DUVAL : And are you a customer of the
19 company?
20 HEATHER SCOTT : No .
21 MR. DUVAL : And do you swear to tell the
22 truth in today' s hearing?
23 HEATHER SCOTT : Yes .
24 MR. DUVAL : Thank you .
25 HEATHER SCOTT : Thank you, Commissioners .
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1 I just wanted to show up in support of the
2 community and what they ' re going through, and thank you
3 for taking this matter serious and in taking testimony
4 from the people . I really appreciate that, and it ' s
5 good government . So thank you .
6 COMMISSIONER ANDERSON: You ' re welcome .
7 HEATHER SCOTT : That ' s all I have .
8 COMMISSIONER ANDERSON: Thank you very much .
9 COMMISSIONER HAMMOND: Thank you,
10 Representative Scott, and thank you for being here
11 today. It ' s great to see folks the who represent the
12 customers here in attendance, so thank you .
13 Next on the list is Catherine Rapalli, if I
14 got it right .
15 MR. DUVAL : Would you please state your first
16 and last name and spell your last name?
17 CATHERINE RAPALLI : Catherine Rapalli,
18 R-a-p-a-1-1-i .
19 MR. DUVAL : And where do you live?
20 CATHERINE RAPALLI : 179 Forest Ridge Road in
21 Blanchard.
22 MR. DUVAL : And are you a customer of the
23 company?
24 CATHERINE RAPALLI : Yes .
25 MR. DUVAL : And do you swear to tell the
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1 truth in today ' s hearing?
2 CATHERINE RAPALLI : Yes .
3 MR. DUVAL : Thank you .
4 COMMISSIONER HAMMOND : Feel free to get close
5 to that microphone .
6 CATHERINE RAPALLI : All right . Thank you
7 again for being here .
8 What I would like to say is that last spring
9 we obviously noticed that Chan ' s company was asking for
10 a water rate increase of 261 percent for a meter size of
11 three-quarter inch . He was asking for a 543 percent
12 increase for a meter size of one inch . We have at our
13 house a three-quarter inch, meaning that our basic rate
14 without overage charges would go from $24 to $87 . Yes,
15 we all know there ' s inflation, but it seems like this is
16 price gouging on Chan ' s part .
17 Mr . -- I 'm not sure how to say his last name,
18 so I 'm just gonna call him Chan . Okay? Chan owns the
19 water company CDS Stoneridge Utilities, LLC, doing
20 business as Stoneridge Water . He also owns the golf
21 course, the grill, and several lots within our
22 community. And my question is : The other entities that
23 Chan owns, are they paying their share or is there some
24 kind of -- I don ' t want to say backdoor, slight of hand,
25 but I just want to make sure that other entities that he
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1 owns are actually paying their way and their monthly
2 water bill when it comes due, and nothing ' s sliding
3 under the carpet . You can ' t ask for a raise if not
4 everybody' s paying their way.
5 Secondly, we have lived here for four years .
6 Having come from the Hauser Lake water district where
7 our water was excellent, I find the water here kind of
8 off-putting, and it ' s gotten worse . It seems like
9 there ' s a chlorine in the water nowadays . We actually
10 filter our water because I can ' t drink it out of the
11 tap . I get the glass right here and I can smell the
12 fumes sometimes, so I just don ' t feel that ' s
13 appropriate .
14 And the final thing I want to say is I
15 understand the that the cost of business has gone up and
16 I understand that a rate increase is due . 27 percent
17 for a lot of us is probably gonna be okay, but I know
18 there ' s a lot of people in our area that live on a very
19 fixed income, and for them it might be something of a
20 hardship . So I 'm wondering if when the board approves
21 the rate increase that the Staff -- I know you don ' t
22 have to approve what the Staff recommends . They' re
23 recommending 27 percent . So if you go with that, is
24 there a mechanism in place where you could do, like, 14
25 percent and then at six months do the other 13 percent?
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1 And I don ' t know if that ' s possible . It may help some
2 of the seniors that live in our community that are on
3 very tight budgets .
4 And I thank you for your time and that ' s all
5 I have to say. And I did write this out; can I give it
6 to you? No? Yes?
7 COMMISSIONER HAMMOND: Absolutely. That
8 would be with Adam, yes .
9 CATHERINE RAPALLI : Thank you .
10 COMMISSIONER HAMMOND : Thank you very much .
11 We really appreciate it .
12 Mr . Duval, do you have any questions?
13 Sorry.
14 MR. DUVAL : No Commissioner Hammond.
15 COMMISSIONER HAMMOND: Mr . President .
16 COMMISSIONER ANDERSON: I just want to thank
17 for returning. I know we must have been intimidating
18 yesterday but we didn ' t mean to be that way, but thank
19 you for coming.
20 CATHERINE RAPALLI : No, it ' s me . I don ' t
21 like to speak in front of people . It ' s -- you know, but
22 when I feel there ' s an important issue I will step up
23 and mumble through something if I have to .
24 COMMISSIONER ANDERSON: Well, you have a hell
25 of a career in front of you . You did a very good job
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1 speaking.
2 CATHERINE RAPALLI : Thank you .
3 COMMISSIONER HAMMOND: And I appreciate the
4 mention of water quality. It ' s something we have heard
5 yesterday, too, so it ' s important we hear that and we
6 can check on those things certainly, and DEQ also would
7 be involved. And I can ' t tell you what we would do . We
8 haven ' t had a full record. We ' re waiting for the full
9 record to come in, and then we ' ll sit down and
10 deliberate and try to decide what ' s fair, just, and
11 reasonable for this situation . But I do, yeah,
12 acknowledge that Staff has done a lot of work digging
13 through this, as you have, as this community has . So
14 thank you .
15 And I will go to the next person, who is --
16 let ' s see -- is it -- I 'm sorry. I 'm going to butcher
17 this . Is this Katie? Is it Kat -- Malakowsky?
18 KATHI MALAKOWSKY: Yes .
19 COMMISSIONER HAMMOND: I 'm sorry. I
20 apologize .
21 KATHI MALAKOWSKY: That ' s all right . I
22 married it, you know.
23 MR. DUVAL : Would you please raise your hand
24 to the square and would you please state your first and
25 last name and spell your last name?
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1 KATHI MALAKOWSKY: Kathi Malakowsky,
2 M-a-l-a-k-o-w-s-k-y.
3 MR. DUVAL : And where do you live?
4 KATHI MALAKOWSKY: 369 Lakeview Drive .
5 MR. DUVAL : And are you a customer of the
6 company?
7 KATHI MALAKOWSKY : Yes .
8 MR. DUVAL : And do you swear to tell the
9 truth at today ' s hearing?
10 KATHI MALAKOWSKY: Yes .
11 COMMISSIONER ANDERSON: Thank you .
12 COMMISSIONER HAMMOND : Fire away.
13 KATHI MALAKOWSKY: Yeah . I lived in my house
14 for 43 years . I have seen a lot of changes up in Happy
15 Valley. The water -- I was once on the board before it
16 hooked to Stoneridge . Umm, when I received the notice
17 of the increase of 275 percent I was plain shocked, of
18 course . I believe that he just figured he could push
19 something through on us . I didn ' t understand,
20 basically.
21 The Staff has done a great job opening things
22 up . In fact, I learned new things by reading their
23 report . Chan is known to be very quirky. I know what
24 he ' s done in Bay View. I don ' t want to see that happen
25 in Blanchard. I really, you know, implore you -- or
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1 however you say that -- to look into his management
2 style . His three businesses and he pay one another, and
3 it ' s supposed to be legal . I don ' t know. I guess it
4 is .
5 The only thing I disagree with the Staff ' s
6 finding is 27 percent is a little high . 20 percent
7 would be reasonable increase . There is a lot of us that
8 are on fixed incomes . I 'm looking at retiring,
9 hopefully, in four years, so I really don ' t want to be
10 paying . Electric has gone up, everything ' s gone up, and
11 water, you know, we shouldn ' t have to pay -- I mean, you
12 guys were established in the beginning so people
13 wouldn ' t buy up water companies and charge whatever they
14 wanted, and that ' s what I feel Chan is doing .
15 He says 900 , 000? He has done no upkeep that
16 I have seen . He fixes it when it ' s broke or otherwise
17 no attention .
18 I know that I feed off the upper tank. I 'm
19 the last one on the line, gravity-fed. It goes through,
20 it ' s in a holding tank on Forest Way and it ' s pumped up
21 to another holding tank and then pumped up to the
22 holding tank. Those two holding tanks aren ' t very
23 large, so when it ' s gravity-fed there should be a break.
24 I have 160 feet of line before where I 'm hooked up to,
25 to where my house is .
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1 The quality, I mean, it ' s better than what we
2 had before until we got the filtration system. Then we
3 did get rid of the orange . Volunteers did a great job
4 of running that but couldn ' t keep it because we had no
5 way of a backup well . It ' s hit-and-miss -- when you get
6 past Stoneridge you go down a way and turn, you ' re
7 hit-and-miss on whether you can even dig a well and get
8 water, period. So we ' re relying on a man that feels
9 that because he has lots of money he can buy up
10 everything for our water, literally.
11 I know when Happy Valley joined with
12 Stoneridge it was a real positive thing. I had concerns
13 on how they were gonna hook in but, it was a positive
14 thing. I -- now, since they have sold --
15 And I work for Keith Gardner at Stoneridge
16 for, you know, the pro shop back when they were a
17 receivership [phonetic] . Stoneridge historically has had
18 financial problems from receivership bankruptcy, sold,
19 sold, sold. And so now, in fact, I didn ' t --- I wasn ' t
20 aware that the water -- I thought it was remained with
21 Stoneridge golf course and so forth . I didn ' t know
22 there was a J. D . Resort in Bay View. Well, J. D . Resort
23 is a bar and it ' s currently closed. So, you know, I
24 have real concerns when it comes to this man ' s business
25 practices and thinking along that line .
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1 Like I said, Staff did a wonderful job . They
2 were right on on a lot of issues and their research was
3 excellent, a lot more than what I could figure out .
4 That ' s for sure . I was so glad to read it . It took me
5 a while, but I just ask you to please stop this
6 gentleman, Chan, from trying to rob us, basically,
7 because we need water .
8 But they also need to -- when we had our
9 fire, I know there was -- I listened to the -- your
10 meeting last night and there ' s a lot of concerns about
11 the fire . Well, yes, because when I returned to my
12 house after evacuation, power was finally restored. I
13 had to call Stoneridge and say, "Why don ' t we have
14 water?"
15 "Well, power ' s out . "
16 Well, number one, you should have backup
17 generators . Number two, the power ' s on and the water
18 rely on . So yeah, they say they have equipment . They
19 don ' t . We ' re leasing it back from one of his other
20 parent companies . I mean, assets that we already paid
21 for as customers . And now he has the audacity to ask
22 for such an increase . Wow. Maybe that ' s why he ' s rich .
23 I don ' t know.
24 But that ' s all I have to say.
25 COMMISSIONER HAMMOND: Mr . Duval .
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1 MR. DUVAL : Just one question from Commission
2 Staff . You mention that your water quality is better
3 than before . Could you -- before when, specifically?
4 KATHI MALAKOWSKY: Umm, before ' 04 . We had
5 an extensive filtration system on our system, but since
6 we couldn ' t get a backup well, and the state of Idaho
7 was requiring it, to pump enough for the subdivision --
8 because there ' s 121 lots in Happy Valley. So -- and not
9 all of them will ever be hooked up to water because
10 people own two to three lots . So, you know, the
11 quality, it was good at first when we first hooked up in
12 ' 04 , and it ' s gradually in the last, I would say, two or
13 three years it ' s gotten very chlorinated. I never had
14 color because I was the last on the line, so it worked
15 itself out by the time it got to my house, to be honest
16 with you . Other people that lived in other areas, they
17 had a real problem. But just in the last year or two I
18 have noticed the water being harder, leaving more
19 stains, chlorinated to the point of -- wow -- and to
20 where I even purchased a filter to put on my faucet .
21 And I have never done that . I didn ' t do that when it
22 was orange . You know? I used a lot of vinegar, but
23 that ' s just the way it was .
24 But yeah, I would say it ' s gotten better --
25 it was better in 2004 when we first hooked up to
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1 Stoneridge . But with them being right there on the
2 aquas, for there ' s no reason for it to be so
3 chlorinated. If they put in 900, 000 and replaced the
4 lines -- the old lines in Happy Valley and were feeding
5 off of a 40-, 50-year-old tank, I don ' t know if that ' s
6 even been cleaned. So you know, that ' s -- that ' s -- it
7 is what it is .
8 Did I answer your question?
9 MR. DUVAL : No further questions from Staff .
10 COMMISSIONER HAMMOND : Mr . President .
11 COMMISSIONER ANDERSON: Thank you, Kathi .
12 Quick question about the chlorine . You were actually
13 drawing -- not everybody is drawing off the tanks that
14 are coming down but you are drawing off of a couple
15 tanks that are on the hill; right?
16 KATHI MALAKOWSKY : Well, the way I understand
17 it is that the whole subdivision -- I 'm on the north
18 side, so the south side -- we ' re all feeding off that --
19 that 30, 000 gallon on Forest Way. That was Keith
20 Gardner ' s other subdivision, which is separate from us .
21 And then it ' s pumped up to a smaller up on Mountain
22 View, then on top on Skyline there ' s another holding
23 tank. And then -- and I 'm gravity-fed. Everybody up on
24 the upper level is gravity-fed up to a certain point on
25 Mountain View. I think the cutoff is -- there ' s all new
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1 people up there . The one folks that have all the dogs,
2 that ' s where the cutoff was . ' Cause it used to feed --
3 it would feed into the houses -- everybody' s house until
4 it got to the north side, then it went up to the tank.
5 COMMISSIONER ANDERSON: Well, the reason I
6 ask is whenever -- the testimony that we heard
7 yesterday, when you over-chlorinate and you start to
8 kill vegetation in your yard when you ' re using it for
9 irrigation, that ' s a serious problem, and it ' s not lost
10 on me . Those are DEQ issues . The DEQ works closely
11 with us, and those are some questions that I 'm very
12 concerned about . So you simply cannot -- if you over
13 chlorinate, you ' re gonna cause some other damages . So
14 it ' s not lost on us . Thank you for bringing that up.
15 Appreciate it .
16 COMMISSIONER HAMMOND: I do have a couple
17 questions and -- just something I was interested in last
18 night and interested again today, and I want to make
19 sure of : The rates that you are currently paying for
20 water service, are those consistent or exactly what the
21 tariff provides, or is he -- is the company charging you
22 something that ' s outside of what ' s in their
23 commissioner-approved tariff?
24 KATHI MALAKOWSKY: Well, all I know is that
25 -- I can ' t know how possibly I can do this, but since I
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1 started reading the meter, my bill has been exactly the
2 same . I use exactly the same amount, 3, 000 gallons . It
3 doesn ' t matter if I water less, it doesn ' t matter if I
4 do less laundry, more laundry. I just thought, Wow, Why
5 is my bill the same every month? I --
6 And also, umm, Happy Valley does pay that
7 loan, and that ' s supposed to be done October 22nd of
8 this year . And I guess we ' ll either all be on the phone
9 if it doesn ' t come off or -- I just hope to goodness,
10 because I 'm sure Chan will leave it on there as long as
11 he can .
12 COMMISSIONER HAMMOND : That ' s something that
13 I actually -- before this position I was up here as an
14 attorney working on that issue . So I 'm glad people have
15 brought it up . It ' s something we ' re gonna look at for
16 sure .
17 The other question I have : You mentioned
18 repairs, and I want to -- can you give me -- is there a
19 specific instance where you can think of? And that ' s
20 okay. I 'm just --
21 KATHI MALAKOWSKY : Yeah . In July they sent
22 us out notices saying "contact IPUC" because the pump
23 broke, something to that effect . Useless water, that ' s
24 what the letter said. Don ' t use any water, basically.
25 Then all of a sudden it was fine .
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1 But the only thing is is, as you will read in
2 the Staff ' s findings, they couldn ' t even get an invoice
3 on that . When there ' s a break in the line -- we used to
4 have two flush-out valves up above me . They' re gone
5 now. So I don ' t know why, because whenever there was a
6 break in the old days they' d flush it through my garden
7 hose, you know, run the water through before the
8 flush-out valves because, you know, they could afford
9 the water . It was cheap . And my first husband who
10 passed away, he was -- he worked for a utility district
11 in the Tahoe, so Flita [phonetic] , the
12 brunette [phonetic] , they jumped right on him for Happy
13 Valley. Free maintenance, you know.
14 But like I said, the -- we have had a couple
15 breaks issues when some folks hooked up and the water
16 was off, but not for very long. I will give him that .
17 But the same people aren ' t handling it anymore . I mean,
18 it was either Keith -- for many years, and he knew his
19 stuff -- then it sold, then we had two contacts, and I
20 don ' t even think they ' re there anymore . Now they' re
21 leasing or contracting a company -- another company to
22 oversee the water . So I really don ' t know who ' s
23 handling it at this point .
24 COMMISSIONER HAMMOND: Well, and that ' s --
25 that leads to another question . Do you have good
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SWS-W-24-01
1 contact information for the company when these
2 situations -- it sounds like you don ' t .
3 KATHI MALAKOWSKY : Well, we have a phone
4 number when they ' re there, if you don ' t get their
5 answering machine . Their office hours are very short .
6 You will get their secretary. Yeah, that ' s about it . I
7 know I have stopped in there -- because I had an issue
8 with a leak in my line and, you know, I kind of ignored
9 it for a little while because it wasn ' t that bad. Then
10 it got bad, so I had to replace my whole water line . So
11 I had contacted them, but they had the same people there
12 at that time . This happened before Chan . So . . .
13 COMMISSIONER HAMMOND : The other thing that
14 you mentioned, I just want to -- you said there were
15 volunteers working on the water system. Is that
16 recently since Chan?
17 KATHI MALAKOWSKY : No, no, no .
18 COMMISSIONER HAMMOND : Okay. I just wanted
19 to --
20 KATHI MALAKOWSKY : That was before . This was
21 in the 80s and before they -- we hooked up before ' 04 .
22 Because it was mainly volunteers . Some of them, you
23 know, got a little bit of money later on, depending on
24 what the board said.
25 COMMISSIONER HAMMOND : Well, thank you very
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SWS-W-24-01
1 much . I really appreciate it .
2 KATHI MALAKOWSKY : Okay. Thank you .
3 COMMISSIONER HAMMOND : And is it Michael
4 "Kizer" or Michael --
5 MICHAEL KIZER: "Kizer . "
6 COMMISSIONER HAMMOND : Sorry. I should have
7 known .
8 MR. DUVAL : Would you please state your first
9 and last name and spell your last for the record?
10 MICHAEL KIZER: It ' s Michael Kizer,
11 K-i-z-e-r . I live at 77 Parkland Court in Blanchard,
12 and I am a customer of the water service .
13 MR. DUVAL : And are you a customer of the
14 company?
15 MICHAEL KIZER: Yes .
16 MR. DUVAL : Do you swear to tell the truth in
17 today ' s hearing?
18 MICHAEL KIZER: Yes .
19 COMMISSIONER HAMMOND : Please step into that
20 mic . If you can adjust it -- it may be adjustable .
21 MICHAEL KIZER: So since last night I went
22 home and tested my water with my Pro One water tester,
23 and coming out of the faucet it was 980 . When I went to
24 my Berkey water filter, it came out at 98 . So that ' s
25 total dissolves, solids . I have a simple strip tester
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SWS-W-24-01
1 for chlorine and it ' s high again . And the one thing
2 that bothers me about chlorine is its a carcinogenic,
3 and so I 'm really concerned, even when I bring my grand
4 kids here, about having them drinking our water because
5 over-chlorinated can do that .
6 So the other thing, just from hearing the
7 last person respond, whenever you have a leak in a
8 system you have to be careful about, you know, if you
9 don ' t have a backflow preventer somewhere, that you can
10 -- ' cause she ' s at the top of the system, it ' ll siphon
11 all the way to the bottom. So since this is a
12 gravity-fed system, she has the lowest amount of water
13 pressure up there compared to the other ones, and we can
14 back-feed all the way down .
15 Since I have been here, even when we had some
16 breaks, I have never got a notice that they' re gonna
17 have to chlorinate the system or flush the system
18 because there was a water problem. And that concerns
19 me, and the practice that they have on mitigating leaks .
20 So they should, you know, flush the system, chlorinate
21 it, give you a notice "Hey, boil it or whatever you ' re
22 gonna do" and seems like they don ' t have the proper
23 procedures on contacting us when this goes on .
24 The other thing that I wanted to let you know
25 is, as a relay tech, and I 'm going back east . I got
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Transcript of Hearing - October 10, 2024 26
SWS-W-24-01
1 called to -- I do the fire settings and all for the
2 utility companies . I 'm one of the relay techs . And I 'm
3 retired, but I got called back to work to help out back
4 there . When you go into the summer and we ' re on fire
5 settings, we ' re on the shortest amount of time to trip
6 the lines out . Well, what that does now is our water
7 reservoir over here has no pumps to fill our tanks up,
8 and since it ' s a gravity-fed system, the way that you
9 figure out your pressure is it ' s 4 . 3 pounds per foot of
10 head pressure . So if you have a 100-gallon tank,
11 roughly just half . So the problem is, as this water
12 pressure goes down, so does -- or the water level goes
13 down, so does the water pressure to fire mitigate .
14 The other thing that ' s going on is we ' re at
15 the top of the hill over there in the forest . We have
16 barely enough to meet the DEQ or the water -- I have 42
17 pounds . At the bottom of the hill they ' re 100 PSI . So
18 we ' re either not enough or blowing the guys out below
19 it . So I would like to see you guys request that Chan
20 has a mitigation problem to fix his other third valve .
21 So, like what happened in July when the other booster
22 pump went down, we don ' t have to turn off our water .
23 And adequately fund it for a proper maintenance program,
24 and then go in and see what needs to be fixed.
25 So, I have an irrigation system I need to
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Transcript of Hearing - October 10, 2024 27
SWS-W-24-01
1 hook up . I have a backflow preventer . And no one has
2 ever came up to see if it even was hooked up . They sent
3 me a letter out to say "Hey" -- but I don ' t never see
4 any of the water people around there . So, you know, I 'm
5 really concerned on the maintenance of this system.
6 The other thing is, if I 'm gonna give Chan a
7 rate increase, I think it should be based on your
8 performance . Give me good water, give me good service,
9 I know you didn ' t do your -- didn ' t do his due diligence
10 when he bought an aging water system. I want him to be
11 financially secure in our water system, and I hope that
12 you guys would look into our best interests . And maybe
13 if he can ' t do this, look for another person -- because
14 I know you can take these away from him -- and see if we
15 can get a better person to do this .
16 I would also like to point out that he has no
17 water-certified person that works for him. He has to
18 hire it out . That really concerns me . So --
19 And I thank you guys again, but I just wanted
20 to let you know about what I found on the water testing
21 this morning . And it ' s not a water test, you know, that
22 can be held up in court, but I just thought I would just
23 let you know what I found.
24 COMMISSIONER HAMMOND: Mr . Duval .
25 MR. DUVAL : No questions from Commission
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Transcript of Hearing - October 10, 2024 28
SWS-W-24-01
1 Staff .
2 COMMISSIONER HAMMOND : Mr . President .
3 COMMISSIONER ANDERSON: Thank you . Would you
4 remind me again, were you testing for hardness on that?
5 MICHAEL KIZER: No, it ' s dissolved solids .
6 So it ' s 980, and then right in the -- near when I ran it
7 through my Berkey it went down to 98 .
8 COMMISSIONER ANDERSON: Thank you very much .
9 MICHAEL KIZER: We totally use our water
10 filter . Umm, we don ' t drink out of the faucet, even for
11 our animals .
12 COMMISSIONER ANDERSON: Does it eliminate the
13 chlorine also in that filter?
14 MICHAEL KIZER: No . After the test --
15 they' re like test strips, I mean, they just tell you the
16 ratings that they ' re in .
17 COMMISSIONER ANDERSON: Well, you ' re correct
18 to be concerned about the chlorine content . It ' s
19 something we need to pay attention to .
20 MICHAEL KIZER: And also the fire liability,
21 too, because we do live in a pretty wooded area and,
22 besides chopping the trees down and making it look like
23 a desert, I don ' t have any other way to mitigate .
24 COMMISSIONER ANDERSON: Thank you .
25 MICHAEL KIZER: Uh-huh.
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Transcript of Hearing - October 10, 2024 29
SWS-W-24-01
1 COMMISSIONER HAMMOND : And I have Bill
2 Postemus, maybe, or Posemus . I apologize .
3 BILL POSTEMUS : That was close .
4 COMMISSIONER HAMMOND: You ' re being nice .
5 BILL POSTEMUS : Bill Postemus,
6 P-o-s-t-e-m-u-s, 343 Steward Drive, Blanchard. Yes, I 'm
7 a customer .
8 MR. DUVAL : Do you swear to tell the truth in
9 today ' s hearing?
10 BILL POSTEMUS : Yes .
11 COMMISSIONER HAMMOND: Feel free to step into
12 that mic there so --
13 BILL POSTEMUS : I just got two things that
14 I 'm concerned. Number one, is the 251 percent rate
15 increase . Social Security increase this year was 2 . 5
16 and my other retirement was 3 percent . So that ' s a
17 pretty hefty increase . The majority of the people where
18 I live, they' re all retirees . So, you know, with
19 inflation as it is, it ' s sure not what they say it is
20 it ' s in the 20s, rate increase like that wipes out your
21 seniors .
22 Second thing I have is the chlorine . And I
23 had no idea . I have been here nine years . I drink the
24 water, and I 'm shocked now to find out we have a problem
25 with chlorine because I have been drinking it for nine
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SWS-W-24-01
1 years, and I 'm -- I 'm finding out that it ' s not healthy
2 for you, and that ' s -- you know, I 'm completely shocked
3 with that . That ' s the only two things that I have .
4 COMMISSIONER HAMMOND : Mr . Duval .
5 MR. DUVAL : Nothing from Staff, Commissioner .
6 COMMISSIONER HAMMOND : Mr . President .
7 COMMISSIONER ANDERSON: I like your hat .
8 BILL POSTEMUS : Excuse me?
9 COMMISSIONER ANDERSON: I like your hat .
10 BILL POSTEMUS : Thanks .
11 COMMISSIONER ANDERSON: I also like your
12 shirt . And again, just be mindful that the chlorine
13 probably -- it takes a long time for it to become -- the
14 levels of carcinogen to actually make an impact your
15 body, but it does need to be measured differently than
16 it has . But we ' re hearing this time and time again,
17 smell, bad taste, there ' s no reason we should have any
18 of that going on here . It ' s not what we regulate; the
19 DEQ does, and it ' s in our notes to make sure we regulate
20 that for you .
21 BILL POSTEMUS : Well, I 'm 73 and I 'm getting
22 tremors now, so I don ' t want it to affect that .
23 COMMISSIONER ANDERSON: I don ' t either .
24 COMMISSIONER HAMMOND : Thank you very much .
25 COMMISSIONER ANDERSON: Thank you for being
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SWS-W-24-01
1 here . I appreciate it .
2 COMMISSIONER HAMMOND : I believe at this time
3 we have come to the end of the people that have signed
4 up to testify. If you would -- I see some faces out
5 there that haven ' t testified. If you want to, please,
6 we ' re here for you . This is your hearing, so if you
7 would like to make a statement and testify please do so .
8 And if not, as I said, if you have something in writing
9 you want to submit, please do that as well .
10 Going once . Anybody?
11 Since we don ' t have anybody left that appears
12 to want to testify today, we are going to close the
13 hearing . I want to thank you everybody for being here
14 this morning, and I want to thank Representative Scott
15 for taking the time to come here and attend. We really,
16 really appreciate it . And thank you, everyone .
17 And our hearing is adjourned.
18 (Hearing adjourned at 10 : 45 a .m. )
19
20
21
22
23
24
25
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SWS-W-24-01 32
1 REPORTER' S CERTIFICATE
2 I, AMELIA A. MACY, the undersigned Certified
3 Shorthand Reporter and Notary Public authorized to
4 administer oaths and affirmations in and for the State
5 of Washington, do hereby certify that the sworn
6 testimony and/or proceedings, a transcript of which is
7 attached, was given before me at the time and place
8 stated therein;
9 that any and/or all witness (es) were duly
10 sworn to testify to the truth;
11 that the sworn testimony and/or proceedings
12 were by me stenographically recorded and transcribed
13 under my supervision, to the best of my ability;
14 that the foregoing transcript contains a
15 full, true, and accurate record of all the sworn
16 testimony and/or proceedings given and occurring at the
17 time and place stated in the transcript;
18 that I am in no way related to any party to
19 the matter, nor to any counsel, nor do I have any
20 financial interest in the event of the cause .
21 WITNESS MY HAND"AND SEAL this 29th day of
22 October 2024 .
23
24
25 AMELIA A. MACY, CSR, RPR
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Re: Stoneridge Utilities,LLC's Application SWS-W-24-01 Transcript of Hearing
October 10,2024
21:2;25:12;26:5 booster(1) catches(1)
$ Anderson(19) B 26:21 6:23
4:23,25;9:6,8; bothers(1) Catherine(10)
$24(1) 12:16,24;14:11; back(5) 25:2 9:13,17,17,20,24;
10:14 19:11;20:5;28:3,8,12, 16:16;17:19;25:25; bottom(2) 10:2,6;12:9,20;13:2
$87(1) 17,24;30:7,9,11,23,25 26:3,3 25:11;26:17 cause(4)
10:14 animals(1) backdoor(1) bought(1) 4:8;20:2,13;25:10
28:11 10:24 27:10 CDS(3)
A anymore(2) back-feed(1) break(3) 4:14,18;10:19
22:17,20 25:14 15:23;22:3,6 Center(1)
above(1) apologize(2) backflow(2) breaks(2) 4:3
22:4 13:20;29:2 25:9;27:1 22:15;25:16 certain(1)
Absolutely(1) apparently(1) backup(3) briefly(1) 19:24
12:7 4:24 16:5;17:16;18:6 6:19 certainly(1)
accepting(1) appears(1) bad(3) bring(1) 13:6
8:5 31:11 23:9,10;30:17 25:3 Chair(1)
accurately(1) application(1) bankruptcy(1) bringing(1) 4:21
8:2 4:15 16:18 20:14 Chan(11)
acknowledge(1) appreciate(7) bar(1) broke(2) 10:18,18,23;14:23;
13:12 9:4;12:11;13:3; 16:23 15:16;21:23 15:14;17:6;21:10;
action(1) 20:15;24:1;31:1,16 barely(1) brought(1) 23:12,16;26:19;27:6
4:6 appropriate(1) 26:16 21:15 changes(1)
actually(5) 11:13 based(1) brunette[phonetic] (1) 14:14
11:1,9;19:12;21:13; approve(1) 27:7 22:12 Chan's(2)
30:14 11:22 basic(1) budgets(1) 10:9,16
Adam(1) approves(1) 10:13 12:3 charge(1)
12:8 11:20 basically(3) business(3) 15:13
add(1) aquas(1) 14:20;17:6;21:24 10:20;11:15;16:24 charges(2)
7:18 19:2 bathrooms(1) businesses(1) 4:16;10:14
added(1) area(3) 6:14 15:2 charging(1)
5:9 6:7;11:18;28:21 Bay(2) butcher(1) 20:21
address(1) areas(1) 14:24;16:22 13:16 cheap(1)
7:4 18:16 become(1) buy(2) 22:9
adduced(1) around(1) 30:13 15:13;16:9 check(1)
4:10 27:4 beginning(1) 13:6
adequately(1) assets(1) 15:12 C cheering(1)
26:23 17:20 below(1) 7:23
adjourned(2) Association(2) 26:18 call(4) chlorinate(3)
31:17,18 5:25;6:3 Berkey(2) 6:19;8:10;10:18; 20:13;25:11,20
adjust(1) attend(2) 24:24;28:7 17:13 chlorinated(3)
24:20 5:2;31:15 besides(1) called(2) 18:13,19;19:3
adjustable(1) attendance(2) 28:22 26:1,3 chlorine(9)
24:20 6:9;9:12 best(1) calling(1) 11:9;19:12;25:1,2;
affect(1) attended(1) 27:12 8:9 28:13,18;29:22,25;
30:22 5:8 better(6) came(2) 30:12
afford(1) attending(1) 6:15.16:1.18:2 24 24:24;27:2 chopping(1)
22:8 6:10 25;27:15 can(17) 28:22
again(7) attention(2) bill(12) 7:23;11:11;12:5; clapping(1)
10:7;20:18;25:1; 15:17;28:19 11:2;21:1,5;29:1,3, 13:6;16:7,9;20:25; 7:23
27:19;28:4;30:12,16 attorney(2) 5,5,10,13;30:8,10,21 21:11,18,19;24:20; clarify(1)
aging(1) 5:16;21:14 bit(1) 25:5,9,13;27:14,15,22 7:18
27:10 attorneys(1) 23:23 carcinogen(1) clarifying(1)
allow(1) 7:12 Blanchard(7) 30:14 7:14
6:11 audacity(1) 4:3,4;8:17;9:21; carcinogenic(1) cleaned(1)
almost(1) 17:21 14:25;24:11;29:6 25:2 19:6
7:16 authority(1) blowing(1) career(1) clear(2)
along(1) 4:15 26:18 12:25 7:24,24
16:25 aware(1) board(3) careful(1) clearly(2)
always(1) 16:20 11:20;14:15;23:24 25:8 6:24;8:1
7:16 away(3) body(1) carpet(1) close(4)
Amelia(2) 14:12;22:10;27:14 30:15 11:3 6:21;10:4;29:3;
4:5;7:20 boil(1) Case(4) 31:12
amount(3) 25:21 4:8,13;5:5,10 closed(2)
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Re: Stoneridge Utilities,LLC's Application SWS-W-24-01 Transcript of Hearing
October 10,2024
8:3;16:23 21:22;23:1 30:15 eliminate(1) 15:14;29:11
closely(1) contacted(1) dig(1) 28:12 feels(1)
20:10 23:11 16:7 end(1) 16:8
closer(1) contacting(1) digging(1) 31:3 feet(1)
6:22 25:23 13:12 enough(4) 15:24
Club(1) contacts(1) diligence(1) 6:23;18:7;26:16,18 figure(2)
5:24 22:19 27:9 entities(2) 17:3;26:9
colleagues(1) content(1) disagree(1) 10:22,25 figured(1)
8:8 28:18 15:5 equipment(1) 14:18
color(1) contracting(1) discourage(1) 17:18 filed(1)
18:14 22:21 7:15 Eric(1) 4:19
coming(3) convey(1) dissolved(1) 4:23 fill(1)
12:19;19:14;24:23 6:13 28:5 established(1) 26:7
comment(2) cost(1) dissolves(1) 15:12 filter(5)
8:3,4 11:15 24:25 evacuation(1) 11:10;18:20;24:24;
comments(2) counsel(3) district(2) 17:12 28:10,13
8:5,5 5:14;6:1,4 11:6;22:10 even(9) filtration(2)
COMMISSION(9) couple(3) document(1) 16:7;18:20;19:6; 16:2;18:5
4:2,7,20;5:1,4,6,15; 19:14;20:16;22:14 5:13 22:2,20;25:3,15;27:2; final(3)
18:1;27:25 course(6) dogs(1) 28:10 5:5,12;11:14
COMMISSIONER(53) 6:16,17;7:9;10:21; 20:1 everybody(3) finally(1)
4:12,22,25,25;5:19, 14:18;16:21 done(6) 19:13,23;31:13 17:12
20;9:6,8,9;10:4;12:7, Court(7) 13:12;14:21,24; everybody's(2) financial(1)
10,14,15,16,24;13:3, 4:4,5;6:24;7:19,20; 15:15;18:21;21:7 11:4;20:3 16:18
19;14:11,12;17:25; 24:11;27:22 door(1) everyone(2) financially(1)
19:10,11;20:5,16; creating(1) 6:16 7:8;31:16 27:11
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27:24;28:2,3,8,12,17, 16:23;20:19 25:14;26:12,13,22; evidence(1) finding(2)
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7,9,11,23,24,25;31:2 4:13;7:5;8:18;9:22; drawing(3) exactly(3) findings(1)
commissioner-approved(1) 14:5;24:12,13;29:7 19:13,13,14 20:20;21:1,2 22:2
20:23 customers(2) drink(3) excellent(2) fine(1)
Commissioners(3) 9:12;17:21 11:10;28:10;29:23 11:7;17:3 21:25
5:10;7:13;8:25 cutoff(2) drinking(2) Excuse(1) Fire(7)
Community(5) 19:25;20:2 25:4;29:25 30:8 14:12;17:9,11;26:1,
4:3;9:2;10:22;12:2; Drive(2) exit(1) 4,13;28:20
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companies(3) due(3) explain(1) 6:12;8:9,14;9:15;
15:13;17:20;26:2 damages(1) 11:2,16;27:9 6:18 13:24;18:11,11,25;
company(11) 20:13 DUVAL(30) extensive(1) 22:9;24:8
5:22;8:19;9:23; day(1) 5:17,17;7:2;8:12, 18:5 fix(1)
10:9,19;14:6;20:21; 4:2 16,18,21,24;9:15,19, 26:20
22:21,21;23:1;24:14 days(1) 22,25;10:3;12:12,14; F fixed(3)
compared(1) 22:6 13:23;14:3,5,8;17:25; 11:19;15:8;26:24
25:13 decide(1) 18:1;19:9;24:8,13,16; faces(1) fixes(1)
completed(1) 13:10 27:24,25;29:8;30:4,5 31:4 15:16
7:11 decision(1) fact(2) Flita[phonetic] (1)
completely(1) 5:12 E 14:22;16:19 22:11
30:2 decisions(1) facts(1) flush(3)
comprise(1) 5:5 east(1) 5:11 22:6;25:17,20
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concerned(5) 13:10 Edward(1) 13:10 22:4,8
20:12;25:3;27:5; depending(1) 4:25 faucet(3) fly(1)
28:18;29:14 23:23 effect(1) 18:20;24:23;28:10 5:3
concerns(5) deputy(1) 21:23 February(1) folks(3)
16:12,24;17:10; 5:16 either(4) 4:20 9:11;20:1;22:15
25:18;27:18 DEQ(5) 21:8;22:18;26:18; feed(3) following(1)
Condominium(1) 13:6;20:10,10; 30:23 15:18;20:2,3 4:9
5:24 26:16;30:19 elected(1) feeding(2) foot(1)
consistent(1) desert(1) 6:7 19:4,18 26:9
20:20 28:23 Electric(1) Feel(5) Forest(4)
contact(2) differently(1) 15:10 10:4;11:12;12:22; 9:20;15:20;19:19;
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Re: Stoneridge Utilities,LLC's Application SWS-W-24-01 Transcript of Hearing
October 10,2024
26:15 21:9 30:1 husband(1) 21:22
forth(1) gouging(1) hear(1) 22:9 irrigation(2)
16:21 10:16 13:5 20:9;26:25
found(2) government(1) heard(2) I issue(3)
27:20,23 9:5 13:4;20:6 12:22;21:14;23:7
four(2) gradually(1) HEARING(17) IDAHO(8) issues(3)
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13:8,8 grill(1) 23,25;9:7 impact(1) 17:1
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4:12;9:5;12:25; head(1) 17:12;18:15;20:3 involved(1) 11:6
18:11;22:25;27:8,8 26:10 houses(1) 13:7 Lakeview(1)
goodness(1) healthy(1) 20:3 IPUC(1) 14:4
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Re: Stoneridge Utilities,LLC's Application SWS-W-24-01 Transcript of Hearing
October 10,2024
Lane(1) 12:2;14:3;24:11; married(1) 11:25
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Re: Stoneridge Utilities,LLC's Application SWS-W-24-01 Transcript of Hearing
October 10,2024
5:24;6:2 Posemus(1) 26:17 received(1) 17:2
owns(4) 29:2 PUBLIC(4) 14:16 reservoir(1)
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24:11 29:2,3,5,5,10,13; purpose(1) 11:23 retirees(1)
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20:19 16:25 quirky(1) 7:22 17:22
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7:22;9:4;11:18; pressure(5) 8:13;11:3;13:23 17:18 4:23,24,24;6:17;
12:21;15:12;18:10, 25:13;26:9,10,12, ran(1) relying(1) 7:21;9:14;10:6;11:11;
16;20:1;21:14;22:17; 13 28:6 16:8 13:21;17:2;19:1,15;
23:11;27:4;29:17; pretty(2) ranching/horsing(1) remained(1) 22:12;28:6
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9:15;13:23,24;17:5; Property(1) 27:5,18;31:15,16 request(2) 17,20,23,25;9:7,10;
24:8,19;31:5,7,9 6:2 reason(3) 4:19;26:19 31:14
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5:6;18:19;19:24; 20:21 reasonable(2) 18:7 8:15
22:23;27:16 PSI(1) 13:11;15:7 research(1) Second(1)
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Re: Stoneridge Utilities,LLC's Application SWS-W-24-01 Transcript of Hearing
October 10,2024
29:22 11:2 29:6 30:17 trip(1)
Secondly(1) slight(1) Stoneridge(16) tech(1) 26:5
11:5 10:24 4:15,19;5:20,24; 25:25 truth(5)
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23:6 19:21 14:16;16:6,12,15,17, 8:3 24:16;29:8
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23:5 spelling(2) 29:19;30:19 three(4) 16:9;18:9,11,25;
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23:2 State(8) tanks(4) 28:9 10:19
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Re: Stoneridge Utilities,LLC's Application SWS-W-24-01 Transcript of Hearing
October 10,2024
19:4;21:6;22:13 17:1 9:20
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11:8 251 (1) 15:15;19:3
W Wow(3) 29:14 98(2)
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27:17 18:13;22:18;29:23; 19:19
way(13) 30:1 343(1)
11:1,4;12:18;15:20; yesterday(3) 29:6
16:5,6;18:23;19:16, 12:18;13:5;20:7 369(1)
19;25:11,14;26:8; 14:4
28:23 0
welcome(2) 4
7:9;9:6 04(3)
what's(2) 18:4,12;23:21 4.3(1)
13:10;20:22 26:9
whenever(3) 1 40-(1)
20:6;22:5;25:7 19:5
whole(2) 10:45(1) 42(1)
19:17;23:10 31:18 26:16
who's(1) 100(1) 43(1)
22:22 26:17 14:14
wipes(1) 100-gallon(1)
29:20 26:10 5
wish(1) 10th(1)
6:11 4:2 50-year-old(1)
wit(1) 121 (1) 19:5
4:10 18:8 543(1)
within(2) 13(1) 10:11
4:5;10:21 11:25
without(1) 14(1) 6
10:14 11:24
witness(1) 160(1) 685(1)
8:9 15:24 4:3
wonderful(1) 179(1)
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