III. System Description

Three wells located in the Keene and Woodford area are the source of water for the system. No aquifers underlie the area; water is pumped from fissures in the mountainous rock formation. Pumped water is stored in two 50,000 gallon storage tanks. During dry summer periods, water production is often reduced. In these circumstances, Keene Water System must use the services of a private carrier to haul water by truck from Tehachapi to refill the Keene tanks.

The system delivers water to seven meters: (1) a 2-inch connection serving a group of residential users known as the Upper Keene Group (approximately 10 users); (2) a 2-inch meter connection serving a group of predominately residential users known as the Lower Keene Group (approximately 32 users); (3) a 2-inch meter connection serving the Stonybrook Corporation; (4) a 2-inch meter connection serving the Kern County Fire Department; (5) a ¾-inch meter connection serving Tony Martin; (6) a ¾-inch connection serving Steve Cummins; and (7) a ¾-inch connection serving Bill Edwards (also known as Three Peaks Ranch). Some, but not all, of the residents in the Upper and Lower Keene Groups have submeters on their connections. Keene Water System historically has not assumed responsibility for the pipes and meters beyond the master meters serving the Upper and Lower Keene Groups.

In addition to the development of local wells made necessary by the railroad tunnel enlargement in 1994, Keene replaced the distribution system (upstream of the master meters) in the Keene and Woodford communities in 1997. This installation of six-inch PVC pipe cost $609,226. Also, in 2000, Keene replaced a pipe serving the Three Peaks Ranch at a cost of $7,087.

Keene does not seek rates to cover the development of local wells in 1994 or the 2000 replacement of pipe benefiting the Three Peaks Ranch. Keene does seek to include the cost of the 1997 distribution system replacement ($609,226) in the rate base. Protestants Stonybrook and Beard maintain that the abandonment of the water pipeline from Tehachapi in favor of local wells was not a prudent decision. Protestants also object to the inclusion of the distribution system replacement in the ratebase.