3. Background

Ramona is a California corporation deemed to be a public utility and granted a certificate of public convenience and necessity by Decision (D.) 81097 on March 6, 1973. The water system emerged in the 1960s as developers drilled wells and installed distribution mains in order to sell lots in Ramona's service area. According to the application, the system today includes six wells and approximately 4,000 feet of water mains. There are three pressure tanks and two storage tanks. According to the application, Steven Fernandez has been the owner and operator of the system since 1998. The Commission last dealt with Ramona in September 2001, when it approved Resolution No. W-4293 granting an interim increase in rates to approximately $62,000 annually.

Great Western was formed in 2004 with the stated purpose of acquiring and managing community water systems. The president of the company is Louis F. DeMartino, a licensed general engineering contractor with experience in water system support. Directors of Great Western include Rockwell W. Swanson, whose Rockwell Electric Company served public works entities and wastewater treatment facilities, and Donald Bunts, a registered civil engineer with 23 years of experience in the water and wastewater business. Great Western does not own any other water companies, but it is seeking to become trustee of Spring Crest Water and Power Company.

Great Western states that it has applied for a state revolving loan to rehabilitate the Ramona system and bring it into compliance with public health codes. Planned improvements include wellhead rehabilitation, upgrading of storage, distribution pipelines and customer meters, and more reliable system pressure. Great Western states that no increase in rates is planned at this time, but it may apply to the Commission for new rates when system improvements are completed.

Ramona's owner seeks authority to sell the water system and transfer public utility water service responsibilities to Great Western, stating that the new owner has the experience and resources to more efficiently serve ratepayers. A copy of the proposed bill of sale has been made part of the application. The negotiated sale price of the system is $45,000. Ratepayers were notified of the sale and were told to send any protest to the Commission. No protest has been received.