2. Procedural History

On January 30, 2008, Cal-Am filed three applications: Application (A.) 08-01-023 (the Wastewater application), A.08-01-024 (the general office application), and A.08-01-027 (the Monterey Water District general rate case application).

Protests to one or more of the applications were filed by the Division of Ratepayer Advocates (DRA), the San Lorenzo Valley Water District, the Independent Reclaimed Water Users Group, and the Monterey Peninsula Water Management District. The United States Department of Defense and other Federal Executive Agencies filed motions for party status in all three proceedings. On June 3, 2008, the Hidden Hills Subunit Ratepayers Association moved for intervenor status in A.08-01-024, and A.08-01-027.2 By ruling dated June 13, 2008, the request was granted. Hidden Hills was also granted permission to late-file a Notice of Intent to seek intervenor compensation.

The assigned Administrative Law Judge (ALJ) convened a prehearing conference on March 20, 2008, for these three proceedings. The assigned ALJ for A.07-12-010, which addresses Cal-Am's proposed conservation and water rationing programs, also convened a prehearing conference that day to enable the assigned ALJs and parties to coordinate processing for all four proceedings. At the prehearing conferences, issues were divided among the proceedings, with the expectation that all three proceedings would be consolidated.

Public Participation Hearings for the three proceedings as well as A.07-12-010 (Monterey district conservation programs) were concurrently scheduled and held on May 28, 2008, in Chualar, and on May 29, 2008, in Monterey.

The assigned Commissioner and ALJ issued their Ruling and Scoping Memo on June 27, 2008, which consolidated these three proceedings and issued the hearing schedule. The parties distributed testimony during August and September 2008, and evidentiary hearings were held October 14 - 24, 2008. The application, formal evidentiary hearing exhibits, transcripts, and briefs that comprise the record in this proceeding exceed 5,000 pages.

On November 24, 2008, Cal-Am and DRA filed two settlement agreements. The first agreement resolved several disputed issues in the Monterey Water District general rate case and all issues in the wastewater proceeding.3 The second agreement resolved rate design issues in the water general rate case. We address both agreements as related to the water general rate case in today's decision.

On December 8, 2008, Cal-Am filed, pursuant to Pub. Util. Code § 455.2, a Motion for Interim Rate Relief, and requested an effective date of January 1, 2009, for the rates ultimately adopted in this proceeding. The assigned Commissioner and ALJ denied the request pursuant to § 455.2 but authorized Cal-Am to file an advice letter for interim rates pursuant to the Rate Case Plan, section II (B), as adopted in Decision (D.) 07-05-062.

All issues in the wastewater general rate case, A.08-01-023, are addressed in the first settlement agreement, which we consider in a separate companion decision. Accordingly, consolidation of the wastewater application with the general rate case and general office proceedings has been set aside.

2 Hidden Hills also sought party status in A.07-12-010, which was granted.

3 The entire settlement agreement and motion addresses issues in both the wastewater and Monterey District water general rate cases. A complete copy may be viewed at http://docs.cpuc.ca.gov/efile/MOTION/94575.pdf.

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