Briton Baxter

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3,030 appearances 30 recordings 1 series first heard Sep 2025 last heard 10 Sep

Briton Baxter’s voice in public audio — every appearance, attributed to the second.

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Arizona Corporation Commission · Hearing - W-01812A-25-0166 - Bermuda Water Company, Inc. - May 14, 2026 · 14 May 2026 meeting

So the way that I understand Bermuda setup is the fusion software is acquired at the parent level.

And then the expenses associated with that are allocated down to the operating entities.

So I think part of our recommendation was maybe to reclassify those costs to what we thought was a more appropriate account.

given the nature of the service that's provided.

So it's essentially their accounting software program.

So you're kinda touching on the reason why we recommend a rate case expense surcharge now?

Because we were seeing utilities, and I'm not saying this is Bermuda.

But we were seeing utilities get recovery of rate case expense built directly into base rates and say it was amortized over a five year period like this watermaster plan and then not filing a rate case for ten or fifteen years.

So rate payers were paying for that expense over a longer period of time than

Essentially they paid for it three or four times over.

So we thought a ray case expense surcharge mechanism was a more appropriate tool by which they can be made whole for the cost associated.

And not have rate payers pay for it in perpetuity until they file the next rate case.

In this particular instance for an expense like that that has a five year amortization period.

And the possibility and I say possibility 'cause the company at any time can determine its

more economical and and feasible for them to file a rate case as opposed to the annual formula rate request.

I suppose theoretically it would be possible to capture something like that within the context of a formula rate.

Where say if the fifth time they're filing for a formula rate request, that's the fifth year.

Of the amortization period.

it could be established in the plan of administration that an expense like that would be contemplated as flowing through that formula rate.

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