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GFB/JET/hl2 3/28/2006

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Conlin Strawberry Water Company, Inc., a California corporation
(U-177-W), for Authority to Sell and Del Oro Water Co., Inc. (U-61-W), for Authority to Buy the Conlin Strawberry Water Company Water System in Tuolumne County.

Application 05-12-001

(Filed December 2, 2005)

Investigation on the Commission's Own Motion into the Operations and Practices of the Conlin-Strawberry Water Co. Inc. (U-177-W), and its Owner/Operator, Danny T. Conlin; Notice of Opportunity for Hearing; and Order to Show Cause Why the Commission Should Not Petition the Superior Court for a Receiver to Assume Possession and Operation of the Conlin-Strawberry Water Co. Inc. pursuant to the California Public Utilities Code Section 855.

Investigation 03-10-038

(Filed October 16, 2003)

SCOPING MEMO AND RULING OF ASSIGNED COMMISSIONER
AND ADMINISTRATIVE LAW JUDGE

Two cases filed with the Commission, while not consolidated, are coordinated in these proceedings. The first proceeding, Application
(A.) 05-12-001, was commenced on December 2, 2005. The applicants, Conlin Strawberry Water Company, Inc. (Conlin), and Del Oro Water Company, Inc. (Del Oro), request the Commission's authorization for Conlin to transfer its water system to Del Oro pursuant to an Agreement to Purchase and Sell (July 20, 2005).

The second proceeding, Investigation (I.) 03-10-038, was originally filed with the Commission on October 16, 2003. After evidentiary hearings before the assigned Administrative Law Judge (ALJ), the Commission approved Decision (D.) 05-07-010 (July 21, 2005), authorizing the Commission's General Counsel to petition superior court for a receivership of the Conlin water system and imposing other sanctions. Conlin has applied for rehearing of D.05-07-010 (August 22, 2005), which application is still pending before the Commission. Conlin has also petitioned for modification of D.05-07-010, and that petition is pending before the assigned ALJ as a pleading in I.03-10-038.

A Prehearing Conference (PHC) was held on January 6, 2006, in
A.05-12-001, in conjunction with a law and motion hearing in I.03-10-038. At that time, the assigned ALJ denied without prejudice a motion to consolidate both proceedings. The PHC was adjourned to allow preliminary pleading and mediation.

A second joint PHC and law and motion hearing was held on January 23, 2006. The PHC was adjourned to allow the board of directors of the Strawberry Property Owners' Association (SPOA) to determine whether they would support a proposed settlement.

A third joint PHC and law and motion hearing was held on January 30, 2006, by telephone conference call, where SPOA reported that the association would support the proposed settlement. The proposed settlement is anticipated to resolve all pending litigation and proceedings among all the signatories. The PHC was adjourned to allow the parties to execute and file (a) a stipulation indicating that the parties approved of Del Oro assuming interim management of the water system pending approval of the application, and (b) a motion requesting that the Commission approved the proposed settlement negotiated by all the parties.

A fourth PHC and law and motion hearing was held on March 9, 2006, where the parties reported that the stipulation concerning interim management had been signed and filed, that Del Oro had assumed interim management of the water system, but that the parties still disagreed about certain issues-thus preventing the filing of a motion to approve a proposed settlement. The parties were directed to meet again with the mediator. To advance these proceedings, however, this Scoping Memo is now issued.

This ruling determines the scope, schedule, necessity of a hearing, and other matters concerning A.05-12-001 in accordance with Rules 6(a) and 6.3 of the Commission's Rules of Practice and Procedure (Rules).1 This ruling does not set forth a detailed scoping of I.03-10-038 since a Scoping Memo was previously issued in that proceeding; however, the schedule for certain events in I.03-10-038 is set forth in the table appearing in section 7.

1. Parties to Proceedings

In A.05-12-001, the applicants are Conlin and Del Oro. The Division of Ratepayer Advocates is the protestant. All these entities are parties in their respective cases and shall comply with the requirements of this ruling.

1 The Commission's Rules are available on the Commission's website: www.cpuc.ca.gov/PUBLISHED/RULES_PRAC_PROC/8508.htm.

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