20230316Staff Answer to Petition.pdf

STAFF’S ANSWER 1
RILEY NEWTON
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 11202

Street Address for Express Mail:
11331 W. CHINDEN BLVD., BLDG 8, STE. 201-A
BOISE, IDAHO 83714

Attorney for the Commission Staff

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
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CASE NO. GSW-W-22-01

STAFF’S ANSWER TO
PETITION FOR
RECONSIDERATION

BACKGROUND
On July 21, 2022, Gem State Water Company, LLC, (“the Company”) filed an Application
requesting Commission authorization to increase its rates and charges for water service. Idaho
Public Utilities Commission Staff (“Staff”) submitted comments to which the Company filed a
reply; there were no other parties in the case.
On March 1, 2023, the Idaho Public Utilities Commission (“Commission”) issued Order
No. 35692 approving an annual revenue requirement for the Company of $789,044 and a
corresponding rate design. Order No. 35692 at 16, Attachment 2, “Gem State Water, Approved
Rates.” The approved revenue requirement was based on adjustments and calculations summarized
in Attachment 1 to Order No. 35692. The Commission directed the Company to “submit tariffs in
compliance with the rates and charges identified in this Order no later than fourteen (14) days from
the service date of this Order”—that is, by March 15, 2023. Order No. 35692 at 16.
On March 13, 2023, the Company submitted a “Petition for Clarification or
Reconsideration” (“Petition”) explaining that “calculations related to taxes were not adjusted” in
STAFF’S ANSWER 2
Order No. 35692. Petition at 1. As a result of what it believed was an “oversight,” the Company
explained that the Commission’s approved revenue requirement was incorrectly calculated. Id. at
2.
To be consistent with the Commission’s other adjustments, the Company stated that its
taxes must “increase by approximately $45,773.” Id. at 1. Accordingly, the Company requested
that Order No. 35692 be “revised or clarified to reflect a revenue requirement of $834,870” along
with other corresponding adjustments to rate design, Income Taxes, Total Other Expenses and Net
Income. Id. at 2. The Company requested updates to the attachments to Order No. 35692 as well
as modifications on pages 7, 15, and 16 of the Order “such that the references to revenue
requirement of ‘$789,004’ and ‘37.3%’ increase be changed to a revenue requirement of
‘$834,870’ and a rate increase of ‘45.3%.’” Id. at 4.
STAFF ANALYSIS
Staff reviewed the Company’s Petition, including “Table 1: Rate Proof”, “Table 2: Update
to Attachment 1, page 1 of 2”, and “page 2 of 2”, and “Table 2: Update to Attachment 2.” After
further analysis of the Company’s Petition and the Excel model Staff used to formulate its
recommendation, Staff believes that a formula error in the Excel model resulted in the discrepancy
in Order No. 35692. Staff concurs with the Company’s analysis and believes that Order No. 35692
should be modified consistent with its requests in its Petition.

Respectfully submitted this 16th day of March 2023.

________________________________
Riley Newton
Deputy Attorney General

STAFF’S ANSWER 3
CERTIFICATE OF SERVICE

I HEREBY CERTIFY THAT I HAVE THIS 16th DAY OF MARCH 2023, SERVED THE
FOREGOING Staff’s Answer to Petition for Reconsideration, IN CASE NO. GSW-W-22-01,
BY E-MAILING A COPY THEREOF TO THE FOLLOWING:

Jan Noriyuki
Commission Secretary
Idaho Public Utilities Commission
[e-mail]

LESLIE ABRAMS-RAYNER
GENERAL MANAGER
GEM STATE WATER CO
PO BOX 3388
COEUR D’ALENE ID 83816
[e-mail]

ERIC W NELSEN
ADAM RUE
NW NATURAL
250 SW TAYLOR ST
PORTLAND OR 97204
[e-mail]
[e-mail]

_________________________________
Keri J. Hawker
Legal Assistant to Riley Newton