20261006Decision Memo.pdf

DECISION MEMORANDUM
TO: COMMISSIONER LODGE
COMMISSIONER HAMMOND
COMMISSIONER HARDIE
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM: TAYLOR THOMAS
DATE: OCTOBER 6, 2026
SUBJECT: NEGOTIATED RULEMAKING: POLICIES AND PRESUMPTIONS FOR
SMALL WATER COMPANIES
In accordance with Idaho Code Section 67-5292, the Commission is reviewing IDAPA
31.36.01 — Policies and Presumptions for Small Water Companies to assess whether the content
of the rule chapter is still necessary. As part of negotiated rulemaking process, Commission Staff
("Staff') explored repealing this rule chapter because it appeared to be no longer necessary given
that the definition of a "small water company" is outdated, and the rule's presumption that all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.
On June 3, 2026, the Idaho Administrative Bulletin published the Commission's Notice of
Intent to Promulgate Rules for Policies and Presumptions for Small Water Companies.
Subsequently, Staff held a negotiated rulemaking meeting on June 11, 2026, with interested
parties.
On July 17, 2026, Staff submitted the paperwork to the Division of Financial
Management("DFM") as a Proposed Rule to repeal Rule 31.36.01 —Policies and Presumptions of
Small Water Companies for publishing in the September Idaho Administrative Bulletin.
On September 2, 2026, Idaho Administrative Bulletin posted the Commission's Proposed
Rule 31.36.01 — Policies and Presumptions of Small Water Companies initiating a 21-day
comment period.
On September 23, 2026, the Commission's comment period closed. No parties,
stakeholders, or persons filed any comments on the Proposed Rule.
DECISION MEMORANDUM - I - OCTOBER 6, 2026

STAFF RECOMMENDATION
Staff recommends the Commission direct Staff to submit the appropriate paperwork to
DFM to repeal Rule 31.36.01,which will publish a Pending Rule to be presented to the Legislature
during the 2027 session.
COMMISSION DECISION
Does the Commission wish to approve Staff s recommendations?
Q l
Taylor Thomas
Administrator
DECISION MEMORANDUM - 2 - OCTOBER 6, 2026