20251009Order No. 36799.pdf

Office of the Secretary
Service Date
October 9,2025
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF BEAR CLAW WATER ) CASE NO. BCW-W-25-01
SYSTEM, LLC'S APPLICATION FOR A )
CERTIFICATE OF PUBLIC CONVENIENCE )
AND NECESSITY ) ORDER NO. 36799
On July 14,2025,Bear Claw Water System,LLC("Company")applied to the Idaho Public
Utilities Commission ("Commission") requesting a Certificate of Public Convenience and
Necessity("CPCN")to provide water service within the Bear Claw Subdivision in Bonner County,
near Clark Fork, Idaho
On August 7,2025,the Commission issued a Notice of Application and Notice of Modified
Procedure, establishing deadlines for written comments. Order No. 36709. Commission Staff
("Staff') and one member of the public filed written comments to which the Company did not file
reply comments.
Based on our review of the record, the Commission now issues this Final Order approving
the Application and issuing a CPCN to the Company.
THE APPLICATION
The Company represented that it provided water service within the Bear Claw Subdivision
in Bonner County, near Clark Fork, Idaho, as an unregulated water corporation. Application at 1.
The Company stated that it was an Idaho limited liability company, and submitted a copy of its
Certificate of Organization,Amendment to Certificate of Organization, and Operating Agreement
with its Application. Id. at Exhibits A-C.
The Company submitted a copy of the plat of the Bear Claw Subdivision, and the legal
description of the area that the Company served. Id. at Exhibits D-E. In addition, the Company
provided information regarding the layout of its water system and associated water rights. Id. at
Exhibits G-J.
The Company included details regarding the current rate structure and customer payments
in the Application. Id. at 3-4. The Company stated that the water system could not accommodate
any additional water connections and included a copy of the Notice of Moratorium on Connections
to Bear Claw Water System with its Application.Id. at Exhibit M.
ORDER NO. 36799 1

STAFF COMMENTS
Staff recommended the Commission (1) find that the Company is a water corporation
operating as a public utility in Idaho; and (2) issue the Company a CPCN. Staff Comments at 2.
Staff also recommended the Commission set rates at the Company's interim rates as submitted in
the Application. Id. Lastly, Staff recommended the Commission open a separate docket for Staff
to review the Company's interim water rates and the reliability of its water system. Id.
Staff believed that the Company was a public utility as defined by Idaho Code§ 61-129(1).
Id. at 2-3. Based on its evaluation of the materials provided by the Company, Staff believed the
Company was a single member limited liability company organized in the State of Idaho and did
not qualify for any exceptions to the Commission's regulation under Idaho Code § 61-104. Id. at
3. Additionally, Staff believed that customers had no say in the operations of the Company,
including ownership of the water system or control of rates for water service. Id.
Staff evaluated the Company's proposed service territory and believed it was consistent
with the Company's water system layout and did not overlap with any other water systems in the
area. Id. Staff recommended that the Commission issue the Company a CPCN with the proposed
service territory, as filed. Id.
Staff reviewed the moratorium on the number of connections the water system could
provide service to. Id. Staff believed that any additional connections beyond the 24 currently in
service would require a second well to provide water service and would need to be approved by
the Idaho Department of Environmental Quality.Id. Staff believed that none of the wells within a
one-mile radius of the proposed service territory could be used in the future for municipal purposes.
Id. at 4-5.
PUBLIC COMMENTS
The commentor stated that they own property within the Company's service area and had
been unable to develop the property because of the moratorium. Comment at 1. The comment
expressed concerns about rising property taxes when the property cannot be developed or sold as
a result of the moratorium.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.
ORDER NO. 36799 2

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.
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 the
Company 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,the Company must have a CPCN from the Commission.See Idaho Code
§ 61-526. We find it reasonable to issue the Company a CPCN, and that the proposed legal
description 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, the Company is required to adopt the Commission's
Uniform Customer Relations Rules ("UCRR") (IDAPA 31.21.01 et seq.) and Utility Customer
Information Rules (IDAPA 31.21.02 et seq.).
2. Tariff and Other Documents
As a regulated entity,the Company 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. The Company shall work with Staff to ensure appropriate notice has
been provided to the Company's customers regarding regulation.
3. Rates and Charges
We direct the Company to maintain its current rates. Staff shall open a separate docket to
evaluate whether these interim rates are fair,just, and reasonable.
ORDER NO. 36799 3

ORDER
IT IS HEREBY ORDERED that the Company is a public utility pursuant to Idaho law and
is granted a CPCN consistent with the directives in this Order.
IT IS FURTHER ORDERED that the Company shall maintain its current rates, and Staff
shall open a separate docket to evaluate whether the Company's interim 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 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. See Idaho Code § 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 91h day of
October 2025.
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hDWARD LODGE, iTEaS N
HN R. HAMMOND JR., COMMISSIONER
DAYN HARDI , COMMISSIONER
ATTEST:
9 VO4--
Laur alderon Robles
Interim Commission Secretary
I:\Legal\WATER\BCW-W-25-01_CPCN\orders\BCW W2501_final_em.docx
ORDER NO. 36799 4