2. Background
On February 25, 2011, Mountain Utilities (MU), LLC (U906E) and Kirkwood Meadows Public Utility District (KMPUD) (the Joint Applicants) filed an application seeking Commission approval for the transfer and sale of MU's electric generation and distribution assets1 to KMPUD (Application). The acquisition of the assets occurs pursuant to an Asset Purchase Agreement2 (APA) executed by the Joint Applicants and results in KMPUD taking over all of MU's electric operations. As such, MU seeks to be relieved of its duty to provide public utility electric service to customers within its service territory.
No protests were filed in this application. On April 1, 2010, pursuant to Rule 1.4(b), the Division of Ratepayer Advocates (DRA) filed a Motion for Party Status in order to conduct discovery and undertake a comprehensive review of the application. On April 4, 2011, the motion was granted. In its April 27, 2011 Prehearing Conference (PHC) Statement, DRA stated that it had not found any "legal or factual issues that would warrant any further discovery, hearings, or comments/briefs."3 On April 8, 2011, 456 signatories representing 286 households in the Kirkwood community submitted a letter in support of the Application.
A PHC and concurrent evidentiary hearing were held on May 4, 2011. During the evidentiary hearing, the assigned Administrative Law Judge (ALJ) asked a number of questions of the Joint Applicants in order to further clarify and expand upon the extensive information contained in the Application. After the conclusion of the concurrent PHC and evidentiary hearing, DRA confirmed that it had no outstanding concerns and did not intend to participate further in this proceeding.4 Pursuant to Rule 14.6(b), the Joint Applicants and DRA stipulated to waive the period of public review and comment on the proposed decision. As of May 13, 2011, this proceeding stands submitted. The assigned Commissioner and assigned Administrative Law Judge issued a scoping memo and ruling, which identified the issues to be determined and set a schedule for addressing those issues. No further filings by parties have been received since the issuance of the scoping memo on May 24, 2011.
1 In addition to acquiring MU's electric generation and distribution assets, KMPUD is also purchasing MU's propane distribution assets and will assume operation of these assets to provide retail propane service. The Commission does not regulate propane services, except for safety purposes; therefore the sale and transfer of MU's propane assets under the Asset Purchase Agreement are exempt from Commission review. (Cal. Pub. Util. Code § 221; Decision (D.) 01-04-031 at 3.)
2 MU and KMPUD entered into the APA on April 2, 2010. On February 12, 2011, the parties executed a First Amendment to the Asset Purchase Agreement.
3 Prehearing Conference Statement of the Division of Ratepayer Advocates at 2.
4 May 4, 2011 Evidentiary Hearing Transcript (Tr.) at 65.
