Background
Property Number 181 (Property 181), located in the northwestern end of San Jose Water Company's (SJWC's) service area, provided the site for a groundwater production station. The infrastructure at Property 181 originally was designed as a source of seasonal water supply to supplement baseline production. However, due to growth in the water importation facilities of the Santa Clara Valley Water District, declining yields, and water quality, Property 181 ultimately supplied water only in an emergency and was rarely used.
On October 25, 2001, SJWC's Board of Directors declared Property 181 to be no longer necessary or useful to SJWC, and the property was transferred in November 2001 from an operating account to a non-utility property account, and thus removed from SJWC's rate base. On October 15, 2008, Property 181 was sold as it was considered no longer necessary or useful for water utility purposes.
On November 20, 2009, the Commission adopted Decision (D.) 09-11-032, which found that "there is insufficient information in this proceeding to substantiate without a doubt that Property 181 was no longer useful for utility purposes at the time of sale." (At 46.) Ordering Paragraph (OP) 15 of D.09-11-032 directed SJWC to file a Section 851 application for the sale of its Property 181.
On December 31, 2009, SJWC filed Application (A.) 09-12-026 (Application) requesting a determination by the Commission that, in consideration of the requirements of Section 851 and the relevant facts, Commission authorization of SJWC's sale of Property 181 was not required when SJWC sold the property on October 15, 2008, and is not required at this time.
On January 14, 2010, the Division of Ratepayer Advocates (DRA) protested the Application, and on February 5, 2010, SJWC replied to DRA's protest.
On March 8, 2010, a prehearing conference (PHC) was held to determine a schedule and issues, and whether evidentiary hearings were necessary. At the PHC SJWC and DRA agreed to meet in an attempt to resolve the issues.
On April 22, 2010, SJWC and DRA filed the Joint Motion of DRA and SJWC for the Adoption of Stipulation of Facts (Joint Motion). The Joint Motion includes a Joint Statement of Stipulated Facts Between SJWC and DRA Regarding A.09-12-026 (Stipulation).2 As the Stipulation resulted from negotiations and is supported and recommended by all parties to this proceeding, DRA and SJWC recommend that the notice and service requirements of Rule 12.1(b)3 be waived.
This proceeding was submitted on April 22, 2010.
2 See Appendix A.
3 All references to rules are to the Commission's Rules of Practice and Procedure. Rule 12.1(b) requires that prior to a settlement conference notice and opportunity to participate must be given to all parties.
