PUBLIC UTILITIES COMMISSION
505 VAN NESS AVENUE
SAN FRANCISCO, CA 94102-3298
April 5, 2001
TO: PARTIES OF RECORD IN I.98-12-012
Enclosed is Item H-8a Alternate Order of Commissioner Bilas to the proposed decision of Administrative Law Judge (ALJ) Vieth previously mailed to you. This item is on the Commission's agenda for April 19, 2001.
When the Commission acts on the ALJs' proposed decision, it may adopt all or part of it as written, amend or modify it, or set it aside and prepare its own decision. Only when the Commission acts does the decision become binding on the parties.
As set forth in Rule 77.6, parties to the proceeding may file comments on the enclosed alternate at least seven days before the Commission meeting or no later than April 12, 2001. An original and four copies of the comments and reply comments with a certificate of service shall be filed with the Commission's Docket Office and copies shall be served on all parties on the same day of filing. The Commissioners and ALJ shall be served separately by overnight service.
/s/ LYNN T. CAREW, Chief
LYNN T. CAREW, Chief
Administrative Law Judge
JMH:acb
Enclosure
COM/RB1/acb H-8a
4/19/2001
Decision ALTERNATE ORDER OF COMMISSIONER BILAS (Mailed 4/5/01)
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) |
TABLE OF CONTENTS
Title Page
2. Origins of This Investigation 33
4. Overview - The Major Issues 66
5. Basis of CPUC Jurisdiction 1111
6. Application of the Submeter Exemption 2121
6.2. "Rate" .....................................................................................2424
7. Water Service at Multi-Unit Apartments 3232
Comments on Draft Decision 4141
1. Summary
The Commission issued this Order Instituting Investigation (investigation or OII) to explore "concerns raised about the legitimacy of charges for water and sewer services imposed on tenants by the owners of multiple unit residential complexes and mobilehome parks." (Investigation 98-12-012, slip. op. at 1.) In this proceeding, we review information obtained about current practices of owners/operators of mobilehome parks (MHPs) and multiple unit residential complexes (multi-unit apartments) that bill tenants for water and sewer services separately from rent. We also review the extent of California Public Utilities Commission (Commission or CPUC) jurisdiction under existing law and limitations on CPUC oversight.
This decision attempts to isolate the major issues and explain the existing jurisdictional framework so that the Legislature may formulate appropriate public policy solutions. Where our record has suggested solutions for the Legislature's consideration, we report this. In particular, this decision clarifies the pivotal issue, the extent to which CPUC jurisdiction permits this Commission to address and resolve the billing issues presented.
Whether an MHP or multi-unit apartment is a public utility subject to CPUC regulatory control depends on whether it satisfies the statutory definition of a public utility as that definition has been interpreted by the courts. If it is a private entity selling (or reselling) water or sewer services for compensation -- the express statutory requirement-- and it has dedicated its property to public use as required by case law established by the courts, and it does not qualify for an express legislative exemption from CPUC control, then more likely than not, the MHP or multi-unit apartment would be determined by the Commission to be a public utility, subject to its control. With one limited exception, if a MHP or multi-unit apartment selling or reselling water or sewer services is not deemed a public utility, the Commission has no jurisdiction to regulate its rates and services.
