Water corporations: sewer system corporations: appointment of receiver.

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including water corporations and sewer system corporations. Whenever the commission determines that a water corporation or sewer system corporation is unable or unwilling to adequately serve its ratepayers or has actually or effectively been abandoned by its owners or is unresponsive to the rules or orders of the commission, existing law authorizes the commission to petition the superior court for the county within which the corporation has its principal office or place of business for the appointment of a receiver to assume possession of the corporation's property and to operate its system upon such terms and conditions as the court prescribes. This bill would additionally authorize the court appointment of a receiver if the water or sewer system corporation has failed to provide safe and adequate service, as confirmed by the commission, and would, as an alternative to the appointment of a receiver, authorize the commission to appoint another water or sewer system corporation, or other qualified entity, to serve as an interim operator of the water or sewer system. The bill would require the commission to issue decisions and orders that it deems necessary and proper to permit the interim operator to abate any danger to the public health and safety and to provide adequate service to the customers of the water or sewer system corporation. The bill would provide that the interim operator shall have the powers of a receiver and require that the interim owner assist the commission in its search for a responsible owner or operator to purchase the water or sewer system, the sale of which would be subject to the commission's approval.