II. The Controversy Between WTA and SJWC
The parties have stipulated to the central facts underlying this dispute. Complainant WTA is developing the former site of a drive-in theater as a light industrial park called Campbell Technology Park. The property is located in the City of Campbell and within the service territory of SJWC, which is a California public utility operating under the Commission's jurisdiction. The Santa Clara County Fire Department provides fire protection to the area where the Technology Park is located.
The SJWC water system was inadequate to meet the fire flow requirements established by this Commission in General Order (GO) 103 and by the Santa Clara County Fire Department for WTA's project at Campbell Technology Park.1 GO 103, Section VIII prescribes a minimum fire flow of 2,000 gallons per minute (gpm) for a light industrial project like that of WTA. For the type and size of structure WTA proposes for the Technology Park, the Santa Clara County Fire Department prescribes a minimum fire flow of 3,500 gpm. Prior to WTA initiating its development, SJWC's system could provide fire flow to the Technology Park at only about 1,000 gpm.
On June 12, 1998, WTA requested that SJWC provide water service to the Campbell Technology Park. SJWC responded to this request on March 17, 1999 by requiring, among other things, that WTA advance the funds required to install a new 16-inch water main to meet the proposed project's fire flow requirements. SJWC estimated the cost of the new main to be $686,600.2 SJWC's estimate also included the costs of smaller pipes and other facilities installed at the site for a total estimate of $1,091,200.
According to SJWC, the $686,600 advanced for the 16-inch water main is not refundable pursuant to Rule 15, and the developer should bear these costs. (SJWC stated that $111,380 of the total advance of $1,091,200 is eligible for refund under the provisions of Rule 15 of its tariff.) WTA believes that the $686,600 estimated cost of the new 16-inch main should also be eligible for refund pursuant to Rule 15. Specifically, WTA requested SJWC to include in the water main extension contract between SJWC and WTA provisions for partial refunds to WTA in the event that certain properties adjacent to the 16-inch main required service that could be provided only through the 16-inch main.
On May 4, 1999, WTA advanced $1,091,200 under protest and entered into two agreements with SJWC in order to construct the water lines. Construction of the line in dispute is completed.
The 16-inch water main covers about 3,640 feet and passes about 52 separate properties between the point where it ties into SJWC's system and where it feeds the smaller pipes that serve the Campbell Technology Park. According to WTA's witnesses, these surrounding properties have not been intensely developed because of insufficient infrastructure to meet fire flow requirements.
1 Some of the structures planned as part of the Campbell Technology Park exceed 100,000 square feet. 2 SJWC states that it expended considerable effort to find the least expensive way to provide the fire flow water main to WTA's property.
