3. Conclusion

The purpose of this proceeding was to investigate Alco's water and service quality to determine if it is in the public interest for Alco to serve additional customers in its newly filed service area. Alco has a troubled history and memories in the Salinas district are long. However, the scoping memo specifically called for a review of Alco's current operations and ability to serve the new service area rather than a focus on past misdeeds that were reviewed and resolved in the federal investigation.

We rely heavily on the testimony of DRA's witnesses regarding Alco's water and service quality and compliance with the monitoring and reporting requirements of GO 103. As discussed above, Alco's water quality and quantity meet state and federal standards, although Alco's pressure testing, complaint tracking and customer service require some improvement. The additional testing and reporting requirements we adopt will improve Alco's service and begin to restore the confidence of its customers and community leaders.

Based on the record, we conclude that it is in the public interest for Alco to be allowed to serve additional customers in its newly filed service territory. We also conclude that Alco should work with the Public Advisors office to improve its complaint tracking and provide customer information. Additionally, Alco should file a formal GRC application to provide heightened oversight of its operations and prepare it to eventually operate as a Class A utility. Finally, we conclude that Alco should be fined $5,000.00 for abuses during the discovery phase of this investigation.