7. Assignment of Proceeding

John A. Bohn is the assigned Commissioner and Maribeth A. Bushey is the assigned ALJ in this proceeding.

Findings of Fact

1. The water supply data presented by PAWW and analyzed by Staff show that the current Whiskey Shoals supply is inadequate.

2. Augmentation of the water supply for the Whiskey Shoals system should be studied.

3. Ratemaking implications of the water supply augmentation study results should be addressed by PAWW's next general rate case.

4. This matter was submitted for Commission consideration on June 23, 2010, as shown in the Commission's Daily Calendar for June 24, 2010.

Conclusions of Law

1. PAWW should undertake a Whiskey Shoals water supply augmentation study that includes the following:

a. Notice to Unserved Parcels. All current customers and owners of unserved parcels located in the Whiskey Shoals service area must receive written notice of the study and solicitation of interest in obtaining public utility water service from PAWW. The notice must be reviewed and approved by the Commission's Public Advisor, and must be issued no later than 30 days after the effective date of this decision. PAWW must mail written updates to all interested new customers no less than once each calendar quarter.

b. Technical Evaluation of Supply Options. The study must include a thorough technical analysis of the supply options and evaluation of the costs and benefits of each option which might be necessary to serve existing or new customers.

c. Financial and Ratemaking Assessment. Costs and rate impacts of any proposed facilities must be included in the study.

d. Implementation Plan. Timetables for significant events, including rate changes, necessary to place the augmentation plan into service must be included in the plan.

e. Any other matter necessary for a high quality study of water supply options.

2. No later than the earlier of its next general rate case or one calendar year from the effective date of this decision, PAWW should file and serve its Whiskey Shoals water supply augmentation study on all parties to its last general rate case, this proceeding, the current Whiskey Shoals customers and all owners of unserved parcels in the Whiskey Shoals service area.

3. There are no disputed issues of material fact, and no further hearings are required.

4. The procedural issues raised in the appeal of the presiding officer's decision have been cured.

5. Certificated public utilities have an ongoing obligation to be aware of customer interest in new connections and to prepare and evaluate plans to meet the needs of existing and prospective customers.

6. The substantive issues raised in the appeal of the presiding officer's decision are without merit.

7. The appeal of the presiding officer's decision should be denied.

ORDER

1. Point Arena Water Works, Inc. must undertake a Whiskey Shoals water supply augmentation study that includes the following:

a. Notice to Unserved Parcels. All customers and owners of unserved parcels located in the Whiskey Shoals service area must receive written notice of the study and solicitation of interest in obtaining public utility water service from Point Arena Water Works, Inc. The notice must be reviewed and approved by the Commission's Public Advisor, and must be issued no later than 30 days after the effective date of this decision. Point Arena Water Works, Inc. must mail written updates to all owners of unserved parcels interested in becoming new customers no less than once each calendar quarter.

b. Technical Evaluation of Supply Options. The study must include a thorough technical analysis of the supply options and evaluation of the costs and benefits of each option which might be necessary to serve existing or new customers.

c. Financial and Ratemaking Assessment. Costs and rate impacts of any proposed facilities must be included in the study.

d. Implementation Plan. Timetables for significant events, including rate changes, necessary to place the augmentation plan into service must be included in the plan.

e. Any other matter necessary for a high quality study of water supply options.

2. No later than the earlier of its next general rate case or one calendar year from the effective date of this decision, Point Arena Water Works, Inc. must serve its Whiskey Shoals water supply augmentation study on all parties to its last general rate case, this proceeding, all current Whiskey Shoals customers, and all owners of unserved parcels in the Whiskey Shoals service area.

3. No later than the earlier of its next general rate case or one calendar year from the effective date of this decision, Point Arena Water Works, Inc. must file its Whiskey Shoals water supply augmentation study with the Division of Water and Audits as an information-only filing pursuant to General Order 96-B, Section 6.

4. Case 08-12-007 shall remain open pending the filing of a request for dismissal by Complainant Richard S. Calone when the service connection is complete as provided in the settlement agreement.

5. The appeal of the Presiding Officer's Decision is denied.

This order is effective today.

Dated July 29, 2010, at San Francisco, California.

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