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This document serves to guide the preparation and processing of applications for the sale or transfer of water or sewer systems in compliance with California Public Utilities Code, detailing requirements
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How to fill out TRANSFER OF A WATER SYSTEM OR SEWER SYSTEM AND SALE OF UTILITY PROPERTY UNDER PUBLIC UTILITIES CODE SECTION 851

01
Obtain the appropriate form for the TRANSFER OF A WATER SYSTEM OR SEWER SYSTEM AND SALE OF UTILITY PROPERTY.
02
Gather all necessary documentation relevant to the water or sewer system, including any existing utility permits, ownership documents, and property records.
03
Complete the form by providing detailed information about the current owner, the purchaser, and the system being transferred.
04
Ensure to accurately describe the assets being transferred, including any physical facilities and associated utility property.
05
Include any required financial information, such as the sale price and terms of the transaction.
06
Review all provided information for accuracy, ensuring that it meets the standards set forth by the Public Utilities Code.
07
Submit the completed form and all supporting documents to the Public Utilities Commission (PUC) for review.
08
Respond promptly to any requests for additional information or clarification from the PUC during their review process.
09
Await approval and obtain any necessary permits or confirmations required to finalize the transfer.

Who needs TRANSFER OF A WATER SYSTEM OR SEWER SYSTEM AND SALE OF UTILITY PROPERTY UNDER PUBLIC UTILITIES CODE SECTION 851?

01
Utility companies looking to transfer ownership of water or sewer systems.
02
Municipalities or governmental entities needing to dispose of utility property.
03
Private entities interested in acquiring water or sewer systems to provide services.
04
Developers who require utility infrastructure for new projects.
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California Public Utilities Code Section 851 requires CPUC approval for the sale or other disposition of any Investor-Owned Utility (IOU) assets. Therefore, transfers of IOU real property to Tribes pursuant to the Tribal Land Transfer Policy (TLTP) are subject to Section 851 approval by the CPUC.
Public utilities are meant to supply goods and services that are considered essential; water, gas, electricity, telephone, waste disposal, and other communication systems represent much of the public utility market.
(a) All hearings, investigations, and proceedings shall be governed by this part and by rules of practice and procedure adopted by the commission, and in the conduct thereof the technical rules of evidence need not be applied.
(a) No information furnished to the commission by a public utility, a business that is a subsidiary or affiliate of a public utility, or a corporation that holds a controlling interest in a public utility, except those matters specifically required to be open to public inspection by this part, shall be open to public

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It refers to the legal process required for the transfer of ownership of water and sewer systems or the sale of utility property, ensuring regulatory oversight and approval.
Public utilities or private entities seeking to transfer a water or sewer system or to sell utility property are required to file under this section.
Filling out the form involves providing detailed information about the transaction, including the parties involved, descriptions of the property, and compliance with regulatory requirements.
The purpose is to ensure that changes in ownership of essential utility services are conducted transparently and are in the public interest, maintaining service quality and safety.
The report must include details such as the identities of the parties, descriptions of the systems or properties, reasons for the transfer or sale, and any impacts on service provision.
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