20150223_4594.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:CHRIS HECHT
DATE:FEBRUARY 17,2015
RE:COMPLIANCE FILING FROM CDS STONERIDGE UTILITIES LLC
REQUESTING TO MODIFY ITS TARIFF IN ACCORDANCE
WITH ORDER NO.30342
On January 21,2015,the Commission received a request from CDS Stoneridge Utilities
LLC (Stoneridge)to revise the surcharge applied to customers who live within the Happy Valley
Ranchos Subdivision.The request is to revise the surcharge from $16.83 to $14.03.The
Company also requests that the name on its tariff be changed to CDS Stoneridge Utilities LLC to
be consistent with the utility name as reflected on its Certificate of Public Convenience and
Necessity (CPCN No.395)issued January 2,2004.
BACKGROUND
Surcharge Amount
CDS Stoneridge Utilities,LLC obtained a loan from the Stale Drinking Waler Revolving
Fund to provide service to 107 customers in the 1-lappy Valley Ranchos Subdivision.In Case
No.SWS-W-06-01,Order No.30342.the Commission authorized collection of the Phase 1 loan
amount of S278.000 from customers located in the Happy Valley Ranchos Subdivision through a
surcharge of $16.83 per month for a period of five years.The surcharge would then be reduced
to $14.03 per month for another 15 years.
Due to an oversight on the part of the Company,the surcharge was not reduced after the
first five years.In October 2014,a Staff review of approved surcharges determined that the tariff
schedule had not been changed and that the Company was still billing the customers in Happy
DECISION MEMORANDUM -I -FEBRUARY 17,2015
Valley Ranchos at the $16.83 per month rate.When contacted by the Commission Staff,the
Company began billing Happy Valley Rancho customers the reduced surcharge of S 14.03
starting with the November 1,2014 billing statement,prior to submission of the revised tariff.
An audit by Staff indicates that the Company has over-collected the surcharge for about
two years.The over-collection will reduce the amount of time to collect the loan amount from
twenty (20)years to less than eighteen (18)years.Staff will monitor collection of the surcharge
and determine when the loan amount has been recovered and the surcharge should end.
Staff commends the Company for promptly correcting the problem when it was brought
to its attention.Because the Company is already billing customers at the reduced amount,the
effective date of the tariff will need to be retroactive to November 1,2014 to reflect the
Company’s actions.
If the Company should apply for a rate increase between now and the date the loan is
paid off,the over-collection of surcharge ftinds will be taken into consideration.
Name Change on Tariff
The Company also requested a change in thc name of the Company to CDS Stoneridge
Associates —Land,LC,dba StoneRidge Utilities.The Company’s current tariff submitted by the
Company in Case No.SWS-W-06-01,incorrectly identified the Company’s name as CDS
Stoneridge Associates —Land LC dba Stoneridge Water Company.However,the Company
name as reflected on its Second Amended Certificate of Public Convenience and Necessity No.
395.issued January 2,2004,is CDS Stoneridge Utilities LLC.The Idaho Secretary of State also
lists the Company’s name as CDS Stoneridge Utilities,LLC.
Staff discussed this issue with the Company,and clarified that it wanted to change the
name on its tariff to CDS Stoneridge Utilities LLC to be consistent with its CPCN.Staff
recommends approval of modifying the Company’s tariff to reflect its correct name.
STAFF RECOMMENDATION
Staff recommends that the surcharge for customers in the Happy Valley Raneho
Subdivision be reduced from $16.83 to S 14.03 per month.Staff recommends that the
Commission approve the revised tariff,including the name change discussed above,as submitted
by the Company.with an effective date of November 1,2014.
DECISION MEMORANDUM -2-FEBRUARY 17,2015
COMMISSION DECISION
Does the Commission wish to accept the Company’s request to reduce its surcharge to
514.03 with an effective date ofNovember 1,2014?Does the Commission accept the revised
tariff to reflect the Company’s name as CDS StoneRidge Utilities,LLC?
C
Chris Hecht
Udmemos!SWS ThrifT Advice chwO2I 22015
DECISION MEMORANDUM -3-FEBRUARY 17,2015