Background

Decision (D.) 04-03-039 was issued on March 16, 2004. In that decision it was concluded that SCWC violated Pub.Util. Code Section 851 when it failed to gain Commission approval prior to effectuating a 1994 lease of 5,000 acre feet of water rights to the City of Folsom (Folsom). For that reason, the lease was voided from inception. The decision further states that, pursuant to the second paragraph of Section 851, Folsom's use of and payments for the leased water rights in the past are unaffected. However, the decision did not address Folsom's prospective rights for the water and ordered briefs to be filed on that subject.

On March 26, 2004, Folsom filed a petition for modification of D.04-03-039 requesting that the Commission clarify that with respect to Folsom, the Water Agreement between SCWC and Folsom is not invalidated on the ground that SCWC's action transferring the property was determined to be beyond its authority. Folsom also filed a motion to partially stay D.04-03-039, a motion to shorten time to respond to the petition for modification and the motion to stay, a declaration of Steven P. Rudolf in support of the petition for modification and a motion to have the petition for modification and motion to stay placed on the agenda for the April 1, 2004 Commission Meeting.

On March 26, 2004, a "Proposed Draft Decision of President Peevey and Commissioner Kennedy" (DD), which addressed Folsom's petition for modification was issued. Comments were due at 12:00 noon on March 30, 2004.

On March 26, 2004, an Alternate Draft Decision of Commissioner Lynch was also issued for comment. The voiding of the lease pursuant to Ordering Paragraph 7 of D.04-03-039 was stayed in order to clarify Folsom's continuing right to use water under the lease. The alternate draft decision was then adopted at the April 1, 2004 Commission Meeting. There was no action taken on the Peevey and Kennedy DD.