20260109Final_Order_No_36902.pdf

Office of the Secretary
Service Date
January 9,2026
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION ) CASE NO. SWS-W-25-03
OF CDS STONERIDGE UTILITIES,LLC )
FOR AUTHORIZATION TO BORROW ) ORDER NO. 36902
FUNDS TO MAKE WATER SYSTEM )
IMPROVEMENTS )
On December 12,2025, CDS StoneRidge Utilities,LLC("Company") applied to the Idaho
Public Utilities Commission ("Commission") requesting authority to borrow $183,861 in debt to
install a backup power system for the Company's wells ("Application"). The Company submitted
the calculated filing fee of$120.75 on December 18, 2025. The Company also included a press
release, a customer notice, balance sheet, the relevant section of the latest sanitary survey,project
quote, and loan term sheet from Washington Trust Bank with the Application.
THE APPLICATION
The Company stated that pursuant to the Idaho Department of Environmental Quality's
latest sanitation survey, it is required to make several water system improvements. Application at
1. The Company represented that it can fund each of the improvements that need immediate action
except the installation of a backup power system.Id.
According to the Company, it has acquired terms for financing the purchase and
construction of a backup power system through Washington Trust Bank in Coeur d'Alene, Idaho.
Id. at 2. The Company represented that the $183,861 loan would have a term of five years at a
7.12% interest rate. Id. The Company stated that it had sought a ten-year term but that the bank
would only approve a five-year term.Id.
STAFF RECOMMENDATION
Commission Staff("Staff')recommended that the Commission authorize the Company to
borrow up to $183,861 in debt. Staff Decision Memo at 2. Staff further recommended that the
Commission require the Company to file copies of the final loan documents within seven days of
those documents becoming available.Id.
Staff stated that such debt issuance would materially alter the Company's capital structure.
Id. According to Staff, the Company's overall rate of return could be significantly affected by the
ORDER NO. 36902 1

debt. Id. Staff believed that the Company's capital structure and rate of return should be fully
examined in the Company's general rate case currently pending before the Commission. Id.
Staff also had concerns about the effect the debt issuance could have on the Company's
cash flow,under standard ratemaking treatment, due to the disparity between the short term of the
loan and the expected useful life of the generator. Id. However, Staff believed the ratemaking
issues associated with the debt would also be better addressed in the Company's general rate case.
Id.
COMMISSION FINDINGS AND DECISION
The Commission has jurisdiction over this matter under Idaho Code §§ 61-501, 61-502,
and 61-503. The Commission is vested with the power to "supervise and regulate every public
utility in the state and to do all things necessary to carry out the spirit and intent of the [Public
Utilities Law]."Idaho Code§ 61-501.The Commission is empowered to investigate rates,charges,
rules,regulations,practices,and contracts of public utilities and to determine whether they are just,
reasonable,preferential,discriminatory,or in violation of any provision of law,and to fix the same
by order. Idaho Code §§ 61-502 and 61-503.
Having reviewed the Application and all submitted materials, the Commission approves
the Application. The Commission finds that the proposed transaction is consistent with the public
interest and represents an appropriate request by the Company for the proper performance as a
public utility. See Idaho Code § 61-902. The Commission notes Staff s concerns regarding the
effect debt issuance could have on the Company's capital structure and cash flow. These issues
should be thoroughly analyzed during the Company's pending general rate case.
ORDER
IT IS HEREBY ORDERED that the Company is authorized to borrow up to $183,861 in
debt.
IT IS FURTHER ORDERED that that Company shall file copies of the final loan
documents with the Commission within seven days of those documents becoming available.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date upon this Order regarding any
matter decided in this Order. Within seven (7) days after any person has petitioned for
reconsideration, any other person may cross-petition for reconsideration. Idaho Code §§ 61-626.
ORDER NO. 36902 2

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho, this 91' day of
January 2026. /
G
Grp
EDWARD LODGE, LC
NT
/HNT. HAMMOND JR., COMMISSIONER
HARDIE COMM SIONER
ATTEST:
2A I
L Calderon obles
Interim Commission Secretary
I:\Legal\WATER\S WS-W-25-03_securities\orders\S WSW2503_FO jl.docx
ORDER NO. 36902 3