ALJ/XJV/k47 DRAFT Item 2

8/3/2000

Decision DRAFT DECISION OF ALJ VIETH (Mailed 7/3/2000)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Investigation on the Commission's own motion into the rates, charges, and practices of water and sewer utilities providing service to mobilehome parks and multiple unit residential complexes and the circumstances under which those rates and charges can be passed to the end user.

Investigation 98-12-012 (Filed December 17, 1998)

TABLE OF CONTENTS

OPINION 2

1. Summary 2

2. Recommendations 2

3. The OII 3

4. Procedural Background 4

5. Overview 5

5.1. The Major Issues in Context 5

5.1.1. MHP Issues 7

5.1.2. Issues at Multi-Unit Apartments 9

5.2. The Major Issues in Context 10

5.3. The Major Issues in Context 12

5.4. Dedication of Property to Public Use 13

6. Submetering Water 16

6.1. Existing Law: CPUC-Regulated Water Utilities 17

6.2. MHP Exceptions to CPUC Regulation 18

6.2.1. "Water Corporation" 21

6.2.2. "Rate" 23

7. Water Service at Multi-Unit Apartments 28

8. Sewer Service 31

9. Other Matters 33

Comments on Draft Decision 33

Findings of Fact 33

Conclusions of Law 37

ORDER 39

OPINION

1. Summary

We review information obtained about current practices of owners/operators of mobilehome parks (MHPs) and multiple unit residential complexes (multi-unit apartments) who bill tenants for water and sewer services separately from rent. We also review the extent of California Public Utilities Commission (Commission or CPUC) jurisdiction under existing law and limitations on CPUC oversight. The discussion below attempts to isolate the major issues and explain the existing jurisdictional framework so that the Legislature may formulate appropriate public policy solutions. Where our record has suggested solutions for the Legislature's consideration, we report these.