8. Discussion

The requested authority should be granted. Public convenience and necessity are served by permitting Mayacama to provide sewer service and recycled/reclaimed water to this developing golf course and subdivision. These services have been tested and are capable of operating in full compliance with applicable regulations. Continued provision of these services pursuant to Commission regulation and oversight will help ensure that such services will meet high standards of quality at reasonable rates.

Applicant has shown that the only other provider of sewer service, the Town of Windsor, is either unable or unwilling to provide sewer service. Applicant has a suitable plan and also has the financial resources necessary to build the sewer system and to operate it.

The Board issued an EIR and MND for the whole subdivision, golf club and related facilities, the 31 residences, and the 50 short-stay accommodation units, and for the construction of the sewer system. The Board found that the formation of the Mayacama utility will not result in any potentially significant environmental impacts that cannot be mitigated. We examined these documents and see no reason to dispute their conclusions. (See Section 6 above.)

Mayacama initially provided no proposed rates for its proposed sewer service. At the assigned ALJ's request, it subsequently provided illustrative examples based on average water usage, an indicator to determine the sewage plant capacity.

Water Division's participation through the report of Ms. Tench provides the proper ratemaking format and summary of earnings necessary to set just and reasonable rates for Mayacama's customers. We have reviewed Water Division workpapers and concur in the rates generated from them. We will adopt Water Division's proposed rates as well as its summaries of earnings.

In Resolution ALJ 176-3076 dated November 29, 2001, the Commission preliminarily categorized this proceeding as ratesetting and preliminarily determined that hearing would not be necessary. Since there are no protests and since Applicant has submitted additional information to us and to the Water Division to complete the record, we affirm that hearings are not required. The application is granted, subject to the terms and conditions set forth below.