GFB/JET/avs 1/9/2004

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Investigation on the Commission's Own Motion into the Operations and Practices of the Conlin-Strawberry Water Co. Inc. (U-177-W), and its Owner/Operator, Danny T. Conlin; Notice of Opportunity for Hearing; and Order to Show Cause Why the Commission Should Not Petition the Superior Court for a Receiver to Assume Possession and Operation of the Conlin-Strawberry Water Co. Inc. pursuant to the California Public Utilities Code Section 855.

Investigation 03-10-038 (Filed October 16, 2003)

SCOPING MEMO AND RULING OF ASSIGNED COMMISSIONER
AND ADMINISTRATIVE LAW JUDGE

In this proceeding, the Commission has issued an Order Instituting Investigation, Notice of Opportunity for Hearing, and Order to Show Cause directed to Conlin-Strawberry Water Co. and Danny T. Conlin, its owner and operator, both referred to as the "Water Company," respondents. The proceeding requires respondents to provide certain information to the Commission, show cause why the Commission should not petition the Tuolumne County Superior Court for the appointment of a receivership to assume possession of the Water Company and its water system, and demonstrate why fines, penalties, and other remedies should not be imposed on respondents.

A Prehearing Conference (PHC) was held at 10:00 a.m., Thursday, December 18, 2003, in the Commission Courtroom, State Office Building, 505 Van Ness Avenue, San Francisco, California 94102. This ruling determines the scope, schedule, necessity of a hearing, and other matters in accordance with Rules 6(a) and 6.3 of the Commission's Rules of Practice and Procedure (April 2000) (Rules).¹ This ruling has been delayed following the prehearing conference pending the parties' filing of additional pleadings concerning the scope of issues to be addressed.²

1. Parties

The parties to these proceedings are the Water Division of the Commission, petitioner, Conlin-Strawberry Water Co., Inc., respondent, and Danny T. Conlin, respondent. William R. Rugg, President of the Strawberry Property Owners' Ass'n, also appears as an interested party in this proceeding.

The attorney for the respondents has represented that Danny T. Conlin is the sole shareholder of the Water Company and holds this interest as his sole and separate property.

The following persons employed by the Water Division have been designated by the Division as staff for this proceeding: Kerrie Evans, Herbert Chow, Stan Puck, and Cleveland Lee. These persons, in addition to all parties and counsel to this proceeding, are bound by the ex parte rule discussed in paragraph 4, below. If any additional persons are added to the staff of this proceeding, the Water Division shall file and serve a notice identifying those persons and confirming that they have been admonished about the ex parte prohibition.

¹ The Commission's Rules are available on the Commission's website: www.cpuc.ca.gov/PUBLISHED/RULES_PRAC_PROC/8508.htm.

² See discussion at note 3, infra.