20241112Interlocutory_Order_No_36389.pdf

Office of the Secretary
Service Date
November 12,2024
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF CDS STONERIDGE ) CASE NO. SWS-W-24-01
UTILITIES, LLC'S APPLICATION FOR )
AUTHORITY TO INCREASE ITS RATES ) ORDER NO. 36389
AND CHARGES FOR WATER SERVICE IN )
THE STATE OF IDAHO )
On February 28, 2024, CDS Stoneridge Utilities, LLC ("Company" or "Stoneridge")
applied for authorization to increase its rates and charges for water service ("Application"). The
Company made a separate supplemental filing requesting an April 1, 2024, effective date.'
On March 13, 2024, the Idaho Public Utilities Commission ("Commission") issued a
Notice of Application, Notice of Intervention Deadline, and Notice of Suspension of Proposed
Effective Date. Order No. 36116. The Stoneridge Property Owners Association, Inc. ("SPOA"),
the Stoneridge Recreational Club Condominium Owners Association, Inc. ("SRCCOA"), and an
individual, Randolph Garrison, pro se, petitioned to intervene (collectively the "Intervenors").
Order Nos. 36144 and 36163.
On September 13, 2024, the Commission issued an order establishing an October 2, 2024,
Commission Staff ("Staff') comment deadline, an October 16, 2024, Intervenor comment
deadline, and an October 30, 2024, Company reply deadline. Order No. 36323.
On October 2, 2024, Staff filed comments recommending a 27.1% increase leading to a
proposed revenue requirement of$292,795. The Intervenors agreed with Staff's recommendation.
On October 30, 2024, the Company filed comments recommending a 124.3% increase leading to
a proposed revenue requirement of$477,193.
At the Commission's November 7, 2024, decision meeting, Staff presented a Decision
Memorandum summarizing Staff's motion to accept the correction of a calculation error in the
record and allow the Company time to comment on the calculation error. Staff stated that
correcting this error, and the underlying categories affected by it, would reduce Staff's proposed
revenue requirement by $21,682 to $271,113effectively reducing Staff's 27.1% proposed
increase to 17.6%. Staff stated that this correction did not include any new adjustments,but instead
1 In its Application the Company initially requested a July 1,2024,effective date.See Application Attachment G.
ORDER NO. 36389 1

corrects the gross calculation. Staff requested that the Commission accept the correction as part of
the record.
Staff noted that the Company also adopted the error in its model which it relied on for its
reply comments. Staff stated that fixing this same error in the Company's model would reduce its
proposed revenue requirement by $26,646 to $450,546—effectively reducing the Company's
proposed increase from 124.3%to 111.7%. Staff asked that the Company have until November 13,
2024, to submit comments on the narrow issues surrounding the correction of the error.
Staff also requested that the Commission expedite its consideration of this issue in
accordance with IDAPA 31.01.01.256.
COMMISSION FINDINGS AND DECISION
The Commission has jurisdiction over Stoneridge and the issues in this case under Title 61
of the Idaho Code. Specifically, the Commission regulates "public utilities," including "water
corporations" that serve the public or some portion thereof for compensation. See Idaho Code §§
61-125, -129, -501, -502, -503, -507, -523, and-622.
The Commission grants the relief requested pursuant to the Commission's Rule of
Procedure 256. IDAPA 31.01.01.256.03. The Commission believes that correcting this error in the
gross calculation, as described by Staff, will allow this case to be based on the methodology and
accounting practices that have been consistently relied on by this Commission. While we regret
that this mistake was included in the record, we must ensure that when we make our decision it is
based on the most accurate record available. To the extent that the error affects any the
recommendations that the Commission may rely upon,allowing for the correction of this error will
best position the Commission to avoid inadvertently approving a rate based upon a miscalculation.
For these reasons, we grant Staff s request regarding the correction of the error (and underlying
affected categories) in the record. The Commission also believes that it is appropriate to allow the
Company to comment on the issue to the degree that this update affects the Company's
recommendations. The Commission hereby grants the Company until November 13, 2024, to
comment on the matter. The Company's response should be narrowly tailored to addressing the
error corrected in Staff s comments.
ORDER
IT IS HEREBY ORDERED that the error discussed above shall be corrected in the record.
Therefore, Staffs recommendation for the proposed rate increase in this case shall hereinafter be
ORDER NO. 36389 2

17.6%; Staffs recommendation for the revenue requirement in this case is adjusted to $271,113.
The Commission orders that the affected underlying categories that contribute to these numbers
also be corrected.
IT IS FURTHER ORDERED that the Company has until November 13, 2024, to file
comments on the issue of Staffs correction and make recommendations that are narrowly tailored
to addressing the correction.
IT IS FURTHER ORDERED that parties comply with Order No. 35375, issued April 21,
2022. Generally, all pleadings should be filed with the Commission electronically and will be
deemed timely filed when received by the Commission Secretary.See Rule 14.02. Service between
parties should continue to be accomplished electronically when possible. However, voluminous
discovery-related documents may be filed and served on CD-ROM or a USB flash drive.
THIS IS AN INTERLOCUTORY ORDER rather than a final and appealable Order of the
Commission.While the Commission may review, stay,or clarify an interlocutory order,the period
of reconsideration will not begin until the Final Order is issued.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 121h day of
November 2024.
ERIC ANDERSON, PRESIDENT
12
J R. HAMMOND JR., COMMISSIONER
G
EDWARD LODGE, C MISSIONER
ATTEST:
IP__ 4..,..
Ba os- a
Commission Secreta
;�Y
IALega1\WATER\SWS-W-24-01_rates\orders\S W S W2401_Iuterloc2_md.docx
ORDER NO. 36389 3