20250311Final_Order_No_36503.pdf

Office of the Secretary
Service Date
March 11,2025
BEFORE THE IDAHO PUBLIC UTILITIES CONMUSSION
IN THE MATTER OF ROCKY MOUNTAIN ) CASE NO. ROC-W-24-01
UTILITY COMPANY, INC.'S APPLICATION )
TO AMEND ITS CERTIFICATE OF PUBLIC ) ORDER NO. 36503
CONVENIENCE AND NECESSITY )
On August 23, 2024, Rocky Mountain Utility Co., LLC d.b.a. Rocky Mountain Utilities
Co., Inc.' ("Company") applied to the Idaho Public Utilities Commission ("Commission") for
approval to amend its Certificate of Public Convenience and Necessity ("CPCN") to allow the
Company to expand its service territory to include a newly created subdivision; the Company also
noted that it had built a new well and related infrastructure ("Application"). The Company also
submitted supplemental filings relevant to its request.
On October 10, 2024, the Commission issued a Notice of Application and Notice of
Modified Procedure. Order No. 36346. On November 4, 2024, the comment deadlines established
by Order No. 36346 were vacated to allow for additional discovery. Order No. 36380. The
Company filed additional information with the Commission on November 22, 2024, requesting
official authorization to serve territory that it had already been serving without authorization. On
December 27, 2024, new comment deadlines were established. Order No. 36432. Commission
Staff("Staff") submitted the only comments in this case.
Having reviewed the record in this case, the Commission issues this Order authorizing an
expansion of the service territory outlined in CPCN No. 481 as discussed below.
THE APPLICATION
The Company seeks to amend its CPCN pursuant to Idaho Code § 61-526 to provide water
service to a new subdivision. The Company provided a map of the subdivision and noted that it
was not being serviced by another utility.
The Company stated that it also added a new well and related infrastructure and provided
Attachments A through G which outlined its proposed service territory and provided additional
information on recent building projects.
1 The Idaho Secretary of State's website lists the Company's official name as "Rocky Mountain Utility Company,
Inc."The Company's Application states that this is the name which it is doing business under.
ORDER NO. 36503 1

STAFF COMMENTS
Staff evaluated whether the amended service territory description and maps were accurate,
if the area infringed on other water systems, if system capacity could reliably serve the expansion,
and if water rights were sufficient. Staff determined the system could adequately serve the
expanded area with appropriate water rights.However, Staff also discovered the Company already
served customers outside both its authorized and proposed territories. Staff recommended
approving the expansion to include Pepperwood Crossing Divisions 2-3 and those areas with
existing commercial customers which were being served despite being unauthorized.
1. Expanded Service Territory
Staff supported expanding the Company's service area to include Pepperwood Crossing
Divisions 2-3 and 11 commercial customers already being served.2 Staff's investigation revealed
several discrepancies.Though Division 1 was previously authorized, Staff found that the Company
had served Division 2 for years without proper authorization.Additionally,while Order No. 30703
mentioned commercial customers within Division 1, maps showed these properties fell outside of
Division 1's boundaries.
Staff verified the legal descriptions and maps accurately represented the areas the Company
served or planned to serve (Division 1, as well as adding Division 2, Division 3, and those 11
commercial customers formerly thought to be within CPCN's Division 1). Staff confirmed no other
water systems overlapped with the proposed territory expansion and found no potential conflicts
with future municipal system growth. Staff recommended that the CPCN be amended so that all
areas be served under one comprehensive certificate.
2. Reliability Analysis
Staff assessed whether the Company's water system could handle the expanded territory
by examining: 1) water capacity; 2) water quality deficiency; and 3) water rights. Staff believed
the Company's water system possessed adequate resources to satisfy relevant regulations and
future demand in the proposed service areas.
2 There are essentially four categories of customers/service territory described in this case: 1)Service territory that the
Company has previously been authorized to serve in Division 1;2)Service territory that the Company has been serving
for several years without proper authorization in Division 2 (which the Company requested to serve in its November
22,2024, filing); 3) Service territory in Division 3 that the Company requested to serve when it filed its Application
in this case; and 4) 11 commercial customers that were part of the Company's original CPCN request (which was
approved by the Commission) but were unintentionally left out when the CPCN was issued. The outlines of the
Company's service territory can be seen as outlined in Attachment A to this Order.
ORDER NO. 36503 2

Water Capacity
The water system currently serves 108 residential and 11 commercial customers but could
grow to 254 with full development of the expanded territory. Staff calculated that with three wells
providing 885 gallons per minute ("gpm"), the water system could meet the projected 748 gpm
peak demand. Importantly, even with one well offline, Staff calculated that the remaining capacity
exceeded the required peak demand, satisfying Idaho Department of Environmental Quality
("IDEQ")redundancy requirements.
Water Quality
Staff s review of IDEQ's April 2024 sanitary survey uncovered no unresolved major
deficiencies. Staff determined the system was properly maintained and had no critical issues
affecting the delivery of safe water.
Water Rights
Staff examined the Company's water rights to ensure adequate supply. Staff reviewed the
quitclaim deed for the Company's water rights and determined that the Company possessed rights
to 2.05 cubic feet per second (920 gpm). This exceeded the calculated peak demand of 748 gpm.
Staff believed that the water rights aligned with both existing and proposed service territories
enabling the Company to properly serve all residential and commercial customers.
COMMISSION DISCUSSION AND FINDINGS
The Commission has jurisdiction over the Company and the issues in this case under Title
61 of the Idaho Code. Specifically, the Commission regulates "public utilities," including "water
corporations" that serve the public or some portion thereof for compensation. See Idaho Code §§
61-125, -129, and-501.
Having reviewed the record,the Commission finds that it is in the public interest to approve
the Company's requested expansion of the service territory discussed above. The Commission
reaffirms that, before the Company begins to service new customers, the Company should take
notable precautions to ensure that the area it seeks to operate in has already been designated as the
Company's service territory as described in amended CPCN No. 481—which shall be updated
pursuant to this Order. These measures will avoid certain complicating factors that arose in this
case. Nonetheless, the Commission approves the service territory expansion described above for
CPCN No. 481 to include Divisions 2 and 3 of Pepperwood Crossing subdivision, and the area
ORDER NO. 36503 3

that includes the 11 commercial customers the Company currently serves outside of its authorized
territory.
ORDER
IT IS HEREBY ORDERED that the Company's description of its service territory in
CPCN No. 481 shall be modified and expanded to include Divisions 2 and 3 of Pepperwood
Crossing subdivision, and the area that includes the 11 commercial customers the Company is
currently serving outside its authorized territory.
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.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 1 lth day of
March 2025.
G
EDWARD LODGE, P4ESIDENT
J R. HAMMOND JR., COMMISSIONER
Recused
DAYN HARDIE, COMMISSIONER
ATTEST:
MAK Ba a r';
e
Commission Secreta
I:\Legal\WATER\ROC-W-24-01_aznend CPCN\orders\ROCW2401_Final_md.docx
ORDER NO. 36503 4