2. Origins of This Investigation

The recent interest in water and sewer issues has been stimulated by changes in billing practices at some MHPs and multi-unit apartments and complaints about these changes. Landlord and tenant perspectives vary regarding the reasons (and motives) for these changes. The water issues are the most complex and have generated a large number of inquires, both before and after the issuance of this OII. Questions from tenants at MHPs and multi-unit apartments predominate among the many letters, e-mail inquiries, and telephone calls the Commission has received. Some consumers merely seek basic information, which they allege the owner/operator has not divulged, such as the reason for assessing certain water charges and the basis for calculating them. Other consumers assert that they are being assessed improper, or illegal, charges for water service.

Under existing law, the Commission directly regulates as public utilities about 150 water corporations and about nine sewer system corporations. Information provided by CPUC-jurisdictional water corporations to the Water Division indicates that these water corporations constitute less than 2% of the water providers in California and, in the aggregate, provide 20% of the potable water delivered to end use customers in California. The remaining 80% of potable water comes from other water providers, such as municipal public utilities, municipal utility districts, public utility districts, mutual water companies and a limited number of private water sources, none of which this Commission regulates. Commission-regulated sewer corporations serve approximately 2,000 service connections, an extremely minor percentage of the total in California.