20241106Decision Memo.pdf

DECISION MEMORANDUM
TO: COMMISSIONER ANDERSON
COMMISSIONER HAMMOND
COMMISSIONER LODGE
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM: TRAVIS CULBERTSON
DAYN HARDIE,DEPUTY ATTORNEY GENERAL
DATE: NOVEMBER 6,2024
SUBJECT: INVESTIGATION INTO RED PHEASANT HOLDINGS,LLC,OWNER OF
A WATER SUPPLY AND DISTRIBUTION SYSTEM
Red Pheasant Holdings, LLC, ("Company") is a private water utility located in Nez
Perce County, Idaho near Lewiston. The Company provides water to 173 connections. The
Company is the parent company of Red Pheasant Water Company,LLC,that invoices and collects
payments from customers. The Company is not currently regulated by the Idaho Public Utilities
Commission ("Commission") and does not possess a Certificate of Public Convenience and
Necessity. Based on Commission Staffs ("Staff') review of information provided by the
Company, Staff believes that a formal investigation is necessary to review whether the Company
is operating as a public utility that should be regulated by the Commission. Staff recommends that
the Commission open a docket initiating a formal investigation to review whether the Company
should be regulated, and if so, recommend further action to comply with applicable laws.
BACKGROUND
On August 26, 2022, Staff sent a letter to Red Pheasant Water Company, LLC,
indicating that Staff possessed information that suggested the Company may be operating as an
unregulated public utility within the State of Idaho. Over the last two years, Staff and the Company
held meetings to exchange information and discuss regulation.
On August 26, 2024, the Company emailed stating that it was submitting information
and would provide an update.As of October 31,2024,the Company has not responded or provided
an update.
DECISION MEMORANDUM 1 NOVEMBER 6, 2024

STAFF RECOMMENDATION
Based on the available information, Staff believes there is evidence to merit a formal
investigation to determine whether the Company is operating as a public utility subject to the
Commission's regulatory jurisdiction. An investigation would include discovery requests to the
Company, an examination of the Company's financial records, and conclude with a Staff
recommendation to the Commission for further action, if any.
COMMISSION DECISION
Does the Commission wish to open an investigation to review whether the Company
should be regulated by the Commission, and direct Staff to submit a recommendation after the
review is complete?
Travis Culbertson
Auditor 3
I:\Utility\UDMEMOS\RedPhe mtHoldings_invest_tc.docx
DECISION MEMORANDUM 2 NOVEMBER 6, 2024