Description of Transaction

Applicants seek approval of a transaction whereby Searles Valley Holdings, LLC sells SVMO to Karnavati. SDWC, the operating utility which is a subsidiary of SVMO, will continue to provide service to its California customers, who will be indifferent to the ownership change. Exhibit B to this document depicts the before and after merger holding company organization.

Applicants submit that the transaction is an internal corporate reorganization which will have no impact on SDWC operations or its customers. SDWC current management will continue in place without change. SDWC rates, terms and conditions, billing practices and operations will be unaffected by the transaction.