CLARK FORK — The Idaho Public Utilities Commission has granted Bear Claw Water System LLC a certificate of public convenience and necessity, giving the Bonner County water utility the authority to provide regulated service to customers. 

“We find that the Company is a corporation operating and managing a water system for compensation in Idaho and is, therefore, a public utility subject to Commission regulation under Idaho Code,” the commission wrote in its final order.

Bear Claw submitted its application for the certificate July 14, and until the commission’s approval Oct. 9, the system operated as an unregulated water corporation.

Bear Claw Water System LLC serves customers in the Bear Claw Subdivision, located about five miles southeast of Clark Fork. As a corporation operating and managing a water system for compensation in Idaho, it is considered a public utility subject to regulation under Idaho Code.

Commission staff recommended approval of the certification, finding Bear Claw operated as a public utility. Staff also recommended IPUC set rates at the company’s interim rate of $50 per month.

While the informal rate has been in place since about  2015, commission staff noted there was no formal rate structure, invoicing or collection process. Additionally, most homes connected to the system are unmetered, making billing or tiered rates difficult, according to commission documentation.

The system currently has 28 connections serving 24 homes and is expected to generate annual revenue of about $12,000 to $13,000. Staff noted that additional connections would require a second well, which must be approved by the Idaho Department of Environmental Quality before coming online.

Due to the need for a second well, a moratorium on additional hookups has been in place since 2021, according to documents submitted with the application.

The system includes one well with a single submersible pump and no booster pump. IDEQ categorizes Bear Claw as a “very small water system,” meaning it serves 500 people or fewer and does not require chemical treatment.

Bear Claw Water System will be required to adopt the commission’s Uniform Customer Relations Rules and Utility Customer Information Rules. These rules require the utility to submit documents for commission review and approval, including a tariff, various customer notices and an annual rules summary.

Only one comment was submitted during the review process, with the individual expressing concern about the inability to develop property due to the moratorium. While unspecified complaints were noted in application documentation due to water pressure, the system’s owner said no complaints were submitted directly to Bear Claw officials.

The commission directed the utility to maintain its current rates. A separate case will be opened to determine whether the interim rates are fair, just and reasonable.

More information is available at puc.idaho.gov/case/Details/7576.