There was a post on ND yesterday by BBW stating they "have a signed purchase agreement for Big Basin Water and Big Basin Woods Sewer." I reached out to our contact at the CPUC for confirmation, along with some other questions. Here are my questions:
BBWC stated on social media they have a signed purchase agreement for both the water and sewer utilities from the same company.
Does the CPUC have any jurisdiction over this potential sale?
There are several concerns customers have if such a sale goes through.
1. the new private company won't have the funds to repair the system and won't have access to government funds either.
2. they will misuse the watershed, including whatever timber rights are included.
Here is the response:
Yes, when a regulated utility is seeking transfer of ownership through an acquisition, they would need to obtain approval from the Commission before doing so. We are aware of a purchase agreement being signed by Big Basin, but do not get involved until there is an acquisition Advice Letter submitted to the Commission. The proposed owner would also need to seek approval from the State Water Resources Control Board and Regional Water Quality Control Board for permits to operate the water and wastewater systems. Transfer of ownership of a regulated utility is governed by California Public Utilities Code 851-854. In reviewing and process an acquisition filing, the following factors are considered:
Is the utility in compliance with all Commission filings?
Is the transfer of ownership in the public interest? Consideration is given to what the potential buyer can bring from a financial, managerial, and technical standpoint and how the rates would be affected as a result of the transfer.
Does the proposed transaction require a California Environmental Quality Act (CEQA) review?
Has the potential buyer obtained permits as required by other agencies?
Considerations for customer, employee, and public safety under Public Utilities Code 451.
Regarding your questions, the potential buyer would have the same limitations the current owner does regarding the type of grant and loan funding they're eligible for. As far as the watershed, I'm sure that would need to be addressed in the acquisition filing and review.
I would add to everyone's concerns that, considering the amount of debt ($3M plus owed fines, maybe, not to mention the state of the infrastructure) this sale seems like a shady deal, to say the least. Who would even consider such a transaction? What is their motivation? This is a failing business on all fronts, and my fear is they plan full deforestation because that's the only way they would make money.
Dan, if the buyer is a private company, which BBW confirmed at the rate increase meeting, they would not be eligible for any government funds. The CPUC has stated there are stipulations for them to approve an acquisition. If the sale does not go through, we will be in the same situation we are in right now. I think the waterboard should continue its plan for receivership in case the acquisition doesn’t happen. .
Thanks for this information. If this goes through, which could take a fair amount of time, then I presume it would nullify the need for the County pursue a receivership...? If the case, then there would be no means for receiving Federal or State grants for rebuilding...?