Position of Ratepayer Representation Branch (RRB)

RRB argues that DHS has promulgated no new, legally enforceable regulation regarding turbidity since the Commission determined that the plant had excess capacity of approximately 500 gpm. According to RRB, only the regulations promulgated in California's Surface Water Treatment Rule, and not the goals recommended in the Cryptosporidium Action Plan, are legally enforceable.

RRB contends that SCWC made a very expensive mistake in constructing the plant with capacity far in excess of that required in 1992, or currently. RRB points out that neither the number of customers nor the water requirements have increased since 1992 when the Commission determined that the plant had excess capacity. Further, RRB notes that daily demand has not exceeded 674 gpm since September, 1993. Accordingly, RRB believes that a further disallowance of 30% would be appropriate since the maximum daily demand is a full 30% lower than the 1000 gpm capacity determined by the Commission in D.93-06-035.

RRB's witness testified that: (1) only the regulations of the DHS set forth in the Surface Water Treatment Rule are legally enforceable and must be followed by SCWC; (2) the goals set forth in the Cryptosporidium Action Plan are voluntary and should not be followed by SCWC "unless reasonably and economically achievable"; (3) the risk of a serious outbreak of Cryptosporidium at the Sonoma Treatment Plant is very low; (4) rates charged customers in the Clearlake District are already very high and the revenue requirement increase associated with SCWC's request would make rates highly unaffordable; and (5) inclusion of the $1.6 million of disallowed plant in ratebase was not justified.

Further, RRB's witness testified that Clearlake customers could not reasonably afford to pay the additional $11 per month bill increase resulting from SCWC's request. The witness pointed out that the Clearlake District, located in Lake County, is one of the lowest income areas in California.