Customers Not Happy About ‘Free’ Water Water System In Turmoil As Owner Involved In Fight With State Agency

No one is charging customers of a small water district southeast of Rathdrum, but the customers of Happy Valley Water System are anything but pleased.

L. W. “Zeke” Davis, the owner of the company, has been trying to keep the company out of the jurisdiction of the Idaho Public Utilities Commission, which has demanded the company comply with state regulations on water utilities.

Davis sent out a letter to the company’s 25 customers demanding that they each pay him $5,000 to form a co-op or have their water shut off Nov. 30. To the IPUC’s knowledge, no one has lost service so far.

“Mr. Davis was trying to force homeowners into buying the system and we don’t want to buy it,” customer Linda Ruen said.

Davis also informed the customers he wouldn’t charge for water for October or November, thereby keeping Happy Valley Water System out of the jurisdiction of the IPUC, he said.

The IPUC, however, said Davis is mistaken.

“It’s his belief that if he doesn’t charge for water, then he’s not subject to the commission,” said Scott Woodbury, deputy attorney general.

But the commission - which found that Happy Valley is operating as a water utility - claims the company is under its jurisdiction regardless of whether Davis charges for water in October and November. It is conducting an investigation into the services of Happy Valley Water System and the ability of the system’s owner to provide the kind of water service required by law.

Customers haven’t received any bills for October and November, although several have tried to send in payments anyway.

Ruen mailed him her check for the two months and didn’t get it back. Sandy Johnson, on the other hand, did get hers returned.

The billing fees have been inconsistent as well.

“They were setting different rates for different people,” Johnson said. “We talked amongst ourselves and someone would say, ‘Oh, I’m paying $32.50,’ and someone would say, ‘I’m paying $37.50.”’

If Davis is subject to IPUC rules, then he’ll have to charge his customers consistent, fair rates. In its investigation notice, the commission directed Woodbury to file a suit against Happy Valley Water System at his discretion. Woodbury has not yet filed a suit.

Davis faces fines of $2,000 per day for each violation if the courts determine he has violated IPUC orders.

But part of the problem will be finding Davis. The IPUC doesn’t know how to contact him and customers haven’t heard from him either.

“What if the well goes down? Who’s going to pay for it?” wondered customer Bruce Fitting.

And if Davis isn’t taking money for water for two months, the IPUC and several customers worry that he might not be able to pay the electric bill for pumping the water out of the well.

But the fact the IPUC is involved eases the concerns of many customers.

“We feel pretty safe right now,” Johnson said.

, DataTimes