HomeMy Public PortalAboutExhibit MIEC 38 - MIEC's Request to Seek Modification of the Procedural Schedule2018 Stormwater Rate Proposal
BEFORE THE RATE COMMISSION OF THE
METROPOLITAN ST. LOUIS SEWER DISTRICT
For Consideration of a Stormwater
Rate Change Proposal By the Rate
Commission of the Metropolitan
St. Louis Sewer District
REQUEST BY INTERVENOR MISSOURI INDUSTRIAL ENERGY
CONSUMERS TO SEEK MODIFICATION OF THE PROCEDURAL SCHEDULE
Intervenor Missouri Industrial Energy Consumers ("MIEC") proposes revisions to the
2018 Stormwater Capital Rate Proposal Proceeding procedural schedule that, if adopted, will
enable all of the parties to better identify the issues involved in this rate case, exchange and
respond to additional discovery, and provide the Rate Commission with more time to evaluate
the key issues in this proceeding and draft the Rate Commission Report. Accordingly, MIEC
requests that the Rate Commission request from the Metropolitan St. Louis Sewer District Board
of Trustees (the "Board") a modification from the current rate proceeding schedule to the rate
proceeding schedule proposed herein.
I. Legal and Procedural Background
Section 7.280(f) of the Charter of Metropolitan St. Louis Sewer District ("Charter") states
that the Rate Commission shall issue the Rate Commission Report to the Board of Trustees and
to the public no later than one hundred twenty (120) days after the receipt of a Rate Change
Notice. Significantly, the Rate Commission has the authority to recommend to the Board of
Trustees that the 120 days be extended by an additional forty-five (45) day period. Historically,
in other rate cases, the Rate Commission has recommended and the Board of Trustees has
approved similar intervenor requests for a 45 day extension. This request, however, seeks only a
seventeen day extension.
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2018 Stormwater Rate Proposal
Metropolitan St. Louis Sewer District ("MSD") submitted the Rate Proposal on February
26, 2018. Without the requested extension, the Rate Commission will need to submit the Rate
Commission Report to the Board of Trustees on June 26, 2018. If the additional time requested
is included in the schedule, the Rate Commission will need to submit the Rate Commission
Report to the Board of Trustees on July 13, 2018.
In preparing this document, MIEC has carefully reviewed the Charter, the Procedural
Schedule of the Rate Commission of the Metropolitan St. Louis Sewer District for Consideration
of a Wastewater Rate Change Notice ("Procedural Schedule"), and the Operational Rules,
Regulations, and Procedures of the Rate Commission of the Metropolitan St. Louis Sewer
District ("Operational Rules"). To the best of MIEC's knowledge, the following proposed
schedule adheres to the regulations and provisions outlined in the Charter, the Procedural
Schedule, and the Operational Rules. Ultimately, the goal of this proposed schedule is to provide
all parties with additional time to better understand the issues in this proceeding and hopefully
reach agreement on some of the outstanding issues.
II. Summary of the Proposed Revisions to the Schedule
The schedule proposed by MIEC is as follows:
Event
Current Scheduled Date
Proposed Scheduled Date
Rebuttal Testimony Due
April 16, 2018
May 2, 2018
Rebuttal Technical
Conference
April 25-27, 2018
May 17-18, 2018
Public Hearings
May 8, 15, 17, 22, 30, 2018
June 6, 8, 2018
No change proposed other
than one public hearing must
be changed to be held after the
Prehearing Conference (if not
also after Prehearing
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2018 Stormwater Rate Proposal
Conference Reports are filed)
Surrebuttal Testimony Due
May 7, 2018
May 25, 2018
Surrebuttal Technical
Conference
May 17-18, 2018
May 30, 2018
Prehearing Conference
May 30, 2018
June 13, 2018
Prehearing Conference
Reports Due
June 6, 2018
June 20, 2018
Rate Commission Report Due
June 26, 2018
July 13, 2018
The proposed schedule is designed to build -in additional time for all parties (the Rate
Commission, MSD, and the Intervenor) to have a full and fair opportunity to evaluate testimony
and engage in necessary discovery. The proposed schedule also enables the Rate Commission to
take more time to deliberate and/or draft the Rate Commission Report. With respect to the key
changes proposed to the original schedule, MIEC states as follows:
1. Submission of Rebuttal Testimony. As outlined below, due to the magnitude of
the rate proposal, the extensive capital program, and related legal and technical issues, it is
important that the Parties be allowed the additional time to review and evaluate MSD's
testimony. Without additional time before the submission of Rebuttal Testimony, MIEC will not
be able to fully consider the forthcoming information, and MIEC suspects that the Rate
Commission will be in the same position.
2. Technical Conference for Rebuttal Testimony. By extending the deadline for the
submission of Rebuttal Testimony, the Technical Conference for the Rebuttal Testimony must
also be shifted. The Rate Commission was already planning on meeting from May 17 through
18, 2018, for the Surrebuttal Testimony Technical Conference. The proposed schedule
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2018 Stormwater Rate Proposal
recommends that the Rate Commissioners conduct the Rebuttal Testimony Technical Conference
(and not the Surrebuttal Testimony Technical Conference) on those same dates.
3. Public Hearings. Public hearings are already scheduled for May 8, 15, 17, 22, and
30, 2018, and June 6 and 8, 2018. With one exception, MIEC sees no reason that these public
hearings cannot be held as scheduled. MIEC notes, though, that Operational Rule 3(10) requires
that at least one public hearing be held after the prehearing conference. Accordingly, if the
proposed schedule is adopted, at least one hearing would need to be moved, or an additional
hearing added, after June 13, 2018.1
4. Submission of Surrebuttal Testimony. MSD will still have more than three weeks
after Rebuttal Testimony is submitted, and more than one week after the Rebuttal Testimony
Technical Conference, to submit its Surrebuttal Testimony.
5. Technical Conference for Surrebuttal Testimony. The Technical Conference for
the Surrebuttal Testimony will begin on May 30, 2018, if the schedule is adopted. This date was
previously scheduled for the Prehearing Conference.
6. Prehearing Conference and Filing of Prehearing Conference Reports. These dates
are simply shifted back in the calendar by approximately two weeks from the original schedule.
7. Issue Rate Commission Report. If the additional time is included in the
procedural schedule, the Rate Commission will need to submit the Rate Commission Report to
the Board of Trustees on July 13, 2018, which is a total of 137 days from the date that MSD
submitted the Rate Proposal.
' Per Section 7.280(d) of the Charter, the Rate Commission will need to publish notice of the public hearing on three
separate days in one or more newspapers of general circulation in the District at least five business days prior to the
date set for the public hearing. If the revised procedural schedule is adopted, MIEC anticipates there should be no
procedural problem with MSD fulfilling these publication requirements that need to be met in June of 2018.
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2018 Stormwater Rate Proposal
III. Rationale for Proposed Additional Time to Evaluate the Testimony
MSD is proposing to implement a stormwater capital program that will result in charges
of nearly $600 million to MSD customers. The details of this significant increase must be
reviewed closely by all parties, including the Rate Commission, to protect the public in
establishing MSD stormwater charges. Despite MSD's assertions that the impact on customers
is minimal, MSD is proposing a significant program that will have a measureable economic
impact on customers of the MSD. Furthermore, there are significant concerns about the
diligence MSD has undertaken in estimating the costs of the stormwater capital program. To
protect customers, the process should allow adequate time to review the legitimacy and
reasonableness of the Rate Proposal.
At the Technical Conference on MSD's direct testimony, MSD agreed to provide a
significant amount of additional documentation, and the Rate Commission indicated that it
would be submitting additional discovery requests to MSD. At this point in time, the Rate
Commission has not yet submitted the additional discovery requests, nor has MSD provided the
documentation or discovery responses. Nonetheless, Rebuttal Testimony is due in less than one
week. Without additional time before the submission of Rebuttal Testimony, MIEC will not be
able to fully consider and incorporate the forthcoming information into its Rebuttal Testimony.
MIEC believes that the proposed schedule will promote the public interest by allowing a
full and fair review of the Rate Proposal. It is in the interest of all parties to ensure that the
procedural schedule in this case provides sufficient time for the Rate Commission to make a
reasonable, appropriate, and fair determination regarding the 2018 Rate Proposal. For the
foregoing reasons, MIEC requests that the Rate Commission modify the current rate proceeding
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2018 Stormwater Rate Proposal
schedule and make such requests from the Metropolitan St. Louis Sewer District Board of
Trustees (the "Board") as are necessary to approve such a modification.
Dated: April 10, 2018
Respectfully submitted,
BRYANAVE LEIGHTON PAISNER LLP
By:
ana M. V lstek 42419
randon W. Neuschafer, #53232
Saher Valiani, #69402
211 N. Broadway, Suite 3600
St. Louis, Missouri 63102
Telephone: (314) 259-2543 (Diana)
Telephone: (314) 259-2317 (Brandon)
Telephone: (314) 259-2050 (Saher)
Facsimile: (314) 259-2020
dmvuylsteke@bc1plaw.com
bwneuschafer@bc1plaw.com
svaliani@bc1plaw.com
ATTORNEYS FOR MIEC
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2018 Stormwater Rate Proposal
CERTIFICATE OF SERVICE
The undersigned certifies that a copy of the foregoing was sent by electronic transmission
to the following on this 10th day of April, 2018.
Ms. Janice Fenton
Office Associate Senior
Metropolitan St. Louis Sewer District
2350 Market Street
St. Louis, MO 63103
jfenton@stlmsd.com
Ms. Susan Myers
General Counsel
Metropolitan St. Louis Sewer District
2350 Market Street
St. Louis, MO 63103
smyers@stlmsd.com
Ms. Lisa O. Stump
Lashly & Baer, P.C.
714 Locust Street
St. Louis, MO 63101
lostump@lashlybaer.com
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