20220810Notice_of_Application_Order_No_35498.pdf

NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
ORDER NO. 35498 1
Office of the Secretary
Service Date
August 10, 2022
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF GEM STATE WATER
COMPANY LLC’S APPLICATION FOR AN
ORDER AUTHORIZING AN INCREASE IN
ITS RATES AND CHARGES FOR WATER
SERVICE IN THE STATE OF IDAHO
)
)
)
)
)
)
)
)
)
)
)
)
CASE NO. GSW-W-22-01

NOTICE OF APPLICATION

NOTICE OF INTERVENTION
DEADLINE

NOTICE OF SUSPENSION OF
PROPOSED EFFECTIVE DATE

ORDER NO. 35498

On July 21, 2022, Gem State Water Company, LLC (“Company”) filed an Application
requesting Commission authorization to increase its rates and charges for water service. The
Company requests its Application be processed by Modified Procedure and that any changes to its
rates and charges be effective for bills rendered on or after September 1, 2022.
With this Order we issue a Notice of Application, a Notice of Intervention Deadline, and a
Notice of Suspension of the Proposed Effective Date.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Company states it “is a wholly owned subsidiary
of NW Natural Water of Idaho, L.L.C. . . . which in turn is a wholly owned subsidiary of NW
Natural Water Company, L.L.C. . . . .” Application at 4. The Company currently operates multiple
water systems and holds six Certificates of Public Convenience and Necessity (“CPCNs”). The
Company proposes to combine its systems into a single schedule for recurring charges as follows:
(1) Spirit Lake East Water Company and Lynwood Water (CPCN No. 293); (2) Bar Circle “S”
Water, Inc. (including customers formally of Diamond Bar Estates, L.L.C.) (CPCN Nos. 413 and
296); (3) Bitterroot Water Company, Inc. (including customers formally of Rickel Water Company
and Happy Valley Water System, Inc. (CPCN Nos. 319 and 390); and (4) Troy Hoffman Water
Corporation, Inc. (CPCN No. 280)
YOU ARE FURTHER NOTIFIED that the Company requests Commission authorization
to 1) change its customer rates to increase revenues by $402,000—a 69.9% increase; 2) incorporate
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
ORDER NO. 35498 2
the partial consolidation of rates into four systems under the Company’s tariff; and 3) incorporate
the proposed rates for the 1-1/2 inch and 2-inch meter customers. Id. at 1. The Company proposes
implementing a uniform minimum customer charge of $35.00 for all 1-inch metered customers on
the Company’s systems. Id. at 1. The Company further proposes to implement the following
minimum customer volumes:

YOU ARE FURTHER NOTIFIED that the Company proposes the following minimum
customer charges for 1 ½ inch and 2-inch meters:

YOU ARE FURTHER NOTIFIED that the Company proposes the following commodity
charge (per 1,000 gallons above minimum):
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
ORDER NO. 35498 3

YOU ARE FURTHER NOTIFIED the Company asserts this increase in rates and charges
is justified to continue to provide safe, reliable, and adequate service.
YOU ARE FURTHER NOTIFIED that, attached to its Application, the Company filed a
copy of its customer bill notification and published notice, rate base calculation, results of
operations, cost of capital, revenue requirement, rate design, and a clean copy of its proposed
tariffs. Id. at Exhibits 1-6.
YOU ARE FURTHER NOTIFIED that the Application and supporting Exhibits have been
filed with the Commission and are available for public inspection during regular business hours at
the Commission’s office. These documents are also available on the Commission’s website at
www.puc.idaho.gov. Click on the “WATER” icon, select “Open Cases,” and click on the case
number as shown on the front of this document.
YOU ARE FURTHER NOTIFIED that the Commission has designated this case as a
general rate case. As such, the Company’s intrastate revenue requirement, and every component
of it, both rate base and expense, are at issue. The Commission may grant, deny, or modify the
revenue requirement requested and may find a revenue requirement different from that proposed
by any party is just, fair, and reasonable. IDAPA 31.01.01.124.01.
YOU ARE FURTHER NOTIFIED that all of the Company’s retail rates and charges, both
recurring and non-recurring, including those of special contract customers, are at issue, and every
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
ORDER NO. 35498 4
component of every existing and proposed rate and charge is at issue. The Commission may
approve, reject, or modify the rates and charges proposed and may find that rates and charges
different from those proposed by any party are just, fair, and reasonable. IDAPA 31.01.01.124.02.
YOU ARE FURTHER NOTIFIED that the Commission may approve, reject, or modify
existing or proposed relationships between and among rates and charges within, between, or
among customer classes or rate groupings and may approve, reject, or modify existing or proposed
relationships among and between customer classes or rate groupings. Id.
YOU ARE FURTHER NOTIFIED that the Commission may abolish, reduce, or create rate
blocks or categories of rates and charges, abolish, create, or reduce components of rates and
charges, abolish, reduce, or create customer classes or rate groupings, and abolish, reduce, or create
absolute or relative differences among and between existing classes or rate groupings of customers.
Id.
YOU ARE FURTHER NOTIFIED that the tariffs, practices, rules, and regulations, service,
instrumentalities, equipment, facilities, classifications, and customer relations of the utility are at
issue, and the Commission may address any of them in its order. Id.
YOU ARE FURTHER NOTIFIED that the Commission has jurisdiction over the
Company, its filing, and the issues pertaining to this case pursuant to Title 61 of the Idaho Code.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted
pursuant to the Commission’s Rules of Procedure, IDAPA 31.01.01.000 et seq.
NOTICE OF INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this matter to
obtain parties’ rights of participation must file a Petition to Intervene with the Commission
pursuant to this Commission’s Rules of Procedure 72 and 73, IDAPA 31.01.01.072 and -.073.
Persons who wish to intervene as a party must file a Petition to Intervene no later than 21
days after the date of service of this Order. Such persons shall also provide the Commission
Secretary with their email address to facilitate further communications. After the intervention
deadline runs, the Commission Secretary shall issue a Notice of Parties that identifies the parties
and assigns exhibit numbers to each party. Once the Notice of Parties has issued, Commission
Staff shall informally confer with the Company and any intervening parties about how to further
process this case and shall then report back to the Commission on a proposed case schedule.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
ORDER NO. 35498 5
YOU ARE FURTHER NOTIFIED that persons who would like to present their views
without parties’ rights of participation and cross-examination do not have to intervene but may
present their views by submitting written comments to the Commission.
YOU ARE FURTHER NOTIFIED that the following people are designated as the
Company’s representatives in this matter:

Leslie Abrams-Rayner
General Manager
Gem State Water Company
P.O. Box 3388
Coeur D’Alene, ID 83616
[e-mail]

SUSPENSION OF PROPOSED EFFECTIVE DATE
The Company filed its Application on July 21, 2022, and proposes a September 1, 2022,
effective date. The Commission finds the Company’s proposed effective date does not provide
adequate time for Commission Staff and interested persons to evaluate the Company’s proposal.
Pursuant to Idaho Code § 61-622, the Commission suspends the proposed changes for thirty (30)
days and five months or until the Commission enters an order accepting, rejecting, or modifying
the proposed rate increases.
O R D E R
IT IS HEREBY ORDERED that persons desiring to intervene in this matter must file a
Petition to Intervene no later than 21 days from the service date of this Order. Once the deadline
has passed, the Commission Secretary shall prepare and issue a Notice of Parties.
IT IS FURTHER ORDERED that, after the Notice of Parties has issued, Commission Staff
shall confer with the parties regarding a procedural schedule for this matter including, if necessary,
a hearing in this matter.
IT IS HEREBY ORDERED that the September 1, 2022, effective date that the Company
proposes for its rate increases is suspended for 30 days plus five months or until the Commission
enters an earlier order accepting, rejecting, or modifying the proposed rate increases.
Eric Nelsen
Senior Regulatory Attorney
Adam Rue
Rates and Regulatory Program Manager
Northwest Natural
250 SW Taylor St.
Portland, OR 97204-3038
[e-mail]
[e-mail]

NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
NOTICE OF SUSPENSION OF PROPOSED EFFECTIVE DATE
ORDER NO. 35498 6
IT IS FURTHER ORDERED that parties comply with Order No. 35375, issued April 21,
2022. Generally, all pleadings should be filed with the Commission electronically and will be
deemed timely filed when received by the Commission Secretary. See Rule 14.02. Service between
parties should continue to be accomplished electronically when possible. However, voluminous
discovery-related documents may be filed and served on CD-ROM or a USB flash drive.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 10th day of
August 2022.

ERIC ANDERSON, PRESIDENT

JOHN CHATBURN, COMMISSIONER

JOHN R. HAMMOND JR., COMMISSIONER

ATTEST:

___________________________
Jan Noriyuki
Commission Secretary

I:\Legal\WATER\GSW-W-22-01\orders\GSWW2201_Ntc_App_ID_Susp_rn.docx