20240927Motion for Order on Rates for Service.pdf

RECEIVED
2024 SEPTEMBER 27
IDAHO PUBLIC
ADAM TRIPLETT UTILITIES COMMISSION
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 10221
Street Address for Express Mail:
11331 W CHINDEN BLVD, BLDG 8, SUITE 201-A
BOISE, ID 83714
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE INVESTIGATION )
INTO VALIANT IDAHO,INC.AND TIC ) CASE NO. GNR-W-24-01
UTILITIES,LLC, OWNERS OF A NORTHERN )
IDAHO WATER SUPPLY AND DISTRIBUTION ) MOTION FOR ORDER ON
SYSTEM ) RATES FOR SERVICE
Staff of the Idaho Public Utilities Commission ("Staff'), by and through its attorney of
record, Adam Triplett, Deputy Attorney General, pursuant to Commission Rules of Procedure
("Rule")056, 123,256, and 322 IDAPA 31.01.01 et seq., does hereby move for an Order directing
Valiant Idaho, Inc. ("Valiant") to 1) charge only the rates for service that it had in effect on
September 6, 2024; and 2) submit evidence that its customers have been notified that rates for
service would not increase on October 1, 2024.
BACKGROUND
On September 6, 2024, the Commission issued Order No. 36312, finding that Valiant is a
public utility subject to Commission regulation and directing Valiant to take certain other actions.
Subsequently, a customer provided Staff with a copy of a letter, dated September 9,2024,that TIC
ostensibly sent to customers of the Idaho Club water system. According to this letter (a copy of
MOTION FOR ORDER ON
RATES FOR SERVICE 1

which is attached to this motion as Exhibit A), TIC intends to increase rates, ostensibly from $45
to $100 per month, beginning October 1, 2024.
On September 24, 2024, counsel for Staff contacted Valiant's counsel regarding the letter.
The following day, Valiant's counsel represented to Staff s counsel that Valiant would continue
billing customers at the $45 monthly rate in effect on September 6, 2024 unless and until the
Commission approves a rate increase. Valiant's counsel further represented that Valiant would
send a letter to customers notifying them of the same.
MOTION FOR ORDER REGARDING RATES FOR SERVICE
The Commission is empowered to investigate rates, charges, rules, regulations, practices,
and contracts of public utilities and to determine whether they are just, reasonable, preferential,
discriminatory, or in violation of any provision of law, and to fix the same by order. Idaho Code
§§ 61-502, 61-503. Furthermore, a public utility may not raise its rates without a Commission
finding that such increase is justified. Idaho Code § 61-622(1).
Valiant and its water system came under Commission regulation upon issuance of Order
No. 36312. At that point, Valiant became subject to all the restrictions of Title 61, Idaho Code,
including the one prohibiting rate increases without prior Commission approval. Id. Although
Valiant has represented through counsel that it intends to comply with this process going forward,
Staff believes it appropriate for the Commission to issue an order directing Valiant to charge only
those rates in effect on September 6, 2024. Furthermore, Staff recommends that the Commission
direct Valiant to provide evidence within 14 days of service of that order that notice was provided
to customers that rates will not increase on October 1, 2024.
Staff provided actual notice of the substance of this Motion to the Company by email and
telephone on September 25, 2024. Staff believes that pursuant to Rule of Procedure 256.03,
IDAPA 31.01.01.256.03, the factual circumstances warrant immediate review of its Motion and
enables the Commission to consider this Motion and offer the relief requested on fewer than 14
days' notice. Accordingly, Staff requests that the Commission consider this motion during its
October 1, 2024, decision meeting.
CONCLUSION
Staff respectfully requests that the Commission issue an Order directing Valiant to charge
only the rates it had in effect on September 6, 2024, and to submit evidence that it notified
MOTION FOR ORDER ON
RATES FOR SERVICE 2

customers that its rates will not increase on October 1, 2024, within 14 days of the service of the
order.
DATED at Boise, Idaho, this 27th day of September 2024.
Adam Triplett
Deputy Attorney General
CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE ON THIS 27TH DAY OF SEPTEMBER 2024,
SERVED THE FOREGOING MOTION FOR ORDER ON RATES FO SERVICE, IN CASE
NO. GNR-W-24-01, BY&MAILING A COPY THEREOF, TO THE FOLLOWING:
RICHARD L STACEY Via Email:
TAYLOR R BROOKS stacey(amwsslawyers.com
MCCONNELL WAGNER SYKES AND brooks&mwsslawyers.com
STACEY -
827 E PARK BLVD STE 201
BOISE ID 83712
Keri J. Ha ker
Assistant to Adam Triplett
I:\Legal\WATER\GNR-W-24-01\Motions\GNRW2401_Mot.on Rates_at.docx
MOTION FOR ORDER ON
RATES FOR SERVICE 3

i'Hk=
IDAHO
CLUB
TIC Utilities, LLC
The Idaho Club Water System
Management & Billing Update
September 9, 2024
The Idaho Club Property Owners-
Please be advised that TIC Utilities, LLC, the owner of The Idaho Club water system, is
changing its billing agent and updating its monthly rates effective Immediately. All previous
payments sent to Gem State Infrastructure, LLC have been or will be credited to your account.
TIC Utilities, LLC has recently established Itself as a regulated water system under Idaho
Public Utility Commission ("IPUC") jurisdiction. Based on preliminary conversations with IPUC
representatives, a rate structure that includes higher rates for homes than those paid for
undeveloped lots, along with metering for excess water usage, is the billing structure preferred
by IPUC.
As a result of IPUC guidance and historical operating losses, monthly rates for Improved
lots — i.e. those with homes completed or under construction — will be one hundred dollars
($100.00) per month beginning in October of 2024. Monthly rates for unimproved lots will
remain at forty-five dollars (S45.00) per month. Further changes may be required upon the
establishment of our rate base by IPUC.
The amounts for 3rd Quarter 2024 will be the last period under the previous rates and
will be due and payable, in arrears on September 30, 2024. in the total amount of forty-five
dollars (545.00) per month Thereafter, owners will be billed on a quarterly basis at the new
rates described above.
Further, TIC Utilities, LLC are purchasing water meters to be installed in all completed
homes. Homes under construction, and all future homes, will be required to install water meters
specified by TIC Utilities, LLC. We olan to have these Installed before the end of 2024 and put
into service beginning January 1, 2025. The fixed monthly water rates will cover up to seven
thousand five hundred (7.500) gallons of water usage per month, and water usage above that
volume will be billed at an additional one cent (S0.01) per gallon.
Our engineers have Identified two potential sources of abnormally high water usage,
during periods when owners are not using their homes, that are causing increased operating
costs and contributing to excess wastewater to the sewer pond:
EXHIBIT A
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MOTION FOR ORDER ON RATES FOR SERVICE

(1) Home Filtration Systems: Given that most home water filtration systems are
designed to backwash on a timer, each backwash cycle requires water. The central water
filtration system installed by TIC Utilities, LLC is performing well. If you would like to minimize
your water usage and monthly fees, please consider turning these systems off and leaving
them as a back-up in the event of any future water issues. At a minimum, if you are going to be
away from home for an extended period or season, please turn off the automatic flushing cycle.
During periods of occupancy, please refer to the owners manual and set the backwash cycles to
the least number required. If you only have a water softener, those do not require the volume of
water that the filtration systems require, because they do not require daily backwashing.
(2) Home Winterization: Our engineers have also theorized that some homeowners
are letting their water run during the Winter months to prevent their water pipes from freezing. If
You are going to be away during Winter, please properly winterize your home and refrain from
leaving your water running, to minimize your water usage.
Given that we plan to have meters installed before the end of 2024. either or both of
these actions will likely cause a significant increase to your monthly water bills in Winter of
2025.
Finally, for new hookups, a hookup fee of two thousand five hundred dollars (S2.500)
shall be due, along with an executed Water Service Agreement, before connecting to the water
system. If you have a prior agreement with TIC Utilities, LLC, or its parent, Valiant Idaho, LLC,
for a prepaid hookup and you remain current on your monthly fees, these agreements will oe
honored. If you are not current with your monthly fees, or bring them current before the end of
2024, these prior agreements will considered in breach and will be null and void.
All payments going forward should be made in the name of TIC Utilities, LLC, and sent
to Panhandle Management at P. O. Box 1544, Sandpoint, ID 83864. Billing questions should be
sent to Dianne by email at diann 4 aahandleman,aggment.com or phone at [phone].
Service related questions should be directed to Jason Wereley of E3 Consulting, either
by email at Las9Ldwerelev�,l com, or by phone at(208) 659-5471.
Thank you in advance for your patience as we make these changes and transition over
to a IPUC regulated private water system over the next several months.
Regards,
TIC UTILITIES, LLC
William Haberman
Manager
EXHIBIT A
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MOTION FOR ORDER ON RATES FOR SERVICE