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HomeMy WebLinkAbout20260804Decision Memo.pdf DECISION MEMORANDUM TO: COMMISSIONER LODGE COMMISSIONER HAMMOND COMMISSIONER HARDIE COMMISSION SECRETARY COMMISSION STAFF LEGAL FROM: TRAVIS CULBERTSON, PROGRAM MANAGER—ACCOUNTING & FINANCE CHRIS BURDIN, DEPUTY ATTORNEY GENERAL DATE: AUGUST 4, 2026 SUBJECT: INVESTIGATION INTO LAKE LOWELL WATER, LLC, OWNER OF A WATER SUPPLY AND DISTRIBUTION SYSTEM Lake Lowell Water,LLC("Lake Lowell"), which is identified by the Idaho Department of Environmental Quality as Lakeview Water Company 1,is a private water utility located in Canyon County near Caldwell,Idaho. Lake Lowell provides water service to 50 connections. Lake Lowell 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 Lake Lowell 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 Lake Lowell should be regulated and, if so, recommend any further action necessary to comply with applicable laws. BACKGROUND In May 2025,a customer filed an informal complaint with the Commission regarding Lake Lowell. On June 30,2025, Staff emailed Lake Lowell indicating that Staff had information that it may be operating as an unregulated public utility within the State of Idaho. On July 9, 2025, Staff met with Lake Lowell to discuss the Commission's jurisdiction, the process for becoming regulated, and to obtain a better understanding of the water system. On May 12, 2026, Staff emailed Lake Lowell requesting an update and seeking to schedule a follow-up meeting to discuss the regulatory process. As of July 31,2026,Lake Lowell had not responded or provided an update. DECISION MEMORANDUM 1 AUGUST 4, 2026 STAFF RECOMMENDATION Based on the available information, Staff believes there is sufficient evidence to merit a formal investigation to determine whether Lake Lowell is operating as a public utility subject to the Commission's regulatory jurisdiction. An investigation would include discovery requests to Lake Lowell, an examination of Lake Lowell'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 Lake Lowell Water,LLC, 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\Lake Lowell Decision Memo.docx DECISION MEMORANDUM 2 AUGUST 4, 2026