Findings of Fact

1. Kenneth Van Gorder seeks authority to transfer ownership of the Commission-regulated water system, Meyers Water Company, which serves 94 customers.

2. The prospective new owners, Jay Gardner, Pam Simonson, Matt Fullner, and Juell Fullner, have operated the Meyers Water Company system since February 2004.

3. Ratepayers will benefit from the transfer because the prospective new owners can be available to respond to service problems, unlike the present owner.

4. Jay Gardner, et al. have applied for a permit as required by § 116525 of the California Health and Safety Code.

5. Jay Gardner, et al., agree that rate base will be based on the recorded net plant as determined by the Commission.

6. The difference between the purchase price and the recorded rate base will be recorded as acquisition cost in the books and will be considered below the line cost.

7. The new owners have registered the Articles of Incorporation for Meyers Ware Company, Inc. with the Secretary of State.