II. Historical Background
Union Pacific and its predecessor have operated the Keene Water System for over 80 years. Originally, the system served the railroad's steam locomotives. The Keene Water System is the sole remaining segment of Southern Pacific Transportation Company's (SP)2 former water supply line that ran from Tehachapi to Caliente. The water supply line was installed in the early 1900's.
During the era of steam locomotives, SP constructed, operated and maintained a water system mainly for the purpose of supplying water for steam locomotives and railroad facilities. A pipeline carried water from the City of Tehachapi to railroad facilities in Keene. During this time, the railroad provided water to a variety of users.
In the 1960's, with the retirement of steam locomotives, the railroad's need for water in the area substantially diminished. SP continued to supply water to its existing customers, and provided water to certain additional neighbors when they encountered difficulties with their own water supplies.
In 1972, this water supply system was deemed a public water system subject to the State's drinking water regulatory program, and a public water supply permit was issued to Keene Water System. The Kern County Environmental Health Services Department administered the State's Safe Drinking Water Programs for water systems in Kern County with fewer than 200 connections (such as Keene). On July 1, 1993, DHS assumed those responsibilities and commenced direct regulatory oversight of the safety of the Keene Water System's supply.3
Stonybrook filed a complaint at the Commission in 1989. We required SP to supply water to Stonybrook during the pendency of the complaint. We dismissed the complaint in 1997, without prejudice, for lack of prosecution. Union Pacific's witness Whitcomb notes that Union Pacific continued to provide water to Stonybrook, as Union Pacific and Stonybrook worked to find a new owner for the Keene Water System.
2 In 1996, Union Pacific merged with SP, and thereby acquired the Keene Water System. 3 Regulation by DHS is more limited than the regulation to which the Keene Water System would be subject if found to be a public utility. As a "public water system," the Keene Water system will continue to be subject to the State's drinking water standards regardless of whether it is a public utility.
