20230801Decision Memo.pdf

DECISION MEMORANDUM 1

DECISION MEMORANDUM

TO: COMMISSIONER ANDERSON
COMMISSIONER HAMMOND
COMMISSIONER LODGE
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: CLAIRE SHARP
DEPUTY ATTORNEY GENERAL

DATE: AUGUST 1, 2023

SUBJECT: IN THE MATTER OF THE INVESTIGATION OF ISLAND PARK WATER
COMPANY’S VIOLATIONS OF THE IDAHO PUBLIC UTILITIES LAW;
CASE NO. ISL-W-23-02.

On June 1, 2023, Staff of the Idaho Public Utilities Commission (“Commission”) requested
an investigation of Island Park Water Company (“Island Park” or “Company”) for violations of
the Idaho Public Utilities Law, Title 61, Idaho Code. Island Park operates a “Water system” as a
“Water corporation” as defined by Idaho Code §§ 61-124 and 61-125 and is a public utility subject
to the jurisdiction of the Commission under Idaho Code § 61-129. The Company operates under
Certificate of Public Convenience and Necessity No. 317. Island Park’s service area comprises
seven separate water systems located in Fremont County, Idaho.
On June 27, 2023, Staff subsequently supplemented its request with Exhibits 1-27 and the
Affidavit of Jon Kruck. Based on the evidence, Staff requested the Commission establish deadlines
for Staff to file a Report on the violations of the Idaho Public Utilities Law and for the Company’s
Reply. Following the Staff’s Report and the Company’s Reply, Staff then recommended the
Commission consider whether a Show Cause Hearing is necessary.
The Department of Environmental Quality (DEQ) initiated proceedings against the
Company, asking that the court issue a preliminary injunction and a temporary restraining order.
CV10-23-3252. The court granted DEQ’s temporary restraining order and scheduled a Hearing for
July 27, 2023. Prior to the July 27, 2023, Hearing, DEQ and the Company signed a stipulation
allowing DEQ to take over the water sampling and public notice requirements until the Company
is put into a receivership. This potential receivership is a significant development, and Staff now
DECISION MEMORANDUM 2

recommends the Commission suspend proceedings in ISL-W-23-02 pending additional clarity in
CV10-23-3252.
STAFF RECOMMENDATION
Staff recommends the Commission suspend proceedings in ISL-W-23-02.
COMMISSION DECISION
Does the Commission wish to suspend further proceedings in ISL-W-23-02?

Claire Sharp
Deputy Attorney General

I:\Legal\WATER\ISL-W-23-02_Investigation\memos\ISLW2302_dec3_cs.docx