20260922LSO Letter.pdf

RECEIVED
September 22, 2026
IDAHO PUBLIC
UTILITIES COMMISSION
E �t
Legislative Services Office
Id a zo State Legislature
Terri Kondeff Serving Idaho's Citizen Legislature
Director
MEMORANDUM
TO: Rules Review Subcommittee of the Senate State Affairs Committee and the House State
Affairs Committee
FROM: Legislative Drafting Attorney - Alli Olson
DATE: September 22, 2026
SUBJECT: Public Utilities Commission
IDAPA 31.36.01 - Policies and Presumptions for Small Water Companies-Proposed Rule (Docket No.
31-3601-2601)
Summary and Stated Reasons for the Rule
The Idaho Public Utilities Commission submits notice of proposed rulemaking for the policies and pre-
sumptions for small water companies, IDAPA 31.36.01. The PUC states that the proposed rulemaking was
initiated pursuant to § 67-5292, Idaho Code,to determine if the rule chapter is still necessary. The Commission
is proposing to repeal this rule because, as it states, the definition of a "small water company" is outdated and
the rule's presumption that all system assets are contributed capital may no longer align with how some systems
are financed and operated today. The Commission states that repealing this chapter will allow the Commission
to address capital-investment issues on a case-by-case basis through existing rate-recovery filings, which will
ensure more accurate and appropriate regulatory treatment.
Negotiated Rulemaking / Fiscal Impact
The PUC states that negotiated rulemaking was conducted and that notice was published in the June 3,
2026, Idaho Administrative Bulletin,Vol. 26-6,pages 24-25. The Department also states that there will not be
a negative fiscal impact greater than $10,0000 to the general fund.
Statutory Authority
The Commission appears to have the authority to promulgate this rule pursuant to Sections 61-303,
61-315, 61-501, 61-502, 61-503, 61-507, and 61-523, Idaho Code.
cc: Public Utilities Commission
Monica Barrios-Sanchez
*** PLEASE NOTE ***
Paul Headlee,Deputy Director Matt Drake,Manager Keith Bybee,Manager April Renfro,Manager Norma Clark,Manager
Legislative Services Office Research&Legislation Budget&Policy Analysis Legislative Audits Information Technology
Statehouse,P.O.Box 83720 Tel: [phone]
Boise,Idaho 83720-0054 legislatureddaho.gov

Per the Idaho Constitution, all administrative rules may be reviewed by the Legislature during the next legisla-
tive session. The Legislature has 3 options with this rulemaking docket: 1) Approve the docket in its entirety;
2) Reject the docket in its entirety; or 3) Reject the docket in part.
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