20210504_SWSW2001.pdf

DECISION MEMORANDUM - 1 - MAY 4, 2021
DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
LEGAL
WORKING FILE

FROM: JOHN R HAMMOND, JR.
DEPUTY ATTORNEY GENERAL

DATE: MAY 4, 2021

RE: IN THE MATTER OF THE APPLICATION OF CDS STONERIDGE
UTILITIES, LLC TO CHANGE RATES FOR NON-REFUNDABLE
HOOK-UP FEE FOR NEW WATER CONNECTIONS, CASE NO.
SWS-W-20-01

BACKGROUND
On June 4, 2020, CDS Stoneridge Utilities, LLC ("Stoneridge", or "Company") applied
to increase the fee for a new customer to physically connect Stoneridge's water system from
$1,200 to $9,735. Stoneridge requested an effective date of July 27, 2020.
On June 25, 2020, the Commission ordered the Application to be processed by modified
Procedure, and suspended Stoneridge's proposed effective date to January 26, 2021. Order
No. 34702.
On January 5, 2021, the Commission extended the suspension period and set a comment
deadline of January 26, 2020, and a reply comment deadline of February 9, 2021. Order
No. 34886.
On March 25, 2021, the Commission issued Final Order No. 34969, authorizing
Stoneridge to charge hook-up fees as set forth in the Order; directing Stoneridge to charge the
minimum monthly rate for a ¾-inch meter, and modify its tariff to reflect this change; directing
the Company to modify its tariff to reflect a single $65 reconnect fee; and approving
modifications to the definitions section as proposed by Staff. The Commission also ordered
Stoneridge to file a conforming tariff within 10 days of the issuance of its order.
On April 8, 2021, Stoneridge submitted a modified tariff to the Commission. On

DECISION MEMORANDUM - 2 - MAY 4, 2021
April 22, 2021, the Commission rejected the Company's modified tariff (Order No. 35017). On
May 3, 2021, the Company submitted a Second Modified Tariff ("Second Modified Tariff") to
the Commission and requested an effective date of May 4, 2021.

STAFF'S ANALYSIS
Staff reviewed the Second Modified Tariff and found it to be in conformance with
Commission Order Nos. 34969 and 35017.
Staff requested hook-up connection information after the issuance of Order No. 34969.
Post Order No. 34969 and prior to Order No. 35017, the Company hooked up two (2) customers
and charged them $3,500. Staff asks the Commission to determine the appropriate fee to be
charged to these two customers. Should it be the $3,500 fee charged per Order No. 34969 or the
$1,200 fee authorized per Order No. 35017?

STAFF'S RECOMMENDATION
Staff recommends that the Commission approve the Second Modified Tariff submitted by
Stoneridge on May 3, 2021, with an effective date of May 4, 2021.

COMMISSION DECISION
Does the Commission wish to approve the Second Modified Tariff submitted by the
Company on May 3, 2021, with an effective date of May 4, 2021?
Should the Company refund $2,300 each to the two customers or allow the Company to
charge the $3,500 hook-up fee?

_______________________________
John R. Hammond, Jr.
Deputy Attorney General

Udmemos/SWS-W-20-01 Decision Memo