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HomeMy WebLinkAbout20260217Comment_1.pdf From:Vern Stairs <vwstairs@yahoo.com> Sent:Tuesday, February 17, 2026 3:30 PM To: secretary<secretary@puc.idaho.gov> Subject: Interim Rate Evaluation RE Case BCW-W-25-02 Enclosed please find an attachment with written comments RE case BCW-W-25-02 addressing the interim rate Bear Claw Water System, LLC charges for service. The attached contains all of the required identifying information. If you need any further information please do not hesitate to contact me at this email address Thankyou, -Vern Stairs Vern Stairs February 17, 2026 Bear Claw Subdivision Resident 13 USFS 2109 Clark Fork, ID 83811 Case: BCW-W-25-02 The PUC staff is currently performing an evaluation of the interim rates charged by the Bear Claw Water System, LLC (BCWSLLC)to see if they are fair,just and reasonable. This is in response to your solicitation of customer comments. During a telecom with one of your staff, we were informed that the rate evaluation will be based on financial records for the one-year period from October 1, 2024, to September 30, 2025. lam concerned that the operating and maintenance expenses for that year are not typical of previous years'expenses and may skew the evaluation outcome. I am aware of several extraordinary expenses that occurred during the period being considered. In July 2025 the well pump and motor were replaced as the original(and only) pump had failed. The repair took 5 days. Two related failures immediately followed. Because the well pump/motor job replaced 7.5 HP components with 10 HP components, the feeder breaker repeatedly tripped on overcurrent and had to be replaced with one of a higher rating. In addition, the water storage tank level control system was affected such that the control system malfunctioned, the pump did not shut off, and the tank overflowed. The control circuitry had to be modified to get around that problem. And finally, in September 2025 the system experienced a loss of water due to a line break. That repair took 3 days. Those are just the unusual expenses that I am aware of and are not the type and frequency representative of the history of the water system. I would also contend that the water system has not been operated as a business and, that in the future, customers maybe paying for past negligence. Noted in Commissioners' Order 36799 of October 9, 2025, is a requirement that the utility(Company) adopt the 1 Commission's Customer Relations Rules and Customer Information Rules. The rules address several administrative functions among which is billing. To date, I am not aware of compliance with any of those rules. In October 2024 one of our residents contacted Spurgetis Law Firm, the water system's current trustee, requesting that customers be billed. In response, a letter from the president of Spurgetis included several telling points: 1)the history of the water system is extensive, complicated and unorganized, 2)there never was an agreement or contract in place that established payment as a requirement for service, 3)the"honor system" has apparently been in place for decades and has worked well enough to at least keep the water system operating and 4) should residents decline to pay, maintenance of the water system will be exceptionally difficult, if not impossible, due to a lack of available funds. While the current trustee's performance is not to be applauded, the former trustee's (US Bank) performance was much worse. Evidently there were no financial accounting records kept by them. That maybe the reason why the Staff's evaluation period begins with the year after Spurgetis began as trustee since only now are financial records available for review. Finally, if the water system had been operated as a business, customers billed, past rates adjusted to address ongoing and anticipated expenses, and fees for hookups collected, the water system's bank account might have a balance today. So who is culpable for past transgressions and lack of financial responsibility, the system developer, the past and current trustees, or the current customers? As James Spurgetis accurately stated, the Bear Claw water system's history is complicated and unorganized. -------------------------------------------------------------------------------------------------------- 2