20261104Formal Complaint.pdf

RECEIVED
November 4, 2026
IDAHO PUBLIC
UTILITIES COMMISSION
FORMAL COMPLAINT NEW CASE NO.: GSW-W-26-01
Against Gem State Water Company—Failure to Provide Domestic Water Service
To: Idaho Public Utilities Commission
Complainants: Chad Williams and Kacy Williams
Property Address: 18667 North Ramsey Road, Rathdrum, Idaho
Subdivision: Country Estates
Legal Description: Lot 1, Block 1, Country Estates
Date of Property Purchase: April 2013
Date of Complaint: November 4, 2026
PRAYER FOR RELIEF
We respectfully request that the Idaho Public Utilities Commission investigate Gem State Water
Company's refusal or inability to provide domestic water service for our property.
Our primary request is that the Commission, within its authority, require Gem State Water
Company to install our water meter and activate domestic water service while honoring our
original $2,500 hookup payment, without requiring an additional $3,000.
We also request appropriate regulatory action to address the company's service obligations, its
handling of our original payment, and the financial hardship caused by its refusal to provide
water.
We expressly reserve our right to pursue compensation and any additional remedies available
through a separate legal action in a court of competent jurisdiction.
1. PURPOSE OF COMPLAINT
We are filing this complaint because Gem State Water Company has refused or been unable to
provide domestic water service for our property, despite our original $2,500 hookup payment
and the subdivision's recorded provisions identifying the designated water provider.
On October 15, 2026, a potential buyer reached out to Gem State Water who emailed him back
and he subsequently informed us that they could not provide service because of system capacity
limitations.
We believe the company's position conflicts with its obligations to property owners within
Country Estates and warrants investigation by the Idaho Public Utilities Commission.

2. PROPERTY PURCHASE AND r EXISTING WATER
INFRASTRUCTURE
We purchased the property in April 2013.
An important fact is that water-system infrastructure has been located on our property since
2006, approximately seven years before our purchase.
The infrastructure was already in place when we purchased the property. The availability of
domestic water service was an important consideration in our decision to buy.
We relied on the subdivision documents, existing infrastructure, and representations concerning
the availability of domestic water through the designated water provider.
3. ORIGINAL WATER HOOKUP PAYMENT
At the time of purchasing the property in April 2013, we paid$2,500 for the water hookup.
We made this payment with the understanding that domestic water service would be provided
through the existing water system.
Gem State Water has since indicated that it cannot currently provide service and has offered
either to refund our original payment or retain it as a credit toward a future hookup.
We believe the original payment should be honored under the circumstances in which it was
collected.
We question why the company can now refuse service or require an additional $3,000 simply
because its current hookup fee has increased.
4. SUBDIVISION CC&Rs AND WATER SERVICE
OBLIGATIONS
The subdivision's Covenants, Conditions, and Restrictions contain specific language identifying
Bar Circle S Water Inc. as the entity responsible for furnishing domestic water within Country
Estates.
The provision states that domestic water will be furnished by Bar Circle S Water Inc.,
including its subsidiaries and applicable successor entities or entities acquiring its
operations or water system.
The provision further establishes that domestic water will be available for tap-on within the
confines of the subdivision.

This language is particularly important because it addresses not only the original water provider
but also the continuation of the water-service obligation if the company or its water system is
sold, transferred, or acquired by another entity.
Our understanding is that Gem State Water Company subsequently acquired the water system
formerly associated with Bar Circle S Water Company in 2019 order#34347.
We therefore request that the Commission examine the complete wording of this CC&R
provision and determine whether its obligations extend to Gem State Water Company as the
successor or acquiring water provider.
We relied on these recorded provisions when purchasing our property in April 2013.
We believe the company's acquisition of the water system did not automatically eliminate the
obligations established in the original subdivision documents.
We request that the Commission investigate whether Gem State Water assumed the
responsibility to furnish domestic water to properties within Country Estates under the original
CC&Rs, acquisition documents, applicable agreements, and Idaho law.
5. PURCHASE AND SALE AGREEMENT - WATER
RIGHTS
Our purchase and sale agreement contains a handwritten notation referencing item 15 stating:
"Non-applicable. All water rights belong to the Bar Circle S Water Company."
We are not claiming ownership of the water rights. The notation identifies the water rights as
belonging to the water company.
Our concern is that the property was purchased with the understanding that domestic water
would be furnished through the designated water system, and we paid$2,500 toward obtaining
that service.
We request that the Commission consider this notation along with the CC&Rs and original
payment documentation.
6. GEM STATE WATER COMPANY'S ACQUISITION
Our understanding is that Gem State Water Company acquired the water system formerly
associated with Bar Circle S Water Company in 2019.
We request that the Commission review the acquisition, applicable Commission orders, and any
obligations Gem State Water assumed concerning existing properties and infrastructure within
Country Estates.

We specifically request clarification regarding the company's obligations to provide service to
our property under applicable agreements, tariffs, regulations, and governing documents.
7. REFUSAL TO PROVIDE SERVICE AND
POTENTIALLY INCONSISTENT TREATMENT
In September 2026, Gem State Water informed us that it could not provide water service because
of system capacity limitations.
We request written documentation explaining:
• The specific capacity limitations preventing service.
• Whether engineering or capacity studies support the company's position.
• What improvements would be necessary to provide service.
• What infrastructure currently exists on our property.
• What additional work is required to activate service.
• Whether other properties within Country Estates have recently received new meters or
connections.
• Why our property has not received the same opportunity for service.
Neighboring Property Owner—Kathy Millard
We also wish to bring to the Commission's attention the experience of our neighbors directly
across the street, including Kathy Millard (spelled M-I-L-L-A-R-D).
Our neighbors initially experienced difficulty obtaining their water meter and service connection.
After approximately four or five calls to Gem State Water, and after indicating their intention to
contact the Idaho Public Utilities Commission, the company ultimately sent representatives to
install their water meter.
We request that the Commission investigate whether their circumstances were substantially
similar to ours and determine why they received service while our property continues to be
denied.
We believe property owners within the same subdivision should receive fair and consistent
treatment.
8. PROPOSED REFUND OR ADDITIONAL HOOKUP
CHARGE
Gem State Water has indicated that it would either:
1. Refund our original $2,500 payment; or

2. Retain the $2,500 as a credit toward future service and require us to pay an additional
$3,000 when water becomes available, based on its current reported $5,500 hookup fee.
Neither option provides the resolution we are seeking.
We paid $2,500 toward obtaining domestic water service. We request that the company honor
that payment rather than require additional money because its hookup fees have increased.
We do not want a refund or indefinite credit. We want the water service for which we originally
paid.
We request that the Commission determine whether the additional charge is permissible under
the circumstances.
9. FINANCIAL HARDSHIP AND LOST PROPERTY
SALES
The lack of available domestic water service has caused substantial financial hardship and
negatively affected the marketability of our property.
We have lost two separate potential sales of this property because of the lack of available
domestic water service and uncertainty about obtaining water. I have since removed the
property from the MLS as we cannot in good conscience list a property for residential
habitation without access to clean water.
The inability to provide a reliable domestic water source has made it difficult to sell the property
to prospective buyers.
We have continued carrying out the expenses associated with ownership while being unable to
obtain the water service we understood would be available.
We request that the Commission recognize these financial consequences when evaluating the
seriousness of this complaint.
We reserve our right to pursue compensation for documented losses through any separate legal
action available under Idaho law.
10. FAILURE TO RESPOND TO INFORMAL
COMPLAINT
We believe we submitted an informal complaint to the Idaho Public Utilities Commission around
September 19, 2026.

Our understanding was that Gem State Water was expected to respond by October 2, 2026. They
defaulted on that obligation.
As of November 4, 2026, we have not received a response from the company addressing the
issues raised.
We request that the Commission review the submission date, applicable response requirements,
and whether the company complied with those requirements.
11. POTENTIAL LEGAL AND REGULATORY
VIOLATIONS
We respectfully request that the Commission investigate whether Gem State Water's conduct
complies with applicable Idaho statutes, Commission regulations, approved tariffs, service
requirements, and governing agreements.
Promissory Estoppel
We specifically request that the Commission consider whether the doctrine of promissory
estoppel applies.
The water system infrastructure was located on our property in 2006. We purchased the property
in April 2013, relying on the subdivision's water-service provisions and existing infrastructure.
We subsequently paid$2,500 toward the water hookup.
We believe it is fundamentally unfair for the company to accept payment when we reasonably
expected domestic water service and subsequently refuse service or demand another$3,000.
We request that the Commission examine whether the company's acceptance of payment, the
subdivision documents, existing infrastructure, and our reliance created enforceable obligations
or other remedies under Idaho law.
Idaho Code § 50-1334
We specifically request that the Commission review the applicability of Idaho Code § 50-1334
concerning water systems encompassed by subdivision plats.
We ask the Commission to examine the original subdivision plat, water-system arrangements,
existing infrastructure, and any written agreements concerning domestic water service within
Country Estates.
We request a determination of whether this statute or any other applicable Idaho law restricts the
company's ability to refuse service or impose additional connection charges under these
circumstances.

We are asking the Commission to investigate these potential violations and determine what
requirements apply.
12. SPECIFIC ACTION REQUESTED FROM THE
COMMISSION
We respectfully request that the Idaho Public Utilities Commission:
1. Investigate Gem State Water Company's refusal or inability to provide domestic water
service to our property.
2. Determine the company's legal, regulatory, contractual, and tariff obligations to provide
service.
3. Require Gem State Water, to the extent within the Commission's authority, to install our
water meter and activate domestic water service.
4. Determine whether the company must honor our original $2,500 hookup payment
without requiring an additional $3,000.
5. Require documentation supporting the company's claimed system capacity limitations.
6. Investigate the circumstances surrounding our neighbors'water meter installation and
determine whether similarly situated property owners are being treated consistently.
7. Review the company's handling of our informal complaint and its applicable response
obligations.
8. Examine the subdivision CC&Rs,purchase and sale agreement, water-rights notation.
9. Review Gem State Water's acquisition of the former Bar Circle S water system and
determine what obligations were assumed under the original subdivision documents and
applicable law.
10. Determine whether Idaho Code § 50-1334 or other applicable Idaho laws and regulations
apply.
11. Investigate the water-system infrastructure installed on our property since 2006 and
determine what obligations arise from its installation and continued presence.
12. Determine whether our original $2,500 payment, together with the subdivision
documents and existing infrastructure, creates enforceable obligations concerning service
or hookup fees.
13. Consider the financial hardship and two lost potential property sales when evaluating the
consequences of the company's actions.
14. Clarify whether compensation-related remedies are available through the Commission
and recognize our reservation of rights to pursue damages separately in court, including
any remedies available under Idaho Code § 61-702.
15. Require Gem State Water to provide a written explanation and a specific, reasonable
timeline for resolving this matter.
16. Take any additional corrective or regulatory action the Commission determines
appropriate.
CONCLUSION

We purchased our property in April 2013 with the understanding that domestic water service
would be provided through the subdivision's designated water provider. We paid $2,500 toward
that service, relying on the recorded subdivision documents and existing water infrastructure.
The original CC&Rs specifically identify Bar Circle S Water Inc. and address the continuation of
water-service responsibilities through applicable subsidiaries and successor entities. We believe
these provisions deserve consideration following Gem State Water's acquisition of the water
system.
After approximately 13 years of ownership, we remain without the domestic water service we
expected. The company's current position has caused significant financial hardship, including
two lost potential property sales.
We believe Gem State Water's refusal to provide service, its demand for additional hookup
charges, and its treatment of property owners within their service territory warrant a thorough
investigation.
We are requesting fair treatment, accountability, and installation of our water meter with
activation of domestic water service without requiring an additional$3,000 beyond our
original $2,500 payment.
Thank you for your time and consideration.
Respectfully,
Chad Williams
Kacy Williams

From: Samuel Williams
To: secretary
Subject: Formal Complaint
Date: Wednesday,November 4,2026 11:33:12 AM
Attachments: 20190531NOTICE OF APPLICATION ORDER NO 34347�I�f
Formal ComDlaint.docx
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F o II n .
Hello Justin,
Thank you for your email regarding a new connection
request in the Bar Circle S water system.
Unfortunately,at this time the water system is at full
capacity and there are no new connections currently
available on the water system.Gem State Water
does not currently possess a record of prior hookup
fees paid to any previous owner(s)of the water
system.Your CCR document will be accepted as
proof of the original$2,500.00 connection fee.
Current rates and fees are included in the document
attached.
If you decide to purchase the property,there are two
options to move forward.
1.At your request,Gem State Water will refund
any original hookup fees($2,500.00)that were
paid to the previous owner(s)of the Bar Circle
S water system for your property.
2.You can choose to leave the connection fee on
file with utility.If additional capjaajty_on the
water system becomes available in the future,
it can be used as a credit towards the updated
connection fees at the time a new service
connection can be approved.The current
connection fee cost is$5,500.00.1 would
suggest checking back in with us annually to
inquire about additional capacity availability.
Kind regards,
Garrett Correll
Operations Manager-Gem State Water
From:Gem State Water Info<info@gemstate-
water.com>
Sent:Thursday,October 15,2026 5:31 PM
To-0arratt fnrrPll<nnnrrPilnnemstata
®®O

Office of the Secretary
Service Date
May 31,2019
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION ) CASE NO. BCS-W-19-01
OF GEM STATE WATER COMPANY FOR ) DIA-W-19-01
APPROVAL OF ACQUISITION OF THE )
ASSETS AND TRANSFER OF THE CPCN'S ) NOTICE OF APPLICATION
OF DIAMOND BAR ESTATES AND BAR )
CIRCLE S WATER ) NOTICE OF
MODIFIED PROCEDURE
ORDER NO. 34347
On April 29, 2019, Gem State Water Company, LLC ("Gem State Water" or
"Company") filed an Application seeking approval of the Company's acquisition of the assets of
Diamond Bar Estates, L.L.C. ("Diamond Bar") and Bar Circle "S" Water, Inc. ("Bar Circle") and
the transfer of each Company's respective certificate of public convenience and necessity
("CPCN")to Gem State Water.
The Commission now issues this Notice of Application and Notice of Modified
Procedure setting comment and reply deadlines.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that Northwest Natural Gas Company is a 160-year
old natural gas utility that serves customers in the Pacific Northwest. As part of a recent
reorganization, Northwest Natural Gas Company formed the Northwest Natural Holding
Company,which holds companies including NW Natural Water Company,LLC and its subsidiary,
NW Natural Water of Idaho, LLC. In 2018, the Commission approved NW Natural Water
Company, LLC's acquisition of an Idaho water utility. See Order No. 34103 (approving NW
Natural Water Company, LLC's acquisition of Falls Water Company).
YOU ARE FURTHER NOTIFIED that Gem State Water is a wholly owned subsidiary
of NW Natural Water of Idaho, LLC, which is a wholly owned subsidiary of NW Natural Water
Company, LLC.
YOU ARE FURTHER NOTIFIED that Gem State Water has applied to the
Commission for authority to acquire the assets and CPCN's of two Idaho water utilities, Diamond
Bar and Bar Circle.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34347 1

YOU ARE FURTHER NOTIFIED that Diamond Bar is a regulated water utility that
serves about 46 customers under CPCN No. 413 in or near Kootenai County, Idaho.
YOU ARE FURTHER NOTIFIED that Bar Circle is a regulated water utility that
serves about 218 residential customers and one commercial customer under CPCN No. 296 in or
near Kootenai County, Idaho.
YOU ARE FURTHER NOTIFIED that Gem State Water is not requesting any changes
to rates, rate structure, or other charges in this Application and states that any future changes will
be based on prudently incurred capital expenditures and other accepted ratemaking principles.
YOU ARE FURTHER NOTIFIED that the Application is available for public
inspection during regular business hours at the Commission's office. These documents are also
available on the Commission's web site at www.puc.idaho.gov. Click on the "File Room"tab at
the top of the page, then select"Water Cases" and click on the case number as shown on the front
of this document.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission's jurisdiction under Title 61 of the Idaho Code and specifically Idaho
Code §§ 61-502 and 61-503.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted
pursuant to the Commission's Rules of Procedure, IDAPA 31.01.01.000 et seq.
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the public
interest may not require a formal hearing in this matter, and that it will proceed under Modified
Procedure pursuant to Rules 201 through 204 of the Commission's Rules of Procedure, IDAPA
31.01.01.201 through.204. The Commission notes that Modified Procedure and written comments
have proven to be an effective means for obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
Application may file a written comment in support or opposition with the Commission by no
later than July 23, 2019. The comment must contain a statement of reasons supporting the
comment.Persons desiring a hearing must specifically request a hearing in their written comments.
Written comments concerning this Application shall be mailed to the Commission and the
Company at the addresses reflected below:
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34347 2

For the Idaho Public Utilities For Gem State Water Company:
Commission
Preston N. Carter
Commission Secretary Givens Pursley LLP
Idaho Public Utilities Commission 601 W. Bannock St.
PO Box 83720 Boise, ID 83702
Boise, ID 83720-0074 Email: l)restoncartec-rz�givenspurslev.com
kendrah'ii =i purslev.com
Street Address for Express Mail:
Eric W. Nelsen
472 W. Washington Street Senior Regulatory Attorney
Boise, ID 83702-5918 NW Natural
220 NW 2nd Ave.
Portland, OR 97209
Email: [e-mail]
These comments should contain the case caption and case number shown on the first page of this
document. Persons desiring to submit comments via e-mail may do so by accessing the
Commission's home page located at xvww.p xc.idaho__Lov. Click the "Consumers" tab then click
the"Case Comment or Question Form" and complete the comment form using the case number as
it appears on the front of this document.
YOU ARE FURTHER NOTIFIED that the Company shall file reply comments, if
necessary, by no later than July 30, 2019.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are received
within the time limit set,the Commission will consider this matter on its merits and enter its Order
without a formal hearing. If written comments are received within the time limit set, the
Commission will consider them and, in its discretion, may set the same for formal hearing.
ORDER
IT IS HEREBY ORDERED that the Application of the Company be processed by
Modified Procedure, Rule 201-204 (IDAPA 31.01.01.201-.204). Persons interested in submitting
written comments must do so by July 23, 2019. The Company may file reply comments by no
later than July 30, 2019.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34347 3

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 7
day of May, 2019.
PAUL K LLAN R, PRESIDENT
KRIS NE RAPER, CO MISSIONER
4vu
ERIC ANDERSON, COMMISSIONER
ATTEST:
Diane M. Hanian
Commission Secretary
1.\Lega1\WATER\BCS-W-19-01 and DIA-W-19-01\BCSW 1901_DIAW 1901_ntc app mod proc_ej.docx
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 34347 4