IV. Discussion

In order for a settlement to be approved by the Commission, the settlement must be: (1) reasonable in light of the whole record, (2) consistent with law, and (3) in the public interest. Rule 51.1(e).4

A. Reasonable in Light of the Whole Record

The record of this proceeding shows that the ten defendant mobile parks were not in compliance with Section 739.5, in that Gas Refund Credits were not passed on to defendants' sub-metered customers. After being informed of the requirements of Section 739.5, the defendants have complied with that provision, and all rebates have been fully disbursed to the sub-metered customers served by the defendants.

The parties agreed that defendants would not calculate or pay interest charges for the period beginning June 1, 2000, until the date the payments or credits were made. We find that it is not reasonable for the mobile home parks to avoid the payment of interest; this leads to unjust enrichment on the part of the mobile home parks. We order that interest be paid at the rate of 7% per annum, compounded monthly, beginning 30 days from the receipt of the rebates and extending to the time when the rebates were disbursed to defendants' sub-metered customers.

We find defendants' flagrant violation of Section 739.5 to be troubling, and, if they do not agree to this modification to the settlement, we will explore the possibility of penalties when the case is set for hearing. We remind defendants that the Commission has the authority under Section 2111 to fine non-utilities which violate the Public Utilities Code or an order of the Commission.

The modified settlement is reasonable in light of the whole record.

B. Consistent with the Law

The terms of the settlement demonstrate that the defendants are now in compliance with Public Utilities Code Section 739.5, in that all of the Gas Refund Credits have been passed on to the defendants' sub-metered customers. Further, defendants agree to comply with Section 739.5 within a reasonable timeframe, if additional rebates are issued in the future.

C. In the Public Interest

The settlement would serve the public interest because the defendant mobile home parks have now passed the rebates on to their sub-metered customers and made a commitment to pass any future rebates on in a timely manner. There are no outstanding violations of the Public Utilities Code by the defendants. Therefore, the stipulation which is set forth as Appendix A, satisfies all claims raised in the complaint against the named defendants under Section 739.5. Also, it is consistent with the public interest that the sub-metered customers receive interest on the rebate money paid to them by the mobile home parks.

For these reasons, the Commission finds that the settlement, as modified, is reasonable in light of the whole record, is consistent with the law, and is in the public interest. The settlement, as modified, is approved pursuant to Rules 51 through 51.10.

Findings of Fact

1. The ten defendant mobile home parks received Gas Refund Credits from PG&E beginning in May and June 2000.

2. The defendant mobile home parks did not take prompt action to return the Gas Refund Credits to their sub-metered customers.

3. By not returning the Gas Refund Credits to their sub-metered customers, the defendant mobile home parks were in violation of Public Utilities Code Section 739.5.

4. All rebates have now been fully disbursed to the sub-metered customers served by defendants.

5. The defendants did not pay interest on the rebates which were disbursed to their sub-metered customers.

6. Defendants are now in compliance with Section 739.5, and promise to comply with Section 739.5 in the event additional rebates are issued in the future.

7. As conduct guidance for defendants and other similarly situated mobile home parks, today's order should be made effective immediately.

Conclusions of Law

1. The modified settlement is reasonable in light of the whole record because defendants have disbursed all rebates to their sub-metered customers and have been ordered to pay interest on the rebates.

2. The modified settlement is consistent with the law because the defendants are now in compliance with Public Utilities Code Section 739.5.

3. The modified settlement is in the public interest because defendants have now complied with Section 739.5 and all rebates have been paid to sub-metered customers and defendants have been ordered to pay interest on the rebates. Also, defendants promise to pass on any future rebates in a timely manner.

ORDER

IT IS ORDERED that:

1. The Joint Motion for Commission to Adopt Stipulations of Fact and Conclude Proceedings is approved, with the modification specified herein.

2. Interest shall be paid to defendants' sub-metered customers at the rate of seven percent (7%) per annum, compounded monthly, beginning 30 days from the date the defendants received the rebates and continuing until the time that the rebates were passed on to their sub-metered customers.

3. Parties to this proceeding shall file comments by July 30, 2001, on whether they will accept the Commission's proposed modification to their settlement. If all parties to the proceeding do not respond affirmatively, the assigned Administrative Law Judge is hereby ordered to set a hearing to explore the assessment of penalties, as well as the payment of interest.

4. This proceeding is closed.

This order is effective today.

Dated , at San Francisco, California.

APPENDIX

BEFORE THE PUBLIC UTILITIES

COMMISSION OF THE STATE OF CALIFORNIA

The Utility Reform Network (TURN), the )

California Mobile Home Resource and )

Action Association (CMRAA), and )

Does 1-100, )

Four Seasons Mobile Home Park, )

The Franciscan Mobile Country Club, )

Rancho Santa Teresa Mobile Home Estates, )

Diablo Mobile Lodge, )

Friendly Village Mobile Home Park, )

Pepper Tree Estates Mobile Home Park, )

Spanish Ranch Mobile Home Park Number 1, )

Riverbend Mobilehome Park, )

Hilton Mobile Home Park, )

Hillview Mobile Home Park, and )

Does 1-100, )

_________________________________________ )

JOINT MOTION FOR COMMISSION TO ADOPT STIPULATIONS OF FACT AND CONCLUDE PROCEEDINGS

Dated: March 28, 2001.

BEFORE THE PUBLIC UTILITIES

COMMISSION OF THE STATE OF CALIFORNIA

TURN and CMRAA )

Four Seasons Mobile Home Park et. al. )

JOINT MOTION FOR COMMISSION TO ADOPT STIPULATIONS OF FACT AND CONCLUDE PROCEEDINGS

Pursuant to Rule 51 of the Commission's Rules of Practice and Procedure, the plaintiffs and defendants in this proceeding jointly move the Commission to adopt the proposed stipulations of fact contained in this filing. The proposed stipulations resolve the complaints brought by plaintiffs against named defendants under Pub. Util. Code §739.5 and should end the need for further proceedings in this case. The parties therefore urge that the Commission issue a final order consistent with the stipulations in this filing. The proposed stipulations and request for termination of further proceedings are in the public interest because there are no outstanding violations of the Public Utilities Code by named defendants. The proposed stipulation is unopposed by any of the named parties in this case.

I. STIPULATION OF FACTS

D. Common Facts For All Named Defendants

E. Facts Specific to Each Defendant

Defendant Franciscan Mobile Home Park

Defendant Four Seasons Mobile Home Park

Defendant Rancho Santa Teresa Mobile Home Park

Defendant Diablo Mobile Lodge

Defendant Friendly Village Mobile Home Park

Defendant Pepper Tree Estates Mobile Home Park

Defendant Spanish Ranch No. 1 Mobile Home Park

Defendant Riverbend Mobile Home Park

Defendant Hilton Mobile Home Park

Defendant Hillview Mobil Home Park

4 All rule citations are to the Commission Rules of Practice and Procedure, unless otherwise specified.

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