20240719Comment_1.pdf

The following comment was submitted via PUCWeb:
Name: David Frohnen
Submission Time:Jul 18 2024 4:28PM
Email: [e-mail]
Telephone: [phone]
Address: 545 Green Monarch Lane
Sandpoint, ID 83864
Name of Utility Company:Valiant Idaho,TIC Utilities
Case ID: GNR-W-24-01
Comment: "July 18, 2024
RE: Idaho Public Utilities Commission Case No. GNR-W-24-01
Investigation into Valiant Idaho, Inc. and TIC Utilities, LLC, Owners of a Northern Idaho Water
Supply and Distribution Company
Comments from affected property owner and customer. Public Comments.
We support the IPUC regulating the private water utility company operating and providing essential
water services at The Idaho Club. When we purchased our lot from the Companies,we understood
that the water and sewer companies were duly licensed and operating under official governmental
authorities. Also, review of the approved Plats (and Will Serve Letters)from Bonner County
reference that water is to be provided by a licensed water company. To us,that meant,the IPUC. To
find out now that the Companies are not regulated is disappointing, potentially damaging, and
apparently incorrect. In our cursory review of Title 61 of the Idaho Statutes, it appears that the
water service providers at The Idaho Cub have been operating(by default or by definition), under
the jurisdiction of the IPUC since inception in the early 2000's. We believe it is time that this
regulation becomes formalized by CPCN, rates, and other applications and orders.
It is almost universal that States regulate private water and sewer companies as public service
utilities.This is because they are either natural or"structural"monopolies,the public needs and
relies on an essential service(water service),the public has no consumer protection for rates and
service without a regulatory body and is at the mercy of the service company, and the public
interest is best served by regulating public utility companies to grant"just and reasonable"rates
and ensure adequate levels of service. That is what we expected when we purchased our lot in
2021.
Specifically,we would like to ensure that we are provided water service at an adequate and reliable
Level per our service agreement, industry standards,the"will serve"letter, and sales information.
That is,the developer must construct the infrastructure improvements needed to meet their duty of

the"obligation to serve"and that no hidden fees or charges should be levied upon the property
owners outside the purview and approval of the IPUC.
More specifically,we are requesting that any future sale of the water systems (either a stock sale or
asset sale)to a private company, HOA, or water district are subject to review and approval of the
IPUC. Additionally,the costs for facilities constructed to date (and future development growth
expansion)to meet the"will serve"and water service agreement conditions are treated as
`contributed capital"and protect the customers from paying twice for water service facilities.
On this regard,we are quite surprised and concerned that two recent proposals to sale assets
could harm current customers. One is the sale to a future Water District with the Companies
serving as Board Directors and the district incurring significant debt to pay the Companies. And the
other, a sale to the HOA controlled with a super majority vote of the Companies. Again this would
be with substantial debt being incurred by the property owners. In such cases,the consumers
would be harmed financially by taking on debt and increasing assessments to repay the Companies
for"contributed capital"and/or sunk costs recovered in lot sales. Such scenarios are all against
the"public interest"and utility company regulation practice.These sales must be subject to the
review and approval of the IPUC.
We look forward to receiving reliable water service to our lot and paying our fair share for utility
service provision as determined by the arrangement at the time of our lot purchase and subject to
the approval of the IPUC.
END"