ORDER NO. 98-023

ENTERED JAN 14 1998

BEFORE THE PUBLIC UTILITY COMMISSION

OF OREGON

UW 54/UM 857 (PHASE II)

DISPOSITION: PETITION FOR RECONSIDERATION DENIED

On November 7, 1997, the Commission issued Order No. 97-432, ordering a refund procedure for the customers of First Hill Water, Inc. (First Hill) and appointing interim operators for the system. On November 18, 1997, Darrell Lee, owner of First Hill, filed a request for rehearing.

Pursuant to OAR 860-014-0095(3), the Commission may grant a petition for rehearing or reconsideration if the applicant shows that there is:

(a) New evidence which is essential to the decision and which was unavailable and not reasonably discoverable prior to issuance of the order;

(b) A change in the law or agency policy since the date the order was issued, relating to a matter essential to the decision;

(c) An error of law or fact in the order which is essential to the decision; or

(d) Good cause for further examination of a matter essential to the decision.

Mr. Lee argues that on July 7, 1997, he registered First Hill as a cooperative. Consequently, he argues that the Commission has no jurisdiction over the water system, because the Commission lacks jurisdiction over cooperatives.

First Hill is a public utility subject to Commission jurisdiction. See ORS 757.005(1); ORS 757.061. ORS 757.480 governs the sale of public utilities and public utility property. That statute reads, in relevant part:

No public utility doing business in Oregon shall, without first obtaining the commission’s approval of such transaction:

Sell, lease, or assign or otherwise dispose of the whole of the property of such public utility necessary or useful in the performance of its duties to the public . . . .

Every such sale, lease, assignment . . . made other than in accordance with the order of the commission authorizing the same is void.

Here, Mr. Lee transferred ownership of the entire water system from himself and his wife to a cooperative. This transfer of ownership, which affects the whole of the property necessary in the performance of the public utility’s duties to the public, was not approved by the Commission. Therefore, pursuant to ORS 757.480(2), the transfer of ownership is void. The Commission continues to have jurisdiction over First Hill as a public utility.

Mr. Lee raises no other arguments in his petition for rehearing. His petition meets none of the criteria set forth in OAR 860-014-0095(3). Consequently, his petition should be denied.

ORDER

IT IS ORDERED that the petition for rehearing filed by Darrell Lee in this matter is denied.

Made, entered, and effective ________________________.

A party may appeal this order to a court pursuant to ORS 756.580.