A commission that has a mission to ensure that Californians have safe, reliable utility service and infrastructure “at reasonable rates” has approved an order that will initiate a review of the Public Water System Investment and Consolidation Act of 1997.
The California Public Utilities Commission on April 7 opened a rulemaking aimed at improving acquisitions of water utilities.
“Today we opened a rulemaking to improve and streamline acquisitions of water utilities and support state initiatives to address clean, safe, reliable and affordable access to water to communities, especially those that have been underserved,” the commission tweeted on Twitter.
The commission approved the “Order Instituting Rulemaking to Review Procedures Regarding the Acquisition of Water Utilities Under the Commission’s Jurisdiction.”
The goal is to review “the existing guiding framework set forth in Decision 99-10-064 (consistent with the Public Water System Investment and Consolidation Act of 1997) regarding acquisitions involving water utilities under the Commission’s jurisdiction,” the commission’s April 7 consent agenda said.
“Improving the acquisition process of smaller regulated water utilities may promote the Commission’s safety goals,” the consent agenda said.
The existing framework the commission works under allows for many acquisitions that are contentious because of unanswered questions, the “Proposed Decision” said.
Contention surrounds “the issues of the valuation of water systems and the effects of acquisitions on ratepayers.”
“These factors have contributed to significant delays, preventing the Commission from timely resolving some of those contentious acquisitions within the timeline prescribed by D.99-10-064,” the “Proposed Decision” said.
According to the rulemaking, given the complexity and number of issues being addressed with this revaluation, the PUC has set a due date of completing this proceeding within 24 months of the date this decision is adopted. The goal of this rulemaking is to update the water utility acquisitions framework.
The commission regulates several entities, including “privately owned electric, natural gas, telecommunications, water, railroad, rail transit, and passenger transportation companies,” according to its website.
