Background

The predecessor of YIC's water system originally was incorporated in 1911 as the Los Verjels Land and Water Company. Its name was changed in 1931 to Yuba Butte Orchards Company, Limited, and it was sold at a sheriff's sale in December of 1935 to the Yuba Investment Company. In 1984, the YIC water system was sold to Thousand Trails, a Washington corporation located in Seattle, Washington. YIC serves about 18 connections in the area of Oregon House, Yuba County.

The source of water supply derives from two water rights held by YIC. One is a pre-1914 appropriative right for storage of 2,300 acre-feet per annum (afa) in Lake Mildred on Dry Creek and direct diversion of 2.6 cubic feet per second (cfs) from Dry Creek at a stone masonry diversion dam located about one mile below Lake Mildred. This first water right serves 260 acres along and at the end of its associated 7.5-mile ditch. The other water right was a license issued in 1957 for the right to divert 16 cfs for irrigation purposes from Dry Creek, a tributary to the South Yuba River. This second water right serves 1100 acres.

YIC owns Lake Mildred, the diversion dam and the 7.5-mile ditch. Recreational activities on Lake Mildred subsidize the operation of the irrigation utility. YIC's local operations are conducted from the Thousand Trails office in Oregon House, California.

The last activity before the Commission from YIC was filed draft advice letter (A.L.) No. Three, for a General Rate Case (GRC) with the Water Division on May 14, 1997. While the new rates went into effect on April 5, 1998, the approved rate of return was less than three percent.

YIC requests authority, pursuant to § 851 of the Public Utilities (PU) Code and Rules 1 through 7, 15, through 17, 35 and 36 of the Commission's Rules of Practice and Procedure to sell and transfer its water system and public utility water service responsibilities to the District. YIC entered into a Contract of Sale of Business and Real Property with District on March 16, 2001 (Contract).

Notice of the filing appeared on the Commission's Daily Calendar of December 27, 2002. No protests have been received.