20260608Final_Order_No_37059.pdf

Office of the Secretary
Service Date
June 8,2026
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF TETON WATER AND ) CASE NO. TTS-W-26-02
SEWER COMPANY, LLC'S APPLICATION )
FOR TARIFF REVISIONS )
ORDER NO. 37059
On February 19,2026,Teton Water and Sewer Company,LLC("Company") applied to the
Idaho Public Utilities Commission ("Commission") requesting to revise Rate Schedule No. 2,
Non-Recurring Fees and Charges ("Schedule No. 2"). The Company requested a March 1, 2026,
effective date.
On March 19, 2026, the Commission issued a Notice of Application,Notice of Suspension
of Proposed Effective Date, and Notice of Modified Procedure, establishing public comment and
Company reply comment deadlines. Order No. 36973. No public comments were received.
Based on our review of the record,the Commission now issues this Final Order approving
the revision to Schedule No. 2, with modifications, as discussed below.
THE APPLICATION
The Company proposed revising Schedule No. 2 to clarify the Company's Hookup Charge
revise tariff language, define ownership and responsibility for service facilities, and more
accurately reflect the services provided by the Company. Application at 1. The Company stated
that it was not proposing any changes to its monthly rates.Id.
Specifically, the Company proposed increasing the Schedule No. 2 Hookup Charge from
$600 plus incremental costs to a flat fee of$2,913. Id. The Company also proposed revising the
tariff language to clarify that installation of the meter vault, service line, fittings, and related
appurtenances located at the curb stop are performed by the customer's contractor, rather than by
the Company.Id.
In addition, the Company proposed language confirming that, for a standard new service
connection, the Company's responsibilities would be limited to: (1) inspecting customer-installed
facilities before backfilling; (2) conducting pressure testing to verify the absence of leaks; and(3)
installing and activating the water meter. Id. Finally, the Company proposed adding language
establishing that customers would be responsible for the actual construction costs associated with
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requests for service connections larger than 1-inch, subject to Company inspection and approval.
Id.
The Company believed that these revisions to Schedule No. 2 are necessary to improve
transparency between the Company and its customers and to align the tariff language with the
Company's actual operating practices.Id. at 2.
STAFF COMMENTS
Based on its review of the Application, supporting attachments, and discussions with the
Company, Staff recommended that the Commission approve a Hookup Charge of $2,996 and
approve Staff s proposed revisions to the Company's tariff language as provided in Attachment B
to Staffs Comments. Staff Comments at 2. Staff also recommended that the Commission order
the Company to work with Staff to submit a compliance filing with updated tariffs within 30 days
of the issuance of the order.Id.
With respect to the Hookup Charge calculation, Staff recommended approval of a $2,996
Hookup Charge rather than the Company's proposed $2,913 charge. Id. Staff believed that the
documentation and invoices submitted by the Company adequately supported an increase in the
Hookup Charge from the existing $600 fee. Id. However, during its review, Staff identified a
calculation error,rounding errors,the improper inclusion of a curb box in the meter material costs,
and an increase in the cost of one-inch meters.Id. After correcting those issues, removing the curb
box cost, and adjusting the meter price, Staff calculated a revised Hookup Charge of$2,996. Id.
Staff explained that it removed the curb box cost because the curb box was already installed and
was part of the Company's existing infrastructure. Id. at 3. Staff further noted that any damage to
the curb box, existing Company infrastructure, or hookup components caused during or after
installation by contractors, landscapers, or similar parties would remain the sole responsibility of
the customer.Id.
Staff also recommended approval of the tariff language revisions contained in Attachment
B to Staffs Comments and recommended that the Commission require the Company to file
updated compliance tariffs within 30 days of the final order.Id. Staff s proposed revisions included
language clarifying the respective responsibilities of the customer and the Company for hookup
installation, defining the point at which ownership of the service connection transferred from the
Company to the customer, removing the limitation on assessing Hookup Charges more than six
months in advance,updating the 1-inch meter Hookup Charge to reflect Staffs revised calculation,
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clarifying charges for service connections larger than one inch, and revising Sections 7.1 and 9.1
of the general rules to conform with the proposed Hookup Charge changes.Id.
Staff explained that its proposed tariff language more clearly identified the obligations of
both the customer and the Company in connection with service hookups. Id. Under the proposed
language, the Company would be responsible for approving qualified contractors, communicating
installation requirements, supplying hookup materials, and conducting final inspections,while the
customer would remain responsible for hiring qualified contractors, installing Company-supplied
materials, and paying extraordinary costs not included in the Hookup Charge. Id. at 4. Staff
identified repair or replacement costs associated with damage to Company infrastructure caused
by customer contractors as an example of such extraordinary costs. Id.
Staff further explained that the revised tariff language clarified ownership and maintenance
responsibilities for the service connection after installation. Id. Under the proposed revisions, the
Company would assume ownership of the service connection up to the outlet side of the meter,
while the customer would own and maintain all facilities beyond the outlet side of the meter. Id.
Staff also removed the tariff provision prohibiting assessment of Hookup Charge more than six
months in advance after the Company explained that Teton County required payment of the
Hookup Charge before issuance of a building permit, which frequently resulted in installation
occurring more than a year after payment.Id. Finally, Staff noted that the proposed tariff revisions
updated the Hookup Charge amount to reflect Staff s calculations and clarified that customers
requesting meter sizes larger than one inch would be responsible for the actual material costs
associated with those connections.Id.
COMMISSION FINDINGS AND DECISION
The Commission has jurisdiction over the Company's Application and the issues in this
case under Title 61 of the Idaho Code including, Idaho Code §§ 61-501, -502, and -503. The
Commission is empowered to investigate rates, charges,rules,regulations,practices, and contracts
of all public utilities and to determine whether they are just, reasonable, preferential,
discriminatory, or in violation of any provisions of law, and to fix the same by order.Idaho Code
§§ 61-501, -502, and-503.
The Commission has reviewed the Company's Application, including all submitted
materials and Staffs comments. Based on our review of the record, we find it fair, just, and
reasonable to approve Staffs recommended Hookup Charge Fee of$2,996. The Commission also
ORDER NO. 37059 3

finds Staff s recommendations regarding the Company's tariff language to be reasonable. The
Company shall work with Staff to update its tariff consistent with this Order and Staff s
recommendations. Within 30 days of the date of this Order, the Company shall submit an updated
tariff,including the$2,996 Hookup Charge Fee and revised tariff language,together with any other
required documentation, as a compliance filing for Commission review and approval.
ORDER
IT IS HEREBY ORDERED that the updated Hookup Charge of$2,996, is approved.
IT IS FURTHER ORDERED that Staffs proposed tariff language is approved, as filed as
Attachment B to Staff s Comments.
IT IS FURTHER ORDERED that within 30 days of the date of this Order, the Company
shall submit an updated tariff, including the $2,996 Hookup Charge and revised tariff language,
together with any other required documentation, as a compliance filing for Commission review
and approval.
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 regarding any matter decided in
this Order.Within 7 days after any person has petitioned for reconsideration, any other person may
cross-petition for reconsideration.Idaho Code § 61-626.
ORDER NO. 37059 4

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 8th day of
June 2026.
G
EDWARD LODGE, RtAIDENT
J R. HAMMOND JR., COMMISSIONER
DAYN HA IE, COMMISSIONER
ATTEST:
doUa anchez
Commission Secretary
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ORDER NO. 37059 5