Industry Rule 7. Disposition of Advice Letters

7.1 Initial Review

If an advice letter (including its cover sheet) is incomplete (see General Rules 5.5, 5.6), Staff will so inform the Utility and may either delay filing until corrections are made or return the advice letter without filing. If filed, one copy of the advice letter and tariff sheets will be returned to the Utility, stamped with the date of filing.

7.2 Effective Date (see General Rules 7.3, 7.3.1, 7.3.2, 7.3.4, 7.3.5)

The following provisions vary the otherwise applicable General Rules.

(1) A Compliance Advice Letter will become effective as specified in the applicable resolution or decision, or if not specified, five days after the date of filing.

(2) Upon request and justification by the Utility, Staff may allow a ministerial tier advice letter to be made effective, subject to refund, in less than 30 days.

(3) An advice letter that is an Informal General Rate Case will become effective as provided in the Service Guarantee Plan (Standard Practice U-9-W).

7.3 Tier Classifications for Advice Letters

Water and sewer system advice letters are classified as ministerial tier or discretionary tier for purposes of review and disposition, as shown below.

7.3.1 Ministerial Tier

The following advice letters are classified as ministerial, and are generally subject to approval or rejection by Staff pursuant to General Rule 7.6.1:

(1) Acquisition of mutual or municipal water company (see D.99-10-064)

(2) Attrition filing (Weather-Normalized Means Test required)

(3) Balancing Account offset (see Industry Rule 8.5)

(4) Change to sample forms (see General Rule 8.5.8)

(5) Compliance with statute, decision, or resolution

(6) Consumer Price Index (CPI) offset

(7) Contract or other deviation (or tariff sheets providing service to a single customer) (see Industry Rule 8.3)

(8) Decrease in rates

(9) Department of Health Services (DHS) fee offset

(10) Expense offset (see Industry Rule 8.4)

(11) New service offering

(12) Recycled water service (as provided in Industry Rule 8.6)

(13) Request for similar treatment (as provided in Industry Rule 8.2)

(14) Service extension into contiguous area or within city in which the Utility already provides service (see Industry Rule 8.1)

(15) Step rate filing (Weather-Normalized Means Test required)

(16) Transfer of ownership interest pursuant to Pub. Util. Code Sec. 853(c)

(17) Withdrawal of tariff schedule that has no customers

7.3.2 Discretionary Tier

The following advice letters are classified as discretionary, and generally will be disposed of by Commission resolution pursuant to General Rule 7.6.2:

(1) Change in ownership or control due to court proceeding, other than transfer of ownership pursuant to Pub. Util. Code Sec. 853(c) (see Industry Rule 7.3.1(16))

(2) Change to Commission resolution

(3) Closing tariff schedule to new customers

(4) Informal General Rate Case

(5) Loan approval or stock sale permission request by Class C or Class D Utility (see D.93-11-066)

(6) Memorandum Account offset (see Standard Practice U-27-W)

(7) New Memorandum Account request

(8) Rate base offset (requires prior Commission approval for Class A Utility; Class B, Class C, or Class D Utility may request approval and recovery by advice letter)

(9) Revocation of certificate of public convenience and necessity due to abandonment or sale to municipality or special district

(10) Transfer of ownership of inadequately operated and maintained Class C or Class D water Utility (see D.99-10-064)

(11) Pass-through of additional taxes imposed on Utility

(12) Withdrawal or withholding of service (see Industry Rule 8.7)

(13) Service to a government agency pursuant to General Rule 8.2.3

(14) A matter appropriate to advice letter but not subject to approval or rejection under Industry Rule 7.3.1