Ratepayer Indifference

The Commission historically has required a standard of ratepayer indifference when evaluating the sale of a public small water company. Under this standard, the sale of utility should not have any net consequences that cause the ratepayer to prefer the seller to the buyer. For example, ratepayers should not be subject to increased rates or reduced service as a result of a change of ownership.

The proposed transaction will not result in increased rates or reduced service. To the contrary, our approval will result in maintenance of the status quo, because improvements have been made over the past 11 years, and the system operator will not change. The rates were recently reviewed, and a general rate increase was granted to the present owner last year. Those rates will not be increased as part of this transaction, and will not be subject to increase without Commission approval. Rate base, future rates, service quality, and continuity of service will not be affected, and we therefore deem this transaction to be a matter of indifference to ratepayers.

Provided the parties comply with terms, conditions and requirements in the Order, we conclude that granting this application will not be adverse to the public interest. Accordingly, our decision approves the transaction.