4. Discussion

Pub. Util. Code § 851 provides that no public utility other than a common carrier by railroad may sell the whole or any part of its system or property useful in the performance of its public utility service without first obtaining authorization to do so from this Commission.

Where such a sale is between private parties, the function of the Commission is to prevent impairment of public service that could result from a transfer to parties incapable of performing adequate service at reasonable rates. (Southern Cal. Mountain Water Co. (1912) 1 CRC 520.) But such concerns are not determinative where a community services district is involved. A community services district is an agent of the state specially formed for local performance of functions like utility service. (Gov. Code §§ 61100 and 61600.) After sale to a district, the customers must continue to receive service and rates that are "fair, reasonable, just, and nondiscriminatory." (See, e.g., Hansen v. City of San Buenaventura (1985) 213 Cal.Rptr. 859; In re Park Water Company (1988) 29 CPUC2d 415.)

In the present proceeding, the purchase price is one that the Superior Court has determined to be just compensation. The District will continue to provide water services presently provided by Bidwell, and no changes in rates or conditions of service are proposed. It is clear on this record that the current owners of Bidwell desire to sell their water system, and the District is ready, able and willing to acquire the utility and continue to serve Bidwell's customers. Accordingly, the application for sale should be approved.

Water and sewer utilities subject to Commission jurisdiction were required by the Legislature beginning January 1, 1983, to impose user fees on customers' bills. (See Pub. Util. Code §§ 401, et seq.) With the end of Commission jurisdiction at the time of transfer to the District, collection of these fees will no longer be required. For that period of time prior to transfer, Bidwell will be required to collect and remit these fees before it can be relieved of its public utility responsibilities.

In Resolution ALJ 176-3088, dated May 16, 2002, the Commission preliminarily categorized this proceeding as ratesetting and preliminarily determined that hearings were necessary. Based on the record, we now conclude that a public hearing is not necessary, and our order changes the preliminary determination accordingly.

Because the amended application is unopposed, and because our decision today grants the relief requested, the requirement for 30-day public review and comment is waived pursuant to Pub. Util. Code § 311(g)(2).