8. Sale to an Entity Other Than Regulated Water Utilities or
Public Water Provider

This is the category where the Commission cannot ensure that the grant-funded plant sold retains its public interest integrity. The purchasing entities may include private companies as well as cities or counties exercising eminent domain powers for purposes of land development. Consistent with our objectives in this OIR, we find that the appropriate treatment in these cases is for the buyer to pay fair market value and for the selling utility to remit all proceeds received from the sale to the original funding agency, or another designated state agency.