20250220Staff Comments .pdf

RECEIVED
Thursday, February 20, 2025 2:31:29 PM
IDAHO PUBLIC
UTILITIES COMMISSION
CHRIS BURDIN
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83720-0074
[phone]
IDAHO BAR NO. 9810
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 INVESTIGATION )
INTO BUCKSKIN PROPERTIES, INC., ) CASE NO. BPI-W-24-01
OWNER OF A WATER SUPPLY AND )
DISTRIBUTION SYSTEM )
COMMENTS OF THE
COMMISSION STAFF
COMMISSION STAFF ("STAFF") OF the Idaho Public Utilities Commission
("Commission"), by and through its Attorney of record, Chris Burdin, Deputy Attorney General,
submits the following comments.
BACKGROUND
Buckskin Properties, Inc., also known as Meadows at West Mountain, is a water utility
located in Valley County near Donnelly, Idaho. Buckskin Properties, Inc. provides water to 214
connections. Buckskin Properties, Inc. is not currently regulated by the IPUC and does not
possess a Certificate of Public Convenience and Necessity("CPCN").
On September 6, 2024, the Commission issued Order No. 36308, finding it reasonable to
direct Staff to investigate Buckskin Properties, Inc. to determine whether it should be a regulated
utility under Idaho Code.
STAFF COMMENTS 1 FEBRUARY 20, 2025

On October 24, 2024, Staff submitted Production Requests to gather information about
Buckskin Properties, Inc. and its water system.
On December 16, the registered agent of Buckskin Properties, Inc. submitted a response
to Staff Production Request No. 1. The response outlines that Buckskin Properties, Inc. does not
own the water system, but it is owned by Meadows Water, LLC ("Meadows Water"). The
organizational structure of Meadows Water is a single-member limited liability company owned
100%by Timberline Development, LLC. Timberline Development, LLC is owned 50%by
Buckskin Properties, Inc. and 50%by Idaho Investors, LLC.'
On January 9, 2025, Meadows Water responded to the rest of Staff Production Requests.
STAFF ANALYSIS
Staff reviewed Meadows Water responses to Staff Production Requests, and additional
information provided by Meadows Water. Based on its review, Staff recommends the
Commission(1) find that Meadows Water, and not Buckskin Properties, Inc., is a water
corporation operating as a public utility in Idaho; and(2) issue Meadows Water a CPCN.
Additionally, Staff recommends the Commission set rates at Meadows Water's currently charged
rates as submitted in Meadows Water response to Staff Production Request Nos. 12 and 13, and
to order Meadows Water to submit a compliance filing that includes a proper tariff and other
necessary documents2. Lastly, Staff recommends the Commission open a separate docket for
Staff to review Meadows Water's water rates and the reliability of its water system.
Staff believes that Meadows Water is a public utility as defined by Idaho Code § 61-
129(1). The term"public utility" is defined to include "water corporations." A"water
corporation" includes every corporation "owning, controlling, operating, or managing a water
system for compensation"in Idaho. Idaho Code § 61-125. Exceptions for corporations that do
not qualify as a public utility include mutual nonprofits, cooperatives, or any other public utility
that operates for service at cost and not for profit. Idaho Code § 61-104. Meadows Water is not
on record with the Secretary of State as a nonprofit organization, is not operating for service at
1 See Response to Staff Production Request No. 1 dated December 16,2024.
2 Staff has recommended newly regulated water corporations to submit the following documents upon issuance of a
Final Order: a notice to customers regarding regulation,a tariff,billing statement,an initial disconnection notice,a
final disconnection notice,notice of procedure for reconnection,and a summary of rules.
STAFF COMMENTS 2 FFBRUARY 20, 2025

cost, and is not a mutual nonprofit, municipal corporation, or a cooperative. Therefore,
Meadows Water is not operating as any of the exceptions and should be regulated.
Staff used the following list of non-exclusive criteria in its evaluation:
a. Is Meadows Water a nonprofit or a co-op?
b. Does Meadows Water operate for the service of the customers and not for
compensation?
c. Is Meadows Water owned by its customers?
d. Do the customers have control of the rates charged by Meadows Water?
e. Do the customers control the operations and capital expenditures of Meadows Water?
Meadows Water is a single-member limited liability company organized in the State of
Idaho. The customers do not own the water system and, therefore, have no say in the operations
and control of rates for water service. Because customers cannot control the operations of
Meadows Water, Staff believes Meadows Water is a public utility operating and managing the
water system for compensation.
In making its recommendation, Staff reviewed prior Commission cases. In Case No.
MUR-W-14-01, Murray Water became a nonprofit association of water users, where every
customer became a member of the association. In Case No. CCH-W-15-01, Country Club Hills
became a water and sewer district, where the directors were voted in by the customers in the
district. In Case No. PKS-W-15-01, Packsaddle Estates was converted to a nonprofit, and the
Commission ruled in Order No. 33603 against further regulation because, the Company"Has
customers who are members of the Company, with each customer having one vote." Order No.
33603 at 6. In Case No. GNR-U-22-03, Sunnyside Park Utilities transitioned into a nonprofit
corporation of water users, and the Commission ruled in Order No. 35737 that it is "not subject
to the Commission's regulatory authority because, it is organized and operated for service at cost
and not for profit." Order No. 35737 at 7. In each of these cases, the Commission either
cancelled or declined to issue a CPCN; however, in this case Meadows Water does not meet the
exceptions and should be a regulated utility.
STAFF COMMENTS 3 FFBRUARY 20, 2025

Certificated Service Area
Staff recommends the Commission designate Meadows Water's service area within the
CPCN to include (1) the legal description provided in Attachment A, and(2)the map of the
service area provided as Attachment B.
Attachment A includes a list of the individual plats within Meadows Water's overall
service area with a short description of each plat. This list of plats serves as an index for the
detailed maps and property descriptions, which Staff included as separate exhibits within
Attachment A. These detailed plat maps and property descriptions were pulled from Valley
County's records and are current as of the time of processing this case.
Attachment B provides an illustrated view of the boundaries for the overall service
territory. Staff believes this service area accurately describes the area that Meadows Water is
currently providing service based on the information provided by Meadows Water.
Meadows Water provided some information on future phases that are planned for the
Meadows at West Mountain Subdivision but did not provide county-approved plat legal
descriptions for the future phases. Staff believes the future phases should not be included in
Meadows Water's certificated service area at this time because it is not serving any customers in
these areas and has not provided county-approved plat descriptions. Staff recommends
Meadows Water submit a separate filing to amend their CPCN once these future phases have
been approved by Valley County.
Customer Comments
As of January 30, 2025, the Commission has received 15 public comments. The
customer complaints regarding Meadows Water supports Staff s recommendation to the
Commission to open a second docket to investigate Meadows Water's water rates and the
reliability of its water system. In summary, the customers are concerned about the following:
1. Poor water quality;
2. No backup generator during power outages;
3. Yearly rate increases;
4. Late notices of boil orders after a power outage;
5. No contact number for complaints; and
6. No back flow testing performed by Meadows Water.
STAFF COMMENTS 4 FFBRUARY 20, 2025

STAFF RECOMMENDATION
Staff recommends the Commission find that Meadows Water is a public utility under its
regulatory jurisdiction pursuant to Idaho Code Title 61, and to issue the Company a CPCN.
Additionally, Staff recommends the Commission set rates at Meadows Water's currently charged
rates as submitted in Meadows Water response to Staff Production Request Nos. 12 and 13, and
to order Meadows Water to submit a compliance filing that includes: a tariff, a notice to
customers regarding regulation, a billing statement, an initial disconnection notice, a final
disconnection notice, a notice of procedure for reconnection, and a summary of rules.
In addition, Staff recommends the Commission designate Meadows Water service area
within the CPCN to include (1) the legal descriptions provided in Attachment A, and(2) the map
of the service area provided as Attachment B.
Lastly, Staff recommends the Commission open a separate docket for Staff to evaluate
whether Meadows Water's rates are fair,just, and reasonable, and to perform a reliability
analysis of its water system.
Respectfully submitted this 20th day of February 2025.
Ck r
Chris Burdin
Deputy Attorney General
Technical Staff: Travis Culbertson
L•\Utility\UMISC\COMMENTS\BPI-W-24-01 Comments.docx
STAFF COMMENTS 5 FEBRUARY 20, 2025

Legal Description of Meadows Water, LLC Service Area
The Meadows at West Mountain—Phase 1,Valley County, Idaho, Instrument No. 289811
A parcel of land situated in the Northeast quarter of section 17,Township 16 North, Range 2 East,
Boise Meridian,Valley County, Idaho
(See Exhibit 1 for the Meadows at West Mountain—Phase 1 plat map and detailed property
description)
and
The Meadows at West Mountain—Phase 2&3,Valley County, Idaho, Instrument No. 306458
A parcel of land situated in the Northeast quarter of section 17,Township 16 North, Range 2 East,
Boise Meridian,Valley County, Idaho
(See Exhibit 2 for the Meadows at West Mountain—Phase 2&3 plat map and detailed property
description)
Attachment A
Case No. BPI-W-24-01
Comments
February 20, 2025

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Meadows Water LLC CPCN
Case No. BPI-W-24-01
11b 0-
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0 0.04 0.08 0.16 Miles W C
Valley County Parcels C
Meadows Water LLC Service Area S
Attachment B
Case No.BPI-W-24-01
Comments
February 20,2025

CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS DAY OF FEBRUARY 2025,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN CASE
NO. BPI-W-24-01, BY E-MAILING A COPY THEREOF AND ALSO MAILING A COPY
THEREOF, POSTAGE PREPAID, TO THE FOLLOWING:
MARK REICHMAN REID W OLSEN, CPA
c/o BUCKSKIN PROPERTIES 132 SW 5"'AVE SUITE 100
132 SW 5TH AVE STE 100 MERIDIAN ID 83642
MERIDIAN ID 83642 E-MAIL: reido a,olsencPa.com
E-MAIL: ixwr0l nmac.cam
PATRICIA JORDAN, S CRETARY
CERTIFICATE OF SERVICE