2.1 Defendants

By Decision (D.) 72192 issued on March 21, 1967, Toro received authorization to construct and operate a public utility water system in the Corral de Tierra Oaks subdivision in the area south of State Highway 68, between Salinas and Monterey, in Monterey County. Subsequently, the Toro service area was expanded and included the adjacent Markham Ranch property to the east of Corral de Tierra Road.

By D.87-05-033 issued on May 18, 1987, Cal Utilities received authorization to acquire from Salinas Utility Service a public utility sewer system serving an area along State Highway 68, between Salinas and Monterey, known as the Toro area. The service area acquisition included certain areas east of Corral de Tierra Road.

Robert T. Adcock was president of both Toro and Cal Utilities at all times relevant to this proceeding.