20250929Final Order No. 36772.pdf

Office of the Secretary
Service Date
September 29,2025
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION ) CASE NO. ISW-W-25-01
OF INTERMOUNTAIN SEWER AND )
WATER, CORP. FOR THE ISSUANCE OF A ) ORDER NO. 36772
CERTIFICATE OF PUBLIC CONVENIENCE )
AND NECESSITY )
On May 29, 2025, Intermountain Sewer and Water, Corp. ("Company") applied to the
Idaho Public Utilities Commission ("Commission") requesting a Certificate of Public
Convenience and Necessity ("CPCN") authorizing it to provide water service in and around the
Mayfield Spring Planned Community in Elmore County, Idaho ("Service Area"), which is
currently in development ("Application"). The Company also requests authority from the
Commission to charge an interim rate for service.
On July 15, 2025, Commission Staff ("Staff") presented a decision memo at the
Commission's regular Decision Meeting recommending that the Company's requests be bifurcated
for clarity. Staff recommended that the request for a CPCN be processed in this docket and a
separate docket be opened to subsequently consider the Company's request for an interim rate for
water service.
On July 31, 2025, the Commission issued a Notice of Application and Notice of Modified
Procedure setting an August 21, 2025, deadline for public comments and an August 28, 2025,
deadline for the Company's reply comments. Order No. 36688. The Order also bifurcated the case,
as filed, and directed the creation of separate docket to allow Staff and interested persons to review
the Company's request to establish an interim rate for service contingent upon the outcome of the
Company's request for a CPCN.
Staff filed comments. The Company did not file reply comments and no public comments
were received.
Having reviewed the record in this case, we now issue this Final Order approving the
Company's Application for a CPCN.
THE APPLICATION
The Company requested the Commission issue a CPCN authorizing the Company to
provide water to the Service Area. Application at 2-3. The Company represented that the Service
ORDER NO. 36772 1

Area water facilities (including well and distribution facilities) ("Water System") were built in
accordance with all applicable regulations associated with public drinking water. Id. at 2. The
Company stated that the Water System, which will be operated by Valley Hydro, Inc., was
reviewed and approved by the Idaho Department of Environmental Quality.Id. The Company also
stated that it has the resources to ensure the Water System can be operated safely and reliably. Id.
STAFF COMMENTS
Staff recommended the Commission find that the Company is a water corporation
operating as a public utility and grant its Application for a CPCN. Staff Comments at 2. Staff also
recommended the CPCN designate the Company's certificated area using the legal description and
map of the Service Area provided in the Company's Application. Id. at 5. Additionally, Staff
recommended the Commission set rates at the Company's proposed interim rates, which will be
reviewed by Staff, along with the reliability of the Water System, in the separate docket that the
Commission previously ordered open.Id. at 2; see Order No. 36688.
Staff believed the Company is a public utility,which is defined by Idaho Code § 61-129 to
include a"water corporation."Staff Comments at 2. Staff noted that a"water corporation"includes
any corporation"owning, controlling, operating or managing any water system for compensation
within this state." Id. According to Staff, the Company did not meet any of the exceptions
enumerated by Idaho Code § 61-104.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.
Based on our review of the record and the nature of control exercised by the Company in
the ownership and operation of the Water System,we conclude the Company is a water corporation
and therefore a public utility subject to this Commission's jurisdiction. 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.
ISW-W-25-01 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 Service Area, as present and future public convenience and necessity requires issuance
ORDER NO. 36772 2

of such a certificate. The Company's service area shall match the legal description provided on
page 35 of the Application packet and depicted in the map contained on page 34 of the same packet.
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 of the legal description provided on page 35
of the Application packet and depicted in the map contained on page 34 of the packet. The rates
shall be the Company's proposed interim rates, which will be reviewed by Staff, along with the
reliability of the Water System, in Case No. ISW-W-25-02.
IT IS FURTHER ORDERED that the Company must adopt the Commission's Utility
Customer Relations Rules (IDAPA 31.21.01 et seq.) and Utility Customer Information Rules
(IDAPA 31.21.02 et seq.). The Company must also adopt an accounting system consistent with
the practices and information required by the National Association of Regulatory Utility
Commissioners' ("NARUC") Uniform System of Accounts for Water Utilities, adopted by
NARUC on November 13, 2024, and corrected on January 24, 2025.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date upon this Order regarding 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.
ORDER NO. 36772 3

DONE by order of the Idaho Public Utilities Commission at Boise, Idaho this 291' day of
September 2025.
G
Gv�
DWARD LODGE, RE I ENT
R. HAMMOND JR., COMMISSIONER
DAYN HARDIE, OMMISSIONER
ATTEST:
La a Calderon Robles
Interim Commission Secretary
IALegal\WATER\IS W-W-25-01_CPCN\orders\ISW W2501_FOjl.docx
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