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HomeMy WebLinkAbout20210803Suez to Staff 50-51.pdfMichael C. Creamer (ISB No. 4030) Preston N. Carter (ISB No. 8462) Givens Pursley LLP 601 W. Bannock St. Boise,ID 83702 Telephone: (208) 388-1200 Facsimile: (208) 388-l 300 mcc@ givenspursley. com prestoncarter@ givenspursley. com t 57 51 509 ].doc (30-t7 4) IN THE MATTER OF THE JOINT APPLICATION OF SUEZ WATER IDAIIO AND EAGLE WATER CoMPAN-Y FOR THE ACQUTSTTTON OT'EAGLE WATER COMPANY Attorneysfor SUEZ Water ldaho Inc. BEFORE THT', IDAHO PUBLIC UTILITIES COMMISSION Case Nos. SUZ-W-18-02/ EAC,-W-19-01 SUEZ WATER IDAHO INC.'S RESPONSE TO FOURTH PRODUCTION REQUEST OF' THE COMMISSION STAFF SUEZ Water Idaho Inc., ("SUEZ Water" or "Company") submits the following responses to the Fourttr Production Request of the Commission Staffto SUEZ Water, dated July 13, 2021. DATED: August 3,2021. ,,4-Z-:-,- Michael C. Creamer Preston N. Carter Givens Pursley LLP Attorneys for SUEZ Water ldaho Inc. suEz WATER IDAHO INC.'S RESPONSE TO FOURTH PRODUCTION REQUEST OF THE COMMISSION STAFF. 1 CERTIFICATE OF SERYICE I HEREBY CERTIFY that on the 3d day of August,2}2l, a true and correct copy of the foregoing document was served on the following in the manner indicated: Jan Noriyuki Commission Secretary Idaho Public Utilities Commission P.O. Box 83720 Boise, Idaho 83720-007 4 IPUC Dayn Hardie Matt Hunter Deputy Attorneys General Idaho Public Utilities Commission P.O. Box 83720 Boise, Idaho 837 20-007 4 Attornqtsfor IPUC Marshall Thompson SUEZ Water Idaho Inc. 8248 W. VictoryRoad Boise,Idaho 83709 SUEZ llater ldaho Inc. Molly O'Leary BizCounsel or@Law, PLLC 1775W. State St. #150 Boise,lD 83702 Counselfor Eagle Water Company Robert V. DeShazo, Jr. Eagle Water Company, Inc. P.O. Box 455 Eagle,ID 83616-0455 Petitioner S.K. Ross H2O Eagle Acquisition, LLC 188 W. State Steet Eagle,ID 83616 Jason Pierce, Mayor City of Eagle 660 E. Civil Lane Eagle,ID 83616 Intervenor City of Eagle byU.S. Mail by Personal Delivery (Original & 3 copies) by Facsimile [X] bV E-Mail secretary@fuc.idaho.eov j an.noriyuki@puc. idaho. gov [ ] bvU.S. Mail [ ] bV Personal Delivery [ ] bV Facsimile [X] bV E-Mail matt.hunter@Fuc.idaho.eov dayn. hardie@ouc.idaho. eov [ ] bvU.S. Mail [ ] bV Personal Delivery [ ] bV Facsimile [X] bV E-Mail marshall.thompson@suez.com [ ] bv U.S. Mail [ ] bV Personal Delivery [ ] bV Facsimile [X] bV E-Mail molly @bizcounseloratlaw. com [ ] bvU.S. Mail [ ] bV Personal Delivery [ ] bV Facsimile [X] bV E-Mail eaglewaterco@gmail.com [ ] bvU.S. Mail [ ] bV Personal Delivery [ ] bV Facsimile [X] by E-Mail sross@h2o-solutionsllc.net [ ] bvU.S. Mail [ ] bV Personal Delivery [ ] bV Facsimile [X] bV E-Mail ipierce@,cityofeagle.org tosbom@citvofeaele.ore t t t suEz WATER rDAHO INC.'S RESPONSE TO FOURTH PRODUCTION REQUEST OF THE COMMISSION STAF'F.2 B. Newal Squyres Murray D. Feldman Holland &HartLLP 800 W. Main Street, Suite 1750 P.O.Box2527 Boise, lD 83702-2527 Attorneysfor Intervenor City of Eagle Norman M. Semanko Parsons Behle & Latimer 800 West Main Street, Suite 1300 Boise,Idaho 83702 Attornqts for Intervenor Eagle Water Customer Group Mary Grant Scott B. Muir Deputy City Attomey Boise City Attorney's Office 150 N. Capitol Blvd. P.O. Box 500 Boise, Idaho 83701-0500 Attomeysfor Intervenor, City of Boise James M. Piotrowskr PIOTROWSKI DURAND, PLLC P.O. Box 2864 1020 W. Main Street, Suite 440 Boise,ID 83701 Attorneys for Intervenor Citizens Allied for Integrity and Accountability Brad M. Purdy Attorney atLaw 2019 N. 17th Street Boise,lD 83702 Attorn qt for Community Action P artnership Association of ldaho [ ] bv U.S. Mail t I bV Personal Delivery [ ] bV Facsimile [X] by E-Mail nsquyres@hollandhart.com mfeldman@hollandhart. com [ ] bv U.S. Mail [ ] bV Personal Delivery [ ] bV Facsimile [X] bV E-Mail NSemanko@farsonsbehle.com ecf@parsonsbehle.com [ ] bv U.S. Mail [ ] bV Personal Delivery t I bV Facsimile [X] bV E-Mail boisecitvattornev@cityofboise.ore t I bv U.S. Mail [ ] bV Personal Delivery [ ] bV Facsimile [X]bV E-Mail James@idunionlaw.com [ ] bv U.S. Mail [ ] bV Personal Delivery [ ] bV Facsimile [X] bV E-Mail bmourdy@hotrnail.com / __=- u- a _ z*_ Preston N. Carter suEz WATER IDAHO INC.',S RESPONSE TO FOURTH PRODUCTION REQUEST OF THE COMMISSION STAFF - 3 ST]EZ WATER IDAHO INC. CASE SUZ-W-18-02 FOtrRTrr PRODUCTTON REQIJEST OF Trm COMMTSSTON STAFF Preparer/Sponsoring Witress: Jarmila M. Cary REQUEST NO. 50: In Order No. 34265, Case No. EAG-W-15-01, the Commission approved a Joint Settlernent Stipulation in which Eagle Water Company was to deposit $45,288 in over-earnings annually into the surcharge line-of-credit account beginning in 2016. How does SUEZ Water of Idaho intend to refund to Eagle Water Company customers the surcharge line-of credit balance that resulted from Case No. EAG-W-15-01? RESPONSE NO. 50: SUEZ and Eagle Water Company did not specifically discuss this issue in the purchase and sale agreements. SUEZ and Eagle Water Company intend to work together to agree on how the surcharge account should be treated and would welcome Staffs input on options on how to treat the account as part of the overall tansaction. suz-w-18-02 RFP No. 50 Page I ofl STIEZ WATER IDAHO INC. CASE SUZ-W.18.02 FOTIRTH PRODUCTION REQUEST OF THE COMMTSSTON STAFF Preparer/Sponsoring Witness: Jarmila M. Cary REQUEST NO. 51: In seeking recovery of acquisition and closing costs, SUEZ Water Idaho witness Jarmila Cary states in her Supplemental Testimony, Page 6 Line 14 through 16, "The Commission has previously allowed recovery of such prudent acquisition costs in prior case filings." Please provide all examples, including case numbers that Ms. Cary relied on in making that staternent. RESPONSE NO.51: In the Company's 1998 acquisition of the South County Water Company System Case No. UWI-W-98-02, the Commission allowed inclusion in the purchase price closing costs consisting of legal fees associated with that acquisition and included an acquisition adjustment per Order No. 27798. The Commission Order stated on page 5 "On the specific facts of this case, we also find it reasonable to authorize the rate basing of the acquisition premium amount, amortized over 40 years, a period tied to the life of the related assets. In authorizing the rate basing of the acquisition premium, we note that we depart from traditional ratemaking procedures. It is not lightly that we do so and we do not intend that this be perceived as establishing precedent for future acquisitions. We find Staffanalysis regarding the appropriateness of approving and rate basing the acquisition premium to be persuasive." Case No. UWI-W-00-3 United Water Idaho Inc. acquisition of M&M Mountain View Acres Subdivision Water Company included related acquisition costs (attorney fees, etc.) in Order 28418 which were authorized for recovery. Case No. UWI-W-96-1 United Water Idaho [nc. acquisition of Warm Springs Mesa water service properties Order No. 26588 the acquisition adjusfrnent included recovery of acquisition costs. suz-w-18-02 RFPNo.5l Page I of I