20260828APPLICATION.pdf

RECEIVED
August 28, 2026
IDAHO PUBLIC
UTILITIES COMMISSION
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF CASE NO. MWL-W-26-01
MEADOWS WATER, LLC FOR AUTHORITY TO
INCREASE RATES AND CHARGES FOR WATER APPLICATION FOR
SERVICE AUTHORITY TO INCREASE
RATES AND CHARGES
COMES NOW Meadows Water, LLC ("Company" or "Applicant"), and, pursuant to Idaho Code
§§ 61-502 and 61-503, and in compliance with Order No. 37060 issued by the Idaho Public
Utilities Commission ("Commission") on June 4, 2026, in Case No. MWL-W-25-01, hereby
applies for authority to increase its rates and charges for water service. In support of this
Application, the Company states as follows:
I. INTRODUCTION AND PROCEDURAL BACKGROUND
1. The Company is a public water utility, as defined in Idaho Code § 61-125, providing water
service to 215 customers in the Meadows at West Mountain subdivision, Valley County, Idaho.
2. On May 8, 2025, the Commission issued Order No. 36595, granting the Company a Certificate
of Public Convenience and Necessity and directing Staff to open a docket to evaluate whether the _
Company's interim rates were fair,just, and reasonable.
3. On October 1, 2025, the Commission opened Case No. MWL-W-25-01 to investigate the
Company's rates and charges. Following a Notice of Modified Procedure, public comment, and
Staff s audit of the Company's operations for the twelve-month period ending December 31, 2024,
the Commission issued its Final Order No. 37060 on June 4, 2026.
4. Order No. 37060 directed the Company to: (a) submit a compliance tariff identifying all non-
recurring charges within 30 days of the service date; (b) file a general rate case within 90 days of .
the service date; and (c) provide a status update addressing unresolved system deficiencies within
6 months of the service date.
5. The Company timely filed its compliance tariff on July 1, 2026, addressing non-recurring
charges consistent with Staff s Comments in Case No. MWL-W-25-01.
6. This Application is filed within 90 days of the service date of Order No. 37060 and constitutes
the Company's compliance with the second directive of that Order.
II. TEST YEAR
7. The Company proposes calendar year 2025 (January 1, 2025 through December 31, 2025) as
the test year for this Application. The Company selected this test year because it reflects the most

i
current, complete twelve months of actual operating results available, and because it captures
significant system events—described below—that inform the Company's request.
8. All financial information in this Application is presented on an accrual basis, consistent with
the Company's books and records, and is derived from the Company's QuickBooks accounting
system,its 2025 balance sheet and profit and loss statements,and underlying source documentation
including vendor invoices and the Company's water revenue billing register.
III. REVENUE REQUIREMENT
9. Using the same methodology Staff applied in its Comments in Case No. MWL-W-25-01 —an
11% return on equity and a 1.345436 revenue conversion factor — the Company calculates that
its full cost-based revenue requirement for the 2025 test year is $209,022.84, an increase of
approximately 36.45% over the Company's normalized present-rate revenue of$150,961.00. (See
Exhibit A.)
10. Notwithstanding this calculated need, the Company requests only a 10% increase in rates, for
a total revenue requirement of$175,222.17 an incremental increase of$15,929.29 over present-
rate revenue of$159,292.88. This leaves $33,800.67 of the Company's demonstrated normalized
cost recovery unrequested.
11. The Company's decision to request less than its full cost-based need reflects a deliberate,
conservative business judgment intended to moderate the impact on customers, in light of the
customer comments filed in Case No. MWL-W-25-01 expressing concern over past rate increases
and service reliability. It is not a reflection of the underlying cost study,which the Company stands
behind.
IV. OPERATING EXPENSES
12. The Company's test year operating expenses reflect several adjustments from amounts
recorded in its books, made to align with Commission ratemaking practice and Staff s prior
treatment of similar items in Case No. MWL-W-25-01:
(a) System Repairs. During the test year,the Company incurred$140,157.40 in repair costs
arising from two separate, unplanned system failures: a water main leak and valve failure
at Mangum Circle ($51,514.15), and a leak and structural repair at the Fire Pump
Building/Well House, together with related electrical repairs ($88,643.25). The Company
has included the Mangum Circle repair as an ongoing operating expense, reflecting its
position that maintaining the water system is a legitimate, recurring cost of service. The
Fire Pump Building repair and related electrical items are excluded as non-recurring,
isolated events. (See Exhibit C.)
(b) Bad Debt / Settlement Write-Off. The Company excludes $7,076.00 in bad debt
expense from its revenue requirement. This amount reflects a required write-off under a

settlement agreement between the Company and its Homeowners Association, and —
consistent with Staff s exclusion of the Company's 2024 legal fees arising from the same
underlying dispute the Company does not believe ratepayers should bear this cost.
(c) Depreciation. The Company calculates straight-line depreciation of $9,207.00 on its
plant in service, excluding the previously-disallowed generator rebuild, consistent with
Staff s finding in Case No. MWL-W-25-01 that the generator was never placed into service.
13. The Company's resulting total operating expenses for the test year are $152,021.24, before
depreciation and taxes. (See Exhibit A.)
V. RATE BASE
14. The Company's rate base for the test year, calculated consistent with Staff s methodology in
Case No. MWL-W-25-01, is $298,248.66, consisting of net plant in service of$279,246.00 and a
working capital allowance of$19,002.65. (See Exhibit A.)
VI. PROPOSED RATES
15. The Company's existing non-recurring charges (transfer/set-up fees, late fees, turn-off and
reconnection fees, and returned check charges) were reviewed by Staff and approved in the
Company's compliance tariff filed July 1,2026. The Company proposes no change to these charges
in this Application. -
16. The Company proposes the following changes to its recurring residential and homeowners'
association common-area charges, reflecting the 10% increase described in Section III above:
Current Rate Proposed Rate %Change
Residential (per customer, per month) $57.00 $62.76 +10.11%
HOA Common Area(per month, May— $500.00 $550.53 +10.11%
September only)
17. Proposed tariff sheets reflecting these rates are attached as Exhibit B.
VII. NEED FOR A SYSTEM REPAIR AND MAINTENANCE ALLOWANCE
18. The Company's rates have never included a reserve or contingency allowance for system
repairs. Working capital, as calculated under Staff s own methodology, is designed to fund routine
day-to-day operating cash flow—not to build a reserve against capital repairs or emergencies.
19. The record in Case No. MWL-W-25-01 documents the consequence of operating without such
a reserve. Staff s Comments identified deficiencies dating to the 2022 IDEQ sanitary survey that
remain unresolved, including the absence of backflow testing, auxiliary power, and auto-

proportioning chlorinators. A 2021 attempt by the Company to install backup power was never
completed or placed into service, and was excluded from rate base by Staff for that reason. The
Company's 2025 test year included two unplanned system failures — described in Section IV
above whose combined cost exceeded the Company's entire previously-approved annual
operating budget.
20. The Company respectfully asks the Commission to recognize, in setting rates going forward,
the importance of a modest and prudent allowance for system repair and maintenance, to help
avoid a continued cycle of deferred maintenance and costly emergency response.
VIII. RELATIONSHIP OF REID W. OLSEN, CPA, TO THE COMPANY
21. Staffs Comments in Case No. MWL-W-25-01 (filed April 22, 2026, as corrected April 23,
2026)characterized Reid W. Olsen, CPA,as "an affiliate owner of Meadows Water" and described
the Company's bookkeeping arrangement with Olsen Hendricks CPA as "an affiliated transaction."
22. The Company has since obtained a sworn affidavit from Mr. Olsen, dated August 25, 2026,
clarifying that he is not, and has never been, a related party to Meadows Water, LLC or any of its
affiliates. Mr. Olsen has served as the Company's registered agent because the Company's owners
do not reside in Idaho, and his firm has provided bookkeeping and tax services to the Company as
an independent contractor.
23. The Company respectfully submits that Staff s prior characterization was mistaken, and
attaches Mr. Olsen's affidavit as Exhibit D in support.
IX. CORRECTIVE ACTION STATUS
24. The Company acknowledges the Commission's separate directive in Order No. 37060 requiring
a status update addressing unresolved system deficiencies within six months of the service date
(due December 4, 2026), and confirms that the corrective-action matters described in Section VII
above will be addressed in that filing.
X. REQUESTED RELIEF
WHEREFORE, the Company respectfully requests that the Commission:
(a) Approve the Company's proposed increase in rates and charges as set forth in this
Application and Exhibit B, resulting in a residential rate of $62.76 per month and a
homeowners' association common-area rate of $550.53 per month (May through
September);
(b) Find that the Company's proposed rates are just, fair, reasonable, and sufficient within
the meaning of Idaho Code §§ 61-502 and 61-503; and
(c) Grant such other and further relief as the Commission deems just and reasonable.

Respectfully submitted this day of 2026.
�J
Reid Olsen, CPA for
Meadows Water, LLC
132 SW 5"' Ave, Ste 100
Meridian, ID 83642
208-888-1595
rcldo'U�olsencpa.com
LIST OF EXHIBITS
Exhibit A Revenue Requirement, Rate Base, and Operating Expense Schedules
Exhibit B Proposed Tariff Sheets
Exhibit C — System Repairs Schedule (Invoice-Level Detail)
Exhibit D Affidavit of Reid W. Olsen, CPA (August 25, 2026)
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this o, day of i 2026 a true and correct copy of the foregoing
APPLICATION FOR GENERAL RATE CASE was served via electronic mail to the following parties:
secretary(@puc.idaho.gov - Idaho Public Utilities Commission
Erika K. Melanson Deputy Attorney General Idaho Public Utilities Commission
erika.melanson uc.idaho. ov
By: Jason Pearce, EA, Olsen & Webster CPA's &Advisors

EXHIBIT A
REVENUE REQUIREMENT, RATE BASE, AND OPERATING EXPENSE
SCHEDULES
Meadows Water, LLC—Application for Authority to Increase Rates and Charges
Test Year Ended December 31, 2025
Schedule 1 —Revenue
Line 2025 Test Year ff-Approved Variance
�'
24
Water Revenue $157,617.88 $146,376 +$11,241.88
Transfer/Set-Up Fees $700.00 — —
Late Fees $900.00 — —
Turn Off&Reconnection Fees $50.00 — —
Returned Check Charges $25.00 — —
TOTAL REVENUE AT PRESENT $159,292.88 $148,376 +$10,916.88
RATES
Schedule 2 — Operating Expenses
Line 2025 Test Year ff-Approved Variance
i'
24
Purchased Power $15,691.04 $16,781 -$1,089.96
Chemicals $7,133.86 $5,809 +$1,324.86
Materials& Supplies—O&M(routine) $49,853.67 $38,349 +$11,504.67
Materials& Supplies—O&M(system $51,514.15 $0 +$51,514.15
repair)
Materials& Supplies—Admin& $1,754.09 $2,406 -$651.91
General
Contract Services—Professional $19,805.07 $24,326 -$4,520.93
Insurance $4,135.00 $3,778 +$357.00
Regulatory Commission Expense $125.00 $856 -$731.00
(Licenses/Permits)
Miscellaneous(Telephone) $2,009.36 $1,784 +$225.36
TOTAL OPERATING EXPENSES $152,021.24 $94,089 +$57,932.24
Materials& Supplies—O&M(system repair) reflects the Mangum Circle leak and valve replacement, included as
an ongoing cost of maintaining the water system. See Exhibit C for invoice-level detail and treatment of related,
excluded non-recurring items.
Schedule 3 —Items Excluded from Revenue Requirement

Item Amount Basis
System Repairs—Fire Pump Building/Well House $gg 643.25 Non-recurring, isolated 2025
and related electrical items events
Settlement Write-Off/Bad Debt(HOA settlement) $7,076.00 Litigation-related;not a
ratepayer cost
TOTAL EXCLUDED $95,719.25
Schedule 4 —Depreciation, Taxes, and Net Operating Income
Line 2025 Test Year ff-Approved Variance
�'
24
Depreciation Expense(straight-line,excl. $9,207.00 $6,197 +$3,010.00
generator)
Other Taxes—Bank Fees $60.00 $12 +$48.00
State of Idaho Taxes $20.07 $4,000 -$3,979.93
TOTAL EXPENSES FROM $161,308.31 $104,298 +$57,010.31
OPERATIONS
TOTAL REVENUE AT PRESENT $159,292.88 $148,376 +$10,916.88
RATES
NET OPERATING INCOME -$2,015.43 j $44,079 -$46,094.43
Schedule 5 —Rate Base
Line 2025 Test Year ff-Approved Variance
'.
24
Plant in Service(excl.generator rebuild) $460,472.00 $460,472 $0
Less: Accumulated Depreciation(excl.
($181,226.00) ($172,019) +$9,207.00
generator)
Net Plant in Service $279,246.00 $288,453 -$9,207.00
Plus: Working Capital Allowance(1/8 x $19,002.65 $11,761 +$7,241.65
Operating Expenses)
TOTAL RATE BASE $298,248.66 $300,214 -$1,965.34
The generator rebuild($31,418 cost) is excluded from Plant in Service consistent with Staffs finding in Case No.
MWL-W-25-01 that the asset was never placed into service.
Schedule 6 —Revenue Requirement
AmountLine Rate Base $298,248.66
Required Rate of Return (per Case No. MWL-W-25-01) 11.00%
Income Required $32,807.35
Net Operating Income(normalized)* -$10,347.31

Income Deficiency $43,154.66
Revenue Conversion Factor(per Case No. MWL-W-25-01) 1.345436
Full Cost-Based Incremental Revenue Requirement $58,061.84
Normalized Present Revenue* $150,961.00
FULL COST-BASED REVENUE REQUIREMENT $209,022.84
Full Cost-Based% Increase 36.45%
*Normalised to exclude a one-time$8,331.88 year-end accounts-receivable correctionitrue-up recorded in the
Company's 2025 water revenue register, which does not represent recurring, ongoing revenue.
Company's
Revenue at Present Rates(as billed) $159,292.88
Incremental Revenue Requested(10%) $15,929.29
TOTAL REVENUE REQUIREMENT REQUESTED $175,222.17
The Company requests only 10%of present-rate revenue, though its full cost-based need—calculated using the
Commission-approved methodology from Case No. MWL-W-25-01—is 36.45%. This reflects the Company's
deliberate decision to moderate rate impact on customers.
Schedule 7 — Proposed Rate Design
Current Rate Proposed Rate %Change
Residential(per customer, per month) $57.00 $62.76 +10.11%
HOA Common Area(per month, May— $500.00 $550.53 +10.11%
September)
Non-recurring charges are unchanged and were separately approved in the Company's compliance tariff filed July
1, 2026 See Exhibit B.

EXHIBIT B
Application of Meadows Water, LLC—Case No.
Issued: 12026
Effective: , 2026
Issued By: Meadows Water, LLC
SCHEDULE OF RATES AND CHARGES
(PROPOSED—SUBJECT TO COMMISSION APPROVAL)
RESIDENTIAL SERVICE
Flat Rate, per customer, per month $62.76
HOMEOWNERS ASSOCIATION COMMON AREA
Flat Rate, per month, May through September only $550.53
NON-RECURRING CHARGES
(No change from the Company's compliance tariff, issued June 30, 2026, effective July 1, 2026)
Water Turn Off Fee for Nonpayment $50.00
Reconnection Charges —During Office Hours $50.00
Reconnection Charges After Office Hours (additional) $50.00
Insufficient Funds Charge $20.00
Late Payment Charge per Month $25.00
New Property Hook-Up Fee $250.00
New Connection Charge /Transfer Fee $100.00 —
A non-refundable connection fee assessed at the time of property ownership transfer or service start.
SUMMARY OF PROPOSED CHANGES
Current Rate Proposed Rate % Change
Residential (per customer, per month) $57.00 $62.76 +10.11%
HOA Common Area(per month, May— $500.00 $550.53 +10.11%
Sept.)
Non-Recurring Charges(all categories) — No Change 0.00%

EXHIBIT C
SYSTEM REPAIRS SCHEDULE—INVOICE-LEVEL DETAIL
Meadows Water, LLC—Application for Authority to Increase Rates and Charges
Test Year Ended December 31, 2025
During the 2025 test year, the Company recorded $140,157.40 in "System Repairs" costs, arising
from two separate, unplanned system failures. The Mangum Circle repair is included in the
Company's revenue requirement as an ongoing operating expense. The Fire Pump Building/Well
House repair and related electrical items are excluded as non-recurring.
Summary
Category Amount Treatment
Included—
Mangum Circle Leak&Valve Replacement $51,514.15 ongoing
operating expense
Fire Pump Building/Well House Repair $83,243.25 Excluded—non-
recurring
Miscellaneous Electrical Repairs $5,400.00 Excluded—non-
recurring
Total(recorded to "System Repairs," 2025 test year) $140,157.40
Included — Mangum Circle Leak & Valve Replacement— $51,514.15
Invoice Date Description
Emergency leak repair: locate
and repair pipe leak,gaskets,
Drake#40 3/21/2025 glands,hardware,flush, $15,911.77
pressure test,backfill with road
mix
Valve installation: excavate
Drake#47 5/9/2025 Water main, install new valve $31,102.38 ---
and valve can riser,
backfill/compact
Repair asphalt at Mangum
Drake#87 (partial) 11/24/2025 Circle resulting from the March $4,500.00
2025 water leak
Subtotal—Mangum Circle $51,514.15
(included)
Excluded — Fire Pump Building / Well House Leak & Repair— $83,243.25
Invoice Date Description

Hydroexcavation within well
Barnes#1064 5/28/2025 house for leak discovery and $9,425.00
repairs(partial billing)
Trench box rental(28 days),
Barnes 41067 6/6/2025 installation, labor and transport $13,970.00
(partial billing)
Drake#46 5/1/2025 Partial slab removal for hydro $1,937.24
excavation
Clean up and dispose of old fire
Drake#52 6/9/2025 pump building and misc. debris $3,418.75
at both pump house sites
Fire pump building slab removal
Drake#53 6/21/2025 —remove and dispose of $4,983.26
interior and exterior slabs
Excavate to find leak,
Drake 455 6/22/2025 remove/repair thrust block, $39,509.00
pressure test,backfill and
compact
Drake#87 (partial) 11/24/2025 Regrade fire pump house for $10,000.00
slab;pour new slab
Subtotal—Fire Pump Building $83,243.25
(excluded)
Excluded — Miscellaneous Electrical Repairs—$5,400.00
Invoice Date Description Amount
Troubleshoot and repair wiring
AME#250899 7/14/2025 for well house; operational $1,275.00
testing
Surge suppression equipment
AME#250686 5/2/2025 installed for electrical $3,000.00
equipment protection
Work with Sweeney Controls
AME#241796 10/21/2025 to restore water pump and $1,125.00
chemical pump computer
control operation
Subtotal—Electrical repairs $5,400.00
(excluded)
Total: $51,514.15+ $83,243.25 + S5,400.00 =$140,157.40.

EXHIBIT D
AFFIDAVIT OF REID W. OLSEN, CPA
Dated August 25, 2026
Submitted in support of the Company's statement in Section VIII of this Application regarding the
relationship between Reid W. Olsen, CPA, and Meadows Water, LLC.
[Affidavit follows this cover page]

OLSEN AND WEBSTER CPAS
Reid W. Olsen CPA
208 8881595
132 S.W. Fifth Suite 100 Meridian ID 83642
Fax number 208 888 1596
[e-mail]
DATE: August 25, 2026
FROM: Reid W. Olsen CPA
TO: Idaho Public Utilities Commission
RE: Relationship of Reid W. Olsen to Meadows Water LLC
I need to clarify my relationship to Meadows Water, LLC .
I am not nor have I ever been a related party to Meadows Water LLC or any of its
affiliates. I have been the CPA providing bookkeeping and tax services through my
CPA firm for the business.
Because the owners, to whom I am not related either, do not live in the State of
Idaho, I have also been the registered agent for the company.
Our services have been provided as an independent contractor with them.
If I can provide further information, please contact me at the above address,
phone number or e mail.
c�—f'ha�a
IS
Reid W. Olsen
CPA