ALJ/TIM/sid Date of Issuance 11/10/2008
Decision 08-11-035 November 6, 2008
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Application of Alisal Water Corporation dba Alco Water Service (U 206 W) to Issue Notes in the Principal Amount of $8,000,000 and to Execute a Related Agreement and Supplemental Security Instruments. |
Application 07-10-012 (Filed October 12, 2007) |
(See Appendix A for a list of appearances.)
DECISION AUTHORIZING ALCO WATER SERVICE TO ISSUE $8,000,000 OF DEBT AND EQUITY
TABLE OF CONTENTS
Title Page
DECISION AUTHORIZING ALCO WATER SERVICE TO ISSUE $8,000,000 OF DEBT AND EQUITY 2
1. Summary 2
2. Background 2
3. Summary of Request 3
3.1. Use of Proceeds 3
3.1.1. Repayment of Capital Leases 5
3.1.2. Repayment of Short-Term Notes and Treasury Funds 5
3.1.3. Install Water Mains Pursuant to a Federal Court Order 5
3.1.4. Pump Facilities 5
3.1.5. Automatic Meter Reading System 6
3.2. Requested Debt and Equity 6
3.3. Sources of Revenue to Pay for Requested Debt and Equity 9
4. Disputed Issue: Need for General Rate Case 9
5. Discussion 12
5.1. Authority to Issue Debt and Equity 15
5.2. Authorized Capital Structure 18
5.3. General Rate Case 20
6. Exemption from the Competitive Bidding Rule 22
7. Quarterly Reporting for General Order 24-B 23
8. Fee for Authority to Issue Debt and Equity 24
9. Matters Not Addressed 25
10. California Environmental Quality Act 25
11. Categorization and Need for Hearings 27
12. Comments on the Proposed Decision 27
13. Assignment of the Proceeding 27
Findings of Fact 28
Conclusions of Law 29
ORDER 32
DECISION AUTHORIZING ALCO WATER SERVICE TO ISSUE $8,000,000 OF DEBT AND EQUITY
1. Summary
This Decision grants Alisal Water Corporation d/b/a Alco Water Service (Alco) authority under Pub. Util. Code § 816 et seq., and § 851 to issue $8 million of secured long-term debt and equity. Alco may use the debt and equity to finance additional plant, reimburse treasury funds, and repay short-term debt. Alco is also ordered to reduce its debt-to-equity ratio from approximately 10-to-1 today to 3-to-1 by December 31, 2011. Finally, Alco is required to file a general rate case application by June 1, 2009, with a 2010 test year.
