20241029Final_Order_No_36372.pdf

Office of the Secretary
Service Date
October 29,2024
BEFORE THE IDAHO PUBLIC UTILITIES CONDUSSION
IN THE MATTER OF FARKO WATER ) CASE NO. PTE-W-24-01
SYSTEM'S PROPOSED CANCELLATION )
OF PONDEROSA TERRACE ESTATES ) ORDER NO. 36372
WATER SYSTEM'S, CERTIFICATE OF )
PUBLIC CONVENIENCE AND NECESSITY )
NO. 393 )
On January 18, 2024, Farko Water System Inc. ("Farko")' filed an application with the
Idaho Public Utilities Commission ("Commission"), which stated that Ponderosa Terrace Estates
Water System, Inc. ("PTE") was sold to Farko on October 1, 2016, ("Application"). While the
Application's heading requested a transfer of PTE's Certificate of Public Convenience and
Necessity ("CPCN") to Farko, the body of the Application also requested that PTE's CPCN be
cancelled. The Application requested that the Commission recognize that Farko is operating the
system as a not-for-profit organization ("non-profit"). The Application did not ask that the
Commission issue a new CPCN to Farko. Supplemental information related to Farko's request was
attached to the Application.
On March 26, 2024, Farko's Board of Directors held a meeting with the water users to
nominate a new Board of Directors for the non-profit. Seven customers were elected to the newly
created Cedar Springs Community Water Board of Directors ("Board").
On July 15, 2024, the Commission issued Final Order No. 36259 granting Farko's request
to cancel PTE's CPCN No. 393 allowing it to operate outside of the Commission's jurisdiction—
subject to certain conditions. Specifically, the Commission ordered that Farko within 30 days
Farko must submit (1) a compliance filing with a copy of the non-profit bylaws signed by the
Board, and(2) a signed copy of the minutes of the meeting in which the Board was elected. Order
No. 36259 stated that upon Farko's compliance CPCN No. 393 shall be cancelled.
At the Commission's October 8, 2024, Decision Meeting, Commission Staff ("Staff")
presented a decision memorandum stating that it had reviewed the information provided and
' While the Application indicates that the word "Company" is used in both PTE's and Farko's company names,
according to the Idaho Secretary of State, both companies use the word "System" instead of"Company" in their
respective titles.
2 This deadline was later extended to October 1,2024,by Order No.36327.
ORDER NO. 36372 1

believed that Farko and the Board had complied with conditions set forth in Order No. 36259.
Staff recommended that the Commission cancel PTE's CPCN No. 393 accordingly.
COMMISSION DISCUSSION AND FINDINGS
The Commission has jurisdiction over this matter and the issues in this case under Title 61
of Idaho Code. The Commission regulates "public utilities," including "water corporations" that
serve the public or some portion thereof for compensation.Idaho Code §§ 61-125, -129, and-501.
A"public utility" is an entity that is dedicated to serving the general public in its specified
service area. Idaho Code § 61-129(1). The term "public utility" is defined to include "water
corporations." Id. A "water corporation" is "every corporation" that owns, controls, operates or
manages a water system for compensation.Idaho Code§ 61-125. "The term `corporation' . . . does
not include . . . mutual nonprofit or cooperative . . .water. . . corporation or any other public utility
organized and operated for service at cost and not for profit . . .."Idaho Code § 61-104.
Idaho Code § 61-104 provides three exceptions to the Commission's regulatory authority
over "corporations." The Commission does not regulate "mutual nonprofits," "cooperative
corporations," nor"any other public utility organized and operated for service at cost and not for
profit."Idaho Code§ 61-104.Pursuant to Idaho Code§ 61-104,Farko demonstrated that the Board
is "organized" and "operated" for service at cost and not for a profit. PTE's CPCN No. 393 is
hereby cancelled. The Board, a non-profit entity, shall operate in accordance with its bylaws. If
the Board or its successors decide to operate as a for-profit entity at any point in the future, it is
directed to apply for a CPCN.
ORDER
IT IS HEREBY ORDERED with the compliance items outlined in Order No. 36259
satisfied, Farko Water System Inc.'s request is granted and PTE's CPCN No. 393 is hereby
cancelled.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this order about any matter
decided in this Order. Within seven (7) days after any person has petitioned for reconsideration,
any other person may cross-petition for reconsideration.Idaho Code § 61-626.
ORDER NO. 36372 2

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 29th day of
October 2024.
ERIC ANDERSON, PRESIDENT
�4 ;?�
J R. HAMMOND JR., COMMISSIONER
G
Y
ED ARD LODGE, CO ISSIONER
ATTEST:
M a Ba c
Commission Secretary
IALegal\WATER\PTE-W-24-01_cancel CPCN\orders\PTEW2401_Comp_md.docx
ORDER NO. 36372 3