20250325Decision Memo.pdf

DECISION MEMORANDUM
TO: COMMISSIONER LODGE
COMMISSIONER HAMMOND
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM: ADAM TRIPLETT
DEPUTY ATTORNEY GENERAL
DATE: MARCH 25, 2025
SUBJECT: IN THE MATTER OF GEM STATE WATER COMPANY, LLC'S
APPLICATION FOR AUTHORITY TO INCREASE ITS RATES AND
CHARGES FOR WATER SERVICE; CASE NO. GSW-W-24-01.
On December 27, 2024, Gem State Water Company, LLC ("Company") applied to
increase its rates and charges for water service, requesting a February 1, 2025, effective date and
that its application be processed by Modified Procedure.
On January 21, 2025, the Commission issued a Notice of Application, Notice of
Intervention Deadline, and Notice of Suspension of Proposed Effective Date, setting a deadline
for interested persons to petition to intervene, and suspending the Company's proposed effective
date for five months and thirty days. Order No. 36445. No parties petitioned to intervene.
On February 28, 2025, the Company filed an amended application to include
depreciation costs associated with certain post-test-year plant in service that were omitted from
the original application. The Company's new proposal would increase the Company's revenues
by 78.8 percent. The Company requested an April 1, 2025, effective date and that its amended
application be processed by Modified Procedure.
On March 20, 2025, the Commission issued an Amended Notice of Application and
an Amended Notice of Suspension of Proposed Effective Date, suspending the Company's
proposed effective date until August 1, 2025. Order No. 36516.
STAFF RECOMMENDATION
After consulting with the parties, Staff recommends the Commission issue a Notice of
Modified Procedure, Notice of Public Workshop, and Notice of Customer Hearing. Staff
recommends a June 13, 2025, public comment deadline and a July 8, 2025, Company reply
DECISION MEMORANDUM 1

deadline. Staff further recommends the Commission direct Staff to hold an in-person public
workshop as soon as reasonably practicable. Finally, Staff recommends the Commission hold a
customer hearing before deliberating the requested rate increase.
COMMISSION DECISION
Does the Commission wish to issue:
1) A Notice of Modified Procedure with a June 13, 2025, public comment deadline and a
July 8, 2025, company reply deadline?
2) A Notice of Public Workshop, scheduling an in-person public workshop as soon as
reasonably practicable?
3) A Notice of Customer Hearing, scheduling a customer hearing before the Commission
deliberates the proposed rate increases?
Adam Triplett
Deputy Attorney General
I:\Legal\WATER\GSW-W-24-01_GRC\memos\GS W W2401_dec3_at.doc
DECISION MEMORANDUM 2