Discussion
The Status Update shows that GHCSD, DRA, and Cal Water have begun a methodical process well designed to enable a logical determination of what is best for Grand Oaks and its ratepayers (including the preference of Grand Oaks ratepayers), as well as the interests of GHCSD.
Briefly, the GHCSD Board of Directors, at its March 16, 2006 meeting, took comments from GHCSD and Grand Oaks customers. The board also discussed GHCSD current system capabilities, the poor condition of the Grand Oaks system including the lack of adequate fire protection and resultant threat to Golden Hills residents, potential cost impacts to Grand Oaks customers to provide new water mains and tank storage, and potential annexation requirements.
The next step in the process outlined in the Status Update is to provide Grand Oaks ratepayers with a side-by-side comparison of the cost of needed infrastructure upgrades depending on whether Cal Water or GHCSD performs the upgrades. Cal Water is developing rough engineering cost estimates and the corresponding impacts using Cal Water's ratemaking methodology. GHCSD will then prepare its own estimate and corresponding rate impacts. GHCSD has scheduled a public meeting for June 22, 2006, at 6 p.m. in Tehachapi, where this information can be discussed and representatives of GHCSD, Cal Water, and DRA can answer customer questions.
There are several additional steps before a possible GHCSD acquisition of Grand Oaks. These steps include a vote of Grand Oaks customers and completion of GHCSD's due diligence. GHCSD projects six months to complete these steps and reach a final decision. On behalf of GHCSD, Mike Sides asks us to adjust our schedule to accommodate GHCSD.
In his ruling of March 21, 2006, the assigned Administrative Law Judge (ALJ) said he would be reluctant to allow DRA time beyond June 2 to look for an alternative acquirer. It is clear, however, that DRA has found in GHCSD an alternative acquirer that is undertaking a serious and active consideration of acquisition. Under the circumstances, the ALJ's conditions for extension of time are easily met. However, DRA shall continue to provide us with status updates whenever there are significant developments.
Mr. Sides also asks that we provide Commission representatives to answer customer questions at a local public meeting. We understand DRA will attend the Tehachapi meeting; in addition, the assigned ALJ will attend if GHCSD believes that would be helpful. GHCSD may communicate its invitation directly to the assigned ALJ by telephone [415-703-2437] or e-mail [kot@cpuc.ca.gov].
Finally, we strongly endorse the steps being taken for the affected community to make the ultimate decision about its preferred service provider. This Commission has a legal obligation to ensure that water service is, among other things, safe, adequate, reliable, and reasonably priced. Water service to Grand Oaks customers is to some degree uncertain, both because of the small size and limited resources of Grand Oaks, and because of the current unsatisfactory ownership situation. It appears, however, that either GHCSD or Cal Water could resolve these uncertainties. We are very pleased that this proceeding seems to be progressing well to that end, and we encourage GHCSD, DRA, and the joint applicants to continue with their cooperative efforts.
IT IS SO RULED.
Dated May 11, 2006, at San Francisco, California.
/s/ JOHN A. BOHN |
/s/ STEVEN KOTZ | |
John A. Bohn Assigned Commissioner |
Steven Kotz Assigned Administrative Law Judge |
CERTIFICATE OF SERVICE
I certify that I have by mail this day served a true copy of the original attached Joint Ruling of Assigned Commissioner and Administrative Law Judge Responding to April 20, 2006, Status Update on all parties of record in this proceeding or their attorneys of record.
Dated May 11, 2006, at San Francisco, California.
/s/ ELVIRA NIZ |
Elvira Niz |
NOTICE
Parties should notify the Process Office, Public Utilities Commission, 505 Van Ness Avenue, Room 2000, San Francisco, CA 94102, of any change of address to insure that they continue to receive documents. You must indicate the proceeding number on the service list on which your name appears.
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