Golden Hills Sanitation files stay
Golden Hills Sanitation Company, which last year asked the state Public Utilities Company to allow a rate increase objected to by many of its customers, is reportedly preparing to file bankruptcy.
Sara Steck Myers, attorney for Golden Hills Sanitation Company, on Feb. 16 filed a motion with the CPUC to stay proceedings for Application A11-08-019. The company cited "insufficient funds and personnel to continue to advance and participate in this proceeding." CPUC Administrative Law Judge Seaneen M. Wilson subsequently asked for comments to be filed no later than Feb. 23 if the application should be dismissed without prejudice instead of being stayed.
Application 11-08-019 is the sanitation company's filing with the CPUC requesting a rate increase totaling 359 percent between the time of filing last year and Jan. 1, 2014.
A stay in the proceedings simply means that the CPUC is being asked to take no further action on the application to raise rates. If granted, the application goes into a state of suspense, with no motions related to it being filed and no decisions rendered. Rather than issue a stay, Judge Wilson seems inclined to dismiss Application A11-08-019 without prejudice. That means that the company could file a new application for a rate increase at some future date, but that the present application would no longer be considered and the rate increase it asks for would not be imposed.
However, the future of the company is in question, according to General Manager Clint Hilderbrand.
"The company is going into bankruptcy," Hilderbrand said in a phone conversation last week. "I don't know what will happen after the first of the month. It's a pretty good chance that the plant may just shut down. Right now all my involvement with this company is operating the physical plant. There's just too much to be determined as far as Golden Hills Sanitation Company is concerned."
Kern County Waste Management Director Doug Langdon has previously indicated that the county is following the case. He could not be reached for comment last week, but earlier had noted that if the company filed bankruptcy, residents of the area served would have to ask the county to take over the plant and form a county service area before the county could be of any assistance.
It is unclear at this time if the interim rate increase granted by the CPUC to be effective this month will be rescinded. However, a motion will soon be filed requesting that it be rescinded and that the increased rates already collected by the company be refunded to customers.
February bills received by customers was a notice that read: "Golden Hills Sanitation Company is greatful to its customers who elected to pay an increase for service beginning in January, and thank you for the letters of appreciation. We applaud your understanding of the utility's necessity to increase its rates, and the constructive interest you have taken in the community.
"A special resident in the community has provided a substantial amount of money to establish a fund to assist customers of the utility in need of help paying their bill. The donor has requested that the utility organize a committee to disburse these funds. Please contact Clint Hilderbrand at 866-657-0679, or by email at Hilderbrand@goldenhillssanitation.com of you would like to volunteer for this committee, or for further information on how you can help provide an effective solution for everyone."
In response to the statement on the bill Hilderbrand said, "a member of the community has provided some money to establish a fund and he's hoping that other people will contribute to the fund. We don't know exactly how [funds] will be disbursed yet. I have a feeling it's going to be a little committee that going to disburse those funds to people in need.
