5. User Fees, DHS Approval

Water and sewer utilities subject to Commission jurisdiction were required by the Legislature beginning January 1, 1983, to impose user fees on customers' bills. (See Pub. Util. Code §§ 401, et. seq.) Ramona will continue to collect and remit these fees to the Commission.

The sale will relieve Ramona's former owner of the duty to provide public utility water service to the service area. Ramona is to record the acquisition of the system at original cost in accordance with the Uniform System of Accounts for Water Companies.

Pursuant to the provisions of California Health and Safety Code (CH&S) § 116525(a), any person or entity operating a public water system must have a permit to operate that system from the DHS. A change in ownership of a public health system requires the prospective new owner to apply to and satisfy the DHS requirement that the new owner "possesses adequate financial, managerial, and technical capability to assure the delivery of pure, wholesome, and potable drinking water" (CH&S Code § 116540). Accordingly, apart from the authorization from the Commission for the acquisition of Ramona, the new owner also must apply to DHS for re-issuance of the existing permit of Ramona.

This application involves only a proposed change in control and operation of existing water facilities. No new construction or changes in the source of water supply are being proposed. Accordingly, there is no possibility that the transaction may have any significant effect on the environment.

The authority granted by our order today is not a finding of the value of the rights and property to be transferred.