6. Assignment of Proceeding

Michael R. Peevey is the assigned Commissioner and Janice Grau is the assigned ALJ in this proceeding.

1. The Commission established a tentative conservation goal of a 1-2% annual reduction in consumption through price and non-price programs in
D.08-02-036.

2. SBX7-7 established a statewide urban water consumption reduction of 20% by 2020.

3. The methodologies adopted by DWR to implement SBX7-7 include a
10-year baseline ending no earlier than December 31, 2004 and no later than December 31, 2010, and four methods to achieve the 2015 and 2020 targets, including a regional target.

4. Some Class A water utilities' conservation rate designs were adopted prior to December 31, 2010 and Class A water utilities' general rate case cycles do not coincide with the 2015 and 2020 target years.

5. POWER/NRDC proposed a 2003-2007 baseline, which includes wet and dry years and no extreme weather events.

6. Several Class A water utilities provided preliminary plans to comply with SBX7-7 goals at the October 19, 2010 workshop.

7. The Class A water utilities did not provide specific information on plans to comply with SBX7-7 goals in their January 14, 2011 comments.

8. Conservation data is reported in general rate cases, annual reports furnished to the Commission, annual conservation program reports (for some but not all utilities), and WRAM balancing account filings.

9. At the conservation data workshop, the parties agreed that Schedule E-3 of the Annual Report should be modified concerning conservation program information to include information in a table and to substitute a copy of any other report that provides the required information.

10. At the conservation data workshop, the Joint Consumers (NCLC and TURN) presented their conservation data requirements proposal that would track customer usage by tracking monthly changes in consumption by ratemaking division, separated by meter size and customer class, monthly customer usage by service area and customer class and biannual reporting of the top water usage accounts, including usage data, disconnections, arrearages and low-income program participation.

11. The parties at the workshop did not reach a consensus on whether the annual report or an information-only filing should be used for low-income data.

12. At the workshop, the parties agreed on measuring changes in consumption by district and customer class and reporting other factors that might contribute to consumption.

13. The parties agreed that consumption should be reported per service connection and customer class in Ccf.

14. The parties at the workshop disagreed on whether reporting should continue by meter size and whether household size information should be reported for low-income program participants.

15. Consumption generally increases by meter size and residential customers generally have 5/8 x ¾" and 1" meters.

16. The Commission adopted conservation data reporting requirements in D.08-02-036, D.08-08-030, D.09-05-005, and D.10-04-031. The Commission required reporting of changes in consumption by meter size, district and customer class, surcharges and surcredits for WRAMs and MCBAs, if applicable, increases in participation and disconnections for low-income program participants, increases in disconnections for all customers and other impacts on consumption changes. Not all Class A water utilities have conservation data reporting requirements.

17. Surcharge and surcredit information for WRAMs and MCBAs is found in the WRAM information-only filings.

18. Consumption data permits assessment of compliance with required reductions in consumption.

19. A standard set of conservation data reporting requirements for all Class A water utilities would permit assessment of the impact of conservation rate designs on all Class A water utilities' customers, including low-income customers.

20. Low-income program applications and recertifications include household size information.

21. A large household is defined as five or more individuals by the California Department of Housing and Community Development.

22. A low-income data report would include reporting requirements adopted in the low-income information sharing rulemaking, R.09-12-017.

23. The record does not include information on the effect of adopted
low-income program discounts on Class A water utilities' conservation rate designs.

24. Few programs provided by CWA members as of January 2009 appear to target low-income customer participation.

25. The record does not include information on whether specific programs targeted to low-income customers or a low-income budget would encourage conservation.

26. The 2005 Water Action Plan provided guidance for Class A and B water utilities to participate in the CUWCC and to implement CUWCC's BMPs.

27. In 2008, CUWCC amended its BMP program to include the Flex Track Program through which participating utilities can meet their BMP requirements by choosing to fulfill existing BMPs or selecting from a menu of options designated in a Flex Track Menu.

28. The Flex Track menu includes foundational (utility operations and education programs) and programmatic BMPs (residential, commercial, industrial, and institutional and landscape).

29. The Flex Track residential menu includes the following options: high bill contact with single-family and multi-family customers; educate residential customers about the behavioral aspects of water conservation; notify residential customers of leaks on the customer's side of the meter; provide bill or surcharge refunds for customers to repair leaks on the customer's side of the meter; provide unique water saving fixtures that are not included in the BMP list above; install residence water use monitors; participate in programs that provide residences with school water conservation kits; and implement an automatic meter reading program for residential customers.

30. The CUWCC BMP compliance report tracks compliance with BMPs.

31. Joint Consumers recommend that direct conservation charges, tiered rates and surcharges for a specific conservation program be identified on the customer's bill.

32. WRAM/MCBA balancing accounts include more than
conservation-related changes in revenue requirements.

33. The issues in the Assigned Commissioner and Administrative Law Judge's Phase 1 Scoping Memo and Ruling (March 8, 2007), the Amended Phase 1 Scoping Memo and Ruling (July 9, 2008), the Phase 2 Scoping Memo and Ruling (February 8, 2008), the amended Phase 2 Scoping Memo and Ruling
(June 30, 2009), the second amended Phase 2 Scoping Memo and Ruling (June 30, 2009), the third amended Phase 2 Scoping Memo and Ruling (January 6, 2010), and the fourth amended Phase 2 Scoping Memo and Ruling (July 30, 2010) have been addressed.

1. It is reasonable for Class A water utilities to annually reduce consumption per service connection and customer class in Ccf by 1-2% for each general rate case cycle through price and non-price programs.

2. It is reasonable for each Class A water utility to use 2003-2007 as the baseline to measure annual reductions in consumption or, in the alternative, to use the DWR 10-year baseline methodology if it includes 2003-2007 and only uses years prior to the adoption of the Class A water utility's conservation rate design or to use the DWR 10-year baseline methodology withouth calendar years
2003-2007 if supporting workpapers are included with Conservation Data Report.

3. The modifications to Schedule E-3 of the Annual Report, Description of Water Conservation Programs, attached to this decision as Attachment 1, are a reasonable response to the record and should be adopted. They should be effective for the Annual Reports filed in 2012.

4. The Information-Only Conservation Data Report, attached to this decision as Attachment 2, is a reasonable response to the record and should be adopted. Class A water utilities should commence using the format in Attachment 2 no later than 60 days after the issuance of this decision. Class A water utilities should report consumption data from the effective date of conservation rate designs.

5. The Information-Only Low-Income Data Report, attached to this decision as Attachment 3, is a reasonable response to the record and should be adopted. Class A water utilities should commence using the format in Attachment 3 no later than 60 days after the issuance of this decision.

6. The Information-Only Data Reports should be filed as information-only filings concurrent with the Annual Reports. Household size data should be filed no later than concurrently with the 2013 Annual Report.

7. It is reasonable for Class A water utilities to have the alternative of complying with BMPs through use of CUWCC's Flex Track Option, to demonstrate compliance by submitting a modified CUWCC BMP compliance report in their Annual Reports, and to track compliance costs in the Conservation Data Report (Attachment 2).

8. It is reasonable to decline to order Class A water utilities to itemize conservation-related charges on customers' bills.

9. This decision should be effective today to permit timely implementation of the adopted goals and reporting requirements.

ORDER

IT IS ORDERED that:

1. The conservation goal of a 1-2% annual reduction in consumption per service connection and customer class in one hundred cubic feet, through price and non-price programs for each general rate case cycle following the adoption of a conservation rate design, is adopted for Class A water utilities. Apple Valley Ranchos Water Company, California-American Water Company, California Water Service Company, Golden State Water Company, Great Oaks Water Company, Park Water Company, San Gabriel Valley Water Company, San Jose Water Company, Suburban Water Systems, and Valencia Water Company shall use 2003-2007 as a baseline to determine compliance with the 1-2% annual reduction or, in the alternative, shall use a 10-year baseline using the Department of Water Resource's methodology if a) that baseline only uses calendar years prior to the implementation of their conservation rate designs and includes
2003-2007; or b) the utility attaches supporting workpapers to justify use of the Department of Water Resource's methodology.

2. The modifications to Schedule E-3 of the Annual Report, Description of Water Conservation Programs, attached to this decision as Attachment 1, are adopted. Apple Valley Ranchos Water Company, California-American Water Company, California Water Service Company, Golden State Water Company, Great Oaks Water Company, Park Water Company, San Gabriel Valley Water Company, San Jose Water Company, Suburban Water Systems, and Valencia Water Company shall provide the required information in their 2012 Annual Reports.

3. The Information-Only Conservation Data Report, attached to this decision as Attachment 2, is adopted. Apple Valley Ranchos Water Company,
California-American Water Company, California Water Service Company, Golden State Water Company, Great Oaks Water Company, Park Water Company, San Gabriel Valley Water Company, San Jose Water Company, Suburban Water Systems, and Valencia Water Company shall file this report as an information-only filing concurrent with their Annual Reports. These Class A water utilities shall commence collecting conservation data in the format adopted in Attachment 2 no later than 60 days after the issuance of this decision. These Class A water utilities shall report consumption data from the effective date of adopted conservation rate designs. The Information-Only Conservation Data Report supersedes the reporting requirements adopted in Decision
(D.) 08-02-036 (Ordering Paragraph 6) and D.08-08-030 (Ordering Paragraph 2). The Information-Only Conservation Data Report supersedes comparable reporting requirements adopted in D.09-05-005 (Ordering Paragraph 6) and
D.10-04-031 (Ordering Paragraph 6). Data reporting on meter errors, as provided in D.09-05-005 and D.10-04-031, will continue. Data reporting on the unfair impact of the two-tier rate design on large households, as provided in
D.10-04-031, will continue.

4. The Information-Only Low-Income Data Report, attached to this decision as Attachment 3, is adopted. Apple Valley Ranchos Water Company,
California-American Water Company, California Water Service Company, Golden State Water Company, Great Oaks Water Company, Park Water Company, San Gabriel Valley Water Company, San Jose Water Company, Suburban Water Systems, and Valencia Water Company shall file this report as an information-only filing concurrent with their Annual Reports. These Class A water utilities shall commence collecting low-income data in the format adopted in Attachment 3 no later than 60 days after the issuance of this decision but shall report low-income household size data no later than concurrently with their 2013 Annual Reports.

5. Apple Valley Ranchos Water Company, California-American Water Company, California Water Service Company, Golden State Water Company, Great Oaks Water Company, Park Water Company, San Gabriel Valley Water Company, San Jose Water Company, Suburban Water Systems, and Valencia Water Company shall have the alternative of complying with the California Urban Water Conservation Council's Best Management Practices through compliance with the Flex Track Option. These Class A water utilities shall submit a modified California Urban Water Conservation Council Best Management Practices compliance report in their Annual Reports.

6. Apple Valley Ranchos Water Company, California-American Water Company, California Water Service Company, Golden State Water Company, Great Oaks Water Company, Park Water Company, San Gabriel Valley Water Company, San Jose Water Company, Suburban Water Systems, and Valencia Water Company shall track California Urban Water Conservation Council's Best Management Practices compliance costs in the Information-Only Conservation Data Report, adopted in Ordering Paragraph 3.

7. Apple Valley Ranchos Water Company, California-American Water Company, California Water Service Company, Golden State Water Company, Great Oaks Water Company, Park Water Company, and Valencia Water Company shall provide the average bill impact of surcharges resulting from the amortization of Water Revenue Adjustment Mechanisms and Modified Cost Balancing Accounts on participating low-income program customers in the annual Low-Income Data Report. If a Class A water utility obtains a Water Revenue Adjustment Mechanism and Modified Cost Balancing Account after this decision issues, that Class A water utility also shall provide the average bill impact of these surcharges.

8. Investigation (I.) 07-01-022 et al. is resolved for the purpose of compliance with Public Utilities Code Section 1701.5. However, I.07-01-022 et al. remains open to address the issues raised in the Consumer Federation of California's application for rehearing of Decision 08-08-030.

This order is effective today.

Dated May 5, 2011, at San Francisco, California.

ATTACHMENT 1

ANNUAL REPORT, SCHEDULE E-3

DESCRIPTION OF WATER CONSERVATION PROGRAMS

1. Brief description of each water conservation program offered by the water company, by district. This description shall include but not be limited to the type of program offered (such as provision of low-flow plumbing fixtures, leak detection, leak repair, written water conservation tips, or other similar programs to its customers), whether offered with a third party, whether direct install or rebate, and length of time the program was offered.

2. For each water conservation program described above, an estimated conservation savings report in the following basic format (if it is necessary to deviate from this table, provide estimated program savings).

A

B

C

D

E

F

G

H

I

J

Name of measure, as listed in Decision or Settlement*

Description of measure

Authorized $

# of units / activities purchased, provided, performed

$ per unit, activity, etc.

Total $ spent

Designated water savings per unit per year**

Unit lifespan**

Estimated Annual measure savings** (AFY)

Estimated Lifetime measure savings** (AF)

 

 

 

 

 

(D x E)

 

 

(D x G)

(I x H)

Measure A

 

 

 

 

 

 

 

 

 

Measure B

 

 

 

 

 

 

 

 

 

Measure C

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

* If not specifically listed, state the category in which the activity falls and rationale for including this particular activity

** This may not apply to all measures, e.g., public information / education

If requested information is provided in another report or format, the water company can provide a copy of the report and note the page on which the information is found.

(END OF ATTACHMENT 1)

· Baseline average (from 2003-2007 or 10-year baseline if it includes 2003-2007 and only includes years prior to the adoption of a conservation rate design) estimated monthly or bimonthly (depending on billing cycle) per customer or service connection consumption by ratemaking district, separated by customer class and meter size. If the water company elects to use a baseline in reliance on the Department of Water Resources methodology developed to implement SBX7-7 without calendar years 2003-2007, the water company shall attach workpapers to support the use of that baseline;

· Average estimated monthly or bimonthly (depending on billing cycle) per customer or service connection consumption in one hundred cubic feet by ratemaking district, separated by customer class and meter size;

· Comparison table including baseline and annual average estimated consumption by ratemaking district, separated by customer class and meter size, for each year following implementation of conservation rate designs, with the percentage reduction in consumption calculated by district and by customer class and meter size within each ratemaking district;

· Average estimated monthly or bimonthly (depending on billing cycle) consumption per tier or block separated by ratemaking district, by meter size, and by customer class, and the number of customers in each sub-grouping;

· Estimated monthly or bimonthly (depending on billing cycle) number of customers by district, monthly or bimonthly number of disconnection notices generated to those customers, number of customers disconnected for non-payment, and number of customers reconnected;

· Estimated monthly Best Management Practices compliance costs, by district, separated by customer class, coverage goals or flex track menu (by measure); and

· Any other district-specific factor (such as changes in weather, increases in supply from recycled water, or economic factors) that might contribute to consumption changes.

*If requested information is provided in another report or format, the water company can provide a copy of the report and note the page on which the information is found.

(END OF ATTACHMENT 2)

· Average estimated monthly or bimonthly (depending on billing cycle) per customer or service connection
low-income customer consumption in one hundred cubic feet by ratemaking district, separated by meter size;

· Average estimated monthly or bimonthly (depending on billing cycle) consumption per tier or block separated by ratemaking district, by meter size, and by customer class for low-income customers and the number of customers in each sub-grouping;

· Estimated monthly or bimonthly (depending on billing cycle) number of participating low-income customers by district, monthly or bimonthly number of disconnection notices generated to those customers, number of customers disconnected for non-payment and number of customers reconnected, for all low-income customers;

· Average low-income customer household size and average estimated monthly or bimonthly (depending on billing cycle) consumption by ratemaking district for low-income households of 5 or more, and the number of customers in each subgrouping;

· Average water revenue adjustment mechanism/Modified Cost Balancing Accounts (WRAM/MCBA) surcharge(s) bill impact on participating low-income customers by ratemaking district district. This bill impact should be compared with the same bill under the uniform/standard rate. The bill impact should separately identify bill components, including applicable rates, WRAM/MCBA surcharge(s), and low-income assistance program discount, calculated at average consumption for the typical meter size; and

· Participating low-income customer inclusion in conservation programs offered by the water utility:

o describe the water conservation program by ratemaking district(s),

o identify whether it is offered with a third party,

o specify how low-income customers are targeted by or included in the program,

o describe outreach efforts used to reach low-income program participants (application, re-certification, separate outreach),

o how long has the program been offered, and

o what criteria are used to establish the success of the program.

(END OF ATTACHMENT 3)

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