20230314Decision Memo.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

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

FROM: RILEY NEWTON, CHRIS BURDIN
DEPUTY ATTORNEYS GENERAL

DATE: MARCH 14, 2023

SUBJECT: 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.

On July 21, 2022, Gem State Water Company, LLC (“Company”) filed an Application
requesting Idaho Public Utilities Commission (“Commission”) authorization to increase its rates
and charges for water service. The Company requested 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.
On March 1, 2023, the Commission issued Order No. 35692 approving an annual revenue
requirement for the Company of $789,004 and a corresponding rate design. Order No. 35692 at
16, Attachment 2, “Gem State Water, Approved Rates.”
On March 13, 2023, the Company submitted a “Petition for Clarification or
Reconsideration” (“Petition”) explaining that “calculations related to taxes were not adjusted” in
Order No. 35692. Petition at 1. As a result of this “oversight,” the Company explained that the
Commission’s approved revenue requirement was incorrectly calculated. Id. at 2.
On March 13, 2023, Staff and the Company filed a joint motion to Extend the Deadline to
File Conforming Tariffs and for Procedural Relief (“Motion”).
STAFF ANALYSIS AND RECOMMENDATION
Staff notes that Order No. 35692 requires the Company to file conforming tariffs by March
15, 2023. However, Staff further notes that the substance of the Company’s tariffs will be
contingent on a final Commission order on the Company’s revenue requirement—the subject of
DECISION MEMORANDUM 2
the Company’s pending Petition. Staff will analyze the Company’s claims in its Petition and file
an Answer in response. Staff believes it would be economical and reasonable for the Company to
file conforming tariffs after a Commission determination on a final revenue requirement and
associated adjustments. But, consistent with IDAPA 31.01.01.331, a Commission determination
on the Company’s Petition will not occur until sometime after the March 15, 2023, deadline. Thus,
Staff recommends the Commission extend the deadline in Order No. 35692 to allow the Company
additional time to file conforming tariffs.
COMMISSION DECISION
Does the Commission wish to grant the Parties’ Motion to extend the deadline in Order
No. 35692 to allow the Company to file conforming tariffs until after the Commission issues a
final determination on the Company’s Petition?

Riley Newton
Deputy Attorney General

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