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HomeMy WebLinkAbout20241106Decision 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