2. Background
Pub. Util. Code § 739.81 states that:
(a) Access to an adequate supply of healthful water is a basic necessity of human life, and shall be made available to all residents of California at an affordable cost.
(b) The commission shall consider and may implement programs to provide rate relief for low-income ratepayers.
(c) The commission shall consider and may implement programs to assist low-income ratepayers in order to provide appropriate incentives and capabilities to achieve water conservation goals.
(d) In establishing the feasibility of rate relief and conservation incentives for low-income ratepayers, the commission may take into account variations in water needs caused by geography, climate and the ability of communities to support these programs.
We have authorized other water utilities to develop LIRA programs. (See, e.g., Decision (D.) 05-05-015, authorizing a low-income assistance program for San Gabriel Valley Water Company (San Gabriel), and D.06-10-034, adopting a California Alternative Rates for Water program for Park Water Company (Park).) The issues raised in those proceedings will serve as guidelines for discussion in this proceeding.
Valencia initially requested authority to implement a LIRA program in Application (A.) 02-05-013. In D.03-05-030, we denied that request and instead directed Valencia to file a new application for LIRA authorization, in consultation with the Commission's Division of Ratepayer Advocates (DRA),2 by November 4, 2003. The new application was to include information on costs, conservation effects, and ratemaking impacts. Valencia ultimately filed the subject application.
1 All statutory references are to the Public Utilities Code unless otherwise stated.
2 Pursuant to Senate Bill 608, the Commission's Office of Ratepayer Advocates became the Division of Ratepayer Advocates, effective January 1, 2006.
