20200710Final_Order_No_34719.pdf

ORDER NO. 34719 1

Office of the Secretary
Service Date
July 10, 2020
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE COMMISSION’S
INVESTIGATION OF ISLAND PARK
COMPANY, INC.’S BILLING PRACTICES
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CASE NO. ISL-W-11-01

ORDER NO. 34719

On June 21, 2011, the Commission opened an investigation into Island Park Water
Company, Inc’s (“Company”) billing practices. See Order No. 32268. In Order No. 32268 the
Commission ordered the Company to comply with specific directives.
On May 6, 2020, the Commission issued a Notice of Review, Notice of Modified
Procedure and Order to determine whether the Company has complied with the Commission’s
directives in Order No. 32268. See Order No. 34662. On May 27, 2020, the Commission Staff
(“Staff”) filed comments and was the only party to do so. The Company did not file reply
comments.
Having reviewed the record, the Commission now issues this Order closing this case.
BACKGROUND
The Company provides water service to its customers in eastern Idaho near West
Yellowstone. In 2010 and 2011, the Company's customers complained to the Commission that
the Company was charging them a different annual rate than the rate in the Company's
Commission approved tariff schedule (“Tariff”). See Order No. 32268 at 1. The Company had
issued annual water bills charging customers on a per lot basis instead of a per customer or per
connection basis. Staff investigated the complaints and obtained substantiating information. Id.
at 2. Based on the complaints and Staff’s investigation, the Commission issued an emergency
Order directing the Company to: (1) cease all billing practices that conflict with the Tariff; (2)
refrain from terminating service to customers who did not pay annual bills that conflict with the
Tariff; (3) send corrected invoices to all customers who were billed incorrectly and
simultaneously provide copies to the Commission; (4) repay customers for any amounts collected
based on a rate exceeding the rate allowed by the Tariff; (5) send a copy of its current customer
list to the Commission; and (6) provide Staff with a specific date and time that the Commission's
auditors may visit the Company. See Order No. 32268 at 2-3.

ORDER NO. 34719 2

STAFF COMMENTS
Staff reviewed the audit files and workpapers prepared by Staff in 2011 and responses
to audit requests. Staff believed that the Company has made sufficient, reasonable progress to
attempt to comply with Order No. 32268. Staff Comments at 2. Accordingly, Staff recommended
that the Commission close this case. Id. However, Staff is still concerned with the billing
practices and operations of the Company and has initiated a new audit to investigate its financial
management and operation. Id. at 5. Additionally, Staff recommended that the Commission
remind the Company of its obligations to charge only tariff rates on file, to allow Staff to enter
the premises of utilities to carry out the provisions of the Public Utilities Act, to inspect the books
and records of the Company and to meet with its employees. Id.; see also Idaho Code §§ 61-
313, 61-520 and 61-610.
COMMISION FINDING AND DECISION
The Commission has authority over the Company pursuant to Idaho Code §§ 61-125
and 61-129. The Commission also has authority to investigate the billing practices of the
Company pursuant to Idaho Code §§ 61-503, 61-313 and 61-612.
The Commission has reviewed the record in this case, including Staff’s comments.
Based on its review the Commission finds that the Company has made sufficient progress to meet
the requirements set forth in Order No. 32268. Due to this progress, the age of the case, and
Staff’s new audit the Commission finds it is fair, just, and reasonable to close this case.
Although this case shall be closed the Commission reminds the Company that as a
public utility it has certain obligations. First, the Company must bill its customers only as
specified in its approved Tariff. See Idaho Code § 61-313; see also Order No. 32268 at 2.
Second, the Company cannot terminate service to customers who have not paid bills that do not
conform to the Tariff. See Order No. 32268 at 3. Last, the Company must allow the Staff at all
reasonable times to inspect the Company’s books and records, meet with its employees and to
enter its premises as part of Staff’s new audit. See Idaho Code §§ 61-520, 61-610; see also
Commission Rule of Procedure 227.
O R D E R
IT IS HEREBY ORDERED that this case shall be closed.
THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this Order about any matter

ORDER NO. 34719 3

decided in this Order. Within seven (7) days after any person has petitioned for reconsideration,
any other person may cross-petition for reconsideration. See Idaho Code § 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 10th
day of July 2020.

PAUL KJELLANDER, PRESIDENT

KRISTINE RAPER, COMMISSIONER

ERIC ANDERSON, COMMISSIONER

ATTEST:

Diane M. Hanian
Commission Secretary

I:\Legal\WATER\ISL-W-11-01\Orders\ISLW1101_final_jh.docx