Caldera Water Company Newsletter 2026

Caldera Water Company (Caldera), which is now responsible for managing the water system that was formerly operated by Island Park Water Company (IPWC).

In 2023, the Idaho Department of Environmental Quality (IDEQ) filed a lawsuit against IPWC due to concerns regarding its management and operation of the water system. As part of this lawsuit, IDEQ appointed a Receiver to take over the management and operation of the water systems. The Receiver has successfully completed its tasks and has transferred the assets and management responsibilities of the water systems from IPWC to Caldera Water Company, Inc.

With the acquisition of the water system assets from the Receiver, Caldera became obligated to pay all debts, operational expenses, and maintenance costs, while also complying with IDEQ regulations. Recognizing the need for adjustments in fees and infrastructure investments, the board carefully considered standard state and federal guidelines for user fees. As a result, a one-time assessment fee of $500.00 was adopted in 2025, and the monthly fee was adjusted to $67.00 per user moving forward.

Below is a summary report of what these funds have covered and will cover in the coming year:

Immediate Infrastructure:

• Caldera has invested significantly in understanding the water systems and identifying all properties with active service connections. This ensures that the company has all the information needed to serve customers effectively.

• A professional firm has been hired to GPS-locate and map the water system assets, including service connections, wells, valves, and water line locations.

• Caldera has engaged consultants to document, understand, and retain its water rights.

• Each service connection has been physically verified, along private well locations to ensure clarity of water sources within the system's boundaries.

• Caldera has identified all water users and is currently working with any customers who were missing in IPWC’s billing, ensuring everyone using water contributes to their fair share.

• Investments have been made in new pumps, pipes, electrical controls, shut-off valves, and service upgrades.

• Additional funds have been allocated for parts and materials storage space.

  Long-Term Infrastructure:

• Caldera has applied for a DEQ engineering facility planning grant and has been awarded $45,000 towards this study.

• In addition to the DEQ grant funds, Caldera is investing $105,000 into an engineering facility plan, which started this month.

• Applications for long-term infrastructure grants or loans will be submitted by the end of 2026.

• Project selection, engineering plans, and execution will take place from 2027 to 2029.

• Moving into 2026, Caldera will budget approximately $25,000-$40,000 per year from its normal operational budget for critical upgrades to maintain compliance with DEQ and to enhance the systems' redundancy and resilience until larger funding can be secured.

  Financial Position: 2025-2026:

• Caldera successfully covered all operational and maintenance expenses necessary for DEQ compliance, along with addressing emergency issues that arose in 2025.

• Funded upgrades include pumps, electrical control systems, leak repairs, and some piping upgrades, along with legal and consultant fees in 2025.

• Funds have been set aside for the Engineering Facility Plan project, as well as emergency and capital improvement funds for 2026.

• Caldera has reduced its debt by 50%, with plans to pay off the remaining balance in 2026.

• Efforts have been made to rectify past due and missing accounts, working collaboratively with users to ensure timely payments from all water consumers.

Thank you for your continued support.