20190621Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM:JOHN R. HAMMOND JR.
DEPUTY ATTORNEY GENERAL
DATE: June 21,2019
SUBJECT:IN THE MATTER OF ORDER TO SHOW CAUSE FOR ST. MARIES
RIVER RAILROAD COMPANY'S FAILURE TO PAY 2018 ANNUAL
ASSESSMENT; CASE NO. SMR-R-19-01
On April 20,2018, the Commission notified St. Maries River Railroad Company ("St.
Maries" or the "Company") through Assessment Invoice No. 2018-256 that it owed $2,133.32 for
its annual assessment ("Assessment"). See Affidavit of Nancy Ashcraft, Exhibit A. On October
2,2018, a demand letter was sent to the Company by certified mail, retum receipt requested,
demanding it pay its Assessm ent. ' See Exhibit I . On December 31 ,2018, the Commission notified
the Company through Invoice No. INT-2018-07 that the Company owed an additional $128.00 in
interest for failure to pay its Assessment in a timely marrrer. Id. On May 15,2019 a Statement
showing the unpaid 2018 Assessment and accrued interest was sent to the Company. Id.
On January 23,2079, correspondence was sent to St. Maries by certified mail, return
receipt requested, demanding the Company pay its delinquent Assessment in the amount of
$2,133.32, plus accrued interest of $128.00. See Exhibit l. On June 6, 2079, a second demand
letter was sent to the Company by certified mail, retum receipt requested, demanding it pay its
Assessment plus all accrued interest on or before June 1 5, 2079. Id. The Company to date has
failed to rectify this delinquency.
STAFF RECOMMENDATION
Staff recommends that the Commission issue the attached proposed Notice of Hearing
& Order to Show Cause why the Company should not be required by the Commission to:
. immediately pay its past due Assessment plus all accrued interest in the total
amount of $2,261.32; and,
DECISION MEMORANDUM 1
a pay up to a $2,000.00 penalty per day for its continuing failure to pay its 2018
Assessment and all accrued interest. See ldaho Code $$ 6l-706 & 6l-707.
The proposed Notice of Hearing and Order to Show Cause further directs the attorney
of the Commission to commence an action in District Court should the Company fail to show such
cause.
COMMISSION DECISION
Does the Commission wish to set a date for and issue the proposed Notice of Hearing
& Order to Show Cause attached hereto as Exhibit 2?
Hammond Jr.
Attorney General
I:\Le8a|\RAIL\SMR-R- I 9-01\SMRRI 90 l_dec-jh l.docx
J
2DECISION MEMORANDUM
EXHIBIT I
True and Correct Copies of Demand Letters
(Attached)
JDECISION MEMORANDUM
YIA CERTIFTED MAIL
October 2,2018
St. Maries River Railroad Company
10100 N Ambassador Dr., Ste. 105
Kansas City, MO 64153
Re: Gross In8astsle Operating Revenuc Rcport-Notice of Possiblc Legal Action
Attn: Mr. Colin Shelman,
The Office of the Attorney General has been made awarc that St. Maries fuver Railroad Company has failed to submit its
2018 arurual 8ssessmetrt. Idaho Code $ 5l-1005 ststes that "[o]n or before May lst of each year, lhe commission shall
notifo each public utility and railroad corporaLioo subject to the provisions of this act, by mail, of the amounl of the fee for
tlre ensuing fiscal year beginning July l. Upon failure, rcfusal or neglect of any public utility or railroad corporation to pay
sucb fee the atlorney geoeral sball commence an actiou iu the name of the state to collect the same." Commission Staffhas
notified St. Msries River Railroad Compaoy the amount of thc fce on invoice 2018-256 dated April 20, 2018.
Idaho Code$ 6l -706 & 6l -7 l0 states thal, "any public utility or corporation that fails to comply with any of the provisioru
of this act or which fails to obey, observe, or comply with any order, decision, rule, direction, deruand or requirement is
subject lo a penalty of up to 52,000."
To avoid further proceedings and court action, St. Maries fuver Railroad Company must immediately pay its annusl
asssssment. A copy of your original invoice is enclosed. Any questions concerning the assessment may be directed to Maria
Barratt-Riley, [phone], or by cmail: [e-mail]
Sincerely,
Brandon Karpen
Deputy Atlorney General
Enclosurescc: Maria Ban-att-Riley
Joe Leckie
ldaho Public Utilities Commission
P.0,8or &I?ar, Bobs, E &frzlHXI74
CJ.BUET Gofirnr
Date lnvolce No.
4n0t20"t8 201E.2s5
Due Dala 5/t5/20t8
Paul XJcllendor, Commladonr
Krlsdnc R.p!r, Commlrrlonor
Erlc Andcreon, Commbaloncr
Assessment lnvoice
St. Maries River Railroad Cornpany
10100 N Ambassador Dr., Ste. 105
Kansas City, MO 64151
2017 GIOR $213,438.41
The 2018 assessment fee for public utilities is .2179o/o and .9995% for
railroads by Commission Order Number 34033 and 34032
respectively. The minimum assessment fee is $50.00.
The 2018 assessmenl fee may be paid in equal semi-annual installments. Thefirst installment of the
regulataryfee is due no later lhon May i,5, 2018. The second ilntallment is due no later than November
15, 2018. Outstanding balances after November 15, 2018 will be assessed with a 696 annual interestfee.
Per ldaho code 67-2026, assessmernfees over $100,000 must be paid by an electt'onic{unds transfer.
AI.IY UTILITY OR RAILROAD OBJECTING TO TIilT 4SSBSSMENT STATED ABOVE MAY
FILE AN OBJECTION WTTII THO COMMISSION PTJRSUAI\T TO IDAHO CODE 61-1007.
Ptease make check or money orders payabte to:
ldaho Pubtic Utitities Commission
PO BOX 83720
BO|SE lD 83720-0074
Please co,rtact Nanq Ashcraft with questions or cornnenls: QA$ fi4-0325 or [e-mail]
Remittance advice for:
St. Maries River Railroad Companv
Accounl No.SMR.R
Description Assessment Amounl
201 7 Railroad Assessment .9995%2,133.32
Total $2,133.32
Payments/Credits $0.00
Balance Due $2,133.32
Account No. SMR-R lnvoice No. 2018'256 Remittance amount: $
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St. Merie5 River Railroad ComPanY
Attn: Colin Shelman
10100 N Amba:sador Dr-, Ste. 105
Kansas CitY, MO 64153
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ldaho Public Utilities Commission
Attn: Nancy Ashcraft
4?2W ' Washington St'
Boise,ld 83704
print your name,
STATE OF IDAHO
OFFICE OF THE ATTORNEY GENEBAL
LAWBENCE G. WASDEN
VIA CERTIFTED MAIL
January 23,2019
St. Maries River Railroad Co.
101000 N. Ambassador Dr., Ste 105
Kansas City, MO 64153
Re: Unpaid Annual Assessment Fees - Notice of Possible Legal Action
I)ear Mr. Colin Shelman,
The Office of the Attorney General for the State of Idaho has been made aware that St.
Maries River Railroad Company ("Company") has failed to submit its 2017 annual assessment to
the Idaho Public Utilities Commission ("Commission"). lhis failure will result in legal action if
not remedied within ten days of receipt of this letter.
Idaho Code $ 61-1001 provides that each railroad "shall pay to the commission in each
year, a special regulatory fee . . . to defray the amount to be expended. . . for expenses in
superv'ising and regulating . . .railroad corporationsf.f" Idaho Code $ 6l-1005 states,
Such fee shall be paid to the commission in equal semiannual
installments on or before the 15fr days of November and May in
each fiscal year. If payment shall not be made on or before said
respective dates, the installments so due shall bear interest at the
rate of six per cent (6yo) per annum until such time as the full
amount of the installment shall have been paid, Upon failure.
refusal or neglect of any public utility or railroad corporation to
pay such fee the attorney general shall comrnence an action in the
name of the state to collect the same.
On April 20,2018, the Commission notified the Company through Invoice No. 201 8-256
that the Company owed $2, I 3 3 .32 for its 2017 annual assessment. This amount was calculated
pursuant to ldaho Code $ 6l-1004(l) and is equal to 1% of the Company's gross operating
revenues derived from intrastate business during the preceding calendar year. On December 31,
2018, the Commission notified the Company through Invoice No. INT-2018-07 that the
Company owes an additional $128.00 in interest for failure to pay the2017 annual assessment in
a tirnely manner. Copies clf these invoices are enclosed.
Contracts & Administrative Law Division, ldaho Public Utilities Commission
P.O. Box 83720, Boise, ldaho 83720-0074, Telephone: [phone], FAX: [phone], Email: [e-mail]
Located at 472 West Washington St., Boise, ldaho 33702
Due to the Company's failure to meet its deadlines, if the entire outstanding amount of
$2,261.32 is not paid to the Comrnission within ten days of receipt of this letter, the Office of the
Attorney General of the State of Idaho is empowered to commence an action to collect the total
outstanding amount pursuant to ldaho Code $ 61-1005. The Company may also be subject to a
penalty of up to $2,000 per violation pursuant to ldaho Code $ 6L-706. Furthermore,Idaho
Code $ 6l-709 provides for personal liability for officers or agents of public utilities who fail to
comply with Commission orders or directions.
Any questions concerning payment of the Company's 2017 annual assessment may be
directed to Nancy Ashcroft at [phone] or by email at nan*'-ashcroftilirpuc.idaho.uov.
Sincerely
D //=.y*lEdward Jewell
Deputy Attomey General
Enclosures
Maria Bamat-Riley
Joe Leckie
Nancy Ashcroft
cc:
ldaho Public Utilities Commission
P.0. Bor tB?il,8ol$e, l0 lXllZHff4
C.LButdl Gouemor
Paul (lellander,
Krlsune Raper,
Eric Anderson,
Commlsrioncr
fpmmissloner
Commissloner
St. Maries River Railroad Company
101 00 N Ambassador Dr., Ste. 105
Kansas City, MO 64153
Assessment lnvoice
Date lnvoice No.
4120t2018 2018-256
Due Date 5lr5/2018
2017 G|OR $2t 3,438.41
The 2018 assessment fee for public utilities is .2179o/o and .9995Yo for
railroads by Commission Order Number 34033 and 34032
respectively. Thi minimum assessment fee is $50.00.
T:he 2018 assessmentfee may be paid in equal semi-annual installments. The first installment of the
regulatory fee is due no later than May 1 5 , 20 18. The second installment is due no later than November
15, 2018. Outstanding balances after November 15, 2018 will be assessed with a 6o% annual interestfee.
Per ldaho code 67-2026, assessmentfees over $100,000 must be paid by an electronicfunds transfer.
AIYY UTILITY OR RAILROAD OBJECTING TO TIM ASSESSMENT STATED ABOVE MAY
FILE AN OBJECTTON WITH THN' CoIYIMISSION PURSUANT TO IDAIIO CODE 61.1007.
Please make checks or money orders payabte to:
ldaho Pubtic Utitities Comrnission
PO BOX 83720
BO|SE tD 83720-0A74
Please contact Nancy Ashcraft with questions or comments: [phone] or [e-mail]
Remittance advice for:
St. Maries River Railroad Company
Account No SMR.R
Description Assessment Amount
2017 Railroad Assessment .9995%2,1,33.32
Total $2,t33.32
Payments/Credits $0.00
Balance Due
Account No. SMR-R lnvoice No. 2018-256 Remittance amount: $
$2,133.32
ldaho Public Utilities Commission
Box &1720, Boise,lD 874F0074
G.L Butctr Gryemor
Paul Kiellander, Commissioner
Kristine Raper, Commisioner
Eric Andercon, Commissioner
St. Maries River Railroad Company
I0100 N Ambassador Dr., Ste. 105
Kansas City, MO 64153
lnterest lnvoice
Date lnvoice No
12t31/2418 tNT.2018.07
Account No.SMR.R Due Date t2l3u20t8
Description Assessment Amount
Interest assessed on account balance after November 15 128.00
Total $128.00
The second installment of the regulatoryfee was due no later thanNovember 15, 2018. Outstanding
balances after Noventber 15, 2018 have been assessedwith a 6?5 interestfee.
Please make checks or money orders payabte to:
ldaho Pubtic Utilities Commission
PO BOX *724
BO|SE tD 83720-0474
Please contact Nancy Ashcraft with questions or comments: (208) 334-0i25 or [e-mail]
Remittance advice for:
St. Maries River Railroad Companv
Account No. SMR-R lnvoice No. INT-2018-07 Remittance amount:$
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CCTMPLETE Trlts SEGTION
STATE OF IDAHO
OFFICE OF THE ATTORNEY GENEAAL
L.AWBENCE G. WASDEN
June 6,2019
Webb Roberts
St. Maries River Railroad Company
10100 N. Ambassador Dr., Ste 105
Kansas City, MO 64153
Re: Unpaid Annual Asscssment Fees - Noticc of Possible Order to Shorv Cause and
Lcgal Action
Dear Mr. Roberts,
This office represents the Idaho Public Utilities Commission (the "Commission"). On
January 23,2019, a letler was sent to St. Maries River Railroad Company (the "Company")
notifying the Company it had failed to pay its 2018 annual assessment ("2018 Assessment"), in
the amount of $2,133.32. Interest charges of $128.00 have accrued on that unpaid balance. In
addition, in April of 2019 the Company was sent a statement from the Commission setting forth
its 2019 regulatory fee of $1,009.44 ("2019 Assessment"). Half of the Company's 2019
Assessment in the amount of $504.72 was due on May 15,2019 and remains unpaid.l A copy of
the latest Statement frorn the Conrmission along with Assessment Invoices showing these
amounts are enclosed.
DEMAND IS HEREBY MADE that the Company immediately pay the 2018 Assessment,
including all accrued interest and half of the 2019 Assessment, in the lotalamount of $2,766.04, by
hand delivering or mailing the payment to the Commission at 472 W. Washington Street, Boise,
Idaho $7ZA or P.O. Box 83720, Boise, Idaho 83720-0074, Attn: Nancy Ashcraft.
If the Commission does not reccivc the Company's $2,766.04 payment by Junc 15,
2019, the Commission will initiate legal proceedings to compel that payment. Such proceedings
rnay include an administrative proceeding in which the Company is required to appear before the
I Annual assessments are calculated using annual gross operaling revenues derived from intrastate business as
reported by the Company. The Commission Staff is currently auditing the Company to determine if its reported
gross operating revenues are accurate. To the cxtcnt the Company undeneporled its gross operating revenues from
intrastate business it may ole further amounts for its annual assessrnents.
Conlracts & Admlnlrtratlva Law Dlvlslon, ldaho Fubllc Utllhies Commlsslon
P.O. Box 83720, Boise, ldaho 83720-00?4, Talephone: [phone], FAX: [phone], Emdl: [e-mail]
Located at 472 Wesl Washington St., Boise, ldaho 33702
VIA CERTIFIED MAIL
Page2
Commission in Boise, Idaho to show cause why the Commission should not order the Company
to:
r Immediately pay the 201 8 Assessment plus all accrued interest and half of its
2019 Assessment; and,
. Pay up to a $2,000.00 penalty per day for the Company's continuing failure to pay
the 2018 Assessment and all accrued interest and half of its 2019 Assessment.
See ldaho Code $$ 6l-706 & 6l-707,
Additionally, the Commission may sue the Company in court to collect the 2018
Assessment and all accrued interest, half of the 2019 Assessment and any penalties it may assess.
See ldaho Code $$ 6l -l 005 & 61-712. In both administrative and court proceedings, the
Commission would ask the tribunal to order the Company to pay the Commission's attomey's
fees and costs to prosecute the case. See ldaho Code $$ 12-117, -120, -l2l and ldaho Rile of
Civil Procedw'e 54.
Thank you for your prompt attentipn to this matter.
Sincerely,
R. Hammond Jr.
Attomey General
Enclosures
Brandon Stuller
Maria Barratt-Riley
Nancy Ashcraft
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ldaho Public Utilities Commission
PO Box 83720, Bolse. lO 83721H)074
Brad Govemor
Prul Klclhndor, Commlrlloncr
Xrl3Bn! R.p.l, conml!!lonrt
Erlc Andanon, Comml:rlonrr
StatementSt. Marics River Railroad Company
I 0l 00 N Ambassador Dr., Ste. 105
Kansas Ciry, MO 64153 Dale
5 jt5t20t9
Account #SMR.R
Outslanding balances after November 15, 2016 willbe assesse d with a 67o interast fea.
Please contact Nancy Ashcraft at [phone] or by cn'rail at [e-mail] if you have any
questions or need additional informalion.
Date Transaction Amount Balance
0313 r/2018
04120/20 r 8
t2t3t/2018
04fi6/2019
Balance forward
INV #20 t8-256.
-- 20 I 8 Railroad Assessment $2, 133 .32* Tax: State Sales Tax @ 6.0% = 0.00
INV #INT.zOI8.O7,
- Asscssmcnt Interest S 128.00
- Tax: Stale Sales Tax @ 6.0% - 0.00
INV #2019-046.
- 2019 Railroad Assessn'rent S I ,009.44
- Tax: State Sales Tax @ 6.0% = 0.00
2, r 33.32
r 28.00
I,009.44
0.00
2,133.32
2,26t.32
3,270.?6
CURRENT 1.30 DAYS PAST DUE 31-60 DAYS PAST
DUE
61.90 DAYS PAST
DUE
OVER 90 DAYS
PAST DUE Amounl Due
I.009 1.1 0,00 0.00 0.00 2,:6112 s3,270't6
Idaho Public Utilities Commission
PO Box 83720, Bolse, lD 83720-0074
Brad Oovsmor
Paul Kf clkndcr, Commla.lonrrKrlltnr Rapcr. gomml3tloncr
Etlc And6r!on, Commlrslonar
St. Maries River Railroad Company
10100 N Ambassador Dr., Ste. 105
Kansas Cily, MO 64153
Assessment Invoice
Date lnvoice No.
4t16t2019 2019.046
Due Oate 51'15,i2019
The 2019 assessmenl fee for public utilities is .2529o/o and .99960/o for
railroads by Commission Order Number 343 l0 and 3431 I
respcctively. The mirrinrum asscssment fec is 550.00.
Thc 2019 dssessnrciltfee fita)) be paid in equulsemi-atmualinstallments. Thefirst installnrcnt of the
regulaton,feeisduenolaterthanlt{ay15,2019. The secondinslallntentisduenolalerthanNovember
15,2019. OutstandingbalancesafierNoventberlS,20l9willbeassessedwitha6?6anuual interestfee,
Per ldalrc code 67-2026, assesslre nt.fees over $100,000 must be paid by an electronicJimds transfer,
ANY UTILITY OR RAILROAD OBJECTING TO THE ASSESSMENT STATED ABOVE MAY
FILE AN OBJECTION WITH THE COMMISSION PURSUANT TO IDAHO CODE 6I.1007.
Ptease make checks or money orders payable to:
ldaho Public Utitities Commission
PO BOX 83720
BOTSE tD 83720-0074
Please contact Nancy Aslw'aft vith qileslio,ts or co,ttuents: QA$ 3i4-0j25 ur [e-mail],
Remltlance advice for:
St. Maries Rirer Railroad Conrnanv
Account No.SMR.R 2018 G|OR 5 r 00,984.00
Description Assrssmant Amount
2019 Railroad Assessnrent .9996%1,009.44
Total s 1,009.44
Paymentslcredits s0.00
Balance Due s r,009.44
Accounl No. S',4|tr.R lnvoice No. 2019-046 Remittance amounl $
ldaho Public Utilities Commission
P.0, Box &1720, Bolse,lD lIt720-0074
C,L Butdr 0ovomor
Commlrrloncr
Commlsslornr
Commlssloner
Interest lnvoice
Date lnvoice No.
flvna$INT-2018-07
Prul Klallandcr,Xrlsdna Rrpcr,
Erlc Andergon,
St. Maries River Railroad Company
10100 N Ambassador Dr., Ste. 105
Kansas City, MO 64153
Account No,Slir,lR-R Oue Date 12131fiot8
Description Assessment Amounl
lnterest assessed on uccount balancc aftrr November l5 128.00
Total $ 128.00
The seconcl installment of the regulatotl,.fee x,ss due fio later lhan Noventber 15, 2018. Outstondhry
balonces after Noventber 15, 2018 have becn assessed v,ith a 6% interest.fee.
Please make checks or money orders payable to:
ldaho Public Utilities Commission
P0 BOX 83720
BO|SE tD 83720-0074
Please ca,iacl Nancy Ashtra/i rvith questiat$ ar connne,ts: (208) 334-03J5 or nancy,llsllcrali@puc"idaha.gov
Remittance adr ice for:
St. Maries Rivcr Railroad Comnanv
Accounl No. SMR-R lnvoice No. INT-2018-07 Remittance amount: $
ldaho Public Utilities Commission
P.0.8or 83f20, Bolse, l0 e1720-0074
C,L Sulch Goyemot
Paul XJcllrnder,
l(rlsdna Rrpcr,
Erlc Andcreon,
CommlsslonarCommlslor.r
Commlsrlonor
St. Marics Rivcr Railroad Cornpany
10100 N Ambassador Dr., Stc. 105
Kansas Ciry, MO 64153
Assessment lnvoice
Dale lnvoice No.
4nan018 2tA18.256
Due Oate 5/r 5120 l I
2017 G|OR $31 l.4l8.4 I
Tlre 2018 assessment fee for pubtic utilities is .21 79Yo and ,9995Y0 for
railroads by Cornmission Ordcr Number 34033 and 34032
respectivcly, The rnininrum assessn'rent fee is $50.00.
The 2018 assessmentfee ,uay be paid in equalsemi-annual inslalluents. Thefirst installment of lhe
regulatoryfee is due no later thau MaS' /,5, 2018. The second installnrcnt is due no later than Noventber
t 5, 20t8. Outstanding balonces afler Novenber 15, 2018 witl be asscsscd with a 67o annual interest,fee.
Per ldaho codc 67-2026, assessmeilt.{ees oter 5100,A00 nnrst ba poid by an elecu'onic./in:ds transfcr.
ANY UTILTTY OR RAILROAD OBJECTING TO THE ASSESSMENT STATED ABOVE MAV
FILE AN OBJECTION WITH TT{E COMIVIISSION PURSUAN'T TO IDAHO CODE 61-IO()7.
Please make checks or money orders payabte to:
ldaho Pubtic Utitities Commission
PO BOX 83720
BOISE rD $72A-0A74
Pleqse contact Nancv lslta'aft with Ercstions or comnenls: [phone] or uuncJ:[e-mail]
Remitlance advice for:
Sl. Marics River Railroad Contnanv
Account No.SMR.R
Description Assessment Amount
20 1 7 Ruilroad Assessment .9995%2,r33.32
Total s2,1.33.32
PaymentslCredits s0.0i)
Balance Due s2, t33.32
Account No. SMR-R Invoice No. 2018-256 Remittance amount: $
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1. Article Addressed to:
Webb Roberts
St. Ivlaries Biyer: Railroad Company
10100 N. Ambassador Dr*,Ste I 05
Kasas S$y,,MA6$53
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T]hI]E BEBE 5P3L 3],BE Besticted Delivery
Please print your name, address, and
Idaho Public Utilities Commission
47 2 W . Washington Street
P.0. Box 83720
Boise, lD 83720-0074
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B. Received by (Printed Nane)cl Date of Deliverv{n,10'fi'
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COMPLETE TH'S SECT'ON ON DELIVERYSENDER: COMPLETE IH,S SECT,ON
July 201 5 PSN 7530-02-ooG9o53 Domestic Retum Receipt
EXHIBIT 2
Proposed Notice of Hearing & Order to Show Cause
(Attached)
4DECISION MEMORANDUM
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF ST. MARIES RIVER
RAILROAD COMPANY'S SPECIAL
REGULATORY FEE PURSUANT TO IDAHO
coDE s$ 6r-1001 THROUGH 61-100s
CASE NO. SMR-R.I9-01
ORDER TO SHOW CAUSE
NOTICE OF'HEARING
oRDERNO._
St. Maries River Railroad Company ("Railroad") is a short line railroad providing
freight service between Plummer, Idaho and Bovill, Idaho. The Railroad is a "railroad
corporation," and a "common carrier" as defined by ldaho Code $$ 61-111 and 61-113. As
such, the Company is a public utility subject to the jurisdiction of the Commission. Idaho Code
$ 61-129. This matter comes before the Commission due to the Railroad's failure to pay its
regulatory fees for 2018, as required by ldaho Code $$ 61-1001 through 61-1005.
BACKGROUND
1. Commission Regulatory Fees
The Commission's operating funds are derived by assessing regulatory fees upon
utilities and railroads subject to the Commission's jurisdiction. Each year, the Legislature
authorizes the Commission to expend funds necessary to regulate and supervise utilities and
railroads doing business in Idaho. Idaho Code $ 61-1001. The maximum annual assessment fee
for each railroad shall not exceed one percent (1%) of its gross intrastate operating revenues, and
the minimum annual fee shall be no less than $50. Idaho Code $ 61-1004(1) e, (4).
Idaho Code $ 61-1003 requires that, "[o]n or before April lst of each year, each
public utility and railroad corporation subject to the jurisdiction of the commission, shall file
with the commission a return verified by an officer or agent of the public utility or railroad
corporation involved, showing its gross operating revenues from its intrastate utility or railroad
business in Idaho for the preceding calendar year during which it carried on such intrastate utility
or railroad business." Idaho Code $ 6l - 1003.
Idaho Code $ 6l-1001 requires that "each railroad corporation, subject to the
jurisdiction of the commission, and subject to the provisions of this act, shall pay to the
commission in each year,a special regulatory fee in such amount as the commission shall find
ORDER TO SHOW CAUSE
NOTICE OF HEARING
ORDERNO. 1
)
)
)
)
)
)
)
)
and determine to be necessary, together with the amount of all other fees paid or payable to the
commission by each such public utility and railroad corporation . . [.]" Idaho Code $ 61-1001;
see also ldaho Code $ 61-1005.
Once all the railroads have reported their intrastate operating revenues for the
previous calendar year, the Commission calculates the "proportionate assessment that all railroad
corporations . . . shall bear . . . in proportion to their respective gross operating revenues derived
from intrastate frailroad] business in Idaho for the preceding calendar year . .l.) Idaho Code $
61-1004. The Commission then notifies each railroad of its assessed regulatory fee no later than
May 1 of each year. Idaho Code $ 6l-1005. The regulatory fee may be paid to the Commission
in equal semi-annual installments due May 15 and November 15 of each year. Id.; see also
Idaho Code $ 6l-1003.
Idaho Code $ 6l-1004 sets forth the duties of the Commission with regard to the
determination of fees. With regard to the year in question, the Commission has fulfilled its
statutory requirements, and the rates set by the Commission were below the statutory maximum
of one percent (1%) of gross intrastate revenue. See Order Nos. 34033 and 34032.
In a Decision Memo dated June 21, 2019, Commission Staff alleged that the Railroad
failed to pay its assessed fees for calendar year 2018. Specifically, on April 20,2018, the
Company was notified through Invoice No.2018-247 that it owed $2,133.32 for its annual
assessment (the "Assessment"). See Affidavit of Nancy Ashcraft, Exhibit A. Furthermore, on
multiple occasions, the Commission Staff ("Staff') attempted to collect the Railroad's annual
fees, sending invoices, demand letters, and notification that failure to comply may result in legal
action. See Exhibit No. I to Decision Memorandum and Affidavit of Ashcraft Nevertheless, the
Railroad has failed, refused, or neglected to meet the requirements of the statutes and Staff s
demands that it pay its outstanding regulatory fee. Id.
The Railroad has failed to pay its statutorily required annual regulatory fees to the
Commission for 2018. See Affidavit of Nancy Ashuaft. Each failure to pay violates ldaho Code
$$ 61-1003 & 61-100s.
In December of 2018, the Railroad was assessed S128.00 in interest on its outstanding
balance of $2,133.32 (6%). See ldaho Code $ 61-1005 (stating that utilities and railroads failing
to timely pay shall incur an annual fee of 60Z interest on all unpaid balances).
The Railroad's current outstanding balance is $2,261.32.
ORDER TO SHOW CAUSE
NOTICE OF HEARING
ORDER NO. 2
JURISDICTIONAL STATEMENT
The Commission has jurisdiction in this matter pursuant to ldaho Code $$ 6l-101, et
seq., including ldaho Code $ 61-501, which vests the Commission with the authority and
jurisdiction to supervise and regulate every public utility in the state. More specifically, Idaho
Code $$ 6l-701, et seq., provides direction to the Commission relating to enforcement, penalties,
and interpretation of public utilities law. See also ldaho Code $$ 61-1001 through 6l-1005
(relating to regulatory fees of railroads).
CLAIM
1. Violations of Idaho Code $$ 6I-1001 and 61-1005
Idaho Code $$ 61-1001 and 61-1005 require that the Railroad pay to the Commission
an annual regulatory fee in a proportional amount based on the Railroad's intrastate gross
operating revenues as reported in its annual verified retum.
The Railroad has been contacted on several occasions by the Commission Staff
demanding that it pay its annual regulatory fee for 2018. In May and November 2018, the
Railroad failed or refused to pay the annual regulatory fee totaling $2,133321to the Commission
in violation of ldaho Code $$ 61-1001 and 61-1005. See Affidavit of Ashuaft Because of the
Railroad's failure to pay its annual regulatory fees, it has incurred $128.00 in fees.2 At the time
of the entry of this Order, St. Maries River Railroad Company owes the Commission $2,261.32
in regulatory fees and interest charges. Id.
ORDER
Accordingly, based on the evidence before the Commission, and good cause
appearing, IT IS HEREBY ORDERED that St. Maries River Railroad Company shall appear
before the Commission AT A.MIP.M. MDal ON . .IN THE
COMMISSION HEARING ROOM. 472 WEST WASHINGTON STREET. BOISE.
IDAHO, to show cause why the following relief should not be granted by summary order of the
Commission:
1. Order the Railroad to immediately pay the current entire outstanding
balance for 2018 annual fees, plus interest, in the amount of $2,261.32;
I This amount represents an outstanding balance for failing to pay its annual regulatory fee for 2018.
2 ldaho Code $ 6l-1005 requires that any outstanding balances be charged an annual fee of 6o/o interest on the
balance.
ORDER TO SHOW CAUSE
NOTICE OF HEARING
ORDER NO.J
2. Direct the Commission's attorney to seek the imposition of civil penalties
pursuant to ldaho Code $ 61-706 of $2,000 for each and every offense,
totaling $_
3. Direct the Commission's attorney to initiate an action in District Court to
enforce the determination of the Commission, consistent with ldaho Code
$$ 61-705, 6l-706, and 61-1005.
IT IS FURTHER ORDERED that all hearings and prehearing conferences in this
matter will be held in facilities meeting the accessibility requirements of the Americans with
Disabilities Act (ADA). Persons needing the help of a sign language interpreter or other
assistance in order to participate in or to understand testimony and argument at a public hearing
may ask the Commission to provide a sign language interpreter or other assistance at the hearing.
The request for assistance must be received at least five (5) working days before the hearing by
contacting the Commission Secretary at:
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-007 4
(208) 334-033 8 (Telephone)
[phone] (FAX)
E-Mail: [e-mail].&ov
IT IS FURTHER ORDERED that all proceedings in this matter will be conducted
pursuant to Title 61 of the Idaho Code and the Commission's Rules of Procedure, IDAPA
31.01.01 -000 er seq.
IT IS FURTHER ORDERED that the Commission Secretary serve this Order to
Show Cause by Certified Mail (return receipt requested) upon the person designated to receive
Notices of Summonses and Complaints (IDAPA 31.01.01.016) and upon the person designated
by the utility to receive legal service in Idaho. Idaho Code $ 61-615.
ORDER TO SHOW CAUSE
NOTICE OF HEARING
ORDER NO.4
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day ofJune 2019.
PAUL KJELLANDER, PRESIDENT
KRISTINE RAPER, COMMISSIONER
ERIC ANDERSON, COMMISSIONER
ATTEST
Diane M. Hanian
Commission Secretary
I:\LegaI\RAIL\SMR-R- l9-01\St. Maries_Noticel.doc
ORDER TO SHOW CAUSE
NOTICE OF HEARING
ORDER NO.5
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF ST. MARIES RIVER )
RAILROAD COMPANY'S FAILURE TO PAY )
SPECIAL REGULATORY FEE PURSUANT )
TO rDAHO CODE $$ 61-1001 THROUGH 61- )100s )
CASE NO. SMR-R-T9-01
AFFIDAVIT OF NANCY
ASHCRAFT
NANCY ASHCRAFT, being duly swom, stated:
l. My name is Nancy Ashcraft. I am over 2l years of age, of sound mind, and I have
personal knowledge of the facts stated herein.
2. I am a Financial Specialist, Senior at the Idaho Public Utilities Commission. I started
working in this position in 2016. I am responsible for the billing and collection of annual fees
assessed on public utilities as describedrnldaho Code $$ 61-1001 through 61-1005.
3. In May and November 2018, St. Maries River Railroad Company ("St. Maries" or the
"Company") failed or refused to pay its annual regulatory fee of 52,133.32 ("Assessment").
4. In December of 2018, the Company was assessed $128.00 in interest on the outstanding
balance of its Assessment of $2, 1 33 .32 at the rate of six percent (6%).
5. Currently, St. Maries owes the Commission$2,261.32in fees and interest charges.
6. Staff has attempted to collect the Company's past due Assessment by sending invoices
to it. Additionally, demand letters have also been sent to St. Maries notifuing it that failure to pay
its Assessment plus all accrued interest would result in legal action. True and correct copies of
these invoices are attached hereto and incorporated by reference herein as Exhibit A.
7. Despite such actions by Staff, St. Maries still has failed to pay its Assessment and
interest owed to the Commission remains unpaid and past due.
I
AFFIDAVIT OF NANCY ASHCRAFT
Dated this Z I day of June 2019
N
Financial
Idaho Public
Senior
Commission
SUBSCRIBED AND SWORN to before me this Zl{t auy of June 2019.
V-,rt "k*lawkJr\.Notary Pubdb for Idaho
My commission expires on b.l5.tot1
I :\Legal\RAJL\SMR-R- I 9-01 \Afiidavit_Ashcraft _St Muies.docx
2
OF
1 .HA
AFFIDAVIT OF NANCY ASHCRAFT
EXHIBIT A
True and correct copies of Invoices sent to the Company
(Attached)
3
AFFIDAVIT OF NANCY ASHCRAFT
ldaho Public Utilities Commission
PO Box 83720, Bolse, lO 8372G0074
Brad Govemor
Prul Klollrndcr, Comml'tloncr
Kr'lsuno Rrprr, CommlralonGr
Eric Andcnon, Commlcrloncr
StatementSt. Maries River Railroad Company
10100 N Ambassador Dr.. Ste. 105
Kansas Ciry, MO 64153 Date
5/t5t2At9
Account #SMR-R
Outstanding balances after November 1 5, 2A16 will be assesse d witlt a 6%o interesf fee.
Please contact Nancy Ashcraft at [phone] or by ernail at [e-mail],gov if you have any
questions or need additional information.
Date Transaction Amount Balance
a3B1t}o18
au20t2018
t2/3v2Al8
04116/2019
Balance forward
rNV #20r 8-256.
--- 2018 Railroad Assessment $2,133.32
-- Tax: Stale Sales Tax @ 6"0% = 0.00
INV #rNT-2018-07.
--- Assessment Inlerest $128"00
*- Tax: State Sales Tax (16.0% = 0.00
INV #2019-046.
--- 2019 Railroad Assessment S 1,009.44
--- Tax: State Sales Tax @ 6.0%:0.00
2,133.32
128.00
I,009.44
0.00
2,131.32
2,261.32
3.270.76
CURRENT 1-30 DAYS PAST DUE 31.60 DAYS PAST
DUE
S1-90 DAYS PAST
DUE
OVER 90 DAYS
PAST DUE Amounl Due
1.009.-t4 0.0i)0.00 0.00 2,26r.32 $3.27$.16
ldaho Public Utilities Commission
P.0. Box [11720, Bclss,l0 8i]720-m74
C.L. Butdr Governor
Paul l(tellrnder,Kristne Rrpcr,
Erlc Andcrson,
CommlsslonrCommlsloncr
Commlsslorcr
St. Maries River Railroad Cornpany
10100 N Ambassador Dr., Ste. 105
Kansas City, MO 64153
Assessment lnvoice
Date lnvoice No.
4120t2018 2018-256
Due Date 5/r s/20r 8
2017 GtOR $2 I 3,438.41
The 2018 assessment fee for public utilities is .2l79Yo and .9995o/o for
railroads by Commission Order Nunrber 34033 and 34032
respectively. The minimum assessment fee is $50.00.
The 2018 ossessment fee nwy be paid in eEwl seni-ailnual installnrcnts. Thefirst installnrcnt af the
regulaton,.fec is due no later tltan ltlay 15, 2018. Tlte second installment is due no later than Navember
15, 2018. Outstanding balances after Novernber 15. 2018 will be assessed v,ith a 6%o annual interesl.fee
Per ldaho code 67-2026, qssessment.fees over 51A0,000 musl be poid [t,v an electrotric.funds transfer.
ANY UTILITY OR RAILROAD OBJECTII\{G TO THE ASSESSMENT STATED ABOVE MAY
FILE AN OBJECTION WITH THE COI\{MISSION PURSUANT TO IDAHO CODE 61.1007.
Please make checks or money orders payable to:
ldaho Pubtic Utitities Commission
PO BOX 83720
B0l5E tD 83720-4474
Please cantact Nancy Ashcraft vrith questions or comments: [phone] or [e-mail],
Remittance advice for:
St. Marics River Railroad Companv
SMR.R
Description Assessment Amount
2017 Railroad Assessme\l .9995%2,133.32
Total $2,t33.32
Payments/Credits s0.00
Balance Due s2,133.32
Account No. SMR-R lnvoice No. 2018-256 Remittance amount:$
Account No.
ldaho Public Utilities Commission
P.0. Box 8it720, Bolse,l0 8:1720-0074
C.L Eutctr 6cremor
Paul Kj6ll.ndcr, CommloConer
Krlstine Raper, Commisrlotrr
Erlc Anderson, Commheioncr
St. Maries River Railroad Company
10100 N Ambassador Dr., Ste. I 05
Kansas Ciry, MO 64153
lnterest Invoice
Date lnvoice No.
143112018 tNT-2018-07
Account No SMR-R Due Date 12t3U2$18
Description Assessment Amount
lnterest assessed on account balance after November 15 128.00
Total $ 128.00
The second ilrctallment of the regulototl;.fee u,os due rto lqter than Novenrber' I5, 2018. Outstanding
balauces after Noventber I 5, 201 I hav"e beut assessed with a 6% interest.fee.
Ptease make checks or money orders payabte to:
ldaho Pubtic Utitities Commission
PO BOX 83720
BO|SE rD 83720-0074
Please c'ottluc'l Nancy Ashu'a/i v:ith questiotls or cotrt,nents: GAil fi4-0325 or nattcl,.ushc'[e-mail],
Remittance advice for:
St. Maries Rir,er Railroad ComDanv
Account No. SMR-R lnvoice No. INT-2018-07 Remittance amount:$