Ventura County Waterworks District v. Susana Knolls Mutual Water Co.

Defendant, Susana Knolls Mutual Water Company (Susana Knolls), is selling water to two small mutual water companies— Alpine Mutual Water Company (“Alpine”) and Belwood Mutual Water Company (“Belwood”)—each of which serves the residents in a subdivision located in Ventura County. Plaintiff is a duly organized county waterworks district, authorized to provide water service in Ventura County. Plaintiff proposes to extend its service so as to provide water to Alpine and Belwood, *675 to the exclusion of defendant. 1 Fearing that, if it proceeded with that project, it might become subject to a liability to defendant under sections 1501 through 1506 of the Public Utilities Code, 2 it brought an action in declara *676 tory relief. The trial court entered a judgment in favor of plaintiff in the following terms:

Defendant has appealed; we affirm the judgment.

*677 Plaintiff’s theory, accepted by the trial court, was as follows: (1) Susana Knolls was not, and is not, a validly operating mutual water company, since it is not exempt from regulation by the Public Utilities Commission under section 2705 of the Public Utilities Code 3 and does not have a certificate of public…