REVIEW OF RULING REJECTED BY PUC.

Byline: Kathleen Sweeney Staff Writer

VALENCIA - The state Public Utilities Commission rejected a request for a second review of Valencia Water Co.'s water management plan that opponents claim relies on undependable sources.

The commission ruled Thursday that complaints from the Santa Clarita Valley Sierra Club and Ventura County are without merit, upholding its November decision to expand the company's boundaries for new housing developments, including North Valencia II and West Creek projects.

Among the complaints were accusations that Valencia Water Co. didn't demonstrate an adequate water supply and that it relies on the Saugus Aquifer, which is contaminated with perchlorate, a byproduct of rocket fuel.

Opponents have appealed to the state Supreme Court.

``It (the PUC ruling) affirms their previous decision, but hopefully it will put it to rest,'' said Marlee Lauffer, a spokeswoman for The Newhall Land and Farming Company, which owns the water company. ``We think it's highly unlikely that the Supreme Court will hear the case. This is a clear example of how the facts will always prevail.''

The Sierra Club and Ventura County officials said the commission didn't carefully review the information about the perchlorate contamination, especially assuming that a plan for a cleanup was well under way.

In an Oct. 30 letter to the PUC, the state Department of Toxic Substances Control stated that work to delineate the extent of the contamination plume or to identify either the migration pathways or the source areas has not been completed.

``None of the environmental documents on which the commission relies has fully analyzed the potential impacts on the groundwater contamination of achieving that supply and, therefore, they do not constitute adequate compliance with the California Environmental Quality Act,'' wrote John Naginis, DTSC hazardous substances engineering geologist.

The commission claims it never received information from the DTSC, the ruling said.

``The commission has carefully reviewed the record and finds that there is sufficient evidence to support a finding that the perchlorate problem is being adequately addressed,'' the ruling said.

The Castaic Lake Water Agency and the Army Corps of Engineers last month signed a cost-sharing agreement that will develop a plan of how to cleanup the perchlorate. CLWA will spend $4.8 million for the study that's expected to be completed at the end of the year.

``It's a derelict of their duty to guard the public trust,'' said Lynne Plambeck, a Sierra Club member. ``Known remediation hasn't begun and contamination is spreading. We just spent $4 million and the PUC thinks there is no problem.''

The opponents also said the Valencia Water Co. failed to show there are sufficient groundwater supplies from the shallow Alluvial Aquifer and the deeper Saugus Formation to meet demands projected in the water management plan.

The commission ruled that there is enough groundwater if used within reasonable limits, the ruling said.

The commission's vote allows the company to supply 6,020 new customers living in homes planned along the banks of the San Francisquito Creek, as well as Rio Norte Junior High School.

It will also service Newhall Land's Hidden Creek, Creekside and Alta Vista communities.

Lots in Creekside, Hidden Creek and Alta Vista currently are being marketed to homebuilders. The company's 2002 business plan includes the sale of approximately 500 lots in Creekside and Hidden Creek.