ALJ/XJV/t93 DRAFT H-4

10/25/2001

Decision DRAFT DECISION OF ALJ VIETH (Mailed 9/12/2001)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Investigation on the Commission's Own Motion into the Rates, Charges, and Practices of Water and Sewer Utilities Providing Service to Mobilehome Parks and Multiple Unit Residential Complexes and the Circumstances under which those Rates and Charges can be Passed to the End User.

Investigation 98-12-012 (Filed December 17, 1998)

OPINION ON PETITION FOR MODIFICATION

OF DECISION 01-05-058

1. Summary

We modify Decision (D.) 01-05-058 to clarify our general guidance regarding what water rate the owner/operator of a mobilehome park (MHP) with a submetered water system may charge park tenants. We reiterate the two options outlined in D.01-05-058, which turn on whether or not the park owner/operator chooses to remove the capital and operation costs associated with the submeter system from rent. However, we delete confusing language in D.01-05-058 which erroneously suggests that the terms "applicable rate" and "prevailing rate" are synonymous. We further clarify that nothing in D.01-05-058 should be interpreted to prohibit the MHP owner/operator from passing lifeline rate discounts on to eligible tenants.