20250703Reply to Staff Comments.pdf

RECEIVED
July 03, 2025
Michael P. Lawrence (ISB #7288) IDAHO PUBLIC
GIVENS PURSLEY LLP UTILITIES COMMISSION
601 W. Bannock St.
P O Box 2720
Boise, ID 83701
Telephone: [phone]
Facsimile: [phone]
[e-mail]
Attorneys for Flying H Trailer Ranch, Inc.
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF CAPITOL WATER CASE NO. CAP-W-24-03
CORPORATION'S PETITION
REQUESTING AN INVESTIGATION FLYING HIS REPLY TO IPUC
INTO FLYING H TRAILER RANCH, STAFF COMMENTS
INC.
Flying H Trailer Ranch, Inc. ("Flying H" or"Company"),by and through its attorneys of
record, and pursuant to the Commission's June 3, 2025 Notice of Modified Procedure, Order No.
36625, submits this reply to the June 6, 2025 Comments of the Commission Staff("Staff
Comments").
Flying H agrees with the Staff Comments'recommendation that the Commission find that
Flying H is not a public utility and is not subject to the Commission's regulatory jurisdiction
pursuant to Title 61, Idaho Code. Flying H does not intend to modify its ownership structure or
undertake water system upgrades that would alter that recommendation.
Flying H submits this reply in support of the Staff Comments'recommendation and to
provide further factual and legal support for that recommendation.' First, however, Flying H
1 Certain Exhibits are attached to this reply for the convenience of the Commissioners. Flying H provided
some of these documents to IPUC staff in response to discovery requests or otherwise in aid of their investigation.
Flying H requests that the attached Exhibits and all documents reviewed or relied upon by IPUC staff in conducting
FLYING HIS REPLY TO IPUC STAFF COMMENTS-1

points out that this investigation was initiated through a petition filed by Capitol Water
Corporation("Capitol Water"). Capitol Water did not submit any comments to the Commission
and has not otherwise participated in this matter aside from filing its petition and providing
Flying H with minimal information in response to discovery requests.
I. Additional Factual Background
The Staff Comments accurately describe Flying H's ownership and operation of its
mobile home park. Staff Comments at 2. In addition, Flying H notes that the mobile home
park's first phase was constructed in 1955, at which time domestic water was provided to tenants
under water rights appropriated under state law. See attached Exhibit A(affidavit of original
owner) and Exhibit B (water right decree no. 63-30206).2 This predates the formation of Capitol
Water Corporation in 1959. See attached Exhibit D (certificate of incorporation for Capitol
Securities Water Corporation).3 In short, the provision of water to tenants in Flying H's mobile
home park began prior to the existence of Capitol Water Corporation.
Flying H and Capitol Water have entered into at least one agreement for Capitol Water's
provision of water to a portion of Flying H's property. See attached Exhibit F. Flying H has no
information that, prior to filing the petition initiating this matter, Capitol Water ever objected to
Flying H providing water to its other tenants.
The Staff Comments indicated the length of tenancy was unclear for Flying H tenants.
Flying H's leases,pursuant to Idaho Code, do not exceed 12 months. See I.C. § 55-2005.
its investigation and preparing the Staff Comments,including without limitation Flying H's and Capitol Water's
responses to discovery requests,be made part of the Commission's official record in this proceeding. Flying H
reserves the right to provide additional evidence.
z Water right decree no. 63-30206 has a 1955 priority date. An additional water right(no. 63-7291)was
later developed with a 1970 priority date. See attached Exhibit C. This 1970 water right was acquired when the
owner added a third well to the system,but the use was developed by 1958. See Exhibit A,p. 1¶2.
s The entity's name was changed from"Capitol Securities Water Corporation"to"Capitol Water
Corporation"in 1990. See attached Exhibit E(articles of amendment).
FLYING HIS REPLY TO IPUC STAFF COMMENTS-2

II. Additional Legal Analysis
Flying H agrees with the Staff Comments'conclusion that Flying H "has not dedicated
itself to serving the public and has no additional connection(s) outside its privately owned
property." Staff Comments at 3.
In addition to the statutes and case law discussed in the Staff Comments, Flying H
believes this conclusion is also supported by the Idaho Supreme Court's decision in Stoehr v.
Natatorium Co., 34 Idaho 217, 200 P. 132 (1921) ("Stoehr"). The Stoehr Court analyzed the
definitions of"public utility" and"water corporation" in Idaho Code Sections 61-129 and 61-
125, respectively. The relevant statutory language was enacted in 1913shortly before the
Stoehr decision—and has not substantively changed since then.
The Stoehr Court held that "[a] corporation becomes a public service corporation, and
therefore subject to regulation as a public utility, only when and to the extent that the business of
such corporation becomes devoted to a public use." Stoehr, 200 P. at 133. The Court explained
that"[t]o hold that a water corporation is a public utility because it receives compensation for
water owned by it and furnished to a limited number of the inhabitants of Boise within a limited
area would be an unreasonable interpretation of the [statutory definitions of public utility and
water corporation]." Id.
Here, Flying H is not a"water corporation"because it does not own, control, operate, or
manage a water system for compensation. See I.C. § 61-125. Instead, it owns, controls,
operates, and manages a 152 unit mobile home park. Flying H has not devoted its provision of
water to a public use. Rather, it provides water to itself for the purpose of supplying water to the
tenants who pay rent for the privilege of staying within the privately-owned mobile home park
owned and operated by Flying H. Flying H's water service is not dedicated to a public use, and
no member of the public may demand service from Flying H. Only tenants of the mobile home
FLYING HIS REPLY TO IPUC STAFF COMMENTS-3

park who timely pay their rent may demand such service.
More recently, the Commission listed factors that are relevant to the question of whether
it has jurisdictional authority over a company, including: the primary purpose for the company's
operation; whether the company intended or held itself out to be a utility; whether the company
provides service to the public or some portion thereof that is larger than a single customer;
whether the company's customers have any control over the operation management, and rates of
the company; and whether customers have any alternatives or choice in their service provider. In
Re Kootenai Heights Water Sys., Inc.,No. 30219, 2007 WL 1467299 (Jan. 10, 2007). Here,
Flying H's primary purpose is operating a mobile home park, it has never intended or held itself
out to be a utility, it provides service only to itself for purpose of supplying water to its tenants,
and there are no water rates to be controlled. If Flying H's tenants are considered"customers,"
their choice is to rent mobile home space on someone else's private property if they believe they
can rent a similar quality space (with amenities and services) for a better price.
In short, Idaho's statutes and case law support the conclusion that the Flying H is not a
public utility or water corporation subject to the Commission's jurisdiction.
With respect to the non-Idaho cases discussed in the Staff Comments, Flying H wishes to
provide a few additional details that support the conclusion that it is not a public utility subject to
the Commission's jurisdiction. Two of those cases determined that the water providers at issue
were public utilities subject to regulation. See Public Water Supply Company, Inc. v.
DiPasquale, et al., 802 A.2d 929 (Del. Super. Ct., Jan. 15, 2002), affd sub nom. Tunnell
Companies, L.P. v. Pub. Water Supply Co., 801 A.2d 11 (Del. Supreme Court, June 13, 2002)
("PWSC"), and Gosar's Unlimited Inc. v. Wyoming Pub. Serv. Comm'n, 2013 WY 90, 305 P.3d
1152 (Wyo. 2013) ("Gosar's Unlimited"). These cases are distinguishable from Flying H's
FLYING HIS REPLY TO IPUC STAFF COMMENTS-4

situation. In each of those cases, the water provider at issue individually metered each lot in the
community it served and would pass on increased water costs in the rent charges paid by tenants.
PWSC, 802 A.2d at 936; Gosar's Unlimited, 2013 WY at 90¶ 15, 305 P.3d at 1157. Flying H
does not meter tenant water use and does not pass on increased costs based on water usage or
water system operations. Flying H simply charges a flat rental fee to each tenant based on
mobile home market conditions irrespective of tenants' water usage amount or the water
system's operational costs. As noted in the Staff Comments, Flying H does not meter water
usage.
The other two cases discussed in the Staff Comments held that the water providers at
issue were not public utilities. See Enberg v. Park City Mobile Home, Inc.,No. 93-0091, 1994
WL 120881 (Illinois Commerce Commission, Mar. 23, 1994) ("Enberg");In Re Complaints of
Inscho,No. 90-182-WS-CSS, 1992 WL 937210 (F.E.D.A.P.J.P. Ohio, Feb. 27, 1992) ("Inscho").
As recognized in the Staff Comments, these cases support the conclusion that Flying H is not a
public utility. Importantly, like the mobile home park owner in Enberg, Flying H only provides
water to tenants within its privately owned property and not to the general public. And, like the
mobile home park owner in Inscho, Flying H's provision of water to tenants is ancillary to its
primary purpose of renting spaces to its tenants, it has never held itself as a water provider to the
general public, and it does not separately charge tenants for water.
III. Conclusion
Flying H respectfully requests that the Commission adopt the Staff Comments'
recommendation that Flying H is not a public utility and is not subject to the Commission's
regulatory jurisdiction pursuant to Title 61, Idaho Code.
FLYING HIS REPLY TO IPUC STAFF COMMENTS-5

DATED this 3rd day of July, 2025.
GIVENS PURSLEY LLP
Michael P. Lawrence
Attorneys for Flying H Trailer Ranch, Inc.
FLYING HIS REPLY TO IPUC STAFF COMMENTS-6

CERTIFICATE OF SERVICE
I hereby certify that on the 3rd day of July, 2025, a true and correct copy of the foregoing
was filed and/or served upon the following individual(s)by the means indicated:
Commission Staff Via Electronic Mail
Monica Barrios-Sanchez, Commission Secretary [e-mail]
Idaho Public Utilities Commission
11331 W. Chinden Blvd., Bldg. 8, Suite 201-A
Boise, ID 83714
H. Robert Price [e-mail]
Capitol Water Corporation
2626 N. Eldorado St.
Boise, Idaho 83704-5926
Michael P. Lawrence
FLYING HIS REPLY TO IPUC STAFF COMMENTS-7

EXHIBIT A
ORIGINAL RECEIVED
STATE OF IDAHO )
DEC 12 IN7
)s s. WATER RE600RCE8
County of Ada ) Wc3TFRNMG101J
VERN HARDER, being first duly sworn under oath, deposes and
says:
1. Myself and my wife Bernice are the persons who originally
built the Flying H Trailer Ranch, Inc. (Ranch) , located at the
intersection of Ustick and Cole Roads in the City of Boise, Ada
County, Idaho. The first phase of the Ranch was built in 1955 and
consisted of 85 spaces. To furnish water to the spaces, we
constructed Well No. 1, located on the property. In 1955, the 85
spaces were constructed and were in use for domestic purposes using
the water from Well No. 1. The water from Well No. 1 was delivered
and was deliverable. The ground was developed by putting in spaces
to be rented to owners of mobile homes who parked their homes on
the rented space. Each space was provided with water to be used
for domestic purposes and the wells were dug to furnish water to
each of the spaces at the Ranch.
2. In phase 2 of the Ranch development, additional spaces
were constructed so that I had a total of 126 spaces constructed.
A second well was drilled. To the best of my recollection, this
was in 1958. The second well and the first well were connected in
a loop so that either well could furnish water to all 126 units.
The same procedure was followed with the third well when we drilled
it in 1970 for double-wide mobile home spaces. We then had a total
of 126 spaces being supplied with water from the three wells. All
of the wells at all times produced water for domestic purposes.
The water for all wells was deliverable, and was delivered from
FLYING H'S REPLY TO IPUC STAFF COMMENTS-8

each of the three wells to all the spaces rented in the Ranch. I
stress again that the wells were in tandem so that all wells
furnished water to all spaces.
VERN HARDER
STATE OF IDAHO )
)ss.
County of Ada )
On this kz+,_ day of. , 1992, before me, a notary
public, personally appeared VERr HARDER, known or identified to me
to be the person whose name is subscribed to the within instrument,
and acknowledged to me that he executed the same.
1992.
SUBSCRIBED AND SWORN to before me this L• day of
NOTARY PUBLIC FOR III O
Residing at Beige, Zdaho VN
(seal) My Commission Expires:
FLYING H'S REPLY TO IPUC STAFF COMMENTS-9

EXHIBIT B
2007 PRE 16 PH 02:00
DISTRICT COURT - BREA
TWIN FALLS CO., IDAHO
FILED
IN THE DISTRICT COURT OF THE FIFTH JUDICIAL DISTRICT OF THE
STATE OF IDAHO, IN AND FOR THE COUNTY Of TWIN FALLS
In Re SRBA 1 PARTIAL DECREE PURSUANT TO
} I.R,C.P. 541b) FOR
Case No. 39516 ]
Water Right 63-30206
NAME AND ADDRESS: FLYING H TRAILER RANCH INC
7615 USTICI RD ,
BOISE, ID 93704
SOURCE: GROUND WATER
QUANTITY: 0.60 CPS
a5.00 APY
USE OF THIS RIGHT WITH RIGHT NO. 61-7291 IS LIMITED TO A TOTAL
COMBINED DIVERSION RATE OF 0 66 CPS AND TO A TOTAL COMBINED
ANNUAL DIVERSION VOLUME OF 99 AF.
PRIORITY DATE: 04/27/1955
POINT OF DIVERSION: T03H ROIR 801 LOT 1 (NEWS 1 Within Ada County
LOT 1 4HENE )
LOT 1 (NINE )
i
Three points of diversion are located within NENE, SOX, T03N,
R018.
PURPOSE AND
PERIOD OF USE: PURPOSE OF USE PERIOD OP USE QUANTITY
irrigation 01.01 TO I1.15 0.20 CPS
45.00 AFT ',
Domestic 01-01 TO 12-31 0.40 CPS
Domestic use is for 93 tones and does not include lawn, garden,
landscape, or other types of irrigation.
PLACE OF UStr Irrigation Within Ada County
T03Y ROLE SOL I.OT 1 {NINI110.0
10.0 Acres Total
Domestic Within Ada County
T03M RO1R SOL LOT 1 (NINE)
OTHER PROVISIONS NECESSARY FOR DEFINITION OR ADMINISTRATION OF THIS WATER RIGHT:
The quantity of water decreed for this water right is not a
determination of historical beneficial use.
THIS PARTIAL DECREE IS SUBJECT TO SUCH GENERAL PROVISIONS
NECESSARY FOR THE DEFINITION OF THE RIGHTS OR FOR THE EFFICIENT
ADMINISTRATION OF TEE WATER RIGHTS AS MAY BE ULTIMATELY
DETERMINED BY THE COURT AT A POINT IN TIME NO LATER THAN THE
ENTRY OF A FINAL UNIPIED DECREE, I.C. SECTION 42-1412(6).
SRSA PARTIAL DECREE PURSUANT TO I.R.^_.P. S41b1 PAGE 1 -
Wacer Right 63-30206 Jen-OS-2007
FLYING H'S REPLY TO IPUC STAFF COMMENTS-10

SRSA Partial Decree Purevent to I.R.C.P. 54110) Icontinued)
RULE 54(b) CERTIFICATE
With respect to the issues determined by the above judgment or order, it Is hereby ccRritlED, in accordance
With Rulo Sa(b), I.R.C.P., that the court has determined that there IS no 3ust reason for delay of the entry of a
final judgment and that the court has and does hereby direct that the above judgment or order shall be a final
judgment upon which execution may issue and an appeal may be teak—elaas provided by the Idaho Appellate Rules.
John W. Kelanson
Presiding Judge of the _
Snake River Basin Ad3udication
SRBA PARTIAL DBCR£R PURSUANT To I.R.C.P. Se(b) PAGE 2
Water Right 43-30206 Jan-05-20e7
FLYING H'S REPLY TO IPUC STAFF COMMENTS-11

EXHIBIT C
2007 PER 16 PM 02:00
DISTRICT COURT - SRAA
TWIN PALLS CO-, IDAHO
PILED
IN THE DISTRICT COURT OF THE FIFTH JUDICIAL DISTRICT OF THE
STATE OF IDAHO. IN AND FOR THE COUNTY OF TWIN FALLS -
In Re SRBA I PARTIAL DECREE PURSUANT TO
I I.R.C.P. 54(b) FOR
Case No. 39576 )
Water Right 63-01292
NA93 AND ADDRESS: FLYING H TRAILER RANCH INC
7615 USTICR RD
BOISE, ID $3704
SOURCE: GROUND WATER
QUANTITY: D.06 CPS .
44.00 AFY
USE OF THIS RIGHT WITH RIGHT NO. 63-30206 IS LIMITED TO A TOTAL
COMBINED DIVERSION RATE OF 0.66 CPS AND TO A TOTAL COMBINED
ANNUAL DIVERSION VOLUME OF 99 AP.
PRIOR.Ty DATE: 02/16/197G
POINT OF DIVERSION. T03H ROTS S61 LOT 1 (HENS I Within Ada County
PURPOSE AND
PERIOD OF USH: PURPOSE OF USE PERIOD OF USE QUANTITY
Domestic 01-01 TO 12-31 0.06 CTS
44.00 AFY
Domestic use is for 43 homes.
PLACE OF LSE: Domestic Within Ada County
T03N ROLE S01 LOT 1 (NEWS)
OTHER PROVISIONS NECESSARY FOR DEFINITION OR AUKINISTIA71ON OF THIS WATER RIGHT:
THIS PARTIAL DECREE IS SUBJECT TO SUCH GENERAL PROVISIONS
NECESSARY FOR THE DEFINITION OF THE RIGHTS OR FOR THE EFFICIENT
ADMINISTRATION OF THE WATER RIGHTS AS MAY BE ULTIMATELY
DETERMINED BY THE COURT AT A POINT IN TIME NO :,A^.ER THAN THE
ENTRY OF A FINAL UNIFIED DECREE. I.C. SECTION 42-141216).
RULE 54(b) CERTIFICATE
With respect to the issues determined by the above judgment or order, it is hereby CERTIFIED, in accordance
With Rule 54(b), I.R.C.P., that the court has determined that there is no just reason for delay of the entry of a
final judgment and that the court has and does hereby direct that the above judgment or order shall be a final
judgment upon Which execution may issue and an appeal may be taken ae resided by the Idaho Appellate Rules.
John M. Melanson
Presiding Judge of the
Snake River Basin Adjudication
SRBA PARTIAL DECREE PURSUANT TO I.R.C.P. 54(b) PAOR 1
Water Right 63.07291 Jan-02-2007
FLYING H'S REPLY TO IPUC STAFF COMMENTS-12

EXHIBIT D
a;
XI
r: 1
y? I • I -
} CERTIFICATE OF INCORPORATION }
1 1, ARNOLD WILLIAMS,Secretary of State of the State of Idaho,and legal custodian of
i
the corporation records of the State of Idaho do hereby certify that the original of the articles
of incorporation of
CAM& O1312IT ld IAMB ATM
1 was filed in the office of the Secretary of State on the "stY day
111 t
of April, A.D.One Thousand Nine Hundred f1[tlr•It1M, a
duly recorded on Film No. 106 of Record of Domestic Corporations,of the State of Idaho,
( and that the said articles contain the statement of facts required by Section 30.103.Idaho Cade.
l! I FURTHER CERTIFY. That the persow executing the articled and their associates and
E' su,et•ssors are hereby constituted a corporation, by the name hereinbefore stated. for r
parpetaal adstaiM from the dale hereof, with its registered office in this State located at
1a1lNa in the County of Ads.
j 1
t!\ IN TESTIMONY WNF.RP:OF. I have hereunto �
set my hand and affixed the Great Seal or the
State. Done at 1lioise City,the Capital of Idaho, '
J this sass► day of April
A.D., 19
4 �
i �•
Secretary of State.
`i Domestic
aaraar.;;sit••. 1r. :�..' :.-5�''t". Cam" y; ;,
FLYING H'S REPLY TO IPUC STAFF COMMENTS-13

ARTICLES OF INCORPORATION
OF
CAPITOL SECURITIES WATER CORPORATION
w • tr
KNOW ALL K94 BY THESE PRESENTS:
That we, the undersigned, J. B. DOLLARD, R. C. PAULEY
and NASH BIDEGANETA, being persons of full age, residents of
the State of Idaho, and citizens of the United States,
desiring to form a general business corporation under and by
virtue of the provisions of Chapter 1 of Title 30 of the
Idaho Code, and we do hereby certify, declare and adopt the
following articles of incorporation:
I
The name of the corporation is CAPITOL SECURITIES WATER
CORPORATION.
II
The nature, objects and purposes of this corporation
shell be to do any and all of the things hereafter sat forth
to the same extent as natural persons might or could do in
any part of the world, namely:
(a) To own by purchase, drilling or otherwise,
to lease, rent or in any other manner lawfully
acquire, water for domestic or irrigation
b
purposes;
(b) To own by purchase or otherwise, loose,
rent or in any other manner lawfully acquire,
and to sell, rent, lease or assign to any other
parson, firm, corporation, county or municipality,
pipelines and mains for the transportation,
delivery and sale of water; and to construct,
build, maintain and operate the same; to buy
and sell water and water rights from and to
individuals, firms, corporations, counties or
municipalities; to own, operate, maintain and
control such motors and other appliances as may
be necessary in conducting it■ business afore-
said; to buy, own, sell, lease or rent all such
property, real, personal or mixed, as may be
FLYING H'S REPLY TO IPUC STAFF COMMENTS- 14

I
necessary in the conduct of its business afore-
said, and not contrary to law;
(c) To manage, lease, purchase or otherwise
acquire, and to hold, own, sell or dispose of
real estate, and do such things In connection
therewith as shall be convenient, necessary or
required by this corporation in the conduct of
its business and at such places so the board
of directors may determine;
(d) To borrow money for its corporate purposes,
and to make, accept, endorse, execute and issue
promissory notes, bills of exchange, bonds,
debenture■ or other obligations from time to
time, for the purpose of purchasing property or
for any other purpose in or about the business
of the corporation and, if deemed proper, to
secure the payment of any such obligation by
mortgage, pledge, deed of trust or otherwise;
(a) To acquire and take over a■ a concern and
thereafter to carry on the business of any
person, firm or corporation engaged in any
business which this corporation is authorized
to carry on, and in connection therewith to
acquire the good will and all or any of the
assets and to assume or otherwise provide for
all or any of the liabilities of any such
business;
(f) To @all, improve, manage, develop, lease,
mortgage, dispose of or otherwise turn to account or
deal with all or any part of the property of
the corporation;
(g) To carry on business at any place or places
within the Jurisdiction of the United States,
and in any and all foreign countries, and to
purchase, hold, mortgage, convoy, lease or other-
wise dispose of and deal with rag and personal
property at any such place or places;
(h) To enter into, make, perform and carry out
contracts of every sort and kind which may be
necessary or convenient for the business of the
corporation, or business of a similar nature,
with any person, firm, corporation, whether
private, public or municipal, body politic or
under the government of the United States, or
any state, territory or colony thereof or any
foreign government, so far as and to the extent
that the some may be done and performed by
corporations organized under the general corpo-
ration law;
a
ARTICLES, P. 2
-
FLYING H'S REPLY TO IPUC STAFF COMMENTS- 15

- I
(i) To do all and every thing necessary,
suitable or proper for the accomplishment of any
of the purposes, the attaiument of say of the
objects or the furtherance of any of the powers,
herainbefore not forth, either alone or in
f connection with other corporations, firma or
individuals, and either as principal or agent,
and to do every other act or thing incidental
or appurtenant to or growing out of or connected
with the aforesaid objects, purposes or powers
or any of then;
(J) The foregoing enumeration of $pacific
powers of the corporation shall not be deemed
to limit or restrict in any manner the general
povers of the corporation, and the enjoyment
and exercise thereof, as conferred by the laws
of the State of Idaho upon corporations organised
under the provisions of Cm Idaho Code.
III
This corporation shall have an authorised capital of
Twenty-five Thousand and no/100 ($25,000.00) Dollars, divided
into 250 shares of the par value of $100.00 per •hare.
IV
The office of the corporation shall be located at Boise,
Idaho,
V
The duration of the corporation shall be perpetual.
VI
The number of directors shall be not less than three
nor more than seven in number. The directors need not be
stockholders.
VII
The names and postoffics addresses of each subscriber
and the number of shares subscribed by each are as follows:
Mama Address No. Shares
J. B. Dollard 900 Jefferson Street- 1
Boise, Idaho
R. C. Paulay 900 Jefferson Street 1
Boise, Idaho
Nash Bidegansts 900 Jefferson Street 1
Boise, Idaho
i
ARTICLES, P. 3
FLYING H'S REPLY TO IPUC STAFF COMMENTS- 16

VIII
No contract or other transaction of the corporation with
any other person, firm or corporation or in which this corpora-
tion is interested shall be affected or invalidated by the fact
that any one or more of the directors of this corporation is
interested in or is a director or officer of another corporation,
or the fact that any director either individually or jointly with
others may be a party to or may be interested in any such
contract or transaction, and each and every person who may
become a director of the corporation is hereby relieved from
any liability that might otherwise arise by reason of his
contracting with the corporation for the benefit of himself or
any firm or corporation in which he may be in any way otherwise
interested.
IN WITNESS WHEREOF. We have hereunto set our hands and
a sale this r day of April, 1959.
J. S. Dal-lard
R. C. Paulay
Nash Bidogana a
STATE OF IDAHO )
County of Ada
On this day of April, 1959, before me, the under-
signed, a Notary Public in and for said State, personally
appeared J. B. DOLLARD, R. C. PAULEY and NASH SIDEGANITA, known
1 to me to be the persons whose names are subscribed to the within
instrument, and acknowledged to me that they executed the tams.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed
my official seal the day and year in this'certificate first above
written.
Notary Public for Idah0
Residence: Boise, Idaho
ARTICLES, P. 4
FLYING H'S REPLY TO IPUC STAFF COMMENTS- 17

EXHIBIT E
IM
_IIIIIIIIUIIpIUIIII�IIIUIIIIIIUIIIIIIIIHIIWIIIIIIII1111111111111111111IIIIlUIIIIIIIIIIIIIHIl��II ,"Itf"���I �: ' '� � � r' ,Il��tu�ii
r Al`
Department or state.
CERTIFICATE OF AMENDMENT
OF
-- _ eStreL ■ecer:zlTirt r+�Ttt co�tpEATIO� _ —___ -
I PFTE T. CETIARRUSA, Secretan of State of the State of Idaho hcreh%. ccrtll% that
duplicate originalsof Articles of Amendment to the Article%of Incorporation of
CAPITOL WATER CORPORATION
duly signed and verified pursuant to the provisions of the Idaho Business Cotpotahon Act, ha%c
been received in this office and are found to conform to law.
ACCORDINGLY and by%irtue of the authority%e%ted to me b%la%►.I issuethi%Ccrtdreatc
Amendment to the Articles of Incorporation and attach herein a duplicate ori}mal of the %Iti.I.
of Amendment.
Dated -- July 26 - - - to 90
SFCR1-1 ARY UI 1 \1 1
y
.:. >`. 4Q Corporation Clok
11111111HIIIIIIIIIIIIIIIllllllllllllllllllllllllllllliildllllllllllllllllllllllllllllllll{IIIIIIIIIIIIIIIII{Illlllllllllllllllllq{IIIHMIIIIIIINIIIdIIa{IIIIIII;IIIIIIIWIIdlllli. i
CAM 779
FLYING H'S REPLY TO IPUC STAFF COMMENTS-18

kcf.C: C ARTICLES OF AMENDMENT
• .
ti
Ji.G. to the
30 JUL 26 F 9 26 ARTICLES OF INCORPORATION
of
CAPITOL SECURITIES WATER CORPORATION
Pursuant to the provisions of Section 30-1-61 of the
Idaho Business Corporation Act, the undersigned oorporation
adopts the following Articles of Amendment to its Articles of
Incorporation:
FIRST: The name of the corporation is CAPITOL SECURITIES
WATER CORPORATION.
SECOND: The following amendment to the Articles of
Incorporation was adopted by the shareholders of the corporation
on the 20th day of July, 1990 in the manner prescribed by the
' Idaho Business Corporation Act:
The name of the corporation is amended to
' CAPITOL WATER CORPORATION
THIRD: The number of shares of the corporation outstanding
at the tree of such adoption was one hundred ( 100) , all of which
shares were entitled to vote thereon and all of which are of the
same class.
FOURTH: The number of shares voted for such amendment was
one hundred ( 100) . No shares voted against such amendment.
FIFTH: The manner in which any exchange, reclassification
or cancellation of issued shares shall be effected is as follows:
Stock certificates bearing the name "CAPITOL
SECURITIES WATER CORPORATION" shall be
delivered to the corporation and exchanged
for stock certificates representing the same
number of shares bearing the amended name
"CAPITOL WATER CORPORATION".
SIXTH: The amendment does not effect a change in the amount
of the stated capital of the corporation.
1
FLYING H'S REPLY TO IPUC STAFF COMMENTS- 19

e
IN WITNESS WHEREOF, �th�/�j�President and Secretary have set
their hands and seals the �� - July, 1990.
CAPITOL SECURITIES WATER CORPORATION
by
T PRICE, HT
ATTEST:
by y 71 _--
BIUNNIE R. PRICE,
STATE OF IDAHO )
ss
County of Ada )
a H. Robert Price and Bonnie R. Price, being first duly sworn,
depose and say that they are the President and Secretary of the
said corporation and that they have read the foregoing ARTICLES
OF AMENDMENT TO THE ARTICLES OF INCORPORATION OF CAPITOL
SECURITIES WATER CORPORATION, know the contents thereof, and
bellevP the facts therein stated to be true.
W—i(,Ie�z
,1
SUBSCRIBED AND SWORN to before me this day of July",
1990.
1
t
o a y c rifr Ydaho --
Res_141ng in Boise, Idaho
f
7
2
A
1
5
FLYING H'S REPLY TO IPUC STAFF COMMENTS—20

EXHIBIT F
2caf !S
MAIN EXTENSION CONTRACT
Subdivisions, Tracts Housing Projects, Industrial
Develo ments or Organized Commercial Districts
This Agreement, made and entered into this ict day of
nil 11 by and between Capitol Water Corporation,
(hereinafter referred to as "Corporation"), and _
lair ova,- - Clyin') 'r..
_ Trailer anc;; of Boise, Idaho (hereinafter referred to as "Applicant"),
mutually agree as follows:
1. Applicant hereby applies for a water main extension to be
constructed in accordance with the Corporation's standard specifications and is
generally described as follows:
i-lyinq H. Trailer Park A`11
Installation of 1,140 6" Class 150 C-900 P.V.C. Water PiDe
24D' 3/4" Tyoe K Copper Water Tube
to serve 15 Services in the Flying H.
Trailer Park
2. Applicant will advance an amount of $6,564.36
to cover the estimated cost of facilities generally described in paragraph 1 above. Any
difference between the actual cost and the amount advanced shall be shown as a revision
of the amount of advance and shall be payable within thirty days of submission.
3. At the time the water main extension is connected to the Corporation's
water system, the ownership of the pipeline shall belong to the Corporation and shall
thereafter be maintained and operated by the Corporation.
4. The amount advanced, in paragraph 2 above, shall be subject to
refund by the Corporation, in cash, without interest, to the Applicant as follows:
(a) The Corporation shall determine the annual revenue received from
each customer, other than residential supplied by service pipes connected directly
to the extension for which the cost was advanced and the refund shall be 22% of the
revenue so received.
(b) For Residential Customers connected directly to the extension for
which the cost was advanced, the refund shall be 2211% of the average revenue
per residential customer of the entire system for the immediately preceding 12 month
period.
(c) The total amount refunded shall not exceed the total of the amount advanced.
Refunds will be made in annual payments for a period not to exceed 20 years after
the date of this contract, except as provided in Section C-2-d R e, Page 20E & 20F
i.A.. 1n 4nar, ototlnn the nnntra Ct neriod can continue
FLYING HIS REPLY TO IPUC STAFF COMMENTS-21

for refunds for 25 years.
5. This Contract is entered into pursuant to the requirement of and
in accordance with the various applicable provisions of the Corporation's main
extension rule in effect and on file with the Idaho Public Utilities Commission, a
copy of which is available on request and is made a part hereof. All service rendered
from the Corporation's water system shall be in accordance with the rates, rules
and regulations applicable to said service under approval and authority of the
Idaho Public Utilities Commission.
FLYING HIS REPLY TO IPUC STAFF COMMENTS-22

6. Applicant shall provide a water main stake-out, on the property
line on the same side of the street on which the main is to be laid. Said stake-out
shall indicate the, off-set distance from the stake to the center line of pipeline, the
cut required from the top of stake to the invert of the pipeline. (the minimum cover from
finished grade to the top of pipe is 4'-0"), the location of valves, fitting, fire hydrants,
and meters. Exact grade for meter boxes shall also be furnished to Water Company by Appli-
cant. Stakes are to be set no further apart than lo0 feet on straight runs and 50 feet
on all curves.
Any adjustments of Water Company's facilities which may be
necessitated due to changes in grade or due to damage by others will be done
by Water Company, or Water Company's contractor at developer's expense.
If any valve boxes, curb boxes, or meter boxes are covered up or damaged
by others, these facilities will be located and brought to proper grade by Water Company
or Water Company's contractor at developer's expense.
7. For labor in lieu of cash construction, applicant guarantees both
material and workmanship for a period of one year after date of pressure tests of
installed system.
CAPITOL WATER CORPORATION
ATTEST:
By: �iLC-C
Manager
Capitol Water Corporation
WITNESS: II, Robert Price
v Applicant
Bonnie R. Price Blaine Evans
FLYING H'S REPLY TO IPUC STAFF COMMENTS-23