Discussion

The joint petitioners state that DRA had originally concurred with Cal-Am's proposed caps for conservation memorandum accounts in the amounts of $206,300 for Test Year 2007, and $263,000 and $290,900 for Escalation Years 2008 and 2009, respectively. As Test Year 2007 is now over, and Escalation Year 2008 is almost over, the joint petitioners request a lower amount for Escalation Year 2008 and a higher amount than requested for Escalation Year 2009; no request is made for Test Year 2007. Specifically, the joint petitioners request the Commission modify D.08-06-002 to include the following:

1. The conservation memorandum account requested by Cal-Am should be adopted with the budget capped at $100,000 for 2008 and $260,000 for 2009.

2. The conservation memorandum account can be expanded to include one additional staff person (not to exceed an addition of $75,000 per year total cost for that employee) to conduct customer audits of water usage.

Based on the record here, we find it is in the public interest to modify D.08-06-002 as requested, and to do so in an expedited manner.