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HomeMy WebLinkAbout20260623Decision Memo.pdf DECISION MEMORANDUM TO: COMMISSIONER LODGE COMMISSIONER HAMMOND COMMISSIONER HARDIE COMMISSION SECRETARY COMMISSION STAFF LEGAL FROM: TRAVIS CULBERTSON, PROGRAM MANAGER—ACCOUNTING& FINANCE ERIKA K. MELANSON,DEPUTY ATTORNEY GENERAL DATE: JUNE 23, 2026 SUBJECT: INVESTIGATION INTO ELEVATE EAGLE MHC,OWNER OF A WATER SUPPLY AND DISTRIBUTION SYSTEM Elevate Eagle MHC 1 ("Eagle MHC"), previously known as Riviera Estates Mobile Home Park, is associated with a water system identified by the Idaho Department of Environmental Quality ("DEQ") as Eagle MHC (Public Water System No. ID4010123). Eagle MHC is a private water utility located in Ada County near Eagle, Idaho. Eagle MHC provides water service to 44 connections. Eagle MHC is not currently regulated by the Idaho Public Utilities Commission ("Commission") and does not possess a Certificate of Public Convenience and Necessity. Based on Commission Staff s ("Staff') review of information obtained, Staff believes a formal investigation is necessary to determine whether Eagle MHC is operating as a public utility that should be regulated by the Commission. Staff recommends that the Commission open a docket initiating a formal investigation to determine whether Eagle MHC should be regulated and, if so, recommend any further action necessary to comply with applicable laws. BACKGROUND On April 21, 2026, the DEQ notified Staff that Eagle MHC may be operating as an unregulated water utility and customers are concerned with Eagle MHC business practices. On April 28, 2026, Staff contacted Eagle MHC via e-mail, indicating that Staff had been informed that Eagle MHC may be operating as an unregulated public utility within the State of Idaho. On ' The Idaho Secretary of State website represents that Elevate Eagle MHC is an assumed business name of Elevate Eagle LLC and as of 4/11/2025 is managed by Sojourn Holding Group Inc,which is owned by Demetre Booker Jr. DECISION MEMORANDUM 1 JUNE 23, 2026 April 28, 2026, Staff met with Trevor Lawhorn of Elevate Commercial to discuss the Commission's jurisdiction, the process for becoming regulated, and to obtain a better understanding of the water system. Mr. Lawhorn indicated that Eagle MHC would provide a response. On April 30, 2026, and June 9, 2026, the Commission received informal complaints from customers regarding alleged overcharging, intimidation, and concerns about Eagle MHC's business practices. On June 2,2026, Staff e-mailed Eagle MHC requesting an update and seeking to schedule a follow-up meeting to discuss the regulatory process. As of June 17, 2026, Eagle MHC has not responded or provided an update. STAFF RECOMMENDATION Based on the available information, Staff believes there is sufficient evidence to merit a formal investigation to determine whether Eagle MHC is operating as a public utility subject to the Commission's regulatory jurisdiction. An investigation would include discovery requests to Eagle MHC, an examination of Eagle MHC's financial records, and a recommendation to the Commission regarding any further action, if necessary. COMMISSION DECISION Does the Commission wish to open an investigation to determine whether Elevate Eagle MHC should be regulated by the Commission and direct Staff to submit a recommendation upon completion of the investigation? Travis Culbertson Program Manager—Accounting & Finance I:\Utility\UDMEMOS\Elevate Eagle MHC_tc.docx DECISION MEMORANDUM 2 JUNE 23, 2026