20251217Order No. 36604.pdf

Office of the Secretary
Service Date
May 21,2025
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE INVESTIGATION ) CASE NO. RED-W-24-01
INTO RED PHEASANT HOLDINGS,LLC- )
OWNER OF A WATER SUPPLY AND )
DISTRIBUTION SYSTEM ) ORDER NO. 36604
On November 20, 2024, the Idaho Public Utilities Commission ("Commission") issued
Order No. 36392, finding it reasonable to direct Commission Staff("Staff') to investigate Red
Pheasant Holdings, LLC ("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. 36392.
The Company is a water utility located in Nez Perce County, Idaho near Lewiston. The
Company provides water to 165 connections. The Company is not currently regulated by the
Commission and does not possess a CPCN.
On January 24,2025,the Commission issued a Notice of Modified Procedure, establishing
public comment and Company reply deadlines. Order No. 36448. Staff filed comments on
February 21, 2025. No comments were filed by the public or the Company.
Having reviewed the record, the Commission issues this Final Order finding that the
Company is a public utility, issuing it a CPCN,and directing it to submit additional documentation
as described below.
STAFF COMMENTS
Based on its investigation, Staff believed that the Company should be regulated under Title
61 of the Idaho Code, and Staff recommended that the Commission issue the Company a CPCN.
Staff Comments at 2. In reaching its recommendation, Staff used the following non-exclusive list
of criteria:
a. Is the Company a Non-Profit or a Co-op?
b. Does the Company operate for the service of the customers and not for profit?
c. Is the Company owned by its customers?
ORDER NO. 36604 1

d. Do the customers have control of the rates that the Company charges?
e. Do the customers have control of the operations and capital expenditures of the
Company?
Id. at 3.
In its evaluation, Staff learned that the Company is a multi-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. Additionally, Staff believed that
customers had no say in the operations of the Company, including ownership of the water system
and control of rates for water service. Id. Therefore, Staff believed that the Company is a public
utility operating and maintaining the water system for compensation.Id.
Staff evaluated the Water Resource Permit to Appropriate Water No. 85-15772("Permit"),
provided by the Company, to determine the Company's service territory. Id. Staff stated that the
municipal place-of-use boundary defined by the Permit was much larger than the area currently
serviced by the Company, and Staff believed that the authorized service territory should be limited
to the area the Company is currently serving. Id. at 3-4. Staff recommended that the Company
provide maps and legal descriptions for the territory it actually serves through a compliance filing
with the option to apply for an amendment to its service area through a separate filing should the
Company expand its service territory in the future. 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" includes "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," or "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
ORDER NO. 36604 2

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. We also find that Staffs
recommendation to collect more documentation to establish the initial service area is reasonable.
The Company shall submit: (1) the county-approved plat maps that include legal descriptions of
all subdivisions the Company is currently serving; and(2)parcel legal descriptions for any parcels
not covered by the plat maps. The Company shall provide copies of the approved legal descriptions
filed with Nez Perce County,or a combination of the following preferred legal description formats:
(1) rectangular survey; metes and bounds; and/or (3) lot and block as a compliance filing in this
case within 45days of the service date of this Order.
Moreover,as a regulated utility,the Company is required to 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.). We direct the Company to work directly with Staff as needed to adopt
the previously stated rules following issuance of this order.
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. We direct the Company to work directly with Staff as necessary prepare
the required documentation following issuance of this order. The Company shall submit these
required documents as a compliance filing in this case within 45 days of the service date of this
Order.
3. Rates and Charges
We direct the Company to maintain its current rates. Staff shall open a separate docket to
evaluate whether the Company's rates are fair,just, and reasonable.
ORDER NO. 36604 3

ORDER
IT IS HEREBY ORDERED that the Company is a public utility and is granted a CPCN
consistent with this Order.
IT IS FURTHER ORDERED that the Company shall submit a compliance filing within 45
days of the service date of this Order providing: (1) the county-approved plat maps that include
legal descriptions of all subdivisions the Company is currently serving; and (2) parcel legal
descriptions for any parcels not covered by the plat maps. The Company shall provide copies of
the approved legal descriptions filed with Nez Perce County, or a combination of the following
preferred legal description formats: (1) rectangular survey; metes and bounds; and/or (3) lot and
block.
IT IS FURTHER ORDERED that the Company shall submit a compliance filing within 45
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 the Company shall maintain its current rates, and Staff
shall open a separate docket to evaluate whether the Company's rates are fair,just,and reasonable.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within 21 days of the service date of this Order. Within 7 days after any person
has petitioned for reconsideration, any other person may cross-petition for reconsideration. See
Idaho Code § 61-626.
ORDER NO. 36604 4

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 21" day of
May 2025.
G
EDWARD LODGE, P MIDENT
ant- —�/�
7 R. HAMMOND JR., COMMISSIONER
Recused
DAYN HARDIE, COMMISSIONER
ATTEST:
M a o a
Commission Secreta
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I:\Lega1\WATER\RED-W-24-01_invest\Orders\RED W 2401_final_em.doex
ORDER NO. 36604 5