20240319Decision Memo.pdf

DECISION MEMORANDUM 1

DECISION MEMORANDUM

TO: COMMISSIONER ANDERSON
COMMISSIONER HAMMOND
COMMISSIONER LODGE
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: MICHAEL DUVAL
DEPUTY ATTORNEY GENERAL

DATE: MARCH 19, 2024

SUBJECT: IN THE MATTER OF ST. MARIES RIVER RAILROAD COMPANY
FAILURE TO PAY ITS 2023 ASSESSMENT FEES AND PROMPLY
COMPLY WITH COMPLY WITH STATUTORY MANDATES; CASE NO.
SMR-R-24-01.

St. Maries River Railroad Company (“Company”) is a short line railroad providing freight
service between Plummer and Bovill, Idaho. The Company is a “railroad corporation” and a
“common carrier” as defined by Idaho 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 Company’s failure to pay its regulatory fees for 2023, as
required by Idaho Code §§ 61-1001 through 61-1005. According to Commission Staff (“Staff”),
delays in the Company paying its statutory assessment fees have become an unacceptable norm.
See Exhibit A attached to Affidavit Nancy Ashcraft, Exhibit 1. Commission Staff requests that
the Commission order the Company to appear at a show cause hearing and explain its conduct
regarding these delays. Staff also requests that the Commission order the Company to pay its 2023
assessment fees.
On December 5, 2023, Staff sent a letter via Certified Mail that stated that the Company
owed a 2023 Assessment Amount of $6,117.91 plus $156.04 of accrued interest as of that date..
The letter also noted that the Company had “a history of failing to pay its yearly assessment on
time” and provided instructions regarding the potential payment of installments. See Exhibit A
attached to Affidavit of Nancy Ashcraft, Exhibit 1. Staff has not received any payment from the
Company.
DECISION MEMORANDUM 2

STAFF RECOMMENDATION
Staff recommends that the Commission issue a Notice of Hearing and Order to Show Cause
why the Company should not be required by the Commission to:
1. Immediately pay its past due Assessment or semi-annual installment, plus all
accrued interest;
2. Pay up to a $2,000.00 penalty per day for its continuing failure to abide by
Commission mandates including the payment of its 2023 Assessment or semi-
annual installment and all accrued interest. See Idaho Code §§ 61-706 & 61-
707; and
3. Appear before the Commission at a Show Cause Hearing in April, at a date and
time to be set by the Commission in its order, to explain its history of late
payment.

COMMISSION DECISION
Does the Commission wish to issue a Notice of Hearing and Order to Show Cause why the
Company should not be required by the Commission to:
1. Immediately pay its past due Assessment or semi-annual installment, plus all
accrued interest;
2. Pay up to a $2,000.00 penalty per day for its continuing failure to abide by
Commission mandates including the payment of its 2023 Assessment or semi-
annual installment and all accrued interest. See Idaho Code §§ 61-706 & 61-
707; and
3. Appear before the Commission at a Show Cause Hearing Scheduled in April,
at a date and time to be set by the Commission in its order, to explain its history
of late payment?

Michael Duval
Deputy Attorney General

I:\Legal\RAIL\SMR-R-24-01_St. Maries\SMRR2401_dec_md.docx
DECISION MEMORANDUM 3

EXHIBIT 1
Nancy Ashcraft Affidavit
(Attached)

BEFORE THE IDAHO PUBLIC UTILITIES COMMISS�Nf lVED
IN THE MATTER OF ST. MARIES
RIVER RAILROAD COMPANY'S
FAILURE TO PAY SPECIAL
REGULATORY FEE PURSUANT TO
IDAHO CODE§§ 61-1001 THROUGH 61-
1005 - ----------------
STATE OF IDAHO )
ss. County of Ada )
2024 MAI� 15 PH 2: 28
) CASE NO. SMR-R"'.2�-0.t1M 1· "JUollC) • ii !I !TIC ( Au,11ss10N·: rL· ·; 1,.1. ,\.}1)lfl'j(
) AFFIDAVIT OF NANCY ASHCRAFT
)
)
)
)
I, Nancy Ashcraft, being first duly sworn under oath, depose and state as follows:
1.My name is Nancy Ashcraft. I am over 21 years of age, of sound mind, and I have
personal knowledge of the facts stated herein.
2.The information contained herein is true and correct to the best of my knowledge and
belief
3.I am a Financial Specialist, Senior at the Idaho Public Utilities Commission
("Commission"). I started working in this position in 2016. I am responsible for the
billing and collection of annual fees assessed on public utilities and railroads as
described in Idaho Code § § 61-1001 through 61-1005.
4.In my position I am aware that St. Maries River Railroad Company ("Company") has
a history of being slow or unresponsive in the payment of its annual assessment fees
("Assessment"). For example, the Company has not paid its 2023 Assessment despite
requests by Staff for it to do so.
5.In May and November 2023, the Company failed or refused to pay its annual regulatory
fees.
6.As of December of 2023, the Company was assessed $156.04 in interest on the
outstanding balance of its Assessment of $6,117.91 at the rate of six percent (6%).
7.Staff sent the Company a Demand Letter via certified mail outlining the amounts owed
by the Company. The Demand Letter also provided the Company with notice of the
potential for the Commission to take legal action against it-including the Commission
AFFIDAVIT OF NANCY ASHCRAFT 1
ordering the Company to Show Cause for its failures to comply with Commission
mandates. This Demand Letter was delivered to the Company on December 13, 2023.
A true and correct copy of the Demand Letter is attached hereto and incorporated by
reference herein as Exhibit A.
8.Despite such action by Staff, the Company has failed to pay its Assessment, and the
applicable interest owed to the Commission remains unpaid and past due.
Dated this 15_ day of March 2024.
, Senior I o u 1 es Commission
SUBSCRIBED AND SWORN to before me this ! 5'fl1day of March 2024.
AFFIDAVIT OF NANCY ASHCRAFT 2
Notary Publ for Idaho Residing at: Ada County, Idaho Commission expires: March 15, 2025
Idaho Public Utilities Commission
P.O. Box 83720, Boise, ID 83720-0074
VIA CERTIFIED MAIL
December 5, 2023
Michael Williams, President St. Maries River Railroad Company 10100 N Ambassador Dr., Ste 105 Kansas City, MO 64153 Brad Little, Governor Eric Anderson, President John R. Hammond, Jr., Commissioner Edward Lodge, Commissioner Re: Unpaid Annual Assessment Fees -Notice of Possible Order to Show Cause and Legal Action
Dear Mr. Williams,
This correspondence is sent to you regarding St. Maries River Railroad's (the "Company") failure to pay its
2023 annual assessment ("Assessment"), in the amount of $6,117.91 plus the accrued interest in the amount of $156.04. The Company has a history of failing to pay its yearly assessment on time. A copy of the latest
Statement showing the amouot of the unpaid 2023 Assessment and accrued interest is enclosed. Idaho Code§ 61-1005 provides that such assessment may be paid to the commission in equal semi-annual installments on the15th day of May and November each year.
DEMAND IS HEREBY MADE that the Company immediately pay the outstanding balance due by hand delivering payment to:
Idaho Public Utilities Commission 11331 W. Chinden Blvd., Bldg. 8, Suite 201-A Boise, Idaho 83714
or by U.S. Mail at:
P.O. Box 83720 Boise, Idaho 83720-0074 Attn: Nancy Ashcraft.
Exhibit "A"
If the Commission does not receive the Company's fuJI payment by December 20, 2023, lhe Commission will initiate formal proceedings to compel that payment. Such proceedings may include an administrative proceeding in which the Company is required to appear before the Commission in Boise, Idaho to show cause why the Commission should not order the Company to:
•Immediately pay its unpaid 2023 Assessment plus any accrued interest; and,
•Pay up to a $2,000.00 penalty per day for the Company's continuing failure to pay the 2023 Assessmentand all accrued interest. See Idaho Code§§ 61-706 & 61-707.
Additionally, the Commission may seek a court order to collect the 2023 Assessment and all accrued interest plus any penalties it may asses . See Idaho Code§§ 61-1005 & 61-712. In both administrative and court proceedings, the Commission would ask the tribunal to order the Company to pay the Commission's attorney's fees and costs to prosecute the case. See Idaho Code§§ 12-117, -120, -121 and Idaho Rule of Civil Procedure 54.
Thank you for your prompt attention to this matter.
Sincerely,
Maria Barratt-Riley Executive Director
Enclosures
cc: Nancy Ashcraft
Idaho Public Utilities Commission Brad Llltle, Governor
St. Maries River Railroad Company 10100 N Ambassador Dr., Ste. 105
Kansas City, MO 64153
Date Transaction
12/31/2020 Balance forward 04/19/2021 INV #2021-019. ---2023 Railroad Assessment $7,930.47 ---Tax: State Sales Tax @ 6.0% = 0.00 05/13/2021 PMT #5278. REC21058 04/21/2022 INV #2022-019. ---2023 Railroad Assessment $6,890.18
---Tax: State Sales Tax @ 6.0% = 0.00 07/05/2022 PMT #5442. REC23001 07/05/2022 INV #INT-22-061.
---Interest Charge $28.32 ---Tax: State Sales Tax @ 6.0% = 0.00 04/18/2023 INV #2023-019. ---2023 Railroad Assessment $6,117.91
---Tax: State Sales Tax@ 6.0% = 0.00 12/05/2023 INV #INT-23-003.
---Interest Charge $127.72
---Tax: State Sales Tax @ 6.0% = 0.00
'
CURRENT 1-30 DAYS PAST DUE 31-60 DAYS PASTDUE
127.72 0.00 0.00
Eric Anderson, President John R. Hammond, Jr., Commissioner Edward Lodge, Commissioner
Statement
Date
12/5/2023
Account# SMR-R
Amount Balance
0.00
7,930.47 7,930.47
-7,930.47 0.00
6,890.18 6,890.18
-6,890.18 0.00 28.32 28.32
6,117.91 6,146.23
127.72 6,273.95
'
61-90 DAYS PAST OVER 90 DAYS Amount Due DUE PAST DUE
0.00 6,146.23 $6,273.95
Please contact Nancy Ashcraft al [phone] or by email at [e-mail] if you have any
questions or need additional information.