Cooke Ruling ALJ Ruling Determining that the Antelope-Menifee Rural Center and Menifee Valley Community Economic Development Council are Eligible for Intervenor Compensation (Valley Rainbow Proceeding)

2. Eligibility

To be eligible for compensation, a participant in a formal Commission proceeding, such as this one, must establish that it is a "customer" and that participation without compensation would pose a significant financial hardship.

2.1 Customer Status

Section 1802(b) defines the term "customer" as:

[A]ny participant representing consumers, customers, or subscribers of any electrical, gas, telephone, telegraph, or water corporation that is subject to the jurisdiction of the commission; any representative who has been authorized by a customer; or any representative of a group or organization authorized pursuant to its articles of incorporation or bylaws to represent the interests of residential customers...

Thus, there are three categories of customers: (1) a participant representing consumers; (2) a representative authorized by a customer; and (3) a representative of a group or organization authorized in its articles of incorporation or bylaws to represent the interests of residential customers. The Commission requires a participant to specifically identify in its NOI how it meets the definition of customer and, if it is a group or organization, provide a copy of its articles or bylaws, noting where in the document the authorization to represent residential ratepayers can be found. (Decision (D.) 98-04-059, mimeo., at pp. 30-32; see, also, fn. 13-16.) Further, a group or organization should indicate the percentage of its membership comprised of residential ratepayers. (See D.98-04-059, mimeo., at pp. 83 and 88.)

2.1.1 Rural Center

Rural Center was founded in 1931 and now is a non-profit organization whose purpose is to serve and further the interests of residents of the rural areas of the Antelope and Menifee Valleys. One of the explicit purposes of the Rural Center, pursuant to its bylaws (attached to the NOI) is to further the advancement of the general welfare of the neighborhood. Rural Center's eight Directors are residential utility customers from the Antelope and Menifee Valleys. One Director is also a farmer who pays agricultural utility bills in addition to his residential bills. Residential utility customers make up its entire membership.

SDG&E argues that Rural Center has not established that it is a customer because its bylaws do not explicitly authorize it to represent residential ratepayers. Rather, Rural Center is an existing non-profit organization, not formed explicitly to represent ratepayers, but rather to broadly represent its members in matters of interest to in the local area. This case involves siting of a transmission project, which clearly has the potential to affect neighborhoods it passes by and through. The statute requires that entities seeking customer must establish that they represent the interests of residential customers. In this case, Rural Center has established that its members are residential customers, and it represents their interests in advancing the general welfare of their neighborhood. Therefore, Rural Center's showing is adequate to establish its status as a Category 3 customer.

2.1.2 CEDCO

CEDCO is a non-profit public benefit corporation formed to foster and promote economic, cultural, and educational growth in the areas of Sun City, Menifee and Quail Valleys. Its 1994 Articles of Incorporation were attached to its NOI. All of CEDCO's Directors live in the communities of Sun City, Menifee and Quail Valleys and are residential utility customers. Ninety-five percent of its members are residential utility customers.

SDG&E argues that CEDCO has not established that it is a customer because its bylaws do not explicitly authorize it to represent residential ratepayers. CEDCO is an existing non-profit, not formed explicitly to represent ratepayers, but rather to broadly represent its members in matters of interest to in the local area. This case involves siting of a transmission project, which clearly has the potential to affect economic growth in the communities it passes by and through. The statute requires that entities seeking customer must establish that they represent the interests of residential customers. In this case, CEDCO has established that its members are residential customers, and it represents their interests in advancing the economic growth of their area. CEDCO's showing is adequate to establish its status as a Category 3 customer.

2.2 Significant Financial Hardship

Section 1804(a)(2)(B) allows the customer to include a showing of significant financial hardship in the NOI. Alternatively, the required showing may be made in the request for award of compensation. For a group or organization, § 1802(g) defines financial hardship as a state in which "the economic interest of the individual members of the group or organization is small in comparison to the costs of effective participation in the proceeding."

Under § 1804(a)(2)(B), this showing may be made in the NOI, or alternatively, deferred until the request for compensation is filed.

Section 1804(b)(1) states in part:

"A finding of significant financial hardship shall create a rebuttable presumption of eligibility for compensation in other Commission proceedings commencing within one year of the date of that finding."

Menifee's members are residential customers whose individual interests in this proceeding are small relative to the costs of participation and the cost of their participation in Commission proceedings substantially outweighs the benefit to any individual customer it represents. No economic benefit from participation inures because their interest in the proceeding is in maintaining the integrity of their community and discouraging unnecessary or intrusive transmission lines in their community. Menifee's expected costs of participation will include retention of experts to study the topographic/geographic, economic, and environmental impacts of the proposed project specifically to the Menifee Valley. Thus, its participation also has a broader environmental and societal interest that is not easily further monetized. Menifee's participation also benefits a wide range of customers.

Neither Rural Center nor CEDCO collect dues from their members. Rural Center relies on occasional fundraising events and rental fees from its community center for financial stability. CEDCO's bylaws prohibit it from raising funds other than to pursue cityhood. Thus, neither organization has the funds available to intervene in the proceeding effectively.

We conclude that Menifee has satisfied the showing of significant financial hardship. A finding of significant financial hardship in no way, however, ensures compensation for SSRC (Section 1804(b)(2)).