20220622Notice_of_Hearing_Order_No_35439.pdf

ORDER TO SHOW CAUSE
NOTICE OF HEARING
ORDER NO. 35439 1

Office of the Secretary
Service Date
June 22, 2022
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF ST. MARIES RIVER
RAILROAD COMPANY’S FAILURE TO
MAINTAIN THE 396298J CROSSING AND
TO PAY ASSESSMENT FEES
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CASE NO. SMR-R-22-01

ORDER TO SHOW CAUSE

NOTICE OF HEARING

ORDER NO. 35439

St. Maries River Railroad Company (“Railroad” or “Company”) is a short line railroad
providing freight service between Plummer and Bovill, in the State of Idaho. The Railroad is a
“railroad corporation” and a “common carrier” as defined by Idaho Code §§ 61-111 and 61-113.
As such, the Railroad is a public utility subject to the jurisdiction of the Commission. Idaho Code
§ 61-129. This matter comes before the Commission due to the Railroad’s failure to maintain the
396298J, 10th Street railroad crossing (“Crossing”) in St. Maries, Idaho, as required by Idaho Code
62-306, and to pay its regulatory fees for 2022, as required by Idaho Code §§ 61-1001 through 61-
1005.
The Commission has further jurisdiction in this matter under Idaho Code §§ 61-101, et
seq., including Idaho Code § 61-501, which vests the Commission with the authority and
jurisdiction to supervise and regulate every public utility in the state. More specifically, Idaho
Code §§ 61-701, et seq., provides direction to the Commission relating to enforcement, penalties,
and interpretation of public utilities law. See also Idaho Code §§ 61-1001 through 61-1005
(relating to regulatory fees of railroads).
CLAIMS
A. The 396298j Crossing
On March 22, 2022, Commission Staff (“Staff”) conducted a physical inspection of the
Crossing. See Affidavit of Wayne Andrews, Exhibit 1. During that inspection, Staff spoke with
the Maintenance of Way Supervisor/Bridge Inspector (“Maintenance Supervisor”) for the
Railroad. Id. Staff informed the Maintenance Supervision that the asphalt at the Crossing had
deteriorated and was causing a rough crossing that required maintenance. Id. Idaho Code § 62-306
provides:
Whenever a state or county highway crosses or shall hereafter cross a railroad at
grade, the railroad company shall at its own expense construct and maintain that
ORDER TO SHOW CAUSE
NOTICE OF HEARING
ORDER NO. 35439 2
portion of such highway between the rails and for a distance of not less than two
(2) feet outside the outer rails. The crossing shall be planked or surfaced with other
suitable material for the full width of the traveled way, including shoulders, and
shall be maintained at all times in a smooth and firm condition.
On March 24, 2022, Staff sent a letter to the Railroad via certified mail informing the
Railroad that the Crossing was in violation of Idaho Code § 62-306. Exhibit A. The letter provided
thirty (30) days to resolve the issue, or to provide notice of a detailed plan and timeline for
resolving the issue. Id. On May 3, 2022, Staff conducted a follow up inspection of the Crossing
and determined that no maintenance had been performed. Id. Staff has not received any response
from the Railroad.
B. Annual Assessment
Idaho Code § 61-1001 provides that: “each railroad corporation, subject to the jurisdiction
of the commission, and subject to the provisions of this act, shall pay to the commission in each
year, a special regulatory fee in such amount as the commission shall find and determine to be
necessary, together with the amount of all other fees paid or payable to the commission by each
such public utility and railroad corporation . . [.]” Idaho Code § 61-1001; see also Idaho Code §
61-1005. The maximum annual assessment fee for each railroad shall not exceed one percent (1%)
of its gross intrastate operating revenues, and the minimum annual fee shall be no less than $50.
Idaho Code § 61-1004(1) and (4).
Idaho Code § 61-1003 requires “[o]n or before April 1st of each year, each public utility
and railroad corporation subject to the jurisdiction of the commission, shall file with the
commission a return verified by an officer or agent of the public utility or railroad corporation
involved, showing its gross operating revenues from its intrastate utility or railroad business in
Idaho for the preceding calendar year during which it carried on such intrastate utility or railroad
business.” Idaho Code § 61-1003.
Once all the railroads operating in Idaho have reported their intrastate operating revenues
for the previous calendar year, the Commission calculates the “proportionate assessment that all
railroad corporations . . . shall bear . . . in proportion to their respective gross operating revenues
derived from intrastate [railroad] business in Idaho for the preceding calendar year . . [.]” Idaho
Code § 61-1004. The Commission then notifies each railroad of its assessed regulatory fee by May
1 of each year. Idaho Code § 61-1005. The regulatory fee may be paid to the Commission in equal,
semi-annual installments due May 15 and November 15 of each year. Id.; see also Idaho Code §
ORDER TO SHOW CAUSE
NOTICE OF HEARING
ORDER NO. 35439 3
61-1003.
On April 21, 2022, Staff notified the Railroad through Invoice No. 2022-019 that the
Railroad owed a 2022 Assessment Amount of $6,890.18. See Affidavit of Nancy Ashcraft, Exhibit
2. The Invoice provided that “assessment fee may be paid in equal semi-annual installments. The
first installment of the regulatory fee is due no later than May 15, 2022. The second installment is
due no later than November 15, 2022. Outstanding balances will be assessed with a 6% annual
interest fee.” Exhibit B. To date, Staff has not received any response or payment from the Railroad.
C. Potential Civil Penalties
Idaho Code provides for civil penalties with respect to violations of, among other things,
statutes, or Commission orders; specifically, Idaho Code § 61-706 provides:
Any public utility which violates or fails to comply with any provisions of the
constitution of this state or of this act, or which fails, omits or neglects to obey,
observe or comply with any order, decision, decree, rule, direction, demand or
requirement or any part or provision thereof, of the commission, under this act, in
a case in which a penalty has not hereinbefore been provided for, such public utility
is subject to a penalty of not more than $2,000 for each and every offense.
Further, Idaho Code § 61-707 states:
Every violation of the provisions of this act or of any order, decision, decree, rule,
direction, demand, or requirement of the commission, under the provisions of this
act, or any part or portion thereof, by any public utility, corporation or person is a
separate and distinct offense, and in case of a continuing violation each day’s
continuance thereof shall be and be deemed to be a separate and distinct offense.
In this case the Railroad faces a potential civil penalty of up to $2,000 for its failure to maintain
the Crossing, as well as potential civil penalties of up to $2,000 per day for its continued failure to
perform maintenance on the Crossing. See Idaho Code §§ 61-706 & 61-707. Further, the Railroad
faces a potential civil penalty of up to $2,000 for its failure to pay its past due Assessment or semi-
annual installment, plus all accrued interest, as well as potential civil penalties of up to $2,000 per
day for its continuing failure to pay its 2022 Assessment or semi-annual installment and all accrued
interest. See Idaho Code §§ 61-706 and 61-707.
ORDER
Based on the evidence before the Commission, and good cause appearing, IT IS HEREBY
ORDERED that St. Maries River Railroad Company shall appear before the Commission AT 3:00
P.M. (MDT) ON JULY 12, 2022, IN THE COMMISSION HEARING ROOM, 11331 W.
ORDER TO SHOW CAUSE
NOTICE OF HEARING
ORDER NO. 35439 4
CHINDEN BLVD., BLDG. #8, SUITE 201-A, BOISE, IDAHO, 83714 to show cause why the
following should not be required of the Railroad by summary order issued by the Commission:
1. Immediately perform maintenance on the Crossing;
2. Pay up to a $2,000 penalty per day for its failure to perform maintenance on
the Crossing. See Idaho Code §§ 61-706 and 61-707.
3. Immediately pay its past due Assessment or semi-annual installment, plus
all accrued interest; and
4. Pay up to a $2,000 penalty per day for its continuing failure to pay its 2022
Assessment or semi-annual installment and all accrued interest. See Idaho
Code §§ 61-706 and 61-707.
IT IS FURTHER ORDERED that all hearings and prehearing conferences in this matter
will be held in facilities meeting the accessibility requirements of the Americans with Disabilities
Act (ADA). Persons needing the help of a sign language interpreter or other assistance to
participate in or to understand testimony and argument at a public hearing may ask the Commission
to provide a sign language interpreter or other assistance for the hearing. The request for assistance
must be received at least five (5) working days before the hearing by contacting the Commission
Secretary at:
IDAHO PUBLIC UTILITIES COMMISSION
P.O. BOX 83720
BOISE, IDAHO 83720-0074
[phone] (Telephone)
[phone] (FAX)
E-Mail: [e-mail]

IT IS FURTHER ORDERED that all proceedings in this matter will be conducted pursuant
to Title 61 of the Idaho Code and the Commission’s Rules of Procedure, IDAPA 31.01.01.000 et
seq.
IT IS FURTHER ORDERED that the Commission Secretary serve this Order to Show
Cause by Certified Mail (return receipt requested) upon the person designated to receive Notices
of Summonses and Complaints (IDAPA 31.01.01.016) and upon the person designated by the
public utility to receive legal service in Idaho. Idaho Code § 61-615.

ORDER TO SHOW CAUSE
NOTICE OF HEARING
ORDER NO. 35439 5
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 22nd day of
June 2022.

ERIC ANDERSON, PRESIDENT

JOHN CHATBURN, COMMISSIONER

JOHN R. HAMMOND JR., COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

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