20240625Decision Memo.pdf

DECISION MEMORANDUM
TO: COMMISSIONER ANDERSON
COMMISSIONER HAMMOND
COMMISSIONER LODGE
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM: ADAM TRIPLETT
DEPUTY ATTORNEY GENERAL
DATE: JUNE 25, 2024
SUBJECT: INVESTIGATION INTO VALIANT IDAHO, INC. AND TIC UTILITIES,
LLC, OWNERS OF A NORTHERN IDAHO WATER SUPPLY AND
DISTRIBUTION SYSTEM; CASE NO. GNR-W-24-01.
Valiant Idaho, Inc. ("Valiant") and TIC Utilities, LLC (collectively the "Companies")
own and operate a water supply and distribution system that serves customers in a development
and golf club called the Idaho Club in or near Bonner County, Idaho.' Valiant obtained the water
system assets along with an undeveloped portion of the Idaho Club and land comprising the golf
course at a 2016 sheriff sale. See Case No. GNR-W-17-01 (Sept. 14, 2017, Decision Memo at 1).
Ownership of the water system assets and service to the parcels Valiant owns has been the subject
of litigation in state district court. See Genesis Golf Builders v. Pend Oreill Bonner, et al., Case
No. cv-2009-0001819 (Idaho Pt Dist., April 2017) (order granting injunction).
The Commission directed Staff, pursuant to its statutory authority and jurisdiction
under the Idaho Public Utilities Law, specifically Idaho Code § 61-501,to investigate whether the
Companies are operating as a public utility and if any steps should be taken by the Company to
comply with Idaho law. Order No. 36149.
The Commission also directed the Companies to respond to discovery questions and
inquiries made by Staff, and notified the Companies that Staff would make a recommendation to
the Commission regarding the Companies' status, a requirement of a CPCN, and any further
1 According to prior communications with the Companies,Valiant Idaho,Inc.owns the water system assets and TIC
Utilities,LLC operates the system.
DECISION MEMORANDUM 1

recommendations regarding the adequacy of service, and rate setting, once Staff completed its
investigation.
STAFF RECOMMENDATION
Staff recommends the Commission issue a Notice of Modified Procedure establishing
a July 18, 2024, public comment deadline and an August 1, 2024, Company reply deadline.
COMMISSION DECISION
Does the Commission wish to issue a notice of Modified Procedure and establish a July
18, 2024,public comment deadline and an August 1, 2024, Company reply deadline?
Adam Triplett
Deputy Attorney General
I:\Legal\WATER\GNR-W-24-01\memos\GNRW2401_dec2_at.docx
DECISION MEMORANDUM 2