STATE OF CALIFORNIA ARNOLD SCHWARZENEGGER, Governor

PUBLIC UTILITIES COMMISSION

505 VAN NESS AVENUE

SAN FRANCISCO, CA 94102-3298

April 23, 2004

Agenda ID #3487

TO: PARTIES OF RECORD IN CASE 01-06-008

This is the draft decision of Administrative Law Judge (ALJ) Walker. It will not appear on the Commission's agenda for at least 30 days after the date it is mailed. The Commission may act then, or it may postpone action until later.

When the Commission acts on the draft decision, it may adopt all or part of it as written, amend or modify it, or set it aside and prepare its own decision. Only when the Commission acts does the decision become binding on the parties.

Parties to the proceeding may file comments on the draft decision as provided in Article 19 of the Commission's "Rules of Practice and Procedure." These rules are accessible on the Commission's website at http://www.cpuc.ca.gov. Pursuant to Rule 77.3 opening comments shall not exceed 15 pages. Finally, comments must be served separately on the ALJ and the Assigned Commissioner, and for that purpose I suggest hand delivery, overnight mail, or other expeditious method of service.

/s/ ANGELA K. MINKIN

Angela K. Minkin, Chief

Administrative Law Judge

ANG:hl2

Attachment

ALJ/GEW/hl2 DRAFT Agenda ID #3487

Adjudicatory

Decision DRAFT DECISION OF ALJ WALKER (Mailed 4/23/2004)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Yucaipa Mobilehome Residents' Association ("YMRA"), a California nonprofit corporation, by Len Tyler, President of YMRA, as representative of the residents of Knollwood Mobilehome Park; Edna Jenkins, a Represented Member of YMRA, an Individual and Resident of Knollwood Mobilehome Park; and Nancy L. Carlisle, a Represented Member of YMRA, an Individual and Resident of Knollwood Mobilehome Park, Complainants, vs. Knollwood Mobilehome Estates, Ltd., a California Partnership, Doing Business as Knollwood Mobilehome Estates, Defendant.

Case 01-06-008 (Filed June 4, 2001)

DECISION ALLOCATING TRENCHING COSTS

1. Summary

Yucaipa Mobilehome Residents' Association, Len Tyler, Edna Jenkins and Nancy L. Carlisle (collectively, complainants), representing residents of Knollwood Mobilehome Estates (Knollwood), initiated this complaint proceeding against Knollwood to contest certain rent increases authorized by the Yucaipa Rent Review Commission (Rent Review Commission). The complaint was dismissed in Decision (D.) 03-01-063 on a finding that complainants' burden of proof had not been met. In considering complainants' application for rehearing, however, this Commission concluded that complainants had proved that allocation of trenching costs associated with submetered gas and electric utility system improvements is required by Pub. Util. Code § 739.5. Accordingly, in D.03-08-077, the Commission reversed D.03-01-063 on that issue and remanded for further proceedings (1) to determine the proper allocation of trenching costs and (2) to remove those trenching costs attributable to the gas and electric improvements from the $111,445 passed on to mobilehome park residents as part of a rent increase. This decision resolves the allocation issue and directs a refund and rent reduction as to those costs that are subject to the Commission's jurisdiction under § 739.5. This proceeding is closed.