XI. Alleged Rule 1 Violation

On October 31, 2003, ORA filed a motion requesting that San Gabriel be sanctioned for violations of the Commission's Rule 1. ORA alleges that San Gabriel intentionally misled the Commission by falsely claiming that utility plant had been built and requesting recovery for such expenditures, falsely claiming wells have been shut down to justify funding for new construction, falsely claiming that it received far lower amounts in proceeds from condemned property than it actually had, and failing to disclose important facts relating to condemnation proceeds, and contributions and advances from developers thereby causing the need for rate increases to be overstated by a substantial amount. San Gabriel responded to these allegations on December 19, 2003.

We find that San Gabriel's explanations are clear and plausible. We conclude that ORA's allegations are simply differences of opinion and of interpretation of communications and events. These differences could have been minimized or avoided had ORA not refused to meet and confer with San Gabriel as it is required to do. The motion is denied.