20160519notice_of_application_order_no_33525.pdf

Office ofthe Secretary
Service Date
May 19,2016
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF PACKSADDLE WATER SYSTEMS,)CASE NO.PKS-W-15-O1
INC.FOR APPROVAL OF ITS PURCHASE )
OF THE WATER SYSTEM AND A )NOTICE OF APPLICATION
CORRESPONDING NAME CHANGE )
)NOTICE OF
)MODIFIED PROCEDURE
)
_______________________________
)ORDER NO.33525
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that Packsaddle Water Systems,Inc.(“Packsaddle”
or “Company”)has submitted an Application requesting Commission approval of its purchase of
the water system,formerly owned by Packsaddle Estates Water Corporation,and corresponding
name change.
YOU ARE FURTHER NOTIFIED that Packsaddle argues that,because it functions
as a homeowners association (“HOA”)and is a “mutual non-profit organization represented by
board members in a democratically-run corporation,”the Commission may approve its purchase
of the water system without a Certificate of Public Convenience and Necessity (“CPCN”)
transfer.As a non-profit corporation,Packsaddle believes that it should not be classified as a
public utility subject to regulation by the Commission.
YOU ARE FURTHER NOTIFIED that Packsaddle estimates that the former owner,
Packsaddle Estates Water Corporation,operated the water system for the subdivision named
Packsaddle Creek Estates for nearly 40 years.The subdivision is located in Teton County,
Idaho.
YOU ARE FURTHER NOTIFIED that Packsaddle explained that the previous owner
of the water system was a for-profit corporation run by a single person.According to
Packsaddle,the for-profit corporation did not permit the subdivision’s water customers a vote or
input concerning the operation of the water system.
YOU ARE FURTHER NOTIFIED that Packsaddle’s Application includes a copy of
its Articles of Incorporation filed with the Idaho Secretary of State.The Company states that it
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDERNO.33525 1
has no By-Laws.The Company alleges that each of its customers is a voting member.The
Company states that it has a four-member Board of Directors and Officers serving without
compensation.
YOU ARE FURTT-IE R NOTIFIED that Packsaddle explained in its Application that
the formation of the new corporation was necessary due to the poor health of the previous owner
who was unable to attend to the maintenance and operation of the water system.Packsaddle
states that the former owner requested that the residents assume those responsibilities.
YOU ARE FURTHER NOTIFIED that Packsaddle states in its Application that the
new corporation serves the same functions as a homeowners association (I-lOA”).
YOU ARE FURTHER NOTIFIED that the Company included a copy of the
Purchase/Sales Agreement and Quitclaim Deed transferring the pump house,and the land upon
which it is situated,to Packsaddle.
YOU ARE FURTHER NOTIFIED that Packsaddle claims that 100%of all fees
collected from subdivision customers will be used for the operation and maintenance of the water
system.The Company believes that this will allow for the growth of a fund for emergencies and
capital improvements at the rate of approximately $500 per month.
YOU ARE FURTHER NOTIFIED that Packsaddle attached a copy of a letter it sent
to all customers giving them notice of the purchase of the water company by the new non-profit
corporation.
YOU ARE FURTHER NOTIFIED that Packsaddle states that it is aware of all Idaho
Department of Environmental Quality (IDEQ)environmental requirements and has access to
individuals with the requisite knowledge and expertise to maintain compliance with said
requirements.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the
public interest may not require a formal hearing in this matter and will proceed under Modified
Procedure pursuant to Rules 201 through 204 of the Idaho Public Utilities Commission’s Rules
of Procedure.IDAPA 31.01.01.201 through .204.The Commission notes that Modified
Procedure and written comments have proven to be an effective means for obtaining public input
and participation.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
()RDERNO.33525
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
Application may file a written comment in support or opposition with the Commission no later
than 21 days from the service date of this Order.The comment must contain a statement of
reasons supporting the comment.Persons desiring a hearing must specifically request a hearing
in their written comments.Written comments concerning this Application shall be mailed to the
Commission and the Applicant at the addresses reflected below:
Commission Secretary Packsaddle Water Systems,Inc.
Idaho Public Utilities Commission P0 Box 71
P0 Box 83720 Driggs,ID 83422
Boise,ID 83720-0074
Street Address for Express Mail:
472 W.Washington Street
Boise,ID 83702-5918
These comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission’s home page located at pucidaho,gov.Click the “Case Comment or Question
Form”under the “Consumers”tab,and complete the comment form using the case number as it
appears on the front of this document.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set,the Commission will consider this matter on its merits and
enter its Order without a formal hearing,if written comments are received within the time limit
set,the Commission will consider them and,in its discretion,may set the same for formal
hearing.
YOU ARE FURTHER NOTIFIED that the Application has been filed with the
Commission and is available for public inspection during regular business hours at the
Commission offices.The Application is also available on the Commission’s web site at
y.içial.gçy.Click on the “File Room”tab at the top of the page,scroll down to the type
of Open Water Cases,”and then click on the case number as shown on the front of this
document.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission’s jurisdiction under Title 61 of the Idaho Code,specifically Idaho
NOTICE OF APPLICATION
NOTICE OF MODiFIED PROCEDURE
ORDER NO.33525
Code 61-125 and 61 -526.The Commission may enter any final Order consistent with its
authority under Title 61 and Commission Rule of Procedure 112.IDAPA 31 .01.01.112.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commissions Rules of Procedure.IDAPA 3 1 .01 .01 .000 ci seq.
ORDER
IT IS HEREBY ORDERED that Packsaddle Water Systems,Inc.’s Application shall
be processed under Modified Procedure.Rules 201-204,and IDAPA 31.01.01.201-.204.Persons
interested in submitting written comments must do so no later than 21 days from the service date
of this order.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this i9’
day of May 2016.
KR S FINE RAPER,COMMISSIONER
7L.i1’
ERIC ANDERSON,COMMISSIONER
ATTEST:
I -/
/
Jan D.JeweIF’,
Cbmmission Secretary
o:PKS-W-15-01 np
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO.33525 4