3. Public Comment on the Application

As related in D.04-08-052, public attendance at the March 17, 2004, Phase 1 public participation hearing (PPH) in Rancho Cordova was light but a number of those present raised issues about the water contamination litigation. In response, Roland Tanner, then SCWC's Manager of Regulatory Affairs, made a brief presentation, explaining that the utility had reached a Memorandum of Understanding (MOU) with Aerojet General Corporation (Aerojet) but that many details remained to be worked out. The PPH transcript reflects that Tanner indicated the utility hoped to be made whole by Aerojet for all the expenses associated with the contamination litigation, including those already being amortized in customers' rates.

The Commission has received limited additional public comment (via letter or email) regarding the Aerojet litigation or recovery of the memorandum account during Phase 2. At hearing Tanner, now Vice President of Customer Service for Region 1 (and the sponsor of Ex. 1/Phase 2), stated that SCWC engaged in "significant public outreach" prior to the time it filed this application but that, other than the Phase 1 PPH, he was not aware of any outreach efforts subsequent to the filing. Witness Denise Kruger, who served as Vice President for Water Quality when SCWC became aware of the contamination problems (she is now Senior Vice President of Operations), offered additional information. Kruger testified that SCWC has participated in several community meetings sponsored by the Environmental Protection Agency and others where the topics discussed have include the status of the contamination, responses to it, and the progress of the lawsuits. She also testified that local media has covered these matters regularly.