ALJ/KOT/sid Mailed 8/26/2005

Decision 05-08-007 August 25, 2005

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

C.J. Villalobos, et al., Complainants, vs. Grand Oaks Water Company, Defendant.	Case 97-01-003 (Filed January 2, 1997)
Order to Show Cause why Grand Oaks Water Company's owners Brit O. Smith and Phillip L. Shirley, should not be fined for failure to comply with Commission order.	Investigation 97-06-037 (Filed June 25, 1997)

INTERIM OPINION ON NORMALIZING THE OWNERSHIP

AND OPERATION OF GRAND OAKS WATER COMPANY

I. Summary

Today's decision requires California Water Service Company (CWS) to take appropriate steps to normalize the status of the Grand Oaks Water Company (Grand Oaks). Grand Oaks, which effectively was abandoned by its owners more than eight years ago, has been operated on an emergency basis by an affiliate of Dominguez Water Company (Dominguez), and subsequently by CWS, with which Dominguez merged. (See Decision (D.) 00-05-047.) However, neither Dominguez nor CWS has filed an application for the transfer of ownership of Grand Oaks despite our direction in D.97-08-067 that Dominguez file such an application within 90 days of the effective date of that decision.

Prudence and our concern for the welfare of Grand Oaks' customers require that we provide not only for the day-to-day operation of its system but also for ownership and management committed to long-term planning and investment as needed. Today's decision requires CWS to file an application to acquire Grand Oaks, as discussed below. Pending further order, CWS shall continue to operate Grand Oaks.