4. Compliance Plan

From all indications in the hearing room, the company and its owners are earnest about cooperating with the Commission to achieve compliance and place the company in financial and regulatory condition to be sold (with Commission approval) to a qualified buyer. Thomas Jernigan seemed genuinely contrite about vulgar remarks he directed to a Commission attorney (Ex. 9), and demonstrated a desire to respond to every regulatory requirement imposed on the company if the necessary financial resources can be made available. We believe the respondents should be given a further opportunity to regularize their operation and satisfy the corrective orders issued in I.97-04-013. We accordingly direct the respondents, within 90 days of the effective date of today's decision, to file and serve a compliance plan with the following features.

First, we expect regulated companies to show our staff the same courtesy they show their customers, suppliers, and employees. The compliance plan must recognize and express commitment to this principle.

Second, the compliance plan must fully and candidly set forth the status of Bidwell's efforts to comply with our orders in I.97-04-013. To the extent Bidwell is not yet in full compliance, the plan must identify those particulars, and must describe what the company will do to achieve full compliance and the date by which it believes it will have done so. To the extent Bidwell believes it will need substantial additional time to achieve full compliance, the plan must include a schedule for progress reports.

As noted above, Bidwell's owners are seeking a qualified buyer for the water utility, and of course they may file at any time an application for authority to transfer the utility. However, the search for a buyer does not displace the need to comply with our orders. We will consider a transfer application as an alternative to the compliance plan only if the transfer application is submitted for filing no later than the due date for the compliance plan, i.e., within 90 days of the effective date of today's decision.

If Bidwell files and serves a compliance plan, CSD will have 20 days from the date of the filing within which to file and serve comments on the plan, and Bidwell will have 10 days thereafter within which to file and serve its reply to the comments. We will review the compliance plan in a further order in this proceeding. If we approve the plan, we will dismiss the Order to Show Cause and close this proceeding; we may also conditionally approve the plan or reject it, and in these instances we will specify next steps, as appropriate..

If Bidwell fails to timely file a compliance plan or an application as directed in today's decision, there will be no need for further proceedings here, as Bidwell's inaction will conclusively demonstrate its unresponsiveness to Commission orders within the meaning of Section 855. In that case, our General Counsel will petition the Court for appointment of a receiver pursuant to Section 855.