VIII. General Order 103 Requirements

General Order (GO) 103 sets forth the Commission's rules governing water service and the minimum standards for design and construction. We address two issues that implicate GO 103 requirements.

A. Water Quality

General Order 103 requires that a public utility supplying water for human consumption (a) hold a permit as provided by the state's Health and Safety Code, and (b) comply with the laws and regulations of the state or local Department of Health Services. GO 103 at ¶ II(1)(a). The Commission may inquire into these water quality issues under the holding of the California Supreme Court in Hartwell Corp. v. Superior Court, 27 Cal.4th 256, 272 (2002) (The Commission has "the authority to adopt a policy on water quality and to take the appropriate actions, if any, to ensure water safety"). See also D.99-06-054, Standards and Polices re Drinking Water Quality, 1999 Cal. PUC LEXIS 312 (June 10, 1999) (jurisdiction of the Commission to inquire into the safety of drinking water provided by public utilities).

The evidence indicates that Casmite was issued a domestic water supply permit by the California Department of Public Health in 1960. After enforcement authority was transferred to the County of Santa Barbara, an amended water supply permit was issued in 1987. See Application Ex. H. The county public health department performed its routine inspection of the system in July 2003 and found only minor deficiencies such as a leak needing repair and an abandoned tank needing to be removed. The county department also reported that it had received no complaints about the system during the previous year. The county indicated that an updated permit would be issued to the company. Within a month, Casmite notified the county that all deficiencies within its control had been corrected. In particular, Casmite indicated that it had obtained the required testing of unregulated chemicals. See Application Ex. I & Ex. No. 4.

B. Pipe Replacement

As of the evidentiary hearing, Casmite was in the process of replacing 4200 feet of water mains in the system main with 4-inch PVC pipe. Most, if not all, of this pipe will be installed before the CPCN is issued to Casmite. In its July 8, 2004, report, the Water Division noted that GO 103, ¶ III(2), establishes 6 inches as the minimum diameter for new water mains or replacements. However, due to the small size of the Casmite system (and associated problems of maintaining adequate flow rates in larger pipes), the Water Division has represented to applicant and the assigned ALJ as follows: "As Casmite is not under the jurisdiction of the CPUC [prior to the issuance of a CPCN], Casmite is under no obligation to follow the design standards of GO 103.  If Casmite is placed under CPUC jurisdiction, its existing 4 inch mains will not be required to be replaced unless they are found to be inadequate for public utility service."

Another question is whether some of the water mains are impermissibly above ground. While GO 103 indicates a preference that water mains be buried, the only requirement is that pipes be protected to prevent freezing and covered by 30 inches of dirt in streets and alleys. GO 103 ¶ IV(3)(a); see also Galbreath v. San Jose Water Co., D.95-07-033, 1995 Cal. PUC LEXIS 585, at *18 (July 19, 1995) (use of unburied pipe allowed). The evidence is that only a few hundred feet of main will be left uncovered after the replacement project is complete. There is no indication that uncovered pipe is in streets or alleys. See Ex. No. 4 at 2. The Commission takes official notice that the Casmalia area rarely freezes. The application satisfies GO 103 as it pertains to system water mains.

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