20260804Decision 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 ROLLING HILLS ACRES DIVISION II, LLC,
OWNER OF A WATER SUPPLY AND DISTRIBUTION SYSTEM
Rolling Hills Acres Division II, LLC ("Company") is a private water utility located in
Jefferson County near Rigby,Idaho. The Company provides water service to 47 connections. The
Company 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 that a formal investigation is necessary to
determine whether the Company 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 the Company should be regulated and, if so, recommend any
further action necessary to comply with applicable laws.
BACKGROUND
On June 5, 2024, the Idaho Department of Environmental Quality notified Staff that the
Company may be operating as an unregulated water utility and had increased rates that could
impact its customers. On June 30,2025, Staff met with the Company 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 the Company requesting an update and seeking to
schedule a follow-up meeting to discuss the regulatory process. As of July 31,2026,the Company
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 the Company is operating as a public utility subject to
the Commission's regulatory jurisdiction. An investigation would include discovery requests to
the Company, an examination of the Company'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 Rolling Hills
Acres Division II, 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\Rolling Hills Decision Memo.docx
DECISION MEMORANDUM 2 AUGUST 4, 2026