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HomeMy Public PortalAboutExhibit MSD 82- Transcript of Technical Conference Hearing 5-30-23Page 1 ·1 ·2 ·3 ·4· · · · · · · · MEETING OF THE RATE COMMISSION ·5· · · · ·OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT ·6· · ·2023 STORMWATER AND WASTEWATER RATE CHANGE PROCEEDING ·7 ·8 ·9 10· · · · · · · · · · ·TECHNICAL CONFERENCE 11 12· · · · · · · · · · · · ·MAY 30, 2023 13 14 15 16 17 18 19 20 21 22 23 24 25 Exhibit MSD 82 Page 2 ·1· · · · · · · · · · · ·TABLE OF CONTENTS ·2· · · · · · · · · · · · · · · · · · · · · · · · · Page ·3· ·Roll Call· · · · · · · · · · · · · · · · · · · · ·5 ·4· ·DIANE PLESCIA · · · · Examination By Mr. Palans· · · · · · · · · · ·19 ·5· · · Examination By Mr. Faul· · · · · · · · · · · ·26 · · · · Examination By Ms. Stump· · · · · · · · · · · 35 ·6· · · Examination By Mr. Toenjes· · · · · · · · · · 40 · · ·SUSAN MYERS· · · · · · · · · · · · · · · · · · · 44 ·7· ·ANNA WHITE · · · · Examination By Mr. Perkins· · · · · · · · · · 47 ·8 ·9· ·ANNA WHITE · · · · Examination By Ms. Myers· · · · · · · · · · · 79 10· · · Examination By Mr. Unverferth· · · · · · · · ·83 · · · · Examination By Mr. Palans· · · · · · · · · · ·86 11· · · Examination By Mr. Toenjes· · · · · · · · · · 93 · · · · Examination By Mr. Goss· · · · · · · · · · · ·94 12· · · Examination By Mr. Clarke· · · · · · · · · · 101 · · · · Examination By Mr. Perkins· · · · · · · · · ·102 13· ·PAM LEMOINE · · · · Examination By Ms. Stump· · · · · · · · · · ·105 14· · · Examination By Mr. Palans· · · · · · · · · · 109 · · · · Examination By Mr. Toenjes· · · · · · · · · ·111 15 · · ·Adjournment· · · · · · · · · · · · · · · · · · ·112 16 · · ·Certificate of Reporter· · · · · · · · · · · · ·113 17 18 19 20 21 22 23 24 25 Page 3 ·1· · · · · · · · MEETING OF THE RATE COMMISSION ·2· · · · ·OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT ·3 ·4 ·5 ·6· · · · · STORMWATER AND WASTEWATER RATE COMMISSION ·7· ·TECHNICAL CONFERENCE, taken on May 30, 2023, at the ·8· ·Metropolitan St. Louis Sewer District, 2350 Market ·9· ·Street, St. Louis, Missouri 63103, before Mackenzie M. 10· ·Smith, Registered Professional Reporter and Missouri & 11· ·Kansas Notary Public Registered Professional Reporter. 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Page 4 ·1· · · · · · · · · · ·A P P E A R A N C E S ·2· ·RATE COMMISSIONERS: ·3· · · Leonard Toenjes, Chair · · · · Matt Muren, Vice-Chair ·4· · · Bill Clarke, Secretary · · · · Paul Ziegler ·5· · · Patrick Moynihan · · · · Brad Goss ·6· · · Stephen Mahfood · · · · Jack Stein ·7· · · Lisa Savoy · · · · Mark Perkins ·8· · · Lou Jearls · · · · Mickey Croyle ·9· · · Lloyd Palans · · · · Jim Faul 10 · · ·RATE COMMISSION COUNSEL: 11 · · · · Lisa Stump 12· · · LASHLY & BAER · · · · 714 Locust Street 13· · · St. Louis, Missouri 63101 14· ·INTERVENOR COUNSEL: 15· · · Diana Plescia · · · · CURTIS, HEINZ, GARRETT & O’KEEFE, PC 16· · · 130 S Bemiston, Suite 200 · · · · St. Louis, Missouri 63105 17 · · ·METROPOLITAN ST. LOUIS SEWER DISTRICT: 18 · · · · Susan Myers, General Counsel 19· · · Rich Unverferth, Director of Engineering · · · · Brian Hoelscher, Executive Director 20· · · Bret Berthold, Director of Operations · · · · Marion Gee, Director of Finance 21· · · Tim Snoke, Secretary-Treasurer · · · · Thomas Beckley, Raftelis (Consultant) 22 · · ·Court Reporter: 23· ·Mackenzie M. Smith, RPR · · ·Lexitas Legal 24· ·1608 Locust Street · · ·Kansas City, Missouri 64108 25· ·816.221.1160 · · ·1.800.280.3376 Page 5 ·1· · · · · · · · · · ·*· · *· · *· · *· · * ·2· · · · · · ·(Proceedings commenced at 9:30 a.m.) ·3· · · · · · · ·CHAIRMAN TOENJES:· Good morning, everyone. ·4· ·We will call to order the May 30th, 2023, meeting of the ·5· ·Rate Commission -- (inaudible).· We will start with a ·6· ·roll call of the Rate Commissioners for attendance. ·7· · · · · · · ·Mr. Secretary, will you take the roll? ·8· · · · · · · ·COMMISSIONER CLARKE:· Len Toenjes? ·9· · · · · · · ·CHAIRMAN TOENJES:· Present. 10· · · · · · · ·COMMISSIONER CLARKE:· Lou Jearls? 11· · · · · · · ·COMMISSIONER JEARLS:· Here. 12· · · · · · · ·COMMISSIONER CLARKE:· Lloyd Palans? 13· · · · · · · ·COMMISSIONER PALANS:· Present. 14· · · · · · · ·COMMISSIONER CLARKE:· Paul Ziegler? 15· · · · · · · ·COMMISSIONER ZIEGLER:· Here. 16· · · · · · · ·COMMISSIONER CLARKE:· Patrick Moynihan? 17· ·Brad Goss?· Steve Mahfood? 18· · · · · · · ·COMMISSIONER MAHFOOD:· Here. 19· · · · · · · ·COMMISSIONER CLARKE:· Jack Stein? 20· · · · · · · ·COMMISSIONER STEIN:· Present. 21· · · · · · · ·COMMISSIONER CLARKE:· Lisa Savoy?· We got 22· ·Brad.· Lisa Savoy?· Mark Perkins? 23· · · · · · · ·COMMISSIONER PERKINS:· Present. 24· · · · · · · ·COMMISSIONER CLARKE:· Ryan Barry?· Mickey 25· ·Croyle? Page 6 ·1· · · · · · · ·COMMISSIONER CROYLE:· Present. ·2· · · · · · · ·COMMISSIONER CLARKE:· Matt Muren? ·3· · · · · · · ·COMMISSIONER MUREN:· Present. ·4· · · · · · · ·COMMISSIONER CLARKE:· Jim Faul?· And Bill ·5· ·Clarke is here. ·6· · · · · · · ·We have a quorum. ·7· · · · · · · ·CHAIRMAN TOENJES:· Thank you, Mr. Secretary. ·8· ·We will now take a moment and review the minutes of the ·9· ·April 26th/April 27th proceedings if there are any 10· ·comments or questions related to the minutes of that 11· ·meeting. 12· · · · · · · ·Mr. Stein? 13· · · · · · · ·COMMISSIONER STEIN:· Move we approve. 14· · · · · · · ·CHAIRMAN TOENJES:· The motion made to 15· ·approve. 16· · · · · · · ·Is there a second? 17· · · · · · · ·UNIDENTIFIED SPEAKER:· Second. 18· · · · · · · ·CHAIRMAN TOENJES:· Motion seconded. 19· · · · · · · ·Any discussion. 20· · · · · · · ·All in favor, signify by saying "Aye." 21· · · · · · · ·(Ayes heard.) 22· · · · · · · ·CHAIRMAN TOENJES:· Opposed?· Abstain?· Thank 23· ·you.· Motion passed. 24· · · · · · · ·My name is Leonard Toenjes and I am a 25· ·Commissioner of the Rate Commission of the Metropolitan Page 7 ·1· ·St. Louis Sewer District and will serve as chair of this ·2· ·proceeding.· The Charter Plan of the District was ·3· ·approved by the voters of St. Louis and St. Louis County ·4· ·at a special election on February 9th, 1954, and amended ·5· ·at a general election on November 7th, 2000, at a ·6· ·special election June 25th, 2021, and again at a special ·7· ·election on Tuesday, April 6th, 2021. ·8· · · · · · · ·The amendment to the Charter Plan in 2000 ·9· ·established a Rate Commission to review and make 10· ·recommendations to the District regarding changes in 11· ·wastewater rates, stormwater rates, and tax rates 12· ·proposed by the District. 13· · · · · · · ·The Charter plan requires Board of Trustees 14· ·of the District to select organizations to name 15· ·delegates to the Rate Commission to ensure a fair 16· ·representation of all users of the District's services. 17· · · · · · · ·The Rate Commission representative 18· ·organizations are to represent commercial-instrumental 19· ·users, residential users, and other organizations 20· ·interested in the operation of the District, including 21· ·organizations focusing on environmental issues, labor 22· ·issues, socioeconomic issues, community-neighborhood 23· ·organizations, and other non-profit organizations. 24· · · · · · · ·The Rate Commission currently consists of 25· ·representatives of Associated General Contractors of Page 8 ·1· ·Missouri, St. Louis Realtors, the City of Florrisant, ·2· ·St. Louis Council of Construction Consumers, Greater ·3· ·St. Louis Labor Council, North America's Building Trades ·4· ·Unions, Mound City Bar Association, a League of Women ·5· ·Voters of Metro St. Louis, Home Builders Association of ·6· ·St. Louis, Municipal League of Metro St. Louis, Missouri ·7· ·Coalition for the Environment, the City of Ladue, the ·8· ·Engineers Club of St. Louis, Missouri Industrial Energy ·9· ·Consumers, and Education Plus. 10· · · · · · · ·Upon receipt of a Rate Change Notice from 11· ·the District, the Rate Commission is to recommend to the 12· ·Board of Trustees changes in a wastewater, stormwater, 13· ·or tax rate necessary to pay, No. 1, interest and 14· ·principal falling due on bonds issued to finance assets 15· ·of the District; No. 2, the costs of operation and 16· ·maintenance; and No. 3, such amounts as may be required 17· ·to cover emergencies and anticipated delinquencies. 18· · · · · · · ·Further, any change in a rate recommended to 19· ·Board of Trustees by the Rate Commission is to be 20· ·accompanied by a statement that the proposed rate 21· ·change, No. 1, is consistent with constitutional, 22· ·statutory, or common law as amended from time to time; 23· ·No. 2, enhances the District's ability to provide 24· ·adequate sewer and drainage systems and facilities or 25· ·related services; No. 3, is consistent with and not in Page 9 ·1· ·violation of any covenant or provision relating to any ·2· ·outstanding bonds or indebtedness of the District; ·3· ·No. 4, does not impair the ability of the District to ·4· ·comply with applicable Federal or State laws or ·5· ·regulations as amended from time to time; and No. 5, ·6· ·considers the financial impact on all classes of ·7· ·ratepayers in determining a fair and reasonable burden. ·8· · · · · · · ·The Rate Commission received a Rate Change ·9· ·Notice from the District on March 24th, 2023.· Under the 10· ·District's Charter Plan, the Rate Commission must on or 11· ·before September 5th, 2023, issue its report on the 12· ·Proposed Rate Change Notice to the Board of Trustees of 13· ·the District. 14· · · · · · · ·Under Procedural Rules adopted by the Rate 15· ·Commission on March 24th, 2023, any person affected by 16· ·the Rate Change Proposal had an opportunity to submit an 17· ·application to intervene in these proceedings no later 18· ·than April 14th, 2023.· The Rate Commission received no 19· ·applications to intervene by this deadline. 20· · · · · · · ·On May 10th, 2023, an application to 21· ·intervene out of time was submitted by the Missouri 22· ·Industrial Energy Consumers.· On May 11th, 2023, the 23· ·District submitted its response to MIEC's application to 24· ·intervene out of time.· On March 24th, 2023, the 25· ·District submitted to the Rate Commission prepared Page 10 ·1· ·direct testimony of Brian L. Hoelscher, Susan M. Myers, ·2· ·Richard L. Unverferth, Bret A. Berthold, Marion M. Gee, ·3· ·Tim Snoke, Bethany Pugh, William Stannard, Thomas A. ·4· ·Beckley, and William Zieburtz. ·5· · · · · · · ·On April 4th, 2023, the Rate Commission ·6· ·submitted its first discovery request to the District. ·7· ·On April 14th, 2023, the District filed its responses. ·8· ·On April 7th, 2023, the Rate Commission submitted its ·9· ·second discovery request to the District, to which the 10· ·District responded to on April 17th, 2023. 11· · · · · · · ·On May 14th, 2023, the Rate Commission 12· ·submitted its third discovery request to the District, 13· ·to which the District responded on April 20th, 2023. 14· · · · · · · ·On April 26th, 2023, a Technical Conference 15· ·was held on the record regarding the rate setting 16· ·documents and the direct testimony filed with the Rate 17· ·Commission by the District.· The purpose of the 18· ·Technical Conference was to provide the District an 19· ·opportunity to answer questions propounded by members of 20· ·the Rate Commission, and by Lashley & Baer, legal 21· ·counsel to the Rate Commission. 22· · · · · · · ·On May 1st, 2023, the Rate Commission 23· ·submitted its fourth discovery request to the District, 24· ·to which the District responded on May 11th, 2023.· On 25· ·May 12th, 2023, the Rate Commission consultants Anna Page 11 ·1· ·White and Pamela Lemoine submitted rebuttal testimony. ·2· · · · · · · ·On May 15th, 2023, the district submitted ·3· ·its first discovery request to the Rate Commission, to ·4· ·which the Rate Commission responded on May 18th, 2023. ·5· ·On May 18th, 2023, the Rate Commission submitted its ·6· ·fifth discovery request of the District, to which the ·7· ·District responded on May 24th, 2023. ·8· · · · · · · ·This Technical Conference will be held on ·9· ·the record regarding the rebuttal testimony.· Each 10· ·person submitting rebuttal testimony shall answer 11· ·questions propounded by members of the District, Rate 12· ·Commission, and by our legal counsel. 13· · · · · · · ·Following the Technical Conference, the 14· ·District and the Rate Commission consultants may submit 15· ·prepared surrebuttal testimony and schedules on or 16· ·before June 21st, 2023. 17· · · · · · · ·A Technical Conference will be held on the 18· ·record regarding the surrebuttal testimony on July 10th, 19· ·2023.· Ratepayers who do not wish to intervene will be 20· ·permitted to participate in a series of on the record 21· ·public hearing session. 22· · · · · · · ·Who is here on behalf of Metropolitan 23· ·St. Louis Sewer District? 24· · · · · · · ·COMMISSIONER MYERS:· Susan Myers. 25· · · · · · · ·CHAIRMAN TOENJES:· Also present are Page 12 ·1· ·consultants to the Rate Commission:· Pamela Lemoine of ·2· ·Burns & McDonnell, Anna White of Black & Veatch, and Ann ·3· ·Bui of Black & Veatch, and legal counsel to the Rate ·4· ·Commission, Lisa Stump and Brian Malone of Lashly & ·5· ·Baer. ·6· · · · · · · ·The Rate Change Proposal consists of a ·7· ·stormwater and wastewater rate change.· Under the Rate ·8· ·Commission's operational rules, no person shall be ·9· ·required to answer questions for more than a total 10· ·period of three hours. 11· · · · · · · ·Are there any procedural matters? 12· · · · · · · ·MS. STUMP:· Yes, there is, Mr. Chairman.· We 13· ·have before the Commission MIEC's application to 14· ·intervene out of time. 15· · · · · · · ·CHAIRMAN TOENJES:· Can you please summarize 16· ·your communications related to this? 17· · · · · · · ·MS. STUMP:· Sure.· On May 10th, MIEC filed 18· ·an application to intervene out of time under the Rate 19· ·Commission's procedural schedule, the deadline for 20· ·applications to intervene was April 14th, 2020 -- 2023, 21· ·and as a result, the application of MIEC is not required 22· ·to be accepted by the Commission.· The Commission will 23· ·need to vote today on whether it will approve the 24· ·application. 25· · · · · · · ·MIEC argues that its application should Page 13 ·1· ·still be permitted because the public interest would be ·2· ·served by their intervention.· MIEC states that it ·3· ·agrees to following the procedural schedule as ·4· ·established; however, some additional questions on this ·5· ·may be warranted since MIEC also states that it intends ·6· ·to file written testimony of its expert and the timeline ·7· ·for that has already passed. ·8· · · · · · · ·The decision for the Rate Commission is to ·9· ·consider whether any parties will be prejudiced by 10· ·allowing MIEC to intervene at this late date, or the 11· ·overall proceedings will be hindered. 12· · · · · · · ·MSD, as you know, has opposed the 13· ·application, and MSD argues that there is such prejudice 14· ·in its response.· I suggest that the Rate Commission 15· ·proceed now with allowing MIEC to be heard on this topic 16· ·and the commissioners to ask questions.· And then allow 17· ·the District to explain its opposition and answer 18· ·questions.· And then finally, I think you should have 19· ·your rate consultants be permitted to weigh in on this 20· ·issue also.· And I do know the attorney for MIEC is here 21· ·if you would like to have her discuss the application. 22· · · · · · · ·CHAIRMAN TOENJES:· Thank you, Ms. Stump. 23· ·Let us allow the representative of MIEC to take the seat 24· ·up here and we'll turn the microphone on. 25· · · · · · · ·Please identify yourself and we will go Page 14 ·1· ·ahead and listen to your statement. ·2· · · · · · · ·MS. PLESCIA:· Diana Plescia, and I'm an ·3· ·attorney for the Missouri Industrial Energy Consumers. ·4· ·I'm with the law firm of Curtis, Heinz, Garrett & ·5· ·O'Keefe and I have been representing MIEC for many ·6· ·years.· And as you all probably know, Dexine [ph] is one ·7· ·of the first members of the Rate Commission for -- has ·8· ·been serving for -- on behalf of MIEC for many years and ·9· ·clearly, you know, this process is extremely important 10· ·to the MIEC members.· These include some of St. Louis' 11· ·largest companies and the largest -- some of the largest 12· ·ratepayers in your district and their businesses will be 13· ·directly impacted by your decision in this case. 14· · · · · · · ·The MIEC did not intend in any way to 15· ·disrespect the Commission's process or to delay these 16· ·proceedings or cause any prejudice to any party by -- 17· ·(inaudible).· The reason the Rate Commission -- 18· ·(inaudible) should exercise its discretion to grant MIEC 19· ·intervening out of time is primarily because it is in 20· ·the public interest to have the customers who are 21· ·directly affected by the Commission's proposal be 22· ·included in the proceeding and that is the benefit to 23· ·the MSD Rate Commission process. 24· · · · · · · ·The Rate Commission was formed in large part 25· ·so that there would be a clear process that ratepayers Page 15 ·1· ·could participate in -- I'm sorry, are you having ·2· ·trouble hearing me? -- that ratepayers could participate ·3· ·in the order to have their views heard, that, for many ·4· ·years, there were issues regarding due process, ·5· ·regarding the ability of ratepayers to participate and ·6· ·many of those issues were litigated in the Missouri ·7· ·courts. ·8· · · · · · · ·Ultimately, the Rate Commission was ·9· ·established for the purpose of creating a meaningful 10· ·process of review to make recommendations to the Board, 11· ·and to allow input into the rate case.· In every rate 12· ·case that the MSD has filed and that the Rate Commission 13· ·has considered, the MIEC has been not only an active 14· ·participant but contributed very valuable expert 15· ·testimony, has participated in discovery, and has made 16· ·it easier for both the Rate Commission and the Board to 17· ·have a full picture of the impact of the proposals on 18· ·the utility. 19· · · · · · · ·The members of your ratepayer groups that I 20· ·represent are all industrial customers, and as I said, 21· ·they include the very largest.· This association of 22· ·customers is also active in the Public Service 23· ·Commission process.· Whenever a rate case or a rate 24· ·increase or rate decrease, any type of matter affecting 25· ·rates is filed at the Public Service Commission, and, of Page 16 ·1· ·course, at MSD, MIEC has its consultants and its own ·2· ·experts review the filing and to determine the impact on ·3· ·those customers.· Each member of the MIEC has to make a ·4· ·determination of what the impact is going to be, how it ·5· ·will affect them, and whether to participate.· So we ·6· ·obtain consent from each client. ·7· · · · · · · ·Unfortunately, and I regret any ·8· ·inconvenience to the Commission, we were not able to ·9· ·pull the group together quickly enough to intervene as 10· ·timely -- on a timely basis, and I apologize for that. 11· ·But I will say that something in favor of granting the 12· ·application, in addition to public interest, is that the 13· ·MIEC is not going to in any way delay this process or 14· ·cause any obstacles in the procedural schedule at all. 15· ·There will be limitations, naturally, just by the 16· ·inherent loss of the time and the fact that we have not 17· ·filed previous testimony, but that does not mean that 18· ·the MIEC can't provide a lot of value to this process by 19· ·participating in the limited way that is remaining to 20· ·us. 21· · · · · · · ·So I want it make it very clear, MSD and 22· ·their response to our application, made the point that 23· ·they thought prejudice to the process merely from the 24· ·fact that we're at a later stage by intervening.· And I 25· ·want to assure MSD and the Commission that that's not Page 17 ·1· ·our intention at all.· We still think we can provide ·2· ·valuable testimony. ·3· · · · · · · ·A downside to not having MIEC in the case is ·4· ·that you're left with the public participation process ·5· ·and the participation process in front of the MSD board, ·6· ·and that process is not as menable [ph] to discovering, ·7· ·discussion, and resolution of issues as this process, ·8· ·which is specifically designed for these technical ·9· ·issues.· So, certainly, the MIEC would continue to want 10· ·to have the same productive relationship with the Rate 11· ·Commission, and the same productive input it has always 12· ·had. 13· · · · · · · ·MIEC is an unusual party due to the length 14· ·of many years of participation and consistent 15· ·participation, we use the same expert witnesses, so 16· ·we're not -- if you're worried in any way about a plot 17· ·of late interventions, I can say certainly with respect 18· ·to MIEC, there are many grounds to let MIEC into the 19· ·case that some parties you might not find those grounds. 20· · · · · · · ·So I think that MIEC is unique due to the 21· ·length of its participation, the nature of the 22· ·customers, and our intent always to provide solid 23· ·evidence of some type to this Commission. 24· · · · · · · ·Also, PSC process, which is somewhat -- I 25· ·would say the Rate Commission's process is loosely based Page 18 ·1· ·on the Public Service Commission process.· When this ·2· ·Rate Commission was first established to address ·3· ·creating a due process, technical review of the rate ·4· ·proposals, and the fact that it was hard for customers ·5· ·to participate, one of the things that the Commission ·6· ·looked at was the PSC regulations governing practice and ·7· ·procedure and used that as a model. ·8· · · · · · · ·Now, of course, MSD is very different than ·9· ·some of the PSC regulated utilities, and the PSC process 10· ·is inherently different, but there are some things that 11· ·they have in common and one of them is that there is an 12· ·application to intervene required for parties to enter a 13· ·case.· And I can tell you that I also have a 14· ·long-standing practice of 30 years in front of the PSC, 15· ·and the PSC routinely grants applications to intervene 16· ·out of time that are sometimes, you know, three weeks, 17· ·four weeks out of time.· It really depends mostly on 18· ·whether the party will accept the record as it stands, 19· ·and whether some prejudice would occur. 20· · · · · · · ·Let's say a settlement of the case is 21· ·ongoing and discussions have advanced and there would be 22· ·a disruption in settlement negotiations, that would be 23· ·the type of thing that PSC would consider prejudicial. 24· ·I think that ultimately to the extent that the PCS 25· ·process is similar to the MSD process, that is a good Page 19 ·1· ·reason to grant the intervention.· Also, the MSD process ·2· ·is much more compressed.· And so if the MSD lets a party ·3· ·in after a month, it's different than PSC doing it after ·4· ·a month, but there's no difference in the fact that ·5· ·there is no prejudice to any party when a party just ·6· ·enters the case and says they'll accept the record as it ·7· ·stands and that's what we're doing here. ·8· · · · · · · ·I think MSD's primary argument from their ·9· ·application is the concern of prejudice.· And as I said, 10· ·because we're not requesting any disruption in the 11· ·schedule, I think that it would be fair for the 12· ·Commission to exercise its discretion in favor the 13· ·MIEC's application. 14· · · · · · · ·And I'm glad to answer any questions. 15· · · · · · · ·CHAIRMAN TOENJES:· Questions from any of the 16· ·Rate Commissioners?· Mr. Palans? 17· ·QUESTIONS BY MR. PALANS: 18· · · Q.· Hello.· Good morning. 19· · · A.· Morning. 20· · · Q.· I don't know if this is on or -- 21· · · · · · · ·CHAIRMAN TOENJES:· Yep. 22· · · Q.· (By Mr. Palans) Okay.· I understand that your 23· ·client has a long history with our rate proceedings and 24· ·our hearings.· You have had a representative on our 25· ·Commission in the past.· Have you had a representative Page 20 ·1· ·from the inception of our Commission? ·2· · · A.· I believe so, yes, I believe Mr. Stein has served ·3· ·on the Commission representing MIEC to the Commission ·4· ·since the Rate Commission was established. ·5· · · Q.· And have you intervened at every opportunity in ·6· ·the past before our Commission? ·7· · · A.· I believe that we have. ·8· · · Q.· And in the past, you've participated as an ·9· ·intervener by offering evidence as I understand it, 10· ·correct? 11· · · A.· That is correct. 12· · · Q.· Did you receive notice of this rate hearing 13· ·process? 14· · · A.· Yes. 15· · · Q.· Did you receive timely notice of this rate 16· ·hearing process? 17· · · A.· Yes. 18· · · Q.· Why didn't you intervene? 19· · · A.· The reason that we did not intervene sooner was 20· ·we had a need for client consultation and discussion 21· ·regarding the case, the opportunity for our experts to 22· ·review it, and that process didn't happen as quickly as 23· ·it normally did.· And while we regret that we did not 24· ·intervene sooner, the intervention delay was based on 25· ·the need for that review and weighing by the individual Page 21 ·1· ·companies and the setting of the budget for the case. ·2· · · Q.· Okay.· Our process has been going on for some ·3· ·time.· Does it take that long a period in order to get a ·4· ·consensus amongst your group? ·5· · · A.· Sometimes it does.· Every client in the MIEC ·6· ·group, they will contribute to the fees in the case.· It ·7· ·was just common in these associations based on their ·8· ·energy usage or their utility bills, and all those have ·9· ·to be evaluated in order for the internal company 10· ·approvals.· It just took longer in this particular case. 11· · · · · · · ·And while I can understand the Commission 12· ·can say, you know, we have an application to intervene 13· ·deadline and it's strict and you can't exceed that, I 14· ·would say this is a public interest oriented process. 15· ·It is one where I think the Commission should take 16· ·liberal views of participation by ratepayers.· I think 17· ·that helps create public acceptance of the Rate 18· ·Commission of the MSD's decision, and right now there 19· ·are no customer representatives per se in this case. I 20· ·know all of the Rate Commission members and the utility 21· ·are always concerned about their customers, and I'm not 22· ·saying they're not, but the MIEC represents a 23· ·broad-based group of your customers and we share many 24· ·things in common, many things -- with the MSD.· We have 25· ·supported bond issues, we've supported financing Page 22 ·1· ·proposals, we've supported the creation of the Rate ·2· ·Commission over the years.· And we've been a partner for ·3· ·the MSD and that would be good cause and in the public ·4· ·interest despite the problem that our intervention was ·5· ·late for you all to grant it and I believe it's in your ·6· ·discretion. ·7· · · Q.· Have you retained experts who provide evidence ·8· ·for us? ·9· · · A.· We have.· And to the extent that we are not able 10· ·to provide testimony on it, you know, that there's any 11· ·restrictions that the Commission wants to place on our 12· ·intervention, there are other ways we can participate. 13· ·But we would like to provide testimony at lease the 14· ·surrebuttal stage if we can.· At the PSC, we (inaudible) 15· ·rebuttal, and we can certainly respond to what the Rate 16· ·Commission consultant has said.· We can certainly 17· ·provide some discovery if there are questions and 18· ·answers that we think should be brought before the 19· ·Commission, and we can participate in any additional 20· ·hearings. 21· · · · · · · ·So for these reasons, we think we can still 22· ·contribute, and we do use -- always use the same experts 23· ·and they're very good experts.· And that's the firm of 24· ·Brubaker and Associates, BAI, and we also use Mike 25· ·Gorman. Page 23 ·1· · · Q.· And have the experts that you have retained, are ·2· ·they experts that will be providing testimony on both ·3· ·stormwater and wastewater rate proposals? ·4· · · A.· Yes, that's correct. ·5· · · Q.· As I understand it, the District has proposed, in ·6· ·the event that you are not allowed the opportunity to ·7· ·intervene, that you have the opportunity to be heard as ·8· ·any citizen would have that opportunity.· Do you ·9· ·understand that? 10· · · A.· Yes. 11· · · Q.· And if you have that opportunity to be heard, 12· ·would your experts not have that opportunity to address 13· ·us with their opinion? 14· · · A.· I'm not saying that we wouldn't have the 15· ·opportunity for our experts to address you.· However, in 16· ·the process that you have, there is an opportunity for 17· ·discussion and discovery, there's an opportunity to 18· ·evaluate discovery responses, and to make requests and 19· ·follow-up on those requests on issues of concern or 20· ·questions that I think would be valuable for the Rate 21· ·Commission in its consideration. 22· · · · · · · ·So the process -- the PSC-like process where 23· ·parties have the ability to go back and forth and ask 24· ·questions, et cetera, is very important to coming up 25· ·with positions that lead to those public hearing Page 24 ·1· ·statements.· And so I think there would be a loss of ·2· ·information if we simply participated at that stage or ·3· ·at that level. ·4· · · Q.· Why? ·5· · · A.· Because in the exchange of discovery in the ·6· ·expert witness process and the ability to participate in ·7· ·that level of the proceedings, that informs the ultimate ·8· ·position of the parties.· It could be that the MIEC ·9· ·supports MSD's rate increase as it is, it could be that 10· ·we raise some questions before you because we get 11· ·information in discovery, it gives us an issue that we 12· ·want to raise.· So that's -- I'm saying it would make 13· ·the MIEC more able to provide input to the rate 14· ·commission. 15· · · Q.· If your experts are permitted to address us as 16· ·any citizen would as to their opinion of the evidence, 17· ·their suggestions as to revisions to the rate or flaws 18· ·that they might see with the rates proposes, how would 19· ·you be prejudiced? 20· · · A.· I think with respect to the rights of a party to 21· ·this case, rights of an intervener, we would certainly 22· ·be at a disadvantage.· The same argument can be made of 23· ·every ratepayer, that they could all participate as 24· ·members of the public and I understand, you know, we 25· ·missed that deadline for the application to intervene. Page 25 ·1· ·But in terms of prejudice, the prejudice is that in the ·2· ·remaining process that's left, we are not asking the ·3· ·schedule to be changed.· We would be prejudiced, and I ·4· ·think the Rate Commission would, if we were not able to ·5· ·ask for specific information during this process leading ·6· ·up to the ultimate decision.· And if we had to actually ·7· ·wait until the very end and that would be the main value ·8· ·to our participation.· There may be other values, too, ·9· ·but that's the most direct one. 10· · · Q.· So you're not proposing that our schedule change 11· ·at all? 12· · · A.· No, not in any way. 13· · · Q.· That our calendar and schedule remains the same? 14· · · A.· Correct. 15· · · Q.· Just that you be allowed to -- to have a place on 16· ·that call to be heard? 17· · · A.· Yes. 18· · · Q.· Okay. 19· · · A.· And I would say not only a place on the calendar 20· ·as far as the public hearing, but our ability to 21· ·participate in the Rate Commission's Technical Hearings 22· ·and in the discovery process and all the other 23· ·procedural events that occur. 24· · · Q.· Thank you. 25· · · A.· On the schedule you have. Page 26 ·1· · · · · · · ·COMMISSIONER PALANS:· Thank you.· I have no ·2· ·further questions. ·3· · · · · · · ·CHAIRMAN TOENJES:· Thank you, Mr. Palans. ·4· · · · · · · ·Mr. Faul, you have your hand up. ·5· · · · · · · ·MR. FAUL:· Yes, thank you -- yes, thank you ·6· ·very much. ·7· ·QUESTIONS BY MR. FAUL: ·8· · · Q.· So I've heard this -- I've heard this from the ·9· ·beginning and I appreciate your time, but I don't 10· ·understand anything -- everything that's been said has 11· ·been -- I've heard has been a reason not to allow 12· ·intervention, that this organization has been involved 13· ·since the beginning of the existence of the Rate 14· ·Commission, that this organization has actively 15· ·participated from the beginning, that for years they've 16· ·provided information and intervened timely, for years 17· ·have used the same experts to provide information on the 18· ·same things, and for years known what the schedule was. 19· ·In fact, been intimately involved in creating this 20· ·mechanism from the start. 21· · · · · · · ·To me, those are all issues of we just slept 22· ·on our rights, you know, which is fine, there's reasons 23· ·to do that.· So the next question I ask then is, well, 24· ·what was the intervening matter?· And I want to make 25· ·sure I understand the position in response to the last Page 27 ·1· ·questioner, which I appreciated, but it seemed to me ·2· ·that the reason given was, well, we thought we could get ·3· ·our group together faster than we did, and there ·4· ·was -- it sounded to me reading between the lines that ·5· ·there was a disagreement about who was going to pay for ·6· ·the pro rata shares of the organization's bills to ·7· ·participate in.· Is that -- am I reading between the ·8· ·lines correctly there? ·9· · · A.· I'd like to give a little more color to that and 10· ·I thought I mentioned this before but maybe I didn't 11· ·make it clear.· It wasn't a matter of a dispute at all 12· ·about payment or who -- what happens when a utility 13· ·files a rate case, the MIEC reviews that rate case and 14· ·its experts have to evaluate the bill impact on each 15· ·company, explain what the issues are, and each company 16· ·makes a decision as to whether to participate.· It is 17· ·certainly not the case that there was any dispute among 18· ·the companies. 19· · · · · · · ·Usually, a rate case, for instance, the PSC 20· ·takes 11 months, the MSD's process is much faster but it 21· ·normally takes some time for companies to look at a case 22· ·and decide to intervene.· They don't do it casually, 23· ·they don't do it lightly, they don't do it knee-jerk. 24· ·I'm not excusing the Commission -- excusing MIEC and I 25· ·apologize for the delay, but I would argue that good Page 28 ·1· ·cause exists to let MIEC participate because it would ·2· ·bring value to the process and there would not be any ·3· ·prejudice to any party by allowing MIEC into the case. ·4· ·I understand that the utility takes a different position ·5· ·and says we'll be prejudiced, and I believe that if you ·6· ·take away any concern, which we are saying we're not ·7· ·going to cause any issues with respect to the schedule, ·8· ·I don't see any prejudice. ·9· · · · · · · ·You can look at it as you have to have a 10· ·very good reason, for instance, that you didn't get 11· ·notice in order to be allowed into a case.· Another way 12· ·of looking at it is if a party contributes to the case 13· ·and there's good cause and no prejudice, then especially 14· ·and if it's a ratepayer party and this is all about rate 15· ·payers, the Rate Commission is about creating a voice 16· ·for ratepayers, there would be good cause in the public 17· ·interest so let us in.· So it's kind of a half full, 18· ·empty -- half empty issue.· But the part I wanted to 19· ·address especially is that the issue you raised about a 20· ·dispute about billing or anything, that wasn't a factor. 21· · · Q.· Well, if that wasn't factor then that makes me 22· ·question even more because what was stopping the 23· ·organization from intervening at the beginning, right? 24· ·If I have -- my understanding, and maybe my 25· ·understanding from your organization is incorrect, but Page 29 ·1· ·my understanding is that your organization is a voice ·2· ·for the industrial consumers, and then that's the role ·3· ·that you play and I don't understand I guess why the ·4· ·organization couldn't have intervened and worked out ·5· ·which specific industrial consumers are involved in the ·6· ·process after the fact? ·7· · · A.· I understand your concern and I would just say ·8· ·that every company -- it's a very big undertaking to ·9· ·decide to get into a rate case.· It's not something we 10· ·do as a protective matter.· When we intervene, that 11· ·means we're fully into the case to the extent we can 12· ·participate.· We don't just file protective applications 13· ·to intervene.· We get consent from each company. 14· · · · · · · ·I think part of that is due to the 15· ·complexity of the cases.· Our experts have to review the 16· ·case and while MSD has many months to prepare its case, 17· ·the customers and other parties affected don't have the 18· ·benefit of all that time and they see the rate filings 19· ·for the first time at a later date.· So there is some 20· ·time that it takes.· It's certainty not something where 21· ·we want to intervene on a knee-jerk basis, although we 22· ·certainly regret not having intervened sooner. 23· · · Q.· Well, respectfully, I sat on MSD for eight years 24· ·and the industrial consumers were never without a voice 25· ·on merely any aspect of anything they did, whether it Page 30 ·1· ·was formal or informal.· And the fact that the ·2· ·organization -- individual or corporate -- individual ·3· ·industrial entities that decide to participate through ·4· ·your organization aside, the fact that the organization ·5· ·itself has always been involved shows that there's no ·6· ·way that they couldn't have involved themselves now and ·7· ·allowed other intervention. ·8· · · · · · · ·And I'd like to use that as a -- to pivot. ·9· ·There's a difference between prejudice in a substantive 10· ·matter and prejudice in a procedural matter and all I've 11· ·heard is that we promise not to prejudice as far as the 12· ·schedule is concerned, but prejudice isn't just about 13· ·that temporal matter.· Prejudice is also about 14· ·substantive, how these things are presented.· And what I 15· ·hear about why you want to intervene -- your 16· ·organization wants to intervene now is a discovery 17· ·process which is a discovery process that your 18· ·organization could get from other entities that it 19· ·couldn't get otherwise. 20· · · · · · · ·So in the public, you would still be able to 21· ·present and it sounds like what the organization is 22· ·wanting is discovery matters into other entities, other 23· ·information that the -- those who have kindly intervened 24· ·have access to by their timely application.· And now 25· ·that sharing said information or getting involved or the Page 31 ·1· ·access to said information, even if it's within the same ·2· ·timeline could certainly be prejudicial to the rate case ·3· ·or any case that an entity is making.· What do you have ·4· ·to say about that? ·5· · · A.· Sure.· Well, first of all, it isn't just the ·6· ·discovery process, although that's a key issue.· It's ·7· ·also the ability to participate in cross-examination and ·8· ·have all the procedural rights for review that any party ·9· ·would have for the Rate Commission that was a valid 10· ·intervener.· So it's more than just a discovery process. 11· · · · · · · ·I think that it would be difficult for any 12· ·party to without having the benefit of a full 13· ·participation in terms of questioning both in 14· ·cross-examination as well as discovery to do an adequate 15· ·job of representing their own interest and bringing 16· ·issues forward to the Rate Commission.· That process -- 17· ·it could only benefit the process to allow parties to 18· ·ask questions, there's a discovery process that's set 19· ·forth, a cross-examination hearing process set forth in 20· ·the procedural rules, which we would have to follow. 21· · · · · · · ·So there are no changes in timelines or 22· ·additional burdens that would result from the 23· ·participation.· There's inherently a discovery schedule 24· ·that we would have to abide by, there's inherently a 25· ·cross-examination opportunity on a certain day we would Page 32 ·1· ·have to abide by.· I hope that's responsive to your ·2· ·question. ·3· · · Q.· Yeah, I don't think -- I don't think it is ·4· ·though.· Because what it sounds like is saying that ·5· ·substantively we want to be able to prejudice the Rate ·6· ·Commission's case even though we slept on the right. ·7· ·You're correct that parties have the ability to do ·8· ·certain things and that's important to the process, and ·9· ·those parties are able to do it because they timely 10· ·intervened.· Now, it seems -- and their cases have been 11· ·built upon this application and this intervention 12· ·process.· Now, while maybe it doesn't -- while the 13· ·industrial consumers are saying, well, we won't mess 14· ·with the process, we won't mess with the timeline, well, 15· ·that's not necessarily the concern.· The concern is that 16· ·the other parties have their cases built around the 17· ·parties that have intervened and had the ability and the 18· ·time to make those cases knowing the information and the 19· ·parties that are in the room. 20· · · · · · · ·So while the industrial consumers are 21· ·saying, oh, we won't mess with the timeline, that 22· ·doesn't mean that any other party won't have to address 23· ·their timelines to address questions or, quite frankly, 24· ·unknown issues in discovery matters and discovery 25· ·responses and cross-examination matters that previously Page 33 ·1· ·would not -- were not on the radar and would not have ·2· ·been addressed. ·3· · · · · · · ·So that seems a little -- it seems to be a ·4· ·little disingenuous and I'm not sure how I'm going to ·5· ·take it on this position, but seems to be a little ·6· ·disingenuous for the industrial contractor -- or the ·7· ·industrial consumers to say, oh, sorry, I know we've ·8· ·been participating in this for decades, always had the ·9· ·same experts who, frankly, have said always about the 10· ·same thing, there's other ways to raise rates without 11· ·getting at us, and we're going to -- and we know that 12· ·MSD and always listens to us and always takes our ideas 13· ·into consideration on every small detail throughout 14· ·their operations.· But we, for reasons that are quite 15· ·frankly none of our business, decided to not intervene 16· ·in a timely notice that we've known about frankly since 17· ·the inception of this process, you know, it's not even 18· ·much less since the last go-around, and now we want 19· ·additional time -- or we want additional say, rather, to 20· ·potentially throw sand in the gears and, don't worry, 21· ·it's not us, it's everybody else because we said we'd 22· ·follow the timeline but everybody else has to change 23· ·their schedules around you. 24· · · · · · · ·So thank you for your time, ma'am. 25· · · · · · · ·CHAIRMAN TOENJES:· Thank you, Mr. Faul. Page 34 ·1· ·Questions from other Rate Commissioners? ·2· · · · · · · ·Mr. Mahfood? ·3· · · · · · · ·COMMISSIONER MAHFOOD:· I have a question ·4· ·about timing.· If I have a question for our attorneys, ·5· ·is now the appropriate time for me to do that or should ·6· ·I -- ·7· · · · · · · ·MS. STUMP:· Let's hear your question. ·8· · · · · · · ·COMMISSIONER MAHFOOD:· Is that okay, ·9· ·Mr. Chairman? 10· · · · · · · ·CHAIRMAN TOENJES:· Sounds like it is. 11· · · · · · · ·COMMISSIONER MAHFOOD:· No, I just wanted to 12· ·know, Lisa, what's the -- reading your opinion earlier, 13· ·what's the difference in this request and what happened 14· ·in 2011? 15· · · · · · · ·MS. STUMP:· So let me go back a little bit 16· ·and I am informed the Rate Commission about -- I give 17· ·them historical.· And, by the way, Ms. Myers, you will 18· ·have a chance to respond at some point.· I gave the Rate 19· ·Commission, I went back and looked and see -- to see if 20· ·we ever in the past had late applications to intervene, 21· ·we did in 2011, there were two groups that sought to 22· ·intervene after -- about the same timing, after the 23· ·process.· And in that case, the parties sought to 24· ·intervene but they were not going to file any testimony, 25· ·and the Rate Commission did allow for their late Page 35 ·1· ·applications.· And let me clarify, they weren't going to ·2· ·provide any testimony but they also were not -- I don't ·3· ·think that they participated in discovery either.· They ·4· ·just wanted to be interveners in the process. ·5· ·QUESTIONS BY MS. STUMP: ·6· · · Q.· Which I do -- may I still have the floor, ·7· ·Mr. Chair, to ask -- because I do have one procedural ·8· ·schedule question which I think is relevant to the ·9· ·Commission and that is, Ms. Plescia, you talked about -- 10· ·you've repeatedly said that we're not asking for the 11· ·schedule to be changed, we're not asking for the 12· ·schedule to be changed, but yet you're also saying that 13· ·you would like your expert to be able to file testimony. 14· ·As you know, the time for rebuttal testimony, which I 15· ·presume is what he would file, has already passed and 16· ·the technical conference on that is today.· So I would 17· ·like to hear your opinion on how you think -- how that 18· ·could you -- you don't want to change the schedule, but 19· ·yet you still want the opportunity for your expert to 20· ·file testimony, how that would work without changing the 21· ·schedule? 22· · · A.· To the extent that it would cause any issues, of 23· ·course, we would not -- we would rather participate at 24· ·any level then.· And if we could not provide testimony, 25· ·that would be better than not participating at all.· The Page 36 ·1· ·only way I can see us filing testimony at this point ·2· ·would be to respond to rebuttal testimony in the ·3· ·surrebuttal process.· We would only be limited to those ·4· ·issues.· So there would be an inherent limitation on the ·5· ·MIEC's participation because we did not file rebuttal ·6· ·testimony. ·7· · · · · · · ·I think that there will generally be a much ·8· ·more full participation in any case if a party can ·9· ·participate in all of the hearings and proceedings as a 10· ·party rather than simply coming in as a member of the 11· ·public.· I think that whether a party files testimony or 12· ·not, it should depend -- let's say we had intervened a 13· ·little earlier and we filed rebuttal, we can say -- and 14· ·it was pointed out, well, it throws, you know, a problem 15· ·into the works for the utility's proposal.· And it 16· ·always creates another issue if you have a consumer 17· ·party, but the public good is served by the consumer 18· ·parties.· The purpose of this entire process is to have 19· ·consumers have a voice. 20· · · · · · · ·So I would say that regardless of whatever 21· ·limitations the MSD Rate Commission wants to put on our 22· ·participation, we'd still be better off participating in 23· ·the Rate Commission process fully, as fully as possible. 24· · · · · · · ·MS. STUMP:· I guess I would say to the Rate 25· ·Commission that if you're going -- if the Rate Page 37 ·1· ·Commission wanted to allow their expert to file ·2· ·testimony, I think in order to be fair to all the ·3· ·parties, you would have to have some sort of change. ·4· ·Because if your experts are allowed to file testimony, ·5· ·we would have to give the District and the rate ·6· ·consultants an opportunity to respond to that which ·7· ·would add a different layer. ·8· · · · · · · ·MS. PLESCIA:· Well, I would just add that ·9· ·although I haven't considered the possibility that, you 10· ·know, we -- there's been no decision made on the part of 11· ·MIEC about whether to file testimony.· I think the 12· ·problem with MIEC would, if the Rate Commission decides 13· ·that that would be prejudicial in some way or the other 14· ·parties think that would create problems for them, we 15· ·can either discuss it and come back with a consensus 16· ·regarding that issue and present that, we certainly 17· ·haven't been able to talk to the utility about it, but 18· ·it would be better for the MIEC to participate without 19· ·filing testimony but not at all.· But I certainly think 20· ·that to the extent the surrebuttal testimony can include 21· ·views and response to rebuttal, we would certainly want 22· ·to do that. 23· · · · · · · ·CHAIRMAN TOENJES:· Mr. Mahfood? 24· · · · · · · ·COMMISSIONER MAHFOOD:· Yeah, Lisa, I was 25· ·going to ask you another question and not understanding Page 38 ·1· ·the details of this, what about the deadline for ·2· ·somebody else like tomorrow comes in, Missouri Consumers ·3· ·Council, I'm not picking on them, and they want to be ·4· ·part of the process, what's the impact of our decision ·5· ·here on anybody else who might have said, gosh, we ·6· ·missed the deadline, we need to -- they've opened the ·7· ·door, do we then make a decision to accept this? ·8· · · · · · · ·MS. STUMP:· You would take decision -- if ·9· ·somebody else filed a late application to intervene, you 10· ·would take them each individually and determine whether 11· ·there is any prejudice depending on the time of the 12· ·process and the circumstances surrounding it, whether 13· ·there is any prejudice in allowing the late 14· ·intervention.· Now, certainly if you allow one group to 15· ·have a late intervention, it becomes -- it would be 16· ·harder if another one came in next week for you all to 17· ·say, well, this one wasn't prejudice but another one is. 18· · · · · · · ·CHAIRMAN TOENJES:· Mr. Faul? 19· · · · · · · ·COMMISSIONER FAUL:· Yeah, that's the 20· ·exact -- that's the exact issue.· Then it's not, oh, 21· ·well, you know, the person that comes in tomorrow, their 22· ·position isn't that we are weeks late, months late, 23· ·it's -- their position is we're one day late. 24· · · · · · · ·CHAIRMAN TOENJES:· Thank you. 25· · · · · · · ·COMMISSIONER FAUL:· You let them do it Page 39 ·1· ·yesterday. ·2· · · · · · · ·CHAIRMAN TOENJES:· Further questions for ·3· ·Ms. Plescia? ·4· · · · · · · ·Ms. Croyle? ·5· · · · · · · ·COMMISSIONER CROYLE:· I guess my only ·6· ·concern is the fact that we don't have any other ·7· ·interveners presenting information so is the Rate ·8· ·Commission opening us up to not having another voice? ·9· ·That's my concern.· Wanting to make sure all voice -- 10· ·(inaudible).· And, yes, you can do that in a public 11· ·hearing, but, you know... 12· · · · · · · ·CHAIRMAN TOENJES:· Any other questions? 13· · · · · · · ·UNIDENTIFIED SPEAKER:· Got one here, 14· ·Mr. Chairman. 15· · · · · · · ·CHAIRMAN TOENJES:· Mr. Ziegler? 16· · · · · · · ·COMMISSIONER ZIEGLER:· Yeah, I think the I 17· ·know the answer to this but our timeline, meaning the 18· ·amount of time that was given for people to intervene 19· ·was similar in this case as it has been in previous 20· ·cases; is that correct? 21· · · · · · · ·CHAIRMAN TOENJES:· Ms. Stump? 22· · · · · · · ·MS. STUMP:· Correct.· I mean, I don't know 23· ·of the exact number days but we base the schedule pretty 24· ·much off the previous ones so it would be around the 25· ·same amount of time that there was. Page 40 ·1· · · · · · · ·COMMISSIONER ZIEGLER:· All right.· So no ·2· ·significant difference.· All right.· Thank you. ·3· · · · · · · ·CHAIRMAN TOENJES:· Any other questions from ·4· ·any of the other Rate Commissioners?· I have a couple. ·5· ·QUESTIONS BY MR. TOENJES: ·6· · · Q.· You mentioned that the PSC has allowed this two ·7· ·parties to accept the record as it stands at the point ·8· ·that they are granted the late intervention? ·9· · · A.· Correct.· When the Commission looks at this 10· ·issue, it looks at the issue of good cause.· Even if 11· ·there is some prejudice from a late intervention, the 12· ·Commission looks and balances -- the Public Service 13· ·Commission looks and balances at the benefit of the 14· ·public participation of ratepayers versus any detriment 15· ·to the utility or the Commission process.· And there may 16· ·always be some judgment of letting any party intervene 17· ·late you could argue, but I think that in general, 18· ·interventions are not infrequently done on this time 19· ·frame as late interventions at the PSC.· And the 20· ·Commission will let them in if good cause shown and part 21· ·of the good cause determination is the balancing of 22· ·prejudice to other parties by letting the party in, and 23· ·the benefit of having that party join the case and 24· ·whether there's a general weighing of the public 25· ·interest that favors the intervention, and that's what Page 41 ·1· ·I'm referring to this Commission.· I'm arguing that you ·2· ·should look at the total value to the public of having ·3· ·the participation, I think that the Commissioner raised ·4· ·a very good point about the importance of having ·5· ·customer interveners.· I think when you don't have ·6· ·customer interveners in the process at all and the Rate ·7· ·Commission process is about making a recommendation that ·8· ·is partially reflecting ratepayers in a meaningful way. ·9· ·I think that is a detriment to the process that we don't 10· ·have customer interveners and that would weigh in favor 11· ·of good cause. 12· · · Q.· So define "accept the records as it stands." 13· · · A.· I think that means the MIEC will not disrupt the 14· ·procedural schedule of the case, it means that the MIEC 15· ·will participate meaningfully in all events, it means 16· ·that the Commission has -- we will not delay in any way 17· ·the Commission's ability to make a decision, there won't 18· ·be any surprises as far as, you know, the MIEC filing 19· ·motions to change anything about the proceedings that 20· ·exist right now is essentially what I'm saying. 21· · · Q.· You also mentioned in your requesting that it was 22· ·delayed due to need for client consultation.· Could you 23· ·describe the client consultation that went on between 24· ·March 24th and May 10th? 25· · · A.· The client consultation included outreach to Page 42 ·1· ·companies, it included our expert witnesses that we use ·2· ·and consultants evaluating the rate increase proposal to ·3· ·provide that information, and it included a process of ·4· ·getting a company's approval to take these actions. ·5· · · Q.· MIEC has a Rate Commissioner on the Commission. ·6· ·Could that Rate Commissioner ask the same questions and ·7· ·have the opportunity to do the same request for ·8· ·information? ·9· · · A.· I don't agree that Mr. Stein could -- or 10· ·certainly any Rate Commissioner would have the ability 11· ·to ask questions and ask questions of the utility.· And 12· ·by that same token, you could argue that you don't need 13· ·ratepayer interveners because any of the members of the 14· ·Commission, if they are continuing to represent certain 15· ·groups, could ask questions and be a representative of 16· ·that group.· But I do think that Mr. Stein's role and 17· ·the role of all the Commissioners is to make an 18· ·objective decision as a judge inherently on the 19· ·evidence.· And even though Mr. Stein appears on behalf 20· ·of Industrial Customers, he is not their counselor or 21· ·advocate and he has to make an objective decision on the 22· ·case. 23· · · · · · · ·So certainly any party or any person could 24· ·go to the Commissioners and talk to them about the case 25· ·and say could you please ask these questions, but the Page 43 ·1· ·inherent value of the case is the procedural ·2· ·protections, the fact that the Commissioners are ·3· ·decision makers and we are simply advocates for a ·4· ·position. ·5· · · · · · · ·CHAIRMAN TOENJES:· Any other questions? ·6· · · · · · · ·UNIDENTIFIED SPEAKER:· Mr. Faul has another ·7· ·one. ·8· · · · · · · ·CHAIRMAN TOENJES:· Jim Faul? ·9· · · · · · · ·COMMISSIONER FAUL:· Yeah, sorry.· But I 10· ·think that was just an important point that was made. 11· ·What other customer interveners are there in this matter 12· ·right now? 13· · · · · · · ·CHAIRMAN TOENJES:· There are none right now, 14· ·Mr. Faul. 15· · · · · · · ·MR. FAUL:· That's right.· So what we would 16· ·be doing is having the parties here, which is MSD has, 17· ·by charter, an obligation to treat the area as a whole 18· ·indiscriminately and we would be letting in one customer 19· ·intervener with, as counsel just stated, with one 20· ·particular point of view, with one particular 21· ·constituency, and with one particular advocacy position 22· ·into this process as a party when no other interveners 23· ·are here.· You know, it's not as if there is a, you 24· ·know, rural constituency and now an urban constituency 25· ·is needed to even it out, or that there is a residential Page 44 ·1· ·and now there's a commercial to even it out.· What ·2· ·they're asking for is to be the only party to be in, ·3· ·which I think goes against -- weighs against the ·4· ·balances.· It's not a consumer intervener at large, it's ·5· ·consumer intervener for a specific particular point of ·6· ·view.· An important one no doubt, but not a balancing ·7· ·one.· That's my only point. ·8· · · · · · · ·Thank you. ·9· · · · · · · ·CHAIRMAN TOENJES:· Thank you, Mr. Faul. 10· · · · · · · ·Any other questions? 11· · · · · · · ·Thank you, Ms. Plescia. 12· · · · · · · ·MS. PLESCIA:· Thank you. 13· · · · · · · ·CHAIRMAN TOENJES:· Appreciate your time this 14· ·morning. 15· · · · · · · ·MS. PLESCIA:· Thank you. 16· · · · · · · ·CHAIRMAN TOENJES:· I think our next 17· ·presentation would be from the District to speak to 18· ·their view on this particular issue. 19· · · · · · · ·Would you care to come forward, Ms. Myers? 20· · · · · · · ·MS. MYERS:· Good morning. 21· · · · · · · ·CHAIRMAN TOENJES:· Good morning, Ms. Myers. 22· · · · · · · ·MS. MYERS:· So as everyone is aware, the 23· ·District filed a response to MIEC's application -- 24· ·intervention application on May 11th.· In that response, 25· ·we outlined the authority that guides this -- the rate Page 45 ·1· ·proceeding process.· That's the Charter, that's the ·2· ·procedural schedules and the operational schedules that ·3· ·the Rate Commission sets up.· Based upon that authority, ·4· ·we feel that the parties that are -- already have been ·5· ·involved in this process since the beginning will be ·6· ·prejudice by MIEC coming in at this late notice. ·7· · · · · · · ·We've already been through one technical ·8· ·conference, we're getting ready to start the second one ·9· ·today, that's two out of three that the MIEC would not 10· ·be participating in.· Those technical conferences, I 11· ·believe, are set up, they're envisioned by the Charter 12· ·which states this process be outlined in the procedural 13· ·schedules, and I think it's envisioned in a way that it 14· ·provides the District the ability to present and outline 15· ·the proposal in the first technical conference, it 16· ·allows the other parties in the second technical 17· ·conference to kind of outline their positions, and then 18· ·the third technical conference, which is surrebuttal, is 19· ·designed for all of those groups to come together and, 20· ·you know, kind of funnel down to what are the real 21· ·issues. 22· · · · · · · ·So with a third party coming in at the very 23· ·end, I don't quite understand how that is going to work. 24· ·I understand they want to submit rebuttal testimony now 25· ·but they're not here today, or we haven't gotten a Page 46 ·1· ·chance to review their rebuttal testimony so I don't see ·2· ·how we can ask them questions about their rebuttal ·3· ·testimony unless we schedule another conference.· If we ·4· ·wait until the surrebuttal technical conference, then ·5· ·that's our last technical conference. ·6· · · · · · · ·So I think we're missing a step there. I ·7· ·think -- in that way, I think it prejudices the Rate ·8· ·Commission and it prejudices the District because we ·9· ·don't get a chance to fully vet whatever position MIEC 10· ·is taking.· And we all know, I mean, in the past, 11· ·they've been -- MIEC has been very vocal about certain 12· ·parts of the District's different proposals.· So I think 13· ·it's going to leave a gap in the process and I just feel 14· ·like that prejudices you all, the Rate Commission, and 15· ·us as a District. 16· · · · · · · ·CHAIRMAN TOENJES:· Questions for Ms. Myers? 17· ·No questions for Ms. Myers? 18· · · · · · · ·Hearing none. 19· · · · · · · ·Thank you, Ms. Myers. 20· · · · · · · ·MS. MYERS:· Thank you. 21· · · · · · · ·CHAIRMAN TOENJES:· I think Ms. Lemoine, I 22· ·think -- or Ms. White? 23· · · · · · · ·MS. WHITE:· Morning. 24· · · · · · · ·CHAIRMAN TOENJES:· Morning.· Why don't you 25· ·come on up here.· Thank you, Ms. White. Page 47 ·1· · · · · · · ·MS. WHITE:· Good morning.· So I agree with ·2· ·Ms. Myers that if the MIEC would like to submit ·3· ·testimony and participate going forward, then an ·4· ·additional meeting would need to be added to the ·5· ·calendar.· We would need time to obviously review their ·6· ·testimony, draft questions, submit a discovery request, ·7· ·receive that information, evaluate it before we give our ·8· ·final testimony or surrebuttal testimony on June 21st. ·9· ·But seems like there would need to be a meeting in 10· ·between now and then for us to be allowed to -- for all 11· ·parties to be allowed to question MIEC. 12· · · · · · · ·CHAIRMAN TOENJES:· Questions for Ms. White? 13· · · · · · · ·Yes, Mr. Perkins. 14· ·QUESTIONS BY MR. PERKINS: 15· · · Q.· More comments.· And that would assume that 16· ·written testimony is made very timely? 17· · · A.· Immediately, yeah.· For us to review the 18· ·testimony, prepare discovery request, give MIEC ample 19· ·time to submit the response to that, and then us time to 20· ·evaluate it, that would all have to happen very quickly. 21· · · Q.· Just a follow-up, if we were to receive an 22· ·additional request to intervene that we are not aware of 23· ·at this point, then we might be in a situation where we 24· ·would need to add a meeting on top of that potentially? 25· · · A.· Potentially, yes. Page 48 ·1· · · · · · · ·CHAIRMAN TOENJES:· Would there be any ·2· ·budgetary implications to that? ·3· · · · · · · ·MS. WHITE:· If an additional meeting is ·4· ·added to the calendar, yes, that would not be included ·5· ·in the original budget.· That would be extra. ·6· · · · · · · ·CHAIRMAN TOENJES:· Any other questions for ·7· ·Ms. White? ·8· · · · · · · ·Thank you. ·9· · · · · · · ·Ms. Stump, would you care to make some 10· ·comments? 11· · · · · · · ·MS. STUMP:· I would be happy to but Ms. 12· ·Plescia would like to -- am I saying your name right? 13· ·Okay.· Ms. Plescia would like an opportunity to clarify 14· ·something for the Rate Commission if that's all right 15· ·with you? 16· · · · · · · ·CHAIRMAN TOENJES:· Information is good. 17· · · · · · · ·MS. PLESCIA:· Ms. Myers had talked about a 18· ·need for an additional hearing and that the rebuttal 19· ·testimony might be filed by MIEC or that we might seek 20· ·to.· We are not planning on filing rebuttal testimony 21· ·and we are planning to participate at least be in the 22· ·room for the technical conference, but we are not 23· ·planning on filing testimony.· And as I stated earlier, 24· ·the Commission obviously has full discretion to put 25· ·limits on the MIEC's participation to the extent that it Page 49 ·1· ·finds prejudice.· Certainly, I would like to have a ·2· ·chance to brief the Commission on whether there would be ·3· ·prejudice regarding later filing of surrebuttal ·4· ·testimony, but we would rather be interveners in the ·5· ·case and not be able to file testimony than not be able ·6· ·to intervene at all.· So I just wanted to clarify that ·7· ·issue about rebuttal testimony that we are not planning ·8· ·on presenting (inaudible) at this time, and the only ·9· ·opportunity we see would be surrebuttal.· If the 10· ·Commission really thinks that would be prejudicial, 11· ·then, of course, we won't do it.· We'd still rather 12· ·intervene. 13· · · · · · · ·CHAIRMAN TOENJES:· Which is why I ask the 14· ·question about accept the record as it stands. 15· · · · · · · ·MS. PLESCIA:· Exactly right, that's what we 16· ·intend to do. 17· · · · · · · ·CHAIRMAN TOENJES:· Thank you. 18· · · · · · · ·Ms. Myers? 19· · · · · · · ·MS. MYERS:· We just wanted -- the District 20· ·would like to clarify that if the Commission allows 21· ·surrebuttal testimony by MIEC, then there is no 22· ·opportunity for the Rate Commission, nor the District, 23· ·to kind of vet their position on what -- because that 24· ·will be the first testimony that anyone will see as to 25· ·what MIEC's position is in that.· So I just want to Page 50 ·1· ·clarify that if MIEC is asking -- I understand they're ·2· ·saying they will not present rebuttal testimony, but ·3· ·they are asking to submit surrebuttal which I think ·4· ·still will prejudice the parties already participating. ·5· · · · · · · ·CHAIRMAN TOENJES:· Thank you, Ms. Myers. ·6· · · · · · · ·Any further comments on this request?· Is ·7· ·there any sort of motion from any of the Rate ·8· ·Commissioners regarding this request? ·9· · · · · · · ·COMMISSIONER STEIN:· Mr. Chair? 10· · · · · · · ·CHAIRMAN TOENJES:· Mr. Stein? 11· · · · · · · ·COMMISSIONER STEIN:· I move that the request 12· ·of the MIEC to intervene be approved. 13· · · · · · · ·COMMISSIONER PALANS:· Second that motion. 14· · · · · · · ·CHAIRMAN TOENJES:· There's a motion made and 15· ·seconded.· I think I would prefer that we take a roll 16· ·call vote. 17· · · · · · · ·So, Mr. Secretary, will you call the roll? 18· · · · · · · ·COMMISSIONER STEIN:· Mr. Chair? 19· · · · · · · ·CHAIRMAN TOENJES:· Yes, Mr. Stein? 20· · · · · · · ·COMMISSIONER FAUL:· Point of order? 21· · · · · · · ·CHAIRMAN TOENJES:· Mr. Faul? 22· · · · · · · ·COMMISSIONER FAUL:· Is this a be approved 23· ·wholesale or be intervene wholesale or with any 24· ·limitations?· Just so I know what the vote is? 25· · · · · · · ·CHAIRMAN TOENJES:· Discussion on the motion Page 51 ·1· ·then.· Discussion on the motion.· Thank you, Mr. Faul. ·2· ·Discussion on the motion.· There's a question by ·3· ·Mr. Faul, Mr. Stein? ·4· · · · · · · ·COMMISSIONER STEIN:· Are we having a ·5· ·discussion on the motion before the vote here? ·6· · · · · · · ·CHAIRMAN TOENJES:· Yes. ·7· · · · · · · ·COMMISSIONER STEIN:· Okay.· If it would ·8· ·please the Chair, I would like to make a few statements, ·9· ·comments on the motion? 10· · · · · · · ·CHAIRMAN TOENJES:· Please do, Mr. Stein. 11· · · · · · · ·COMMISSIONER STEIN:· I'm going to speak to 12· ·this from my experience from being on the Rate 13· ·Commission from Day 1.· My understanding of the role of 14· ·the Commission as it has been established under the MSD 15· ·Charter is a -- essentially a finder of fact.· It has 16· ·been our responsibility to take all the information, 17· ·whether it comes from District, from its consultants, 18· ·from the consultants to the Commission, from the public, 19· ·et cetera.· To dump all that out on the table, sort it 20· ·out, and to inquire of those submitting information what 21· ·they have to support their various positions, and to 22· ·make a recommendation to the trustees based upon all 23· ·that information.· In other words, the trustees are 24· ·saying to us you sort it all out, you look at all the 25· ·information, and come to us with an analysis of whether Page 52 ·1· ·the rate proposal meets the criteria of the Charter ·2· ·Plan.· That's what our essential assignment is. ·3· · · · · · · ·Over the years, we have had numerous ·4· ·interveners who have provided critical, useful ·5· ·information to the Rate Commission, not just MIEC but ·6· ·AARP has been there, the Home Builders have been there, ·7· ·we've had private individuals there and I'm probably not ·8· ·listing them all.· Over time, there has been a reduction ·9· ·in the number and involvement of different interveners 10· ·and I personally think that's unfortunate. 11· · · · · · · ·As to whether that has provided useful 12· ·information to the District, the very first rate case 13· ·that was presented to us, the District came forward and 14· ·proposed to acquire all of their revenue on a 15· ·pay-as-you-go basis and not to use any debt, and the 16· ·interveners came forward and pointed out the severe rate 17· ·shock that would occur to all of the District's 18· ·customers by going on a PAYGO basis rather than the use 19· ·of debt.· Since that time, debt has been a critical 20· ·portion of all of the rate proposals going forward. 21· · · · · · · ·I think to exclude interveners from the 22· ·process, and I agree it's unfortunate that we're kind of 23· ·in the middle of this when this is occurring, is going 24· ·to deny the give and take that occurs in the process 25· ·through examination of individual groups, positions Page 53 ·1· ·through a formal process of examination under oath, et ·2· ·cetera, such that when we get to the end, we can go to ·3· ·the trustees and say here are all the facts, we've ·4· ·sorted them out, and this is our best considered ·5· ·judgment as to whether or not this proposal meets the ·6· ·requirements of the Charter Plan. ·7· · · · · · · ·So with that background, I believe that it ·8· ·is appropriate and beneficial to the work of trustees ·9· ·and to the District that we allow this intervention to 10· ·occur. 11· · · · · · · ·COMMISSIONER FAUL:· Okay.· For clarification 12· ·then, it's full -- the full rights of intervention is 13· ·the motion on the table? 14· · · · · · · ·CHAIRMAN TOENJES:· Mr. Stein, is that the 15· ·motion on the table? 16· · · · · · · ·COMMISSIONER STEIN:· Yes. 17· · · · · · · ·CHAIRMAN TOENJES:· So further discussion on 18· ·the motion?· Mr. Mahfood? 19· · · · · · · ·COMMISSIONER MAHFOOD:· Mr. Chairman, do you 20· ·think that we would -- just trying to get my thoughts 21· ·together here to -- let me tell you that my approach and 22· ·the approach of the Coalition for the Environment would 23· ·be to have as much intervention and transparency as 24· ·possible in this process, and frankly, any process.· And 25· ·we've been very disappointed in the lack of intervention Page 54 ·1· ·by a number of organizations that we thought would be at ·2· ·the table, some who have been mentioned today, and I ·3· ·think it's really unfortunate that MIEC didn't follow ·4· ·the schedule for reasons that were explained. ·5· · · · · · · ·But still, you know, I'd like to have a ·6· ·motion that would put some sideboards to this because ·7· ·without another motion, I probably will -- I'll be ·8· ·gulping a little bit but I will be voting to support ·9· ·their intervention because of my and the organization's 10· ·ideas about full transparency and getting as many 11· ·organizations and people engaged and involved as 12· ·possible but I would like to see some sideboards. 13· · · · · · · ·CHAIRMAN TOENJES:· Describe sideboards. 14· · · · · · · ·COMMISSIONER STEIN:· Possibly our legal 15· ·counsel defining for us the -- what Ms. Plescia has 16· ·already talked about as far as the limitations on what 17· ·they will provide us and the amount of the limitations 18· ·and how they will participate in the testimony process 19· ·and, frankly, issues that I would hope we could, from a 20· ·legal standpoint, define. 21· · · · · · · ·CHAIRMAN TOENJES:· Mr. Palans? 22· · · · · · · ·COMMISSIONER PALANS:· Thank you, 23· ·Mr. Chairman. 24· · · · · · · ·As I look at what our requirements are and 25· ·the findings we must make, we must consider the Page 55 ·1· ·financial impact on all classes of ratepayers in ·2· ·determining a fair and reasonable burden.· I'm sensitive ·3· ·to the fact that no timely intervention has occurred, ·4· ·I'm more sensitive to -- I'm more sensitive to the fact ·5· ·that we must consider the financial impact on all ·6· ·classes of ratepayers.· And by precluding their ·7· ·participation, I don't think we get the full benefit of ·8· ·what they can offer. ·9· · · · · · · ·I also believe that it's unfair to impose 10· ·additional financial burdens upon us or our 11· ·professionals or on the District's professionals.· So I 12· ·would propose some sidebars.· I would propose to approve 13· ·the motion but perhaps modify the motion to some extent. 14· · · · · · · ·First, I would allow intervention, I would 15· ·preclude the -- I'm not sure of your name -- MIEC, 16· ·whatever.· I would preclude them from making discovery, 17· ·from taking discovery of the District because the record 18· ·is the record as we find it today.· We have propounded 19· ·discovery, we're not going to replicate or duplicate any 20· ·additional burdens with regard to that discovery.· So I 21· ·would allow you to come in, I would preclude your 22· ·discovery rights as a condition for your coming in, I 23· ·would require that you provide your testimony on an 24· ·accelerated basis so that if our professionals, our 25· ·consultants wish to make discovery requests upon your Page 56 ·1· ·group, that we have that opportunity to do so before our ·2· ·next surrebuttal hearing. ·3· · · · · · · ·If we're going to do that, I would propose a ·4· ·schedule that you would provide your testimony -- I'm ·5· ·going to throw out a number -- within 14 days.· You've ·6· ·already retained your experts, I would propose your ·7· ·experts provide their written declarations in support of ·8· ·their positions within that time frame.· That would ·9· ·allow our consultants and professionals an opportunity 10· ·to follow-up with questions that we might have, 11· ·interrogatories, discovery requests upon your group, and 12· ·that your expert be prepared to testify at our 13· ·surrebuttal hearing and be heard. 14· · · · · · · ·And I think all of this is really being 15· ·crafted so that we, as a Commission, have the 16· ·opportunity to consider the financial impact on all 17· ·classes of ratepayers.· So I would propose that we allow 18· ·intervention but with the safeguards that I have 19· ·described. 20· · · · · · · ·CHAIRMAN TOENJES:· Mr. Faul? 21· · · · · · · ·COMMISSIONER FAUL:· Yes, thank you.· Along 22· ·with the Coalition for the Environment, I completely 23· ·agree that more information is always better and that, 24· ·you know, having -- our duty is to the rate as a whole 25· ·which is why, you know, I would be against intervention. Page 57 ·1· · · · · · · ·The motion, if it fails, is not excluding ·2· ·the industrials.· It's making an exception to include ·3· ·them.· They have excluded themselves which I think is ·4· ·unfortunate, just like I think every other ratepayer ·5· ·organization that has excluded themselves by not ·6· ·bringing in testimony or intervening is disheartening. ·7· · · · · · · ·So I wanted to make that position is that ·8· ·they've excluded themselves and are asking for an ·9· ·exception to the rule, that they're not bringing us more 10· ·information in this regard, they would be intervening to 11· ·be the only information that is, as counsel described, 12· ·intentionally skewed to help their side of this process 13· ·rather than having to look at the District as a whole. 14· · · · · · · ·If there was some off-setting balance of 15· ·another organization to skew that position for a fuller 16· ·picture, I would be more inclined to allow full 17· ·intervention.· The fact that they would be the sole 18· ·intervener makes this a fact -- would, in my opinion, 19· ·make it a fact-finding position that would be skewed to 20· ·the detriment of the rate process. 21· · · · · · · ·With that being said, as the prior trustee, 22· ·those kind of guidelines, roadblocks, sideboards however 23· ·you would describe them, I'm certainly more inclined to 24· ·vote in favor of that is which is the position of my 25· ·point of order to begin with, to know what the motion Page 58 ·1· ·actually was. ·2· · · · · · · ·I appreciate the time. ·3· · · · · · · ·CHAIRMAN TOENJES:· Thank you, Mr. Faul. ·4· · · · · · · ·Ms. Stump? ·5· · · · · · · ·MS. STUMP:· Mr. Goss is trying to comment ·6· ·and he's having some difficulty because he's muted and ·7· ·he doesn't have a raised hand so I don't know if he ·8· ·can -- ·9· · · · · · · ·CHAIRMAN TOENJES:· I'm told that Mr. Goss 10· ·will need to disconnect and call back in again unless he 11· ·can -- 12· · · · · · · ·COMMISSIONER GOSS:· Thank you, Mr. Chair. 13· · · · · · · ·CHAIRMAN TOENJES:· I can hear you now, 14· ·Mr. Goss. 15· · · · · · · ·CHAIRMAN GOSS:· Okay.· Thank you.· I would 16· ·echo Mr. Stein's comments that we -- the role of this 17· ·Commission is to eliminate all points of order and to 18· ·discover all issues that impact the rate and whether the 19· ·rate is fair (inaudible) the ratepayers.· And to that 20· ·extent, I am inclined to grant the intervention because 21· ·I do think it will bring additional information that is 22· ·useful to the Rate Commission.· And there are 23· ·representatives of different groups that would be 24· ·potential (inaudible) that it might be on the 25· ·Commission.· I believe that -- I don't want to speak for Page 59 ·1· ·Ms. Croyle but I believe her group is representing ·2· ·consumers more generally.· But certainly, the Home ·3· ·Builders are representing the Home Building (inaudible). ·4· ·And we see our role as protecting consumers, the ·5· ·consumers who own homes, who are buying homes.· And so ·6· ·when you look at the rate through that lens as to ·7· ·whether it's fair to those residential home buyers more ·8· ·so than the residential home builders. ·9· · · · · · · ·So I do think there's (inaudible) groups who 10· ·simply needs to be those caveat groups.· I don't share 11· ·the (inaudible) there but I do think they're there.· And 12· ·the only question I have about Mr. Palans' proposal is 13· ·that I think the way they're saying it is they have to 14· ·produce testimony within the next two weeks which gives 15· ·MSD an opportunity to, as well as our experts, to 16· ·evaluate that.· And then the surrebuttal essentially 17· ·after (inaudible) rebuttal, our rebuttal for their 18· ·testimony.· Is that correct?· Is that what you're trying 19· ·to accomplish? 20· · · · · · · ·COMMISSIONER PALANS:· Yes, this is Lloyd and 21· ·that is what I'm trying to accomplish so that their 22· ·representative would be here at surrebuttal and subject 23· ·themself to cross-examination. 24· · · · · · · ·COMMISSIONER GOSS:· Okay.· Thank you. 25· · · · · · · ·That's all I have, Mr. Chairman. Page 60 ·1· · · · · · · ·CHAIRMAN TOENJES:· Thank you, Mr. Goss. ·2· · · · · · · ·Is there further discussion of the motion? ·3· · · · · · · ·Yes, Mr. Perkins? ·4· · · · · · · ·COMMISSIONER PERKINS:· Yes.· The question I ·5· ·have is with regard to the process that Mr. Palans ·6· ·outlined as a kind of an alternative I guess.· With the ·7· ·testimony that would be coming from MIEC at the ·8· ·surrebuttal stage, one of the concerns that I heard from ·9· ·Susan Myers was that that -- there would not be adequate 10· ·time for the staff and for the consultants to vet -- 11· ·properly vet that because that would be really their 12· ·first -- it'll be their first presentation of their 13· ·position. 14· · · · · · · ·So we heard that concern from Ms. Myers and 15· ·I would like to understand just so I didn't miss 16· ·anything based on the proposal of Mr. Palans how 17· ·Ms. Myers and our consultants feel about being able to 18· ·properly present a response to that, that time frame 19· ·outlined. 20· · · · · · · ·CHAIRMAN TOENJES:· Ms. Myers? 21· · · · · · · ·MS. MYERS:· The biggest concern is that we 22· ·will not have an opportunity to rebut their position 23· ·until surrebuttal which is the last opportunity. I 24· ·appreciate Commissioner Palans' suggestions of them 25· ·timely submitting their rebuttal testimony, still, that Page 61 ·1· ·would only give the District and your all's consultants ·2· ·seven days before our surrebuttal testimony is due.· So ·3· ·that's not very long to evaluate someone's testimony. ·4· · · · · · · ·I think what we're missing here is ·5· ·there's -- in the past, there's been a lot of ·6· ·conversation that goes on at the technical conferences, ·7· ·the face-to-face conversations.· I know, you know, in ·8· ·the past, we've had Tim Snoke, our expert, just go at ·9· ·questioning with MIEC's rate consultant, you know what I 10· ·mean?· I think that's the part I think that will be 11· ·missed here.· But, I mean, if the Rate Commission, if 12· ·their wishes are to allow intervention, I certainly 13· ·support the sideboards that are being talked about. I 14· ·do think that seven days is pretty short for the 15· ·District and the rate consultants to evaluate MIEC's 16· ·testimony.· So, you know, that would be my concern. 17· · · · · · · ·But trust me, the District understands the 18· ·Rate Commission's position in allowing the public in and 19· ·the public to participate.· You know, our only concern 20· ·is that it's fair for everybody, including you all that 21· ·have to evaluate our proposal and us that has to defend 22· ·it. 23· · · · · · · ·CHAIRMAN TOENJES:· Ms. White, Ms. Lemoine, 24· ·any comments? 25· · · · · · · ·MS. WHITE:· I agree with what Ms. Myers just Page 62 ·1· ·stated.· I would just add that the seven days does ·2· ·not -- not only not allow us a lot of time to review the ·3· ·testimony, it also does not allow us time to submit a ·4· ·discovery request and receive a response back. ·5· · · · · · · ·CHAIRMAN TOENJES:· Mr. Palans? ·6· · · · · · · ·COMMISSIONER PALANS:· Understanding the ·7· ·concerns and the timing request, I would propose that we ·8· ·shorten the time for your testimony to be produced to ·9· ·seven days from today.· That would allow additional time 10· ·for both our Commission, counsel, and advisors as well 11· ·as the District to be able to respond.· I'm trying to 12· ·strike an appropriate balance that's not going to 13· ·prejudice anybody unnecessarily.· Just coming in, you're 14· ·going to be prejudicing people.· We're trying to 15· ·minimize that impact and I think that would be a fair 16· ·proposal given your acceptance of the record as it is, 17· ·your preclusion of discovery of the District, and allow 18· ·you to participate and, more importantly, to allow us to 19· ·consider the financial impact on all classes of 20· ·ratepayers.· So I would -- modifying my own proposal 21· ·that they propose their testimony within seven days from 22· ·today. 23· · · · · · · ·CHAIRMAN TOENJES:· Mr. Hoelscher has a 24· ·comment. 25· · · · · · · ·Mr. Hoelscher, please. Page 63 ·1· · · · · · · ·MR. HOELSCHER:· We'll just make that -- I -- ·2· ·just to add for the full record, so don't forget that ·3· ·MSD has got a lot of input from customers that's ·4· ·reflected in our proposal so I would just lay that out. ·5· · · · · · · ·The other part, just looking at the ·6· ·schedules, we put a lot of effort towards scheduling ·7· ·around this.· Whether it's a matter to you or not, I ·8· ·will be out of the country during this whole period up ·9· ·to surrebuttal.· So the CEO will not be able to 10· ·participate in the process if you add this additional 11· ·piece into it, whether that influences you at all or 12· ·not. 13· · · · · · · ·CHAIRMAN TOENJES:· Thank you, Mr. Hoelscher. 14· · · · · · · ·Anyone on the telephone have any comments? 15· · · · · · · ·Mr. Goss? 16· · · · · · · ·COMMISSIONER GOSS:· Is Mr. Palans' proposal 17· ·actually part of a motion at this point and had -- 18· · · · · · · ·CHAIRMAN TOENJES:· No, right now 19· ·the -- right now the motion on the table is to -- as I 20· ·understand it from Mr. Stein, the motion is to grant a 21· ·request for intervention -- full intervention; is that 22· ·correct, Mr. Stein? 23· · · · · · · ·COMMISSIONER STEIN:· That's correct. 24· · · · · · · ·CHAIRMAN TOENJES:· So the motion on the 25· ·table from Mr. Stein is to grant intervention with full Page 64 ·1· ·rights and Mr. Palans has seconded that motion.· There's ·2· ·been no modification of the original motion at this ·3· ·point. ·4· · · · · · · ·COMMISSIONER GOSS:· Mr. Stein -- I would ask ·5· ·Mr. Stein if he's willing to modify his motion.· I think ·6· ·the (inaudible) proposal is (inaudible) right now as ·7· ·much as we can. ·8· · · · · · · ·Thank you. ·9· · · · · · · ·COMMISSIONER SAVOY:· I have a question, this 10· ·is Lisa Savoy, and my question is for Lisa Stump.· And 11· ·that question is if we do agree to extend the time for 12· ·this organization to submit, would that also necessitate 13· ·us communicating to the public at large that there is an 14· ·extra seven days for anyone to also submit, or would 15· ·this just be solely for this one group? 16· · · · · · · ·MS. STUMP:· Thank you, Lisa, it would be 17· ·just solely for this one group, the motion that -- if 18· ·this motion is approved.· I do not believe we would have 19· ·to take any other notice provision, I think whatever 20· ·action the Rate Commission takes today, we would reflect 21· ·in the information on the website, but there's nothing 22· ·additional -- no additional publication. 23· · · · · · · ·Also, I believe if we -- if the Commission 24· ·takes this step, it's not -- from what I'm hearing, 25· ·we're not adding any additional meetings to the Page 65 ·1· ·schedule, it's just the fact that MIEC would be allowed ·2· ·to file testimony and then their witness would be ·3· ·available at the surrebuttal technical conference which ·4· ·we already have scheduled for July 10th.· So that I ·5· ·think is answering your question. ·6· · · · · · · ·COMMISSIONER SAVOY:· Yeah, it does.· Thank ·7· ·you.· It just feels like it would probably be more ·8· ·transparent of us if we were to say, hey, there's an ·9· ·extra seven days for anybody.· I'm sure that's not what 10· ·we want but, I mean, it just feels like if we're going 11· ·to grant this, perhaps in the interest of fairness, 12· ·maybe it should be an announcement or something, even if 13· ·it's just on the website, that there is an extra seven 14· ·days for everybody else.· Whatever you decide is fine. 15· ·It just -- it just -- I don't know.· It just seems like 16· ·perhaps that might be something we need to do. 17· · · · · · · ·That's all.· Thank you. 18· · · · · · · ·CHAIRMAN TOENJES:· Mr. Palans? 19· · · · · · · ·COMMISSIONER PALANS:· Yes, Mr. Chairman, I 20· ·would just like to ask Mr. Stein if he would consider in 21· ·lieu of proposal a motion for full intervention, if he 22· ·would consider amending his motion to modify it in the 23· ·manner that we've described, with the seven days 24· ·provision of testimony, preclusion of discovery and by 25· ·the industrial folks, and have their witness available Page 66 ·1· ·for cross-examination at the surrebuttal. ·2· · · · · · · ·COMMISSIONER STEIN:· I would consent to that ·3· ·amendment. ·4· · · · · · · ·CHAIRMAN TOENJES:· Mr. Moynihan? ·5· · · · · · · ·COMMISSIONER MOYNIHAN:· And I mean this very ·6· ·respectfully but this just seems very chaotic and it ·7· ·seems like it's creating more problems than there are ·8· ·benefits and, you know, now it's been almost an hour and ·9· ·a half and I don't -- I don't see how this is 10· ·beneficial.· You know, rules are rules, things were put 11· ·in place and I don't know why we're going to bend over 12· ·backwards to start changing rules half way through this 13· ·process and that's really all I have to say. 14· · · · · · · ·CHAIRMAN TOENJES:· Thank you, Mr. Moynihan. 15· · · · · · · ·Further discussion? 16· · · · · · · ·Mr. Stein, could you state your amended 17· ·motion? 18· · · · · · · ·COMMISSIONER STEIN:· Yes, I move we accept 19· ·MIEC's petition to intervene subject to the conditions 20· ·that Mr. Palans enunciated earlier which I cannot recall 21· ·precisely but I'm sure he can. 22· · · · · · · ·CHAIRMAN TOENJES:· And those provisions are? 23· · · · · · · ·COMMISSIONER PALANS:· That they be allowed 24· ·to intervene, that they provide their testimony within 25· ·seven days from today, that they be available to respond Page 67 ·1· ·to discovery requests that are made by interested ·2· ·parties, and that they appear at surrebuttal with their ·3· ·witness available for cross-examinations. ·4· · · · · · · ·MS. STUMP:· Mr. Palans, didn't you have a ·5· ·condition too that they not be allowed to submit ·6· ·discovery? ·7· · · · · · · ·COMMISSIONER PALANS:· Yes, thank you, that ·8· ·they are precluded from making any discovery requests of ·9· ·the District or -- our Commission, that they accept the 10· ·record as it is today. 11· · · · · · · ·CHAIRMAN TOENJES:· Is that accurate, 12· ·Mr. Stein? 13· · · · · · · ·COMMISSIONER STEIN:· Yes, it is. 14· · · · · · · ·CHAIRMAN TOENJES:· Is there any discussion 15· ·on the amended motion? 16· · · · · · · ·COMMISSIONER ZIEGLER:· Just real quick, this 17· ·is Paul Ziegler remote, I kind of have the same 18· ·sentiment that I have a hard time changing the rules, 19· ·these are some of the most sophisticated companies we 20· ·have in St. Louis, if they can't follow the timelines, I 21· ·have a hard time believing our timeline should be 22· ·followed by anybody.· So, again, I appreciate them 23· ·intervening and they can give their testimony in the 24· ·public hearings, but I'm inclined to not grant them 25· ·intervention status. Page 68 ·1· · · · · · · ·CHAIRMAN TOENJES:· Any further discussion on ·2· ·the motion? ·3· · · · · · · ·We will ask for -- at that point, I think we ·4· ·are ready to take a roll call vote, Mr. Secretary. ·5· · · · · · · ·COMMISSIONER CLARKE:· Leonard Toenjes? ·6· · · · · · · ·CHAIRMAN TOENJES:· No. ·7· · · · · · · ·COMMISSIONER CLARKE:· Lou Jearls? ·8· · · · · · · ·COMMISSIONER JEARLS:· No. ·9· · · · · · · ·COMMISSIONER CLARKE:· Lloyd Palans? 10· · · · · · · ·COMMISSIONER PALANS:· Yes. 11· · · · · · · ·COMMISSIONER CLARKE:· Paul Ziegler? 12· · · · · · · ·COMMISSIONER ZIEGLER:· No. 13· · · · · · · ·COMMISSIONER CLARKE:· Patrick Moynihan? 14· · · · · · · ·COMMISSIONER MOYNIHAN:· No. 15· · · · · · · ·COMMISSIONER CLARKE:· Brad Goss? 16· · · · · · · ·COMMISSIONER GOSS:· Yes. 17· · · · · · · ·COMMISSIONER CLARKE:· Steve Mahfood? 18· · · · · · · ·COMMISSIONER MAHFOOD:· Yes. 19· · · · · · · ·COMMISSIONER CLARKE:· Jack Stein? 20· · · · · · · ·COMMISSIONER STEIN:· Yes. 21· · · · · · · ·COMMISSIONER CLARKE:· Lisa Savoy? 22· · · · · · · ·COMMISSIONER SAVOY:· Yes. 23· · · · · · · ·COMMISSIONER CLARKE:· Mark Perkins? 24· · · · · · · ·COMMISSIONER PERKINS:· No. 25· · · · · · · ·COMMISSIONER CLARKE:· I don't think Ryan Page 69 ·1· ·Barry is here. ·2· · · · · · · ·Mickey Croyle? ·3· · · · · · · ·COMMISSIONER CROYLE:· Yes. ·4· · · · · · · ·COMMISSIONER CLARKE:· Matt Muren? ·5· · · · · · · ·COMMISSIONER MUREN:· Yes. ·6· · · · · · · ·COMMISSIONER CLARKE:· Jim Faul? ·7· · · · · · · ·COMMISSIONER FAUL:· No. ·8· · · · · · · ·COMMISSIONER CLARKE:· And I vote no, Bill ·9· ·Clarke. 10· · · · · · · ·CHAIRMAN TOENJES:· Count them, please. 11· · · · · · · ·COMMISSIONER CLARKE:· Seven no -- seven, 12· ·seven.· Missing one member. 13· · · · · · · ·CHAIRMAN TOENJES:· Ms. Stump? 14· · · · · · · ·MS. STUMP:· There are -- looking at there 15· ·are 14 members that are here, then you would need eight 16· ·to pass. 17· · · · · · · ·CHAIRMAN TOENJES:· We have a quorum? 18· · · · · · · ·MS. STUMP:· Correct. 19· · · · · · · ·CHAIRMAN TOENJES:· That would require eight 20· ·(inaudible)? 21· · · · · · · ·MS. STUMP:· Correct. 22· · · · · · · ·CHAIRMAN TOENJES:· So the motion failed? 23· · · · · · · ·MS. STUMP:· Correct. 24· · · · · · · ·CHAIRMAN TOENJES:· Rate Commission will take 25· ·a break until 11:15. Page 70 ·1· · · · · · · ·(Off the record.) ·2· · · · · · · ·(Back on the record.) ·3· · · · · · · ·CHAIRMAN TOENJES:· Mr. Stein, you are ·4· ·leaning forward to the microphone. ·5· · · · · · · ·COMMISSIONER STEIN:· Thank you, ·6· ·Mr. Chairman.· I would like to propose another motion, ·7· ·this motion to allow the MIEC to intervene in this free ·8· ·process as a participant to allow interrogation of ·9· ·witnesses but not to submit testimony on its own. 10· · · · · · · ·CHAIRMAN TOENJES:· Is there a second for 11· ·that motion? 12· · · · · · · ·UNIDENTIFIED SPEAKER:· I would second that 13· ·motion. 14· · · · · · · ·CHAIRMAN TOENJES:· There's a motion made and 15· ·seconded. 16· · · · · · · ·Discussion on the motion? 17· · · · · · · ·MS. STUMP:· Mr. Chair, can I clarify too 18· ·that the motion -- 19· · · · · · · ·CHAIRMAN TOENJES:· Ms. Stump, yes. 20· · · · · · · ·MS. STUMP:· I assume the motion would also 21· ·be that they would not be able to submit discovery like 22· ·Mr. Palans had said previously? 23· · · · · · · ·CHAIRMAN TOENJES:· That's correct. 24· · · · · · · ·MS. STUMP:· Okay.· Thank you. 25· · · · · · · ·COMMISSIONER MAHFOOD:· Mr. Chairman? Page 71 ·1· · · · · · · ·CHAIRMAN TOENJES:· Mr. Mahfood? ·2· · · · · · · ·COMMISSIONER MAHFOOD:· Could you explain ·3· ·that?· I'm -- I don't quite understand what you're ·4· ·opposing.· Sorry. ·5· · · · · · · ·COMMISSIONER STEIN:· This would allow a ·6· ·certain degree give and take on the part of the ·7· ·interveners and the witnesses without adding additional ·8· ·testimony from MIEC that would require examination of ·9· ·that testimony.· So it would strictly allow MIEC to come 10· ·in and participate as a participant in the discovery 11· ·process by cross-examination. 12· · · · · · · ·CHAIRMAN TOENJES:· Did that answer your 13· ·question? 14· · · · · · · ·COMMISSIONER MAHFOOD:· Kind of. 15· · · · · · · ·CHAIRMAN TOENJES:· Kind of? 16· · · · · · · ·COMMISSIONER MAHFOOD:· Yes, kind of. 17· · · · · · · ·CHAIRMAN TOENJES:· Any other Rate 18· ·Commissioners have any questions? 19· · · · · · · ·Yes, Mr. Perkins and Mr. Muran? 20· · · · · · · ·COMMISSIONER MOYNIHAN:· I would be 21· ·interested in hearing from Ms. Stump and -- Ms. Myers 22· ·and Ms. Stump about this matter, about this proposal. 23· · · · · · · ·CHAIRMAN TOENJES:· We'll have Ms. Myers and 24· ·then Ms. White. 25· · · · · · · ·MS. MYERS:· I'm sorry, I was late coming in. Page 72 ·1· ·So could I ask Commissioner Stein to restate your ·2· ·position? ·3· · · · · · · ·COMMISSIONER STEIN:· Yes, the position would ·4· ·allow the MIEC to be an intervener to the extent that ·5· ·MIEC would be able to cross-examine witnesses in ·6· ·that -- and be a participant in the hearings but not to ·7· ·submit testimony on its own. ·8· · · · · · · ·MS. MYERS:· Okay.· And my concern with that ·9· ·is that in the past, MIEC has offered the Rate 10· ·Commission alternative suggestions on the way to do 11· ·things, are alternative to different technical items 12· ·that are in the proposal.· The one that pops into my 13· ·head is the inflation rate or, you know, different 14· ·things like that.· So my concern is that if MIEC is only 15· ·questioning witnesses, then the witnesses don't get an 16· ·opportunity to defend whatever MIEC may be proposing. 17· ·That's the point of the three technical conferences like 18· ·I talked about before, you know.· So that would be my 19· ·concern from the District's perspective. 20· · · · · · · ·CHAIRMAN TOENJES:· Ms. White? 21· · · · · · · ·MS. WHITE:· I agree with what Ms. Myers 22· ·stated.· The Rate Commission consultants would not have 23· ·an opportunity to I guess kind of know what to expect 24· ·from MIEC in terms of questions to be prepared given 25· ·that we would not have any testimony to go by to Page 73 ·1· ·understand what their position is and what they might be ·2· ·requesting of us. ·3· · · · · · · ·CHAIRMAN TOENJES:· Mr. Palans. ·4· · · · · · · ·COMMISSIONER PALANS:· I think that's ·5· ·improper.· I think it's an improper concern.· The ·6· ·testimony that's going to be provided is going to be ·7· ·identified on the record.· Testimony is going to be ·8· ·identified on the record.· Cross-examination is on the ·9· ·testimony that is offered.· Cross-examination does not 10· ·introduce new testimony such that -- and this safeguard 11· ·does not preclude -- does not provide any additional 12· ·discovery, delay, or timing.· It is just another voice 13· ·at the table to ask questions, not offer new evidence. 14· ·It is a questioning period, not expanding the scope of 15· ·the direct testimony but purely as a cross-examination 16· ·opportunity.· I don't see any prejudice whatsoever 17· ·associated with that. 18· · · · · · · ·CHAIRMAN TOENJES:· Mr. Stein, is that in 19· ·alignment with your motion? 20· · · · · · · ·COMMISSIONER STEIN:· Yes, it is. 21· · · · · · · ·MS. MYERS:· Can I ask a question? 22· · · · · · · ·CHAIRMAN TOENJES:· Ms. Myers. 23· · · · · · · ·MS. MYERS:· So the Rate Commission is going 24· ·to limit MIEC's questions to only the information that 25· ·has already been submitted by testimony? Page 74 ·1· · · · · · · ·COMMISSIONER STEIN:· Yes, that is what ·2· ·cross-examination is. ·3· · · · · · · ·MS. MYERS:· Okay.· I just want to make that ·4· ·clear because I foresee surrebuttal being kind a ·5· ·free-for-all otherwise.· And so as long as those limits ·6· ·are there, I think that's a step in the right direction. ·7· · · · · · · ·CHAIRMAN TOENJES:· Ms. Plescia, you had a ·8· ·comment.· Please come forward to the microphone.· I want ·9· ·to make sure the people on the telephone can hear you. 10· · · · · · · ·MS. PLESCIA:· (Inaudible) has made a point 11· ·that Commissioner Palans made is that cross-examination 12· ·is to ask questions about testimony that's been offered 13· ·and not at all should introduce any new issues into the 14· ·case.· And I think that cross-examination generally is 15· ·by its nature inherently guarding against new issues 16· ·coming up by the definition of it so... 17· · · · · · · ·CHAIRMAN TOENJES:· Thank you. 18· · · · · · · ·MS. PLESCIA:· That's all.· It's really 19· ·repeating what he said. 20· · · · · · · ·MS. MYERS:· One other clarification at this 21· ·time. 22· · · · · · · ·CHAIRMAN TOENJES:· Ms. Myers? 23· · · · · · · ·MS. MYERS:· So would MIEC's questions be 24· ·limited to the surrebuttal testimony? 25· · · · · · · ·COMMISSIONER STEIN:· Yes, exactly. Page 75 ·1· · · · · · · ·MS. MYERS:· Okay.· Just whatever is ·2· ·submitted? ·3· · · · · · · ·COMMISSIONER STEIN:· Yes, they enter at this ·4· ·state.· If they had an opportunity to ask questions on ·5· ·prior testimony, they've lost it.· It's on the record as ·6· ·it appears on surrebuttal. ·7· · · · · · · ·MS. MYERS:· Okay.· Thank you. ·8· · · · · · · ·CHAIRMAN TOENJES:· Ms. Lemoine? ·9· · · · · · · ·MS. LEMOINE:· Timing as well.· So under this 10· ·motion, MIEC offering the ability to question witnesses, 11· ·would that begin today or at the surrebuttal stage? 12· · · · · · · ·COMMISSIONER STEIN:· At the surrebuttal 13· ·stage. 14· · · · · · · ·CHAIRMAN TOENJES:· Any further discussion on 15· ·the motion?· Would the District and the rate consultants 16· ·and our legal counsel like to take some time to consider 17· ·this?· That we would table this until perhaps you had 18· ·time to think it through a little bit or would you -- do 19· ·you feel that need. 20· · · · · · · ·MS. MYERS:· Are you going to take this in 21· ·the form of other motion to vote on? 22· · · · · · · ·CHAIRMAN TOENJES:· We have a motion on the 23· ·table, motion made and seconded that's in the discussion 24· ·phase.· My question is from -- you have obviously 25· ·objected to the original motion and you've all three Page 76 ·1· ·offered information about the prior motion.· I wonder if ·2· ·you would like some additional time to consider any ·3· ·other comments on this motion prior to the vote? ·4· · · · · · · ·MS. STUMP:· I don't think we see any need to ·5· ·do that.· I think the Rate Commission has spent a lot of ·6· ·time discussing this and I'm also afraid we might have ·7· ·lost some Commissioners that have already been involved ·8· ·in the discussion and we're fine with going ahead and ·9· ·voting. 10· · · · · · · ·MS. MYERS:· Yes, and are fine with going 11· ·ahead and vote based upon our understanding that 12· ·their -- MIEC's testimony and cross-examination will -- 13· ·no testimony.· Their cross-examination will be on the 14· ·surrebuttal testimony only. 15· · · · · · · ·CHAIRMAN TOENJES:· Any questions online? 16· ·Any comments?· Everyone understand the motion? 17· · · · · · · ·Mr. Secretary, will you take the vote? 18· · · · · · · ·COMMISSIONER CLARKE:· Leonard Toenjes? 19· · · · · · · ·CHAIRMAN TOENJES:· No. 20· · · · · · · ·COMMISSIONER CLARKE:· Lou Jearls? 21· · · · · · · ·COMMISSIONER JEARLS:· Yes. 22· · · · · · · ·COMMISSIONER CLARKE:· Lloyd Palans? 23· · · · · · · ·COMMISSIONER PALANS:· Yes. 24· · · · · · · ·COMMISSIONER CLARKE:· Paul Ziegler? 25· · · · · · · ·COMMISSIONER ZIEGLER:· No. Page 77 ·1· · · · · · · ·COMMISSIONER CLARKE:· Patrick Moynihan? ·2· · · · · · · ·COMMISSIONER MOYNIHAN:· No. ·3· · · · · · · ·COMMISSIONER CLARKE:· Brad Goss? ·4· · · · · · · ·COMMISSIONER GOSS:· Yes. ·5· · · · · · · ·COMMISSIONER CLARKE:· Stephen Mahfood? ·6· · · · · · · ·COMMISSIONER MAHFOOD:· Yes. ·7· · · · · · · ·COMMISSIONER CLARKE:· Jack Stein? ·8· · · · · · · ·COMMISSIONER STEIN:· Yes. ·9· · · · · · · ·COMMISSIONER CLARKE:· Lisa Savoy? 10· · · · · · · ·COMMISSIONER SAVOY:· Yes. 11· · · · · · · ·COMMISSIONER CLARKE:· Mark Perkins? 12· · · · · · · ·COMMISSIONER PERKINS:· No. 13· · · · · · · ·COMMISSIONER CLARKE:· Mr. Barry is absent. 14· · · · · · · ·Mickey Croyle? 15· · · · · · · ·COMMISSIONER CROYLE:· Yes. 16· · · · · · · ·COMMISSIONER CLARKE:· Matt Muren? 17· · · · · · · ·COMMISSIONER MUREN:· Yes. 18· · · · · · · ·COMMISSIONER CLARKE:· Jim Faul? 19· · · · · · · ·MR. FAUL:· No. 20· · · · · · · ·COMMISSIONER CLARKE:· And I vote no, 21· ·however, we have six no and eight yes.· Motion passes. 22· · · · · · · ·CHAIRMAN TOENJES:· Does anyone care to make 23· ·any other motions before we move from this topic? I 24· ·would say that the last two hours is an indication of 25· ·how seriously all the Rate Commissioners take their Page 78 ·1· ·responsibility to the public and to the District and I ·2· ·thank everyone for their patience, honesty, and careful ·3· ·consideration of this request and I hope it is the last ·4· ·request we ever get from MIEC or from any other ·5· ·organization.· It is a -- two hours that could have been ·6· ·spent on something much more productive had timely ·7· ·application been made, and that concludes my remarks on ·8· ·that subject. ·9· · · · · · · ·Ms. Stump, are you ready to present those 10· ·persons for who you filed testimony on behalf of the 11· ·Rate Commission? 12· · · · · · · ·MS. STUMP:· I am.· I have first Ms. Pam 13· ·Lemoine. 14· · · · · · · ·CHAIRMAN TOENJES:· Ms. Lemoine, please come 15· ·forward and we do need to -- 16· · · · · · · ·MS. STUMP:· Excuse me, just a second. I 17· ·would like to change that.· We're going to have 18· ·Ms. White first, please. 19· · · · · · · ·CHAIRMAN TOENJES:· Thank you.· We do need to 20· ·have you take -- come up and take the oath. 21· · · · · · · ·UNIDENTIFIED PERSON:· Wendi, you can do the 22· ·oath. 23· · · · · · · ·CHAIRMAN TOENJES:· Are you -- hello?· Are 24· ·you able to swear in online or does it have to be in 25· ·person? Page 79 ·1· · · · · · · ·THE REPORTER:· Are you wanting me to swear ·2· ·her in? ·3· · · · · · · ·CHAIRMAN TOENJES:· If possible, yes. ·4· · · · · · · ·THE REPORTER:· Yes, I can.· Just let me know ·5· ·when her hand is raised and I will swear her in. ·6· · · · · · · ·CHAIRMAN TOENJES:· Her hand is raised. ·7· · · · · · (Whereupon, ANNA WHITE was sworn in.) ·8· · · · · · · ·CHAIRMAN TOENJES:· Thank you, Ms. Stump. ·9· · · · · · · ·Please, Ms. Myers, do you have any questions 10· ·for Ms. White? 11· ·QUESTIONS BY MS. MYERS: 12· · · Q.· Okay.· Good morning. 13· · · A.· Morning. 14· · · Q.· Please state your name for the record. 15· · · A.· My name is Anna White. 16· · · Q.· And who do you work for? 17· · · A.· I work for Black & Veatch Corporation. 18· · · Q.· What is your position with them? 19· · · A.· I'm a principal consultant within the management 20· ·consulting group. 21· · · Q.· Okay.· And what is your role in this process? 22· · · A.· So my role in this process is to review the 23· ·proposal that has been put forth by the District 24· ·specifically to evaluate the stormwater proposal in 25· ·terms of the revenue requirements, how much revenue Page 80 ·1· ·needs to be generated to meet the District's ·2· ·requirements -- stormwater requirements, evaluate the ·3· ·rate proposal that is put forward in terms of the two ·4· ·proposed stormwater charges, whether those charges will ·5· ·meet the requirements, funding requirements for the ·6· ·stormwater program, and evaluate the impact that those ·7· ·proposals may have on customers. ·8· · · Q.· Thank you.· The question I have is in regards to ·9· ·Question 30 of your rebuttal testimony.· It's Exhibit 10· ·Rate Commission 77, it's on Page 17. 11· · · A.· Yes. 12· · · Q.· Okay.· And in that testimony, you are 13· ·recommending the District consider estimating an 14· ·effective impervious area by applying a reasonable low 15· ·runoff factor to the parcel lot size; is that accurate? 16· · · A.· That is correct. 17· · · Q.· And based upon that recommendation, what rate 18· ·would you propose the District collect from 19· ·nonresidential parcels with no impervious area? 20· · · A.· So the rate, which I interpret to be the charge, 21· ·would be the same charge that would be applied to 22· ·nonresidential parcels with impervious area.· So the 23· ·$1.05 per thousand square feet. 24· · · Q.· And what would be your recommendation for 25· ·properties that have some impervious area and also have Page 81 ·1· ·compacted Earth area? ·2· · · A.· My recommendation would be that the District ·3· ·consider the impervious area on the property and not be ·4· ·concerned with the pervious area, whether it's compacted ·5· ·or noncompacted. ·6· · · Q.· And so you would propose that those types of ·7· ·properties be charged the same as a nonresidential ·8· ·impervious -- a nonresidential with only impervious ·9· ·area? 10· · · A.· Correct, what I'm proposing is basically two 11· ·components, properties that have impervious area would 12· ·be charged $1.05 per thousand square feet, parcels 13· ·without impervious area at all would be charged based on 14· ·what we would call an effective of pervious area which 15· ·would also be $1.05 per thousand square feet. 16· · · Q.· Okay.· And could you describe to us what you 17· ·would expect the appeals process to look like for 18· ·properties that have the impervious area and also 19· ·compacted Earth?· Let me rephrase it.· Please describe 20· ·what you would expect the appeals process to look like 21· ·for properties that are vacant, that do not have any 22· ·impervious or compacted Earth? 23· · · A.· Sure.· So all properties should have the 24· ·opportunity to appeal, there may be more appeals coming 25· ·from properties that do not have impervious area that Page 82 ·1· ·are still being charged the stormwater fee.· I would ·2· ·venture that the reason for the appeal is that the ·3· ·property owner is indicating that their soil or their ·4· ·ground covering is not compacted and, therefore, it does ·5· ·allow more infiltration of stormwater, rainwater into ·6· ·the ground versus rolling off of the runoff off of the ·7· ·property because the property is more compacted. ·8· · · · · · · ·So the appeal process would be for somebody ·9· ·from the District just to go out and examine the 10· ·property, determine what the ground layer is, is it, you 11· ·know, compacted gravel, is it compacted dirt, is it in 12· ·its pure, natural state.· And based on those conditions, 13· ·could either adjust the calculation for the effective 14· ·impervious area for that property just based on the 15· ·findings of the ground covering. 16· · · Q.· Thank you.· Would you make the same 17· ·recommendation if we told you the cost of billing and 18· ·collection efforts would exceed the revenues collected 19· ·from such properties? 20· · · A.· I -- so the decision whether to charge parcels 21· ·with no impervious area, the stormwater fee is purely a 22· ·policy decision for the District to determine.· If the 23· ·District determines that it would cost more to charge 24· ·those parcels than the revenue recovered, then I would 25· ·say that it would be justified in making a policy Page 83 ·1· ·decision to not charge a stormwater fee to those ·2· ·parcels. ·3· · · · · · · ·MS. MYERS:· Okay. ·4· · · · · · · ·COMMISSIONER UNVERFERTH:· I just want to ·5· ·clarify. ·6· · · · · · · ·CHAIRMAN TOENJES:· Mr. Unverferth? ·7· · · · · · · ·COMMISSIONER UNVERFERTH:· Sorry. I ·8· ·apologize.· Rich Unverferth, Director of Engineering. ·9· ·QUESTIONS BY MR. UNVERFERTH: 10· · · Q.· So I'm kind of going back to the question where 11· ·Susan asked you what rate you would propose.· So 12· ·obviously it is $1.05 per thousand square foot of 13· ·impervious area, correct, is our rate, right?· Am I 14· ·saying that correctly? 15· · · A.· That is your rate, yes. 16· · · Q.· Okay. 17· · · A.· The proposal. 18· · · Q.· So if I'm going to charge that for the size of 19· ·the property, am I just not charging -- I guess, I'm 20· ·trying to understand that.· Are you saying I should 21· ·charge them as all their property's completely 22· ·impervious?· I guess I'm kind of confused there. 23· · · A.· So I mean just referring to nonresidential 24· ·parcels that have no structures, no improvement, so 25· ·vacant land. Page 84 ·1· · · Q.· Correct. ·2· · · A.· So within the industry, there's a practice ·3· ·where -- to calculate what's called an effective ·4· ·impervious area for parcels that do not have impervious ·5· ·area, so this is based on hydrology guidelines that are ·6· ·similar to what's used for storm sewer planning, for ·7· ·planning the system to understand how much flow is ·8· ·expected, these hydrology guidelines are taken into ·9· ·account.· For that practice, we often see that they are 10· ·taken into account for the purpose of charging or 11· ·billing the stormwater fee. 12· · · · · · · ·So for an example, so a vacant piece of 13· ·property, the hydrology guideline for an unimproved area 14· ·is between 10 percent and 30 percent.· So what I had 15· ·recommended was 10 percent.· So that 10 percent would be 16· ·applied to the lot size or the gross area for that 17· ·parcel, and then the result of that calculation would be 18· ·what we would call the effective impervious area and so 19· ·it would be treated the same as a parcel with impervious 20· ·area so that effective impervious area would be charged 21· ·$1.05 per thousand square feet. 22· · · Q.· Based on a percentage of what we felt the runoff 23· ·is? 24· · · A.· Based on the hydrology guidelines for the type of 25· ·property, yes. Page 85 ·1· · · Q.· So the same time you said that if a property does ·2· ·have impervious area, you wouldn't look at the ·3· ·non-impervious area the same way? ·4· · · A.· So the District can make a policy to do that. ·5· ·There are utilities that do charge based on the amount ·6· ·of impervious area, as well as the pervious area for a ·7· ·parcel, that's much more work to do, much more effort. ·8· ·That's not what I'm proposing here.· I'm just proposing ·9· ·parcels that have zero impervious area still provide a 10· ·recognition that those parcels do benefit from the 11· ·District's stormwater system and should be contributing 12· ·towards those costs in some way, which I'm recommending 13· ·the impervious area recommendation, effective impervious 14· ·area. 15· · · Q.· I'm just going to throw out a scenario here where 16· ·you have a large -- very large vacant property.· In 17· ·essence, it could be cheaper for them to build a 18· ·thousand square feet of pavement and pay the $1.05 than 19· ·if we put a percentage.· So and I -- I'm just saying 20· ·that so I understand what your recommendation is. I 21· ·think that's all the questions I had. 22· · · · · · · ·MS. MYERS:· That concludes the District's 23· ·questions. 24· · · · · · · ·CHAIRMAN TOENJES:· Thank you. 25· · · · · · · ·Ms. Stump, do you have questions for Page 86 ·1· ·Ms. White? ·2· · · · · · · ·MS. STUMP:· Ms. White, I just -- do you want ·3· ·to comment any further on -- (inaudible)? ·4· · · · · · · ·MS. WHITE:· I do understand what you were ·5· ·saying and I have seen that in other places.· Within ·6· ·Black & Veatch, when we do stormwater feasibility study ·7· ·or stormwater implementation, we do take into account ·8· ·when we calculate that effective impervious area, that, ·9· ·like you said, somebody could decide to go put, you 10· ·know, a hundred square foot concrete block in order to 11· ·avoid paying the effective impervious area, so we 12· ·usually recommend that there's a cap on the amount.· So 13· ·say if the parcel -- if the gross area of the parcel is 14· ·2,000 square feet, we might recommend that you put a cap 15· ·on that at 500,000 square feet and only charge for 10 16· ·percent of that 500.· But the effective impervious area 17· ·in order to kind of mitigate, like you mentioned, those 18· ·issues where somebody decides it's better to go put a 19· ·shed on the property than pay that -- the stormwater 20· ·fee. 21· · · · · · · ·MS. MYERS:· Okay.· Thank you. 22· · · · · · · ·CHAIRMAN TOENJES:· Questions from the Rate 23· ·Commissioners for Ms. White?· Mr. Palans? 24· ·QUESTIONS BY MR. PALANS: 25· · · Q.· My first comment is really a suggestion to help Page 87 ·1· ·us.· If you can articulate how you specifically would ·2· ·propose that we amend our request to the District's ·3· ·proposal that we consider in a suggestion to the ·4· ·District.· So if we're filing objections, I'd like to be ·5· ·able to articulate specifically what our objection is ·6· ·and what the District should be doing specifically to ·7· ·fulfill what your testimony is.· It might be one ·8· ·sentence, it might be two sentences, but I want us to be ·9· ·able to consider that in a proposal to the Commission. 10· · · A.· Are you specifically referring to the topic we 11· ·were just discussing? 12· · · Q.· Yes, this exact topic.· If it's $1.05, if you 13· ·could articulate it succinctly in two sentences that we 14· ·might consider in responding to the Commission -- to the 15· ·District, I'm sorry. 16· · · A.· So I would say that I would recommend that the 17· ·District consider evaluating a policy to charge all 18· ·nonresidential parcels, whether there is impervious area 19· ·or no impervious area, the proposed stormwater charge of 20· ·$1.05 per thousand square feet. 21· · · Q.· Thank you.· And I'm not holding you two those 22· ·exact words today.· If you want to refine it to be 23· ·more -- to capture the essence of your suggestion, I 24· ·want to be able to articulate it in whatever we respond 25· ·to the District's proposal. Page 88 ·1· · · A.· So I would add a comma at the end and add to ·2· ·recognize that all parcels contribute stormwater runoff. ·3· · · Q.· If you would be so kind as to capture that and ·4· ·give some more thought to it, I'm not trying to bind you ·5· ·to that statement today. ·6· · · · · · · ·I would like to ask some questions with ·7· ·respect to what I understand to be the stormwater ·8· ·proposal that 30 percent of the revenues to the ·9· ·municipalities and county in our service area in the 10· ·form of grants to allow for prioritization of any 11· ·stormwater project.· So it's a 30 percent piece there I 12· ·would like to ask you about. 13· · · · · · · ·I think on Question 28, you indicated that 14· ·that 30 percent of the revenue raises a potential issue 15· ·for heavily industrial commercial municipalities versus 16· ·bedroom communities and the District should consider a 17· ·methodology based on a blend of both population and 18· ·impervious area for allocating grant funding to 19· ·municipalities.· Could you articulate what that 20· ·methodology would be? 21· · · A.· Certainly.· So we had requested -- the Rate 22· ·Commission had requested in our fifth discovery request 23· ·to the District to provide the data for all of the 24· ·municipalities in terms of the population, amount of 25· ·impervious area, residential versus nonresidential Page 89 ·1· ·makeup and we received that information.· This is part ·2· ·of Exhibit MSD 81A, we received the GEO database that ·3· ·contained all of that information. ·4· · · · · · · ·So what that gave us the ability to do is to ·5· ·not only look at the ranking of those municipalities by ·6· ·population, but to look at it based on impervious area ·7· ·as -- that was the alternative I was referring to was ·8· ·looking at it on another basis.· So what this data ·9· ·indicated was once we did the ranking by impervious 10· ·area, we assumed that the same number of municipalities 11· ·in each of the proposed six ranges would stay the same, 12· ·we just rank them by impervious area instead of 13· ·population.· So out of the total number of 14· ·municipalities, 60 percent of those would stay within 15· ·the same range or grouping that they would currently 16· ·fall under based on population.· The other 40 percent or 17· ·about 34 of those would end up in a different range or 18· ·ranking.· Out of those 34, 32 of them either moved up or 19· ·down one ranking.· There were only two that moved more 20· ·than one ranking -- more than one range.· So two of them 21· ·moved either two ranges above or two ranges below.· So 22· ·those two were Fenton and Green Park. 23· · · · · · · ·So it's my understanding that Fenton is a 24· ·significant industrial area and so it makes sense that 25· ·while the population in Fenton is fairly low, the Page 90 ·1· ·impervious area is fairly a high.· So that's the exact ·2· ·example that I was referring to that that could happen. ·3· ·And so Fenton would move from the fourth group down from ·4· ·population to the second group down for impervious area. ·5· ·So it would receive a higher grant under the impervious ·6· ·area ranking. ·7· · · · · · · ·Green Park was the other one, I don't have ·8· ·any information about Green Park in terms of its -- if ·9· ·it's also the similar situation where it's highly 10· ·industrial and, therefore, it would be moving from the 11· ·fifth group for population up to the third group for 12· ·impervious area.· So again, receiving a higher grant. 13· · · · · · · ·So that is just an example to get an idea 14· ·of, you know, the difference between ranking by 15· ·population and ranking by impervious area.· And, again, 16· ·as I mentioned in my testimony, a bedroom community 17· ·that's mostly residential is going to have most likely 18· ·less impervious area.· If you do a comparison of 19· ·population than a community or municipality that has an 20· ·industrial area such as Fenton. 21· · · Q.· My question is really the same question.· Can you 22· ·articulate for us what the methodology should be based 23· ·on a blend of both population and impervious area so 24· ·that we can suggest that to the District.· You've 25· ·identified that the District should consider a Page 91 ·1· ·methodology, identify it, okay? ·2· · · · · · · ·I want to stay on the same allocation, the ·3· ·30 percent grant portion.· And I say this in -- with a ·4· ·backdrop of our obligation to consider the financial ·5· ·impact on all classes of ratepayers in determining a ·6· ·fair and reasonable burden.· The 30 percent allocation ·7· ·is to municipalities and counties based upon population. ·8· ·There is an exhibit, and unfortunately I don't know the ·9· ·number of exhibit, which showed what the -- it broke 10· ·down all of the incorporated areas within the District, 11· ·it showed what the proposed grant would be under this 12· ·30 percent allocation, and it also indicated a -- the 13· ·total dollars that are presently allocated to those 14· ·municipalities. 15· · · · · · · ·Because we have to consider the financial 16· ·impact on all classes of ratepayers, when I look at this 17· ·exhibit, there are approximately 14 municipalities that 18· ·are actually receiving less funds under the grant than 19· ·they are currently receiving unit OMCI allocation. 20· ·Those communities are Florissant, Creve Coeur, Ferguson, 21· ·Manchester, Clayton, Richmond Heights, Des Peres, Ladue, 22· ·Olivette, Brentwood, Berkeley, Frontenac, Green Park, 23· ·and Huntleigh. 24· · · · · · · ·UNIDENTIFIED SPEAKER:· We're looking at the 25· ·73B? Page 92 ·1· · · · · · · ·COMMISSIONER PALANS:· Yeah, that's it. ·2· · · Q.· (By Mr. Palans) And because we have to ·3· ·consider fair and reasonable burden on all class of ·4· ·ratepayers, these municipalities under that 30 percent ·5· ·formula are actually going to be receiving less under ·6· ·this proposal than they currently receive today and I ·7· ·question whether that is a fair and reasonable ·8· ·allocation.· It appears to be arbitrary on the ·9· ·District's part and that's a comment.· If you would look 10· ·at that further, please. 11· · · A.· Can you please repeat just the names of a couple 12· ·of those? 13· · · Q.· Sure.· Florissant, Creve Coeur, Ferguson, 14· ·Manchester, Clayton, Richmond Heights, Des Peres, Ladue, 15· ·Olivette, Brentwood, Berkeley, Frontenac, Green Park, 16· ·and Huntleigh. 17· · · A.· Okay.· Thank you. 18· · · · · · · ·COMMISSIONER PALANS:· Thank you.· I have no 19· ·further questions. 20· · · · · · · ·CHAIRMAN TOENJES:· Thank you, Mr. Palans. 21· · · · · · · ·Any further questions from any of the Rate 22· ·Commissioners for Ms. White? 23· · · · · · · ·Yes, Mr. Perkins? 24· · · · · · · ·COMMISSIONER PERKINS:· It's more of a 25· ·comment than a question.· Mr. Palans kind of beat me to Page 93 ·1· ·that issue on Q28 about looking at some alternative ·2· ·means of allocating those revenues to those ·3· ·municipalities based on the issue of impervious surface ·4· ·and opposed to strictly population.· So I would just ask ·5· ·that be -- that we do, indeed, look at that from the ·6· ·standpoint as part of our recommendation going forward. ·7· · · · · · · ·MS. WHITE:· Okay.· Thank you. ·8· · · · · · · ·CHAIRMAN TOENJES:· Any other questions for ·9· ·Ms. White at this point? 10· ·QUESTIONS BY MR. TOENJES: 11· · · Q.· I have one, Ms. White.· In response to 12· ·Mr. Unverferth, you talked about a cap on the impervious 13· ·versus -- you know what I'm saying? 14· · · A.· Yes, I do. 15· · · Q.· You talked about a cap based on square feet? 16· · · A.· Yes. 17· · · Q.· Have you ever seen a cap based on a percentage of 18· ·the overall property size?· And would that be an 19· ·alternative to consider? 20· · · A.· I can't say that I've seen that but just to 21· ·clarify what you're stating, so if a parcel, say, is 22· ·2,000 square feet gross area on developed land, I think 23· ·you're saying put a cap on, say, 10 percent of the gross 24· ·area and then applying a runoff -- 25· · · Q.· Right, to Mr. Unverferth's question about some Page 94 ·1· ·place that has a large piece of property and just puts a ·2· ·small shed on there, that would perhaps -- so that there ·3· ·would be a floating system based on a percentage size of ·4· ·the property rather than a blanket square foot ·5· ·requirement? ·6· · · A.· Yes. ·7· · · Q.· Have you ever seen that or does it make any ·8· ·sense? ·9· · · A.· I don't know if I've seen it actually 10· ·implemented.· I do think that with one client that we 11· ·are currently working with to implement a storm water 12· ·fee, I think that was an idea that was floated at one 13· ·point but it was -- did not move forward.· But I think 14· ·it definitely is a reasonable alternative that the 15· ·District could consider as a policy, whether it's 16· ·assigning, you know, a cap to the amount of impervious 17· ·area, as I gave an example of a quarter acre, something 18· ·like that, or a percent of the total gross area. I 19· ·think either one would be acceptable. 20· · · · · · · ·CHAIRMAN TOENJES:· Thank you. 21· · · · · · · ·COMMISSIONER GOSS:· Mr. Chairman? 22· · · · · · · ·CHAIRMAN TOENJES:· Mr. Goss? 23· · · · · · · ·MR. GOSS:· I had a couple questions. 24· ·QUESTIONS BY MR. GOSS: 25· · · Q.· The $1.05 rate, how did you determine that? Page 95 ·1· · · A.· I did not determine the $1.05. ·2· · · · · · · ·CHAIRMAN TOENJES:· The $1.05 was determined ·3· ·by? ·4· · · · · · · ·MS. WHITE:· That was provided by the ·5· ·District.· That's the District's proposal. ·6· · · · · · · ·CHAIRMAN TOENJES:· By the district, ·7· ·Mr. Goss. ·8· · · Q.· (By Mr. Goss) So if I understood what that rate ·9· ·was supposed to be, that's to influence all properties 10· ·or recognize all properties are contributing in the 11· ·stormwater problem so all properties should be charged; 12· ·is that correct? 13· · · A.· That is correct. 14· · · Q.· So when I was listening to your proposal, if I 15· ·have parcel property that have some impervious surface 16· ·on it and then balance is not impervious, you would be 17· ·exempting that parcel on that charge; is that what 18· ·you're suggesting? 19· · · A.· I'm going to say no but let me restate the 20· ·question to make sure I understood it.· If there is a 21· ·parcel -- I think what I heard was if there's a parcel 22· ·that has impervious area and then it's deemed that it 23· ·doesn't have impervious area, it is not charged; is that 24· ·right? 25· · · Q.· Well, that's what I heard.· I think Page 96 ·1· ·Mr. Unverferth's question, he was suggesting somebody ·2· ·was going to ding the system.· They have vacant piece of ·3· ·property so they'll, oh, I'll go and put down a small ·4· ·amount of concrete and now I'm exempted because what I ·5· ·heard you saying was you weren't going to take into ·6· ·consideration the pervious area that remains, you just ·7· ·looked at the impervious surface that was created? ·8· · · A.· The last thing that you said is correct.· So ·9· ·under the current proposal, if there's a parcel that 10· ·that no impervious area, it would not receive a 11· ·stormwater charge.· If the owner of that property 12· ·suddenly put a 10-x-10 shed on that property, it would 13· ·then receive a stormwater charge. 14· · · · · · · ·What we're recommending that the District at 15· ·least consider as a policy decision to also charge 16· ·parcels that do not have any impervious area a 17· ·stormwater charge.· And there could be a situation where 18· ·the property owner would decide that it's to their 19· ·advantage to put a shed on the property and pay just for 20· ·the amount of impervious area for that shed versus 21· ·paying a potential charge based on the gross area, the 22· ·lot size of that property, that condition -- 23· · · Q.· Okay.· I understand that.· So wouldn't -- and I 24· ·understood you were discussing a solution if you put 25· ·some kind of cap on the amount of money you were going Page 97 ·1· ·to collect and I don't understand that at all.· Wouldn't ·2· ·it make more sense if you reach a calculation as to what ·3· ·the tipping point is with the impervious and pervious ·4· ·surface as to whether you're going to charge $1.05 rate ·5· ·or charge for impervious surface? ·6· · · A.· So the charge for a parcel with no impervious ·7· ·area, it wouldn't be $1.05 times the gross area.· It ·8· ·would be a percentage of that gross area based on a ·9· ·runoff coefficient that's determined by hydrology 10· ·guidelines.· So, for instance, for undeveloped land, a 11· ·runoff coefficient of 10 percent, so if a parcel is 12· ·3,000 square feet, 10 percent would be applied to that 13· ·and that is the amount that the stormwater charge, 14· ·$1.05, would be charged to. 15· · · · · · · ·So there may be a situation where the owner 16· ·could build something on the property at a smaller size 17· ·than that and pay less than they would pay if they just 18· ·left the property undeveloped and pay the stormwater 19· ·charge that way. 20· · · Q.· In that example, they would -- (inaudible) -- 21· · · · · · · ·CHAIRMAN TOENJES:· You're breaking up pretty 22· ·badly, Mr. Goss, on your cell connection.· You're 23· ·breaking up pretty badly.· Could you restate your 24· ·question? 25· · · · · · · ·MR. GOSS:· Yeah.· Can you hear me now? Page 98 ·1· · · · · · · ·MS. WHITE:· Yes. ·2· · · · · · · ·CHAIRMAN TOENJES:· Better. ·3· · · Q.· (By Mr. Goss) Okay.· If they (inaudible) because ·4· ·based on they would paying less than $1.05 charge that ·5· ·they would otherwise be having, and I think that's ·6· ·Mr. Unverferth was suggesting somebody would be gaining ·7· ·the system.· Wouldn't some of these simply be to charge ·8· ·of the greater of those two?· Because if generating the ·9· ·need based on the (inaudible) of their runoff of an 10· ·undeveloped parcel generate a need for treatment of a 11· ·certain amount of money.· So if the gain is (inaudible) 12· ·pretty small improvement and yet the need is a greater 13· ·number, just charge them the greater number? 14· · · A.· I have not seen that applied anywhere.· The 15· ·proposal is a charge based on the amount of impervious 16· ·area, there is no conditions on, you know, one way or 17· ·the other and the greater of the two.· That's not what's 18· ·being proposed and I'm not proposing that and I have 19· ·not -- as I mentioned, I have not seen that. 20· · · Q.· Right.· You're proposing for the conditioning 21· ·even if there's a compacted dirt, which is, quite 22· ·frankly, going to cause as much runoff as the impervious 23· ·area.· I mean, in the instance where you want to charge 24· ·the $1.05 times the coefficient charge for undeveloped 25· ·property?· You're wanting to set a base charge for all Page 99 ·1· ·properties in the district, whether they have impervious ·2· ·surface or not if I understand you correctly; is that ·3· ·right? ·4· · · A.· If I heard you correctly, no, I did not recommend ·5· ·a base charge for all properties. ·6· · · Q.· Okay.· But you are recommending that if you have ·7· ·an undeveloped parcel of property, that the runoff ·8· ·coefficient be applied to that property based on the ·9· ·formula you're talking about? 10· · · A.· Yeah, I am recommending that the District 11· ·consider that as a policy decision.· There are utilities 12· ·that have both -- that have what I'm proposing, a fee 13· ·that applies to parcels with impervious area and parcels 14· ·without impervious area based on the effective runoff 15· ·coefficient, there are also utilities that only 16· ·recognize parcels with impervious area which is what the 17· ·District is proposing.· My only recommendation is that 18· ·just the District consider charging parcels without 19· ·impervious area as a policy decision, but I am not 20· ·necessarily recommending that they actually do that. 21· ·That's a policy decision for the District to decide if 22· ·it's beneficial.· As Ms. Myers was indicating, if it's 23· ·beneficial in terms of the amount of revenue that would 24· ·be generated from that decision versus the cost 25· ·associated with that. Page 100 ·1· · · Q.· Have you determined the amount of revenue that ·2· ·that would generate? ·3· · · A.· No, I have not.· I don't believe that we have the ·4· ·data in order to identify the amount of the gross area ·5· ·for parcels that do not have impervious area. ·6· · · Q.· Do you know if MSD has that data? ·7· · · A.· I'm sorry, could you repeat that? ·8· · · Q.· Do you know if MSD has that data? ·9· · · A.· I would assume that they would have that 10· ·information, have the lot size for all of the parcels. 11· · · Q.· Okay.· So if MSD was finding that information, 12· ·then you could tell the Rate Commission the amount of 13· ·revenue that would raise for the District; is that 14· ·right? 15· · · A.· I will say yes, assuming that the information is 16· ·in the format that we would need it in order to make 17· ·that evaluation.· I'm saying yes without seeing the data 18· ·first. 19· · · Q.· Okay.· Well, what form would the information need 20· ·to be in? 21· · · · · · · ·CHAIRMAN TOENJES:· Mr. Goss? 22· · · · · · · ·Ms. Stump, go ahead. 23· · · · · · · ·MS. STUMP:· I just -- Mr. Chair, I don't 24· ·know if you -- the district has indicated they do have 25· ·that information.· I don't know at this time we need to Page 101 ·1· ·ask them more questions about that, whatever the ·2· ·Commission and Commissioner Goss would like or we could ·3· ·just pursue it perhaps in written discovery and get the ·4· ·information that Mr. Goss is looking for. ·5· · · · · · · ·CHAIRMAN TOENJES:· Mr. Hoelscher? ·6· · · · · · · ·COMMISSIONER HOELSCHER:· Yeah, we don't have ·7· ·the information.· We have to go to the GIS system, ask ·8· ·for that particular query, and as I understand it, ·9· ·nonresidential properties that have no mapped impervious 10· ·area, what is -- what does that look like.· And we would 11· ·have to search the GIS system to find that. 12· · · · · · · ·CHAIRMAN TOENJES:· Thank you, Mr. Hoelscher. 13· · · · · · · ·Mr. Clarke? 14· ·QUESTIONS BY MR. CLARKE: 15· · · Q.· Let me beat this dead horse.· The $1.05 that 16· ·we're talking about was backed into, wasn't it, based on 17· ·residential properties, the revenue and then 5743 or 18· ·whatever, and we backed into $1.05.· So now you're 19· ·potentially changing that $1.05 if you're generating 20· ·more revenue by building -- or billing not -- let's see. 21· ·I got -- non-impervious areas on areas we don't know yet 22· ·because the GIS system has it given, but the $1.05 could 23· ·change; is that correct? 24· · · A.· Correct.· I guess there's two ways to look at it, 25· ·either the amount of revenue provided by the stormwater Page 102 ·1· ·fee to help fund stormwater capital is greater if we ·2· ·pick up those properties, or, as you said, the $1.05 ·3· ·will go down because we have more units to recover that ·4· ·revenue from. ·5· · · Q.· The only reason I bring it is because it was ·6· ·based on the residential calculation and then we wanted ·7· ·to keep the fairness to the nonresidential by only ·8· ·generating a certain amount of revenue, dividing it by ·9· ·the number of acres of impervious area, and coming up 10· ·with $1.05.· So maybe it becomes a $1.03.· I don't know. 11· · · A.· Correct. 12· · · · · · · ·CHAIRMAN TOENJES:· Thank you, Mr. Clarke. 13· · · · · · · ·Any other questions for Ms. White? 14· · · · · · · ·Mr. Perkins? 15· ·QUESTIONS BY MR. PERKINS: 16· · · Q.· Just one more question about the issue we've been 17· ·discussing regarding the runoff, the coefficient or 18· ·vacant commercial properties would be 10 percent of what 19· ·I understand.· And then just so I understand then, the 20· ·runoff coefficient for fully developed commercial 21· ·properties, did I hear that -- what would the maximum be 22· ·on that be? 23· · · A.· There would not -- there would not be a runoff 24· ·coefficient for fully developed properties.· Those 25· ·properties would just pay based on the actual impervious Page 103 ·1· ·area. ·2· · · Q.· Okay.· So their entire impervious area would be ·3· ·subject to that fee? ·4· · · A.· Yes. ·5· · · Q.· Okay.· And then my other question was regarding ·6· ·Q34 about the recommendation of Black & Veatch to ·7· ·implement a credit program involving BMPs and I wanted ·8· ·to know if that was something that MSD was favorable to, ·9· ·if they considered that, or would consider something 10· ·along those lines as has been recommended? 11· · · A.· Correct, it's typical for a utility to offer a 12· ·credit program for nonresidential parcels as a way to 13· ·help control the amount that they pay for stormwater. 14· ·Just like with water, you can control how much you use, 15· ·the same concept for stormwater, nonresidential parcel 16· ·makes an improvement to their property that either 17· ·controls the amount of runoff or the quality of that 18· ·runoff, then they should receive some type of a 19· ·credit -- they could receive some type of a credit for 20· ·that action. 21· · · Q.· Okay.· And that is something then -- I think that 22· ·sounds like a good idea and I would hope that that would 23· ·be something MSD would be pursuing. 24· · · A.· Just one other add on to that, if there is a 25· ·credit program that obviously reduces the amount of Page 104 ·1· ·revenue recovered from nonresidential, so that might be ·2· ·something that might need to be taken into account for ·3· ·that $1.05.· We were talking about it going down, maybe ·4· ·it goes up a penny with the credit program. ·5· · · · · · · ·CHAIRMAN TOENJES:· Further questions for ·6· ·Ms. White at this time? ·7· · · · · · · ·I'm going to recommend that we take a lunch ·8· ·and break until 12:45. ·9· · · · · · · ·(Off the record.) 10· · · · · · · ·(Back on the record.) 11· · · · · · · ·CHAIRMAN TOENJES:· We are 12:45, we will go 12· ·ahead and resume.· At this point, I understand there are 13· ·no further questions for Ms. White.· Does anyone have 14· ·any further questions for Ms. White? 15· · · · · · · ·Hearing none. 16· · · · · · · ·Ms. Stump, do you have any additional 17· ·witnesses? 18· · · · · · · ·MS. STUMP:· Ms. Pam Lemoine, please. 19· · · · · · · ·CHAIRMAN TOENJES:· Please come forward and 20· ·we will -- we'll allow her to sit down and raise her 21· ·hand. 22· · · · · · · ·THE REPORTER:· Let me know when her hand is 23· ·raised and I'll swear her in. 24· · · · · · · ·CHAIRMAN TOENJES:· It is raised. 25· · · · · · (Whereupon, PAM LEMOINE was sworn in.) Page 105 ·1· · · · · · · ·CHAIRMAN TOENJES:· Thank you, Ms. Lemoine. ·2· ·Ms. Myers, do you have questions for Ms. Lemoine? ·3· · · · · · · ·MS. MYERS:· The District does not have any ·4· ·questions. ·5· · · · · · · ·CHAIRMAN TOENJES:· Thank you. ·6· · · · · · · ·Do any of the Rate Commissioners have ·7· ·questions for Ms. Lemoine? ·8· · · · · · · ·Ms. Stump, do you have any questions for ·9· ·Ms. Lemoine? 10· · · · · · · ·MS. STUMP:· I'm not going to let her go 11· ·so... 12· · · · · · · ·CHAIRMAN TOENJES:· Good.· Good.· We heard 13· ·this morning that we need all the public input we can 14· ·get so please proceed. 15· · · · · · · ·MS. STUMP:· Give me just a second because 16· ·there were -- there was something I wanted her to 17· ·clarify. 18· ·QUESTIONS BY MS. STUMP: 19· · · Q.· Let's talk about Question 24. 20· · · A.· Yes. 21· · · Q.· Where you talk about whether you have any 22· ·concerns about the financing plan for the CIRP you talk 23· ·a little about the two-year delay.· Can you just 24· ·summarize that a little bit for the Rate Commission? 25· · · A.· Sure.· The District's proposal includes a Page 106 ·1· ·presumed approval for regulators for a two-year delay in ·2· ·final -- one of the final large projects under the ·3· ·Consent Decree in order to allow the fluidized bed ·4· ·incinerator project to be moved forward in the schedule ·5· ·in order for that to be completed in order to meet other ·6· ·regulatory concerns. ·7· · · · · · · ·So the proposal that they have put forth ·8· ·includes a financial plan that provides for that under ·9· ·that presumption that that would be approved.· So if for 10· ·some reason the extension would not be approved, the 11· ·District would need to proceed with that project, as 12· ·well as the fluidized bed incinerator and all of their 13· ·other projects as well, which could, depending upon how 14· ·the District could reformulate their financial plan, 15· ·could result in slightly lower debt service coverage 16· ·levels, perhaps a little bit lower than what their 17· ·target is. 18· · · Q.· Thank you.· And on Question 31, you do have a 19· ·couple of areas where you talk about some concerns over 20· ·the District's proposed ONM expense escalation factors. 21· ·Can you just -- I think you pointed out two concerns 22· ·there or two areas of concern? 23· · · A.· Certainly, yes, in this environment with 24· ·inflation that is easing a little bit now but has been a 25· ·little bit crazy and supply change issues and so forth, Page 107 ·1· ·the District's analysis and their proposal was developed ·2· ·prior to today, right, it was -- and they relied upon ·3· ·data that was available to them at the time that they ·4· ·were doing that analysis.· Since then, one of the ·5· ·sources that they utilized was the Congressional Budget ·6· ·Office, the CBO, since then they have released their ·7· ·next updated version of that report which is indicating ·8· ·somewhat higher inflation area increases.· So the point ·9· ·of my testimony was that I don't feel that the 10· ·inflationary factors that they're including in their 11· ·proposal are overstated at all.· If anything, there's 12· ·perhaps some risk that they could be understating it 13· ·somewhat. 14· · · Q.· And then one area -- another area where you 15· ·discuss some -- something for the District to strongly 16· ·consider is in Question 41 about the proposed surcharge 17· ·rates and how those are implemented? 18· · · A.· Yes, the surcharge rates, as I discuss in my 19· ·number, based on the updated cost of service that the 20· ·District undertook results in pretty significant 21· ·increases for those surcharge components for total 22· ·suspended solids in particular with a system-wide 23· ·revenue increase of 7.5 percent in fiscal '25, they are 24· ·proposing to go cost of -- what the cost of service 25· ·analysis indicates which would be $1.05 percent increase Page 108 ·1· ·in the TSS, the total suspended solids rate, and 17.9 ·2· ·percent increases in the COD charges, which is, you ·3· ·know, obviously substantially higher than the average ·4· ·system-wide rate increase. ·5· · · Q.· So you're suggesting that they consider a phase ·6· ·in? ·7· · · A.· Yes.· Certainly cost of services is very ·8· ·important in setting rates, but it's one of many factors ·9· ·that a utility needs to look at in order to address all 10· ·facets of setting fair and reasonable rates.· And 11· ·potential rate shock in -- and particularly for 12· ·industrial customers, extra-strength surcharge 13· ·customers, if there isn't enough time to address that, 14· ·you run into concerns of instructional customers having 15· ·even further investment internally to avoid that rate 16· ·shock. 17· · · · · · · ·So I think the District had testified that 18· ·one of the reasons for the reduced surcharge units is 19· ·some process changes that some industrial customers are 20· ·evidently incorporating that are impacting the number of 21· ·surcharge units and, therefore, revenues.· And so 22· ·the -- just as we recommend with any customer class when 23· ·a rate is significantly changed due to cost of service, 24· ·it's reasonable to allow a time period to phase into 25· ·that full cost of service and balancing the potential Page 109 ·1· ·for rate shock and impact on customers against a cost of ·2· ·service. ·3· · · Q.· And then I guess my final question would be is ·4· ·there anything that you would like to point out to the ·5· ·Commission about your testimony in particular, or any ·6· ·other concerns that you want to just point out about the ·7· ·rate change proposal? ·8· · · A.· I don't believe so.· Not at this time. ·9· · · · · · · ·MS. STUMP:· I have no further questions. 10· · · · · · · ·Chairman Toenjes:· Mr. Palans? 11· ·QUESTIONS BY MR. PALANS: 12· · · Q.· Ms. Lemoine, as I understand your testimony, at 13· ·present, the completion of the projects required under 14· ·the Consent Decree will not be completed by 2039 and an 15· ·extension will be necessary in order to complete the 16· ·project for a CSO tunnel along River des Peres? 17· · · A.· My understanding is that the District's earlier 18· ·schedule allowed a buffer if you will to complete 19· ·everything prior to that 2039 deadline.· The testimony 20· ·as I recall that we have on the record at this point, 21· ·they stated that it would not require an extension to 22· ·that 2039 deadline, they can still do that, but it would 23· ·require an approval from regulators to change the 24· ·schedule. 25· · · Q.· Okay. Page 110 ·1· · · A.· Within that deadline. ·2· · · Q.· Okay.· And my questions are really focused upon ·3· ·the feasibility of completing compliance on the Consent ·4· ·Decree by 2039.· And as I understand the information, ·5· ·the estimated cost to comply with a Consent Decree today ·6· ·is $7.2 billion and -- which was a 20 percent increase ·7· ·over the $6 billion estimate that was received before. ·8· ·That's my recollection.· Does that match your ·9· ·understanding? 10· · · A.· I don't have the numbers handy in front of me but 11· ·certainly, yes, the earlier figure was based on an 12· ·earlier year dollarwise, and then the current value of 13· ·the cost of that is based on today's dollars along with 14· ·any updated cost estimates I presume that the District 15· ·may be incorporating into that as well. 16· · · Q.· And that differential from -- to get from $6 17· ·billion to $7.2 billion to comply with the Consent 18· ·Decree was a 20 percent increase or about 5 percent a 19· ·year during that four-year period, right? 20· · · A.· That would be the math, yes. 21· · · Q.· Okay.· And my concern is that if we have 22· ·consistent inflationary costs that impact the compliance 23· ·with the Consent Decree and we end up with additional 24· ·funds that are necessary to complete the capital 25· ·projects that are required, can you form an opinion Page 111 ·1· ·today that says you are certain that the District will ·2· ·have sufficient resources to meet its compliance ·3· ·requirements? ·4· · · A.· So I can't guarantee anything on behalf of a ·5· ·third party but I will say that they have a trackrecord ·6· ·of keeping their utility in strong financial condition ·7· ·with strong financial metrics, a good bond rating, and ·8· ·they have a track-record of executing the CIP at a level ·9· ·that I have no reason to believe that they wouldn't be 10· ·able to do it. 11· · · · · · · ·MR. PALANS:· Thank you. 12· · · · · · · ·CHAIRMAN TOENJES:· Further questions for 13· ·Ms. Lemoine? 14· ·QUESTIONS BY MR. TOENJES: 15· · · Q.· You mentioned the incinerator early on.· Talk 16· ·about the impact that has on that -- you talked about 17· ·the extension and -- could you delve down into that a 18· ·little bit, what that whole process looks like.· Do you 19· ·have experience with any other Districts with a similar 20· ·situation? 21· · · A.· It's not unusual for utilities to have other 22· ·regulatory considerations occur that require them to 23· ·revisit the capital program and have discussions -- if 24· ·they're under Consent Decree, to have discussions with 25· ·regulators to amend the Consent Decree.· Particularly Page 112 ·1· ·when it's a regulatory concern, a regulatory ·2· ·requirement, I can't say always, but regulators have ·3· ·been certainly very open and flexible in allowing for ·4· ·that because there's good reason for that need.· And, ·5· ·again, in this case, my understanding is the District ·6· ·won't be requesting an extension to the deadline, ·7· ·they're just requesting a change to the schedule within ·8· ·that deadline. ·9· · · · · · · ·So I think, you know, I don't, you know, 10· ·foresee any issues with them obtaining that because they 11· ·aren't asking for an extension to the ultimate deadline. 12· · · · · · · ·CHAIRMAN TOENJES:· Any other questions for 13· ·Ms. Lemoine?· Anybody online have any questions for 14· ·Ms. Lemoine? 15· · · · · · · ·Are there any other matters before the Rate 16· ·Commission before we adjourn? 17· · · · · · · ·Hearing none.· I thank everyone for their 18· ·active participation today and we will stand adjourned 19· ·until 9:30 a.m. on July 10th, 2023. 20· · · · · · · ·Thank you. 21· · · · · · · ·(Proceedings concluded at 12:57 p.m.) 22 23 24 25 Page 113 ·1· · · · · · · · · · CERTIFICATE OF REPORTER ·2 ·3· · · · · I, Mackenzie M. Smith, Registered Professional ·4· ·Reporter, and Missouri and Kansas Notary Public, do ·5· ·hereby certify that the witness whose testimony appears ·6· ·in the foregoing proceedings was duly sworn by me; that ·7· ·the testimony of said witness was taken by me to the ·8· ·best of my ability and thereafter reduced to typewriting ·9· ·under my direction; that I am neither counsel for, 10· ·related to, nor employed by any of the parties to the 11· ·action in which this proceedings was taken, and further, 12· ·that I am not a relative or employee of any attorney or 13· ·counsel employed by the parties thereto, nor financially 14· ·or otherwise interested in the outcome of the action. 15 16 17 18· · · · · · · · · ·________________________ · · · · · · · · · · · Mackenzie M. Smith, RPR 19· · · · · · · · Missouri & Kansas Notary Public 20 21 · · ·My Missouri commission expires January 18, 2025. 22· ·My Kansas commission expires February 23, 2025. 23 24 25 LEXITAS' LEXITAS' LEXITAS' LEXITAS' LEXITAS' LEXITAS' LEXITAS' LEXITAS' LEXITAS' LEXITAS' LEXITAS' LEXITAS' LEXITAS' LEXITAS' LEXITAS' LEXITAS' LEXITAS' LEXITAS' LEXITAS' LEXITAS' LEXITAS' LEXITAS' LEXITAS'