3. Discussion

This proceeding requires the Commission to examine the technical and financial qualifications of the prospective buyer and assess any impact that the transaction would have on rates and services.

Buyer is a newly created public entity formed for the express purpose of purchasing and operating Ponderosa, and the terms of sale require it to satisfy the technical qualifications of state and local health authorities before the sale may close. Although, as a new entity, Buyer has no financial history, it has access to funding through grants and loans that will facilitate Ponderosa's operations and improve its water service.

The Commission has historically required the sale of a small water company to satisfy a standard of ratepayer indifference. Under this standard, the sale of a utility should not have any net consequences that cause the ratepayer to prefer the seller to a buyer. For example, ratepayers should not be subject to increased rates or reduced service as a result of a change of ownership. Approval of the proposed transaction will not result in increased rates, because Buyer proposes to adopt Seller's existing tariffs. Consequently, we deem this transaction to be a matter of indifference to ratepayers.