COM/MP1/oma Date of Issuance 5/12/2011

Decision 11-05-004 May 5, 2011

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Investigation to consider policies to achieve the Commission's conservation objectives for Class A water utilities.	Investigation 07-01-022 (Filed January 11, 2007)
And Related Matters.	Application 06-09-006 Application 06-10-026 Application 06-11-009 Application 06-11-010 Application 07-03-019

DECISION RESOLVING PHASE 2 CONSERVATION GOALS AND
MODIFYING TRACKING OF CONSERVATION AND LOW-INCOME DATA

DECISION RESOLVING PHASE 2 CONSERVATION GOALS AND MODIFYING TRACKING OF CONSERVATION AND LOW-INCOME
DATA 11

1. Summary 22

2. Background 33

3. Issues Before the Commission 55

4. Discussion and Analysis 66

4.1. The Commission's Conservation Goals 77

4.1.1. Parties' Positions 77

4.1.2. Discussion 88

4.2. Class A Water Utilities' Conservation Data Reporting 1111

4.2.1. Parties' Positions on Conservation Data Reporting 1111

4.2.2. Conservation Data Reporting Workshop 1313

4.2.3. Discussion 1717

4.3. Conservation Programs and Low-Income Customers 2323

4.3.1. Parties' Positions 2323

4.3.2. Discussion 2525

4.4. Best Management Practices 2727

4.4.1. Parties' Positions 2828

4.4.2. Discussion 2929

4.5. Rebate Programs 3131

4.6. Metering and Monthly Billing 3333

4.6.1. Parties' Positions 3333

4.6.2. Discussion 3535

5. Comments on Proposed Decision 3636

6. Assignment of Proceeding 3636

Findings of Fact 3636

Conclusions of Law 4040

ORDER 4242

Attachment 1 - Annual Report, Schedule E-3

Description of Water Conservation Programs

Attachment 2 - Information-Only Filing

Conservation Data Report*

Attachment 3 - Information-Only Filing

Low-Income Data Report

DECISION RESOLVING PHASE 2 CONSERVATION GOALS AND
MODIFYING TRACKING OF CONSERVATION AND LOW-INCOME DATA

1. Summary

This decision resolves Phase 2 of this proceeding and adopts a conservation goal of a 1-2% annual reduction in consumption, per service connection and customer class in one hundred cubic feet (Ccf), for all Class A water utilities, following the adoption of their conservation rate designs, and a baseline which uses 2003-2007 average consumption. Class A water utilities also can demonstrate compliance with the Commission's goals through use of the Department of Water Resource's baseline methodology, if it includes calendar years 2003-2007, or use of a 10-year period that does not include 2003-2007 if the utility attaches supporting workpapers.

This decision modifies existing Commission-ordered conservation data reporting requirements to measure the impact of adopted conservation rate designs on customers, including low-income customers. Conservation and
low-income data will be reported in separate information-only annual filings and will track consumption, compliance with the adopted reduction in consumption, disconnections for nonpayment and reconnections, Best Management Practices compliance costs, low-income program participant household size, average bill impact on participating low-income customers of surcharges resulting from amortization of Water Revenue Adjustment Mechanisms and Modified Cost Balancing Accounts, and conservation programs targeted in whole or in part to low-income program participants. This decision also modifies reporting on conservation programs in Schedule E-3 of the Annual Report in a water conservation program estimated savings report.

This decision endorses compliance with Best Management Practices, as discussed in the Commission's Water Action Plan, through compliance with the California Urban Water Conservation Council's Flex Track Option. This decision declines to mandate specific conservation programs, including rebates or targeted low-income programs, and declines to require monthly bills or itemization of conservation-related surcredits or surcharges.