ALJ/GEW/jva DRAFT Agenda ID #3630
Ratesetting

7/8/04 Item 73

Decision PROPOSED DECISION OF ALJ WALKER (Mailed 6/4/2004)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In the Matter of the Application of F. Patrick Flynn & Joyce H. Flynn to sell 100% of the Outstanding Stock of Mesa Crest Water Company (U-333-W) and California-Michigan Land and Water Company, Which Operates a Water System in Los Angeles County, to Buy 100% of the Outstanding Stock of Mesa Crest Water Company, pursuant to Public Utilities Code Sections 851 through 854.

Application 04-01-024 (Filed January 14, 2004)

Christine J. Hammond, Attorney at Law, Steefel, Levitt &
Weiss, PC., for Mesa Crest Water Company, applicant

Kristine A. Blom, Greenridge LCF Association,
for Dr. & Mrs. Ronald G. Blom, and Gilbert Dreyfuss,
for La Canada Flintridge Country Club, protestants.

OPINION

1. Summary

This decision grants authority to F. Patrick Flynn and Joyce H. Flynn to sell their outstanding shares of common stock of Mesa Crest Water Company (Mesa Crest), and to transfer the Mesa Crest water system to MCWC, Inc., a wholly owned subsidiary of California-Michigan Land and Water Company (Cal-Mich). Mesa Crest serves 710 connections and in near the City of La Canada Flintridge in Los Angeles County. Cal-Mich operates the East Pasadena Water Company (East Pasadena Water), which serves 2,802 connections in an area contiguous to Pasadena and San Marino in Los Angeles County.

Two formal protests to the application have been filed, each urging that approval of this sale be deferred while customers seek to form a special district or to interest another public entity in acquiring and operating Mesa Crest. Because the evidence at hearing on May 18, 2004, showed that formation of a special district or an acquisition by another public entity can proceed regardless of Mesa Crest's new ownership, we deny the protests.