Assignment of Proceeding
Michael R. Peevey is the Assigned Commissioner and Maribeth A. Bushey is the assigned ALJ.
1. SCWC has demonstrated that it currently has sufficient water resources to meet the needs of its customers, but has not shown that it will have sufficient resources for the term of the permanent lease of 5,000 AFY of American River water rights to Folsom.
2. The 5,000 AFY of water rights in the American River was utility property at the time of its transfer.
3. Ratepayers incurred the cost of acquiring the 5,000 AFY of water rights in the American River.
4. Shareholders invested no capital in acquiring the water rights transferred to Folsom.
5. The 5,000 AFY of American River water rights may be useful to SCWC at some time in the future.
1. SCWC should not be rewarded for its permanent transfer to Folsom of 5,000 AFY of American River water rights.
2. The revenue from the permanent lease of 5,000 AFY of American River water rights to Folsom should be recorded in Account No. 607, Sales to Government Agencies by Contracts, for the benefit of ratepayers.
3. SCWC has not met its burden of proving that the permanent lease of 5,000 AFY of American River water rights to Folsom is in the public interest.
4. SCWC's application to approve, pursuant to §851, the permanent lease of 5,000 AFY of American River water rights to Folsom should be denied.
5. SCWC must prudently acquire such water resources as are needed to meet the needs of its customers.
6. This decision does not change Folsom's interest in the permanent lease of 5,000 AFY of American River water rights.
7. Today's decision should be effective immediately.
IT IS ORDERED that:
1. Southern California Water Company (SCWC) shall prudently acquire such resources as are necessary to meet the needs of its customers.
2. SCWC shall record the revenue from the permanent lease of 5,000 AFY of American River water rights to Folsom in Account No. 607, Sales to Government Agencies by Contracts, for the benefit of ratepayers.
3. SCWC's application to approve, pursuant to § 851, the permanent lease of 5,000 AFY of American River water rights to Folsom is denied.
4. Application 04-07-018 is closed.
This order is effective today.
Dated , at San Francisco, California.
Bushey Notice of Availability with Digest
