BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting an Investigation on Whether Great Oaks Water Company's Failure to Inform the Commission and its Staff of its Treatment of Pump Tax Revenues Collected from Customers Violated the Commission's Rule of Practice and Procedure 1.1, the Uniform System of Accounts for Class A Water Companies, the Rate Case Plan, or Public Utilities Code Sections 451 and 794.	FILED PUBLIC UTILITIES COMMISSION APRIL 19, 2012 SAN FRANCISCO I.12-04-011

ORDER INSTITUTING INVESTIGATION INTO

GREAT OAKS WATER COMPANY'S FAILURE TO INFORM

THE COMMISSION & ITS STAFF REGARDING

ITS NON-PAYMENT OF PUMP TAX REVENUES TO

SANTA CLARA VALLEY WATER DISTRICT

I. SUMMARY

On November 19, 2010, the California Public Utilities Commission ("Commission") issued Decision ("D.") 10-11-034 in Application ("A.") 09-09-001, the Great Oaks Water Company ("Great Oaks") general rate case ("GRC") proceeding. In the Decision, the Commission ordered, among other matters, that the Consumer Protection and Safety Division ("CPSD") prepare an Order Instituting Investigation ("OII") to further review whether Great Oaks' failure to inform the Commission and its staff that it had withheld its payment to the Santa Clara Valley Water District ("SCVWD") of the pump tax revenues collected from its customers violated any of the following: 1) the Commission's Rules of Practice & Procedure, Rule 1.1; 2) the Uniform System of Accounts ("USOA") for Class A Water Companies; 3) the Rate Case Plan; 4) Public Utilities ("PU") Code Section 451; or 5) PU Code Section 794.¹

Based on a review of the Commission's Division of Water and Audits' ("DWA's") Financial and Compliance Verification Report and the parties' comments in A.09-09-001, the Commission determined good cause existed to further investigate Great Oaks' conduct and determine whether fines should be imposed.²

CPSD's investigation determined:

· Great Oaks appears to have violated the Commission's USOA for Class A Water Companies and Public Utilities Code Section 794.

· Great Oaks may have violated the Commission's Rate Case Plan for Class A Water Utilities (D.07-05-062).

· Great Oaks may have violated Public Utilities Code Section 451.

· Great Oaks does not appear to have violated Rule 1.1.

¹ Decision 10-11-034, Ordering Paragraph 12.

² Decision 10-11-034, pp. 67-68.