20250508Final_Order_No_36595.pdf

Office of the Secretary
Service Date
May 8,2025
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE INVESTIGATION ) CASE NO. BPI-W-24-01
INTO BUCKSKIN PROPERTIES,INC., )
OWNER OF A WATER SUPPLY AND )
DISTRIBUTION SYSTEM ) ORDER NO. 36595
On September 6, 2024, the Idaho Public Utilities Commission ("Commission") issued
Order No. 36308, finding it reasonable to direct Commission Staff ("Staff') to investigate
Buckskin Properties, Inc. ("Company") to determine whether the Company should be a regulated
utility pursuant to the Commission's authority under Idaho Code. The Commission also provided
notice that, at the conclusion of the investigation, Staff would recommend: (1) whether the
Company should be deemed a regulated public utility; (2) whether a Certificate of Public
Convenience and Necessity("CPCN")was required; and(3)whether any further action related to
the adequacy of service or rate setting was necessary. Order No. 36308.
On December 16,2024,the registered agent of the Company represented that the Company
did not own the water system and stated that the water system was owned by Meadows Water,
LLC ("Meadows Water"). 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.
Meadows Water is a water utility located in Valley County near Donnelly,Idaho.Meadows
Water provides water to 214 connections. Meadows Water is not currently regulated by the
Commission and does not possess a CPCN.
On January 20,2025,the Commission issued a Notice of Modified Procedure, establishing
public comment and Company reply deadlines. Order No. 36451. Staff and members of the public
filed comments to which Meadows Water replied.
Having reviewed the record,the Commission issues this Final Order finding that Meadows
Water is a public utility, issuing it a CPCN, and directing it to submit additional documentation
described below.
STAFF COMMENTS
Based on its investigation, Staff believed that Meadows Water should be regulated under
Title 61 of the Idaho Code, and Staff recommended that the Commission issue Meadows Water a
ORDER NO. 36595 1

CPCN. Staff Comments at 2. In reaching its recommendation, Staff used the following non-
exclusive list of criteria:
a. Is Meadows Water a Non-Profit or a Co-op?
b. Does Meadows Water operate for the service of the customers and not for profit?
c. Is Meadows Water owned by its customers?
d. Do the customers have control of the operations and capital expenditures of
Meadows Water?
e. Do the customers have control of the rates that Meadows Water charges?
Id. at 3.
In its evaluation, Staff learned Meadows Water is a single-member limited liability
company organized in the State of Idaho, which Staff believed did not qualify as an exception to
the Commission's regulation under Idaho Code § 61-104. Id. at 2-3. Additionally, Staff believed
that customers had no say in the operations of Meadows Water, including ownership of the water
system and control of rates for water service.Id. at 3. Therefore, Staff believed Meadows Water is
a public utility operating and maintaining the water system for compensation. Id.
Staff used plat maps and property descriptions from Valley County's records, and
information on future development phases provided by Meadows Water, when considering
Meadows Water's service area. Id. at 4. Staff believed that the future development phases should
not be included in Meadows Water's certificated service area because Meadows Water did not
currently serve any customers in those areas and had not provided county-approved plat
descriptions. Id. Staff recommended Meadows Water submit a separate filing to amend its CPCN
once future phases have been approved by Valley County. Id.
PUBLIC COMMENTS
The Commission received 15 customer comments. These comments expressed concerns
regarding poor water quality, the lack of backup generator during power outages, yearly rate
increases, late notices of boil orders after a power outage, lack of contact information for
complaints, and lack of back flow testing performed by Meadows Water.
COMPANY REPLY
On February 4, 2025, Meadows Water provided a copy of an October 22, 2019, e-mail
communication from the Commission's Consumer Assistance Staff confirming that, at that date,
Meadows Water was not regulated by the Commission, and that Commission approval was not
ORDER NO. 36595 2

needed to increase rates. Company Reply at 2. The communication also provided a copy of the
Utility Customer Regulation Rules ("UCRR") as a guideline for Meadows Water to use. Id.
COMMISSION FINDINGS AND DECISION
The Commission has jurisdiction over this matter and the issues in this case under Title 61
of Idaho Code. The Commission regulates "public utilities," including "water corporations" that
serve the public or some portion thereof for compensation.Idaho Code §§ 61-125, -129, and-501.
The term "public utility" is defined to include "water corporations." Idaho Code § 61-129. A
"water corporation"is"every corporation"that owns,controls,operates or manages a water system
for compensation. Idaho Code § 61-125. "The term `corporation' . . . does not include . . . mutual
nonprofit or cooperative. . .water. . . corporation or any other public utility organized and operated
for service at cost and not for profit . . .."Idaho Code § 61-104.
Idaho Code § 61-104 provides three exceptions to the Commission's regulatory authority
over "corporations." The Commission does not regulate "mutual nonprofits," "cooperative
corporations," nor "any other public utility organized and operated for service at cost and not for
profit."Idaho Code § 61-104. Pursuant to Idaho Code § 61-104, to be excluded from regulation a
company may show that it is both "organized" for service at cost and not for profit, and that it is
"operated" for service at cost and not for profit.
Having reviewed the record, all submitted materials, and all comments, we find that
Meadows Water is a corporation operating and managing a water system for compensation in
Idaho and is, therefore, a public utility subject to Commission regulation under Idaho Code.
1. CPCN
As a public utility, Meadows Water must have a CPCN from the Commission. See Idaho
Code § 61-526. We find it reasonable to issue Meadows Water a CPCN, and that Staff s proposed
legal descriptions and map of the service area are reasonable. The legal description of the service
area shall be consistent with the legal description provided by Staff as Attachment A to Staff s
Comments. The service area map shall be consistent with the service area map provided by Staff
as Attachment B to Staff s Comments.
Moreover, as a regulated utility, Meadows Water is required to adopt the Commission's
UCRR (IDAPA 31.21.01 et seq.) and Utility Customer Information Rules (IDAPA 31.21.02 et
seq.).
ORDER NO. 36595 3

2. Tariff and Other Documents
As a regulated entity, Meadows Water must also submit certain documentation required
under the UCRR for Commission review and approval,including a tariff,various customer notices,
and an annual rules summary. Meadows Water shall submit these required documents as a
compliance filing in this case.
3. Rates and Charges
We direct Meadows Water to maintain its current rates. Staff shall open a separate docket
to evaluate whether Meadows Water's rates are fair,just, and reasonable.
ORDER
IT IS HEREBY ORDERED that Meadows Water is a public utility and is granted a CPCN
consistent with this Order.
IT IS FURTHER ORDERED that Meadows Water shall submit a compliance filing within
30 days of the service date of this Order providing: (1)tariffs; (2) a notice to customers regarding
regulation; (3) a billing statement; (4) an initial disconnection notice; (5) a notice of procedure for
reconnection; and(6) a summary of rules.
IT IS FURTHER ORDERED that Meadows Water shall maintain its current rates, and
Staff shall open a separate docket to evaluate whether Meadows Water's rates are fair,just, and
reasonable.
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. 36595 4

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 81h day of
May 2025.
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EDWARD LODGE, SIDENT
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J R. HAMMOND JR., COMMISSIONER
DAYN HA DIE, COMMISSIONER
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ORDER NO. 36595 5