20250822Cross Petition for Reconsideration.pdf

Outlook
Idaho Public Utilities Commission, Gem State Water rate case - Cross-Petition for Reconsideration
From Darrel Ramus <[e-mail]>
Date Fri 8/22/2025 6:59 PM
To secretary <[e-mail]>
Cc Adam Rush <[e-mail]>;[e-mail] <[e-mail]>;
[e-mail] <[e-mail]>; [e-mail] <[e-mail]>;
Glenn Fetter <[e-mail]>; Lou Litzko <[e-mail]>; Kimberly Ramus
<[e-mail]>
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Idaho Public Utilities Commission,
In response to the attached Petition for Reconsideration, I am filing this Cross-Petition for Reconsideration
pursuant to Idaho Code Section 61-626 outlined here: Cross-Petition for Reconsideration. Within seven (7)
days after any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration in response to any issues raised in the petition for reconsideration. Cross-petitions for
reconsideration must set forth specifically the ground or grounds why the cross-petitioner contends that the
order or any issue decided in the order is unreasonable, unlawful, erroneous or not in conformity with the law,
and a statement of the nature and quantity of evidence or argument that the cross-petitioner will offer if
reconsideration is granted. See Section 67-626, Idaho Code. Methods of Reconsideration Requested. The
petition or cross-petition must state whether the petitioner or cross-petitioner requests reconsideration by
evidentiary hearing, written briefs, comments, or interrogatories.
I'd like to request an evidentiary hearing or written briefs that address the following disturbing factors
regarding water meters installed with erroneous units that likely resulted in ongoing math errors that could
have adversely affected the subject application.
Issue#1 - New Water Meters in Cubic Feet Units
Gem State erroneously installed water meters in Cubic Feet units instead of Gallons sometime during the
winter of 2023-2024. As the Petition for Reconsideration states the difference in these units are off by a
factor of 7.5 times. Our water bills changed in Feb 2024 with meter readings that didn't make any sense and
continued through the rest of 2024 with incorrect information. It's unclear when the erroneous units were
discovered, but the billing format changed after July 31, 2025 although it still shows the units as Gallons
while the readings appear to be in Cubic Feet Units.
1. When did Gem State disclose this error in Cubic Feet vs Gallon units to the PUC?
2. Did these erroneous Cubic Feet units affect reporting of water usage in the application?
3. Did these erroneous Cubic Feet units affect their actual revenue in 2024 and 2025?
4. Would such errors adversely affect their revenue projections in the PUC application?
5. Were these compounding errors in units and calculations used to justify the rate increases?
6. Did PUC Staff account for these discrepancies in their application review and comments?
7. If Gem State can't get the math correct on our bills, how can we trust their projections?

Issue#2 - Unaccounted Water Loss Unresolved
Excerpt from the PUC Staff Comments: "Unaccounted Water Loss:According to Staffs estimation, for all seven
systems combined, the Company experienced approximately 30% unaccounted water loss during the test
period, with the highest contributors being the combined BC and SLE systems with losses of 42%, and the DB
system with losses of 25%. Due to the significant water loss across the system, Staff recommends the
Company: 1. Conduct necessary root cause analyses that identify specific causes of water loss and develop a
plan of actions that can be taken to mitigate them by June 30, 2026... (truncated) ... Due to the lack of
accurate historical consumption information, Staff was only able to estimate water loss during the test period
of October 2023 through September 2024."
1. A 25%water loss in Diamond Bar Estates has not been disclosed in the past and seems improbable as
a new development.
2. The test period between October 2023 through September 2024 coincided with the new water meters
in Cubic Feet units.
3. Did PUC Staff correct the water consumption information during this period for the erroneous Cubic
Feet vs Gallon units?
4. My understanding is only one original Gem State employee is currently working indicating a loss of
institutional knowledge.
5. If water conservation is considered a priority, it seems like a 30% water loss across the combined
systems is a gross failure.
6. Could these large and unresolved water losses be driving the rushed demand for higher rates as
requested by Gem State?
7. Would it be fair to grant Gem State another year to find the root cause for the water loss if it's related
to a math error?
Please answer these questions and address our concerns on these issues before approving the Gem State
application in accordance with our rights to petition this decision. If Gem State reported these issues in a
timely manner and the PUC was aware of these anomalies and made the proper mathematical corrections,
we would like to confirm this was properly documented. If Gem State did not report these issues to the PUC
in a timely manner, we request the application be denied in full given the possible erroneous data relied
upon during this process. If the PUC staff were not aware or did not account for potential errors resulting
from incorrect units, we request the application be rejected and Gem State directed to refile a corrected
application. As customers and constituents in good standing, we would find possible erroneous data and
incorrect assumptions derived from such data to be negligent at best and possibly even fraudulent as
the Petition for Reconsideration poses.
Remember History... Check the Units:
NASA lost the Mars Climate Orbiter in 1999 due to a unit conversion error when Lockheed Martin used
imperial units while the Jet Propulsion Laboratory (JPL) used metric units for a key thruster firing calculation.
This caused the expensive spacecraft to burn up in the Martian atmosphere during the orbit insertion
maneuver after years of development and 10 months of travel to Mars.
Thank you for your consideration,
Darrel & Kim Ramus
14126 N Rodeo Rd
Rathdrum, ID 83858
---------- Forwarded message ---------
From: Diamond Bar HOA <[e-mail]>
Date: Tue, Aug 19, 2025 at 7:15 PM

Subject: Idaho Public Utilities Commission, Gem State Water rate case - Petition for Reconsideration
To: Adam Rush <[e-mail]>, <[e-mail]>, <[e-mail]>,
<[e-mail]>
Cc: Glenn Fetter <[e-mail]>, Lou Litzko <[e-mail]>
Mr. Rush and Elected Representatives,
Please accept this response to the final decision on the Gem State Water case as a formal petition on behalf
of our entire Diamond Bar Estates HOA membership. The instructions are not clear if there are any formal
procedures to file this Petition for Reconsideration other than within 21 days, so please respond directly if
there are other steps we need to follow.
We were disappointed that after all of our collective efforts at the public meeting attended by so many that
went into the late evening hours, the Commissioners didn't hear our message and dropped the commodity
charge by only $0.10 from the Staff report. We are appalled that Gem State had the audacity to even
request a total 388% increase in the water commodity rates in only two years. But we expected the Idaho
PUC to represent Idaho residents' best interests and question the rationale for another outrageous rate
increase since 2023.
But in the end, the PUC is still supporting a water commodity rate increase of 351% inclusive of the last
Gem State rate increase in 2023. We believe it's prudent and relevant to consider the context that this is the
second large rate increase Gem State has requested from the PUC since 2023, within 2 years. This final rate
increase decision remains unacceptable, unprecedented and beyond any reasonable mathematical norms.
Inflation and inefficiency alone can't begin to account for this outcome, so doesn't that beg the question as
to what else is in play? It should...
1. Did you know Gem State installed water meters in Cubic Feet units instead of Gallons?
This mistake adversely affected their invoices since these units are off by a factor of 7.5 times!
This mistake likely contributed to false or erroneous revenue projections in the PUC Application.
Did Gem State Water disclose they used the wrong units with erroneous invoices to the PUC?
Did the PUC know this and account for errors in the application's revenues and projections?
Even now, after finding their error, they still send invoices with incorrect units and math errors.
2. Did you know that Gem State Water allegedly fired nearly all their staff after this final decision?
During the last week we discovered our Gem State staff contacts left, retired or were fired.
A departing employee mentioned staff may have been fired over erroneous water meter units.
This reeks of a coverup based on the timing they cleaned house and the potential impacts.
If Gem State hasn't disclosed this fiasco to the PUC, that may be negligence or even fraud.
3. Did you know Gem State Water sent incomplete and deceptive Notices in 2023 and 2025?
Gem State didn't disclose the base water amounts were reduced in the 2025 Application Notice.
Gem State used improbably low usage amounts for "average" increases much lower than reality.
They applied for a rate change on Dec 27 and requested a Feb 1 effective date under the radar.
The PUC delayed it to April 1, but Gem State withheld our Notice until less than 30 days before.
We didn't get proper notice in 2023 and barely had time to respond to their 2025 application.
4. Did you know Gem State accelerated nearly every possible improvement in a short timeline?
This would boost their short term rate of expenditures just in time to justify a large rate increase.
A more prudent approach would spread improvements within budget over a reasonable timeline.
Did they conduct due diligence for each water system they purchased to avoid overpayment?
Industries unprotected by a monopoly system don't have the luxury to raise rates for mistakes.

Now that most improvements are done, will they then reap rewards of higher profits for years?
5. How can Gem State Water justify a 388% (now "only" 351%) increase in 2023 and 2025?
CPI inflation since the last 2023 application approval was only up 6% from 2023 to 2025.
CPI Inflation increased 26% since they purchased our water system in 2019.
We would need to go back more than 40 years to approach inflation rates more than 300%.
Gem State doesn't even pay for the actual water,just the extraction, delivery and expenses.
Their Oregon based firm uses their monopoly position and PUC process to maximize profits.
They falselyjustify these massive increases as a way to encourage water conservation.
As a monopoly they need to be more transparent and focus on better planning and efficiency.
We respectfully ask the Idaho PUC to look deeper into this application and answer these concerning
questions in response to our right to request a petition and be heard. The outrageous increases that exceed
40 years of accumulated inflation alone should be enough to question the math behind this application. We
look forward to your complete and thorough response to these questions that should be adequate enough
to defend your position under legal scrutiny. We understand there are also increases in the monthly
minimum rates along with decreases in the monthly allowance since 2023, over the last 2-years, that
adversely affect our total water bills. Comparing the water commodity rates really simplifies and illuminates
the true magnitude of these accumulated increases since 2023, over the last 2-years, that adversely affects
larger, rural, agricultural properties in Idaho which require reasonable irrigation needs beyond a small urban
lot to make use of the land. On a per acre basis we conserve far more water than the apples to oranges
comparison with small urban lots that could be more than 20 times higher density.
We had reached out to our elected representatives with the message below, but to be fair they had little
time to respond as well. We are now asking our elected representatives to get involved and hold the PUC
accountable to your constituents. As the last line of defense other than expensive legal action, we hope you
will also demand answers to these questions to ensure this PUC process was not abused or misrepresented
by the applicant. We would also ask if this rate increase makes any mathematical or common sense?
7/11/2025 Message below sent to:
Representative Vito Barbieri, [e-mail]
Representative Jordan Redman, JRedman([e-mail]
Senator Doug Okuniewicz, [e-mail]
7/21/2025 Message (truncated) posted to:
Governor Brad Little, http�gov.idaho.gov/contact/agency-help1
We appreciate your service to Idaho and have rarely raised our voices on local issues. However, the pending
PUC Water Case GSW-W-24-07 for Gem State Water is such a gross betrayal of our Idaho lifestyle that we
wanted to request your help to slow down the final PUC decision and allow for some common sense to
prevail.
Their Oregon based firm purchased our rural water system, along with many others in Kootenai County and
already raised our rates in 2023 through a quiet and deceptive application that caught us off guard. Now, they
have another application they tried to shove through after Christmas during the winter with incomplete
information disclosed on the notification letter they issued. The PUC respectfully slowed them down and we
had a public hearing for more than 4 hours with 300+ people attending. However, the PUC staff report is
recommending an insulting and outrageous increase again in such a short time.
The applicants are experts at this game where they buy rural water systems, file for a rate increase under the
radar, and compress all possible improvements into a short time frame to show a potential "loss" of profit.

They also increase our water commodity rates in the name of"conservation" to justify boosting their profits
even more. We can assure you that 5 acre parcels have much less impact on the environment than urban or
suburban developments, but at this rate the rural lifestyle in Idaho will sadly be more and more out of reach
economically for most residents.
In respect for your time, we'll simplify the basic facts and point you and your staff to the PUC case that is quite
full of very frustrated constituents. This applies to Diamond Bar Estates which is only one of many other rural
areas affected by this application:
$7.76 per 1,000 gallons charged by Diamond Bar Estates Water before 2023
$2.45 per 7,000 gallons charged by Gem State Water in 2023
$4.50 per 7,000 gallons requested by Gem State Water in 2025
388% increase in water rates in only two yearsM
If this egregious rate increase is approved by the PUC, I would be prepared for a large portion of the rural
community to seek appeals and involve our state legislators much more as a result. Some common sense may
prevent this step! Thank you for your consideration.
Please see:puc.idaho.gov- water case number GSW-W-24-01
https://puc.idaho.gov/Case?util=3&closed=0&pn=1&ps=100&sc=1&sd=1&fc=1&fv=GSW-W-24-01
Respectfully,
Directors on behalf of our membership for:
Diamond Bar Estates Homeowners Association
P.O. Box 1763, Hayden, Idaho 83835
diamondbarestate(@gmail.com
208.770.8789
On Wed, Aug 6, 2025 at 8:28AM Adam Rush <[e-mail]> wrote:
Hello,
Below, please find a press release announcing the Idaho Public Utilities Commission's decision in the Gem
State Water rate case.
Attached are tables that show what customers will pay based on the system that is serving them and their
meter size. The commission
accepted staff's recommendations with the exception of the commodity charge per 1,000 gallons of water.
Staff recommended a
charge of$4.17 per 1,000 gallons. The commission determined a commodity charge of$4.07 per 1,000
gallons was more reasonable.
Sincerely,

Adam Rush
Public Information Officer
Idaho Public Utilities Commission
Direct Line: 1-208-334-0339
E-mail Address: [e-mail]
Idaho Public Utilities Commission Brad Little,Governor
PO Box 33770. Boise. ID 83720-0074 Edward Lodge, President
John R.Hammond, Jr., Commissioner
Dayn Hardie,commissioner
Case No. GSW-W-24-01
Order No. 36703
Contact:Adam Rush
Office: [phone]
E-mail: [e-mail]
NEWS RELEASE: Commission issues decision on northern Idaho water utility's application to increase
rates.
BOISE (Aug. 5, 2025)—The Idaho Public Utilities Commission has issued a decision on a northern Idaho
water utility's application to increase the rates and charges to provide water service.
Gem State Water Company, LLC had sought commission approval to increase rates between 53 and 79
percent. The utility has six systems that serve customers in northern Idaho. The monthly bill for an average
customer receiving water from a 1-inch meter would have increased between$21.65 and$27.65, depending
on which system was serving them.
In its application to the commission, the utility sought approval for an increase of$602,050 in its annual
revenue requirement. Gem State Water said the increase was needed to recover the current cost of operating
and maintaining the water systems,the cost for system improvements and investments to replace aging
infrastructure. The utility said it spent money on improvements that included generators,meters and pipes.

Customers will see an increase in their minimum monthly charge and the commodity rate per 1,000 gallons
of water based on the size of their meter and which system is serving them. Customers served by the Bar
Circle S and Spirit Lake water systems and who have 1-inch meters will see their monthly charge increase
from$35 per month to $46 per month.
The commission set the commodity rate at$4.07 per 1,000 gallons after customers use their allotted number
of gallons. Some customers are allotted 7,500 gallons before the $4.07 charge per 1,000 gallons starts,while
other customers are allotted 15,000 gallons before the charge starts. These changes apply to customers with
1-inch meters.
The increase in the monthly charges and commodity charge will give the utility an increase in its annual
revenue requirement of$373,888.
The commission also approved three new non-recurring charges that Gem State Water asked for. The utility
will be allowed to collect a$2,500 deposit for a meter assembly to connect to a fire hydrant and purchase
water during construction work. The commission determined it was a reasonable way for the utility to
encourage customers to return the meter assembly in good condition. Gem State Water also will be allowed
to charge $20 for a final meter reading on an account and to provide a final bill to a title company when a
property is sold.Additionally,the utility will be allowed to charge $30 annually when the installation and
subsequent removal of irrigation meters each take a single visit. The utility will be allowed to charge $50 if
repeat visits are necessary.
Additional information is available at:puc.idaho.gov/case/Details/7471.