Applicable Standard

In D.04-01-051, the Commission stated that where an indirect change of control occurs with a holding company that has little, if any, day-to-day involvement with the public utility, the primary focus of the Commission's evaluation will be the effects of the proposed transaction on ratepayers. Riley Mezzanine's proposed acquisition of the company that indirectly owns 50% of Valencia is an indirect change of control at the holding company level, with little or no day-to-day involvement with Valencia. Therefore, we will focus our review of the proposed transaction on the effects on ratepayers.

In D.04-01-051, the Commission also imposed a series of conditions on the Lennar acquisition. The instant applicants state that they will comply with these conditions.