VI. Assignment of Proceeding

Henry Duque is the Assigned Commissioner and Maribeth Bushey is the assigned Administrative Law Judge in this proceeding.

Findings of Fact

1. The Commission issued D.00-07-018 after receiving comments from the parties; the Commission did not hold evidentiary hearings.

2. The record in this proceeding supports requiring all water utility non-tariffed offerings to be subject to prior Commission review and approval.

3. D.00-07-018 contains no discussion or justification for an exemption of listed active non-tariffed offerings from the advice letter-filing requirement.

4. In D.00-07-018, Ordering Paragraph 2 exempts listed active non-tariffed offerings from the advice letter-filing requirement.

5. In D.00-07-018, Conclusion of Law 5 is unclear as to whether passive offerings are subject to the advice letter-filing requirement.

Conclusions of Law

1. Pursuant to Pub. Util. Code § 1708, the Commission "may at any time, upon notice to the parties, and with opportunity to be heard as provided in the case of complaints, rescind, alter, or amend any order or decision made by it." Where the Commission adopted a regulation using notice-and-comment procedures, Pub. Util. Code § 1708.5 authorizes the Commission to change that regulation using the same procedures and without holding an evidentiary hearing.

2. Evidentiary hearings are not required to make the changes set forth in the foregoing opinion.

3. The parties were afforded notice of and an opportunity to comment on the proposed alteration of D.00-07-018.

4. All non-tariffed offerings by water utilities that are provided, in whole or in part, by assets or employees reflected in the utility's revenue requirement should be subject to prior Commission review and approval.

5. D.00-07-018 should be altered to require that all non-tariffed offerings provided, in whole or in part, by assets or employees reflected in the utility's revenue requirement be subject to prior Commission review and approval.

6. D.00-07-018 should be altered in the following respects with deletions noted by strikethroughs:

Conclusion of Law 5: The public interest requires that water utilities have a means of obtaining Commission review and approval prior to entering into new active non-tariffed endeavor.

Ordering Paragraph 2: Any water utility which proposes to engage in a sale of non-tariffed goods or services provided, in whole or in part, by assets or employees reflected in the utility's revenue requirement, which would be proposed to be classified as active as described herein, shall file an advice letter seeking Commission approval, except for those activities designated as active in attachment A.

7. Water utilities that have made non-tariffed offerings of goods or services provided, in whole or in part, by assets or employees reflected in the utility's revenue requirement, and have not filed advice letters seeking approval of such offerings, should file advice letters in conformance with Ordering Paragraphs 3 and 4 of D.00-07-018 no later than 45 days after the effective date of this order.

ORDER

Therefore, IT IS ORDERED that:

1. Decision (D.) 00-07-018 should be altered in the following respects with deletions noted by strikethroughs:

Conclusion of Law 5: The public interest requires that water utilities have a means of obtaining Commission review and approval prior to entering into new active non-tariffed endeavor.

Ordering Paragraph 2: Any water utility which proposes to engage in a sale of non-tariffed goods or services provided, in whole or in part, by assets or employees reflected in the utility's revenue requirement, which would be proposed to be classified as active as described herein, shall file an advice letter seeking Commission approval, except for those activities designated as active in attachment A.

2. Water utilities that have made non-tariffed offerings of goods or services provided, in whole or in part, by assets or employees reflected in the utility's revenue requirement, and have not filed advice letters seeking approval of such offerings, shall file advice letters in conformance with Ordering Paragraphs 3 and 4 of D.00-07-018 no later than 45 days after the effective date of this order.

3. This proceeding is closed.

This order is effective today.

Dated , at San Francisco, California.