20250113Final_Order_No_36442.pdf

Office of the Secretary
Service Date
January 13,2025
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF PRIEST LAKE ) CASE NO. PLW-W-24-01
WATER'S APPLICATION FOR A )
CERTIFICATE OF PUBLIC CONVENIENCE )
AND NECESSITY ) ORDER NO. 36442
On October 8, 2024, Priest Lake Water, LLC ("Company") applied for a Certificate of
Public Convenience and Necessity("CPCN"),to provide water service near Priest Lake in Bonner
County, Idaho. The Company also requested authorization to increase its rates from the current
single flat monthly rate of$37 to a flat monthly rate of$98 for residential customers and a flat
monthly rate of$100 for commercial customers.
On November 19, 2024, Commission Staff("Staff') presented a decision memorandum
recommending that the Commission process the Company's request for a CPCN in the present
case and open a separate docket for processing the request to increase rates in a subsequent docket.
On December 4, 2024, the Commission issued a Notice of Application and Notice of
Modified Procedure, establishing public comment and Company reply deadlines for the requested
CPCN. Order No. 36408.1
On December 13, 2024, Staff filed comments. The Company did not file a reply. No other
public comments were filed.
Having reviewed the record,the Commission issues this final Order granting the Company
a CPCN.
THE APPLICATION
The Company requests that the Commission issue a CPCN authorizing it to provide water
service to domestic and commercial customers. The Company currently serves 72 residential
customers in the Marvin Estates Subdivision near Priest Lake, Idaho. When completely built out,
the Company could serve up to 113 lots. The Company charges customers a monthly flat rate of
$37 for water service.The Company provided written and oral notice of its Application for a CPCN
to customers during the Marvin Estates P.O.A. meeting on June, 22, 2024.
1 In addition to establishing a procedural schedule in this case Order No. 36408 also created a new docket, Case No.
PLW-W-24-02,and transferred the Company's request to increase rates to that docket for future processing contingent
upon the outcome of the Company's request for a CPCN.
ORDER NO. 3 6442 1

STAFF COMMENTS
After reviewing the Application, exhibits, and additional information the Company
provided through discovery, Staff recommended finding that the Company is a water corporation
operating as a public utility and granting its Application for a CPCN. To support these
recommendations, Staff noted that the Company is an Idaho business entity that is not customer
owned or controlled. Because customers cannot control the Company's operations, Staff believed
the Company is a public utility pursuant to Idaho Code § 61-129.
Staff confirmed that the legal description of the Company's proposed service territory
represents the area where the Company already provides and will provide service. According to
this proposed service territory,the Company will provide service to 106 lots in the Marvin Estates
Subdivision as well as seven parcels that are adjacent to the subdivision. Four of these parcels are
attached to the southern side of Marvin Estates subdivision and three parcels are connected to the
western side.
Additionally, Staff verified that the Company's proposed service territory neither currently
overlaps nor had the potential to encroach on other water systems in the foreseeable future. Staff
attached to its comments a legal description of the Company's proposed service territory as
Attachment A and a map of the proposed service territory as Attachment B.
DISCUSSION AND FINDINGS
Based on our review of the record and the nature and manner of control exercised by the
Company in the operation and management of the water system servicing those areas within the
Marvin Estates Subdivision,we find it reasonable to assert formal regulatory jurisdiction over the
Company and its water system. Accordingly, we have jurisdiction over the Company, a water
corporation, and the issues presented in Case No. PLW-W-24-01 pursuant to Idaho Code,Title 61,
and the Commission's Rules of Procedure, IDAPA 31.01.01.000, et seq.
We find it reasonable to grant the Company's request for a CPCN to provide water services
within the Marvin Estates Subdivision near Priest Lake, Idaho, as present and future public
convenience and necessity requires issuance of such a certificate. The Company's service area
2 Staff noted that the legal description is not completely consistent with the County's plat map for the four parcels
attached to the southern side of Marvin Estates subdivision. The legal description of the parcels indicates that the
southern boundary follows Lamb Creek,but the County's plat map has the parcels extending to the other side of Lamb
Creek. Staff did not believe this inconsistency was problematic.
ORDER NO. 36442 2

shall be that listed in Attachment A and depicted in the map contained in Attachment B to Staff s
comments.
As a regulated utility,the Company is required to adopt the Commission's Utility Customer
Relations Rules (UCRR; IDAPA 31.21.01 et seq.). These Rules provide a guide for just,
reasonable, and nondiscriminatory treatment of customers. The Commission also requires the
Company to adopt an accounting system consistent with the information required by the
Commission's Annual Report for Small Water Companies.
ORDER
IT IS HEREBY ORDERED that the Company's Application for a CPCN authorizing it to
operate as a water utility within the State of Idaho, as described herein, is approved. The
Company's certificated service territory shall be that listed in Attachment A and depicted in the
map contained in Attachment B to Staff s comments.
IT IS FURTHER ORDERED that the Company must adopt the Commission's Utility
Customer Relations Rules. The Company must also adopt an accounting system consistent with
the information required by the Commission's Annual Report for Small Water Companies.
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. Within seven (7)
days after any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See Idaho Code § 61-626.
ORDER NO. 36442 3

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 13th day of
January 2025.
ERI AND RSON, PRESIDENT
WHN . HAMMOND JR., COMMISSIONER
G
EDWARD LODGE, CO ISSIONER
ATTEST:
aB Eo S
Commission Secre
I:\Legal\WATER\PLW-W-24-01_CPCN\orders\PLW W2401_Final_at.docx
ORDER NO. 36442 4