Conclusion

In summary, we will adopt all project cost estimates and the rate of return recommended by ORA for all authorized projects in the 2000 Master Plan, including cost estimate factors for contingencies, engineering and administration.

We adjust Citizens' proposed 2000 Master Plan as follows:

1. Adopt ORA's cost factors to reduce to $280,000 the estimated costs for the new Airport Well #4 currently pending.

2. Reschedule pipe replacement projects to begin in Year 1 as proposed, but continue until completed, as recommended by ORA.

3. Citizens may construct the new Wagner Valley Well, but only if Citizens assesses, prior to final construction of the well, all options for water supply available then and/or within the time frame it takes to complete the well, including water transfers, wheeling, diversion of water from Montara and Martini Creeks, and additional pumping of water at the airport. Citizens must preserve and present with any later request for recovery all evidence forming the basis of its conclusion that no options other than the new well will supply, for the same estimated cost, the amount of water needed to increase water production to a minimum of 550 gpm.

4. Citizens may construct the second new McNee Ranch Well, but only if Citizens assesses, prior to final construction of the well, all options for water supply available then and/or within the time frame it takes to complete the well, including water transfers, wheeling, diversion of water from Montara and Martini Creeks, and additional pumping of water at the airport. Citizens must preserve and present with any later request for recovery all evidence forming the basis of its conclusion that no options other than the new well will supply, for the same estimated cost, the amount of water needed to increase water production to a minimum of 550 gpm.

5. The timing of proposed future investigations into local surface water and other supply sources such as wheeling and water transfers is necessarily rescheduled to begin immediately so that the conditions in Items 3 and 4 above may be met.

6. Delete the pipeline between the two McNee Ranch wells, if the second new well is not constructed.

7. Reduce to $6,000 the annual cost for monitoring at the McNee Ranch Well Field, if the second new well is not constructed.

8. Delete the second 650,000 storage tank at the Schoolhouse site and related sitework, piping, and valve costs.

9. Defer construction of the new Operations Building until Years 4 and 5, based upon ORA's estimated costs including a 5% inflation factor.

10. Defer construction of two fire pumps, a standby power system, related electrical and instrumentation from Years 2 and 3 to Years 4 and 5.

Each year for the next seven years, Citizens may file annual advice letters to recover actual costs of improvements completed within the year that do not exceed the estimates herein authorized. Citizens must seek to recover actual costs for completed improvements which exceed estimates herein in a separate application or subsequent rate case filing. In any advice letter filing or other proceeding, the request to recover actual costs for the Wagner Valley or second McNee Ranch well must be accompanied by Citizens' evidence that Citizens assessed, prior to final construction of the well, all options for water supply available then and within the time frame it takes to complete the new well, including water transfers, wheeling, diversion of water from Montara and Martini Creeks, and additional pumping of water at the airport.

Citizens shall file annually, and may include with any request for recovery of costs, a report of completed projects, including a statement of whether these projects were completed within the authorized schedule of improvements, and if not, why not, whether additional costs resulted, and the estimated completion date.

Citizens shall expand its conservation program in this district to include an Ultra Low-Flush Toilet rebate of $50 per toilet to customers who purchase and install this plumbing. Citizens will be authorized to set up a memorandum account for rebate programs to recover this cost later. This account will include the actual rebate paid to customers and administrative costs.

Regarding the calculation of service charges, Citizens must comply with current requirements, as summarized by ORA. Citizens shall adjust its current service charges for the Montara District accordingly.

On the parties submitted a joint late-filed Exh. 14 agreeing that the estimated costs and potential impact on rates of the 2000 Master Plan as adjusted above are as follows:_____________________________________________