Decision 00-03-053 March 16, 2000

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In the Matter of the Application of the California-American Water Company (U210W) for an Order Authorizing it to Increase its Rates for Water Service in its Monterey Division.

Application 99-04-003 (Filed April 1, 1999)

Lenard G. Weiss, Attorney at Law, and David P. Stephenson, for California-American Water Company, applicant.

David A. McCormick, Attorney at Law, for United States Department of Defense and Federal Executive Agencies; David C. Laredo, Attorney at Law, for Monterey Peninsula Water Management District; David Dilworth, for Responsible Consumers of the Monterey Peninsula; and George T. Krieger, for himself; interested parties.

Peter Fairchild, Attorney at Law, for Ratepayer Representation Branch of the Commission's Water Division.

O P I N I O N

Summary

By this decision the Commission adopts an uncontested settlement agreement covering all general rate case issues except rate design, proffered by California-American Water Company (CalAm), Ratepayer Representation Branch of the Commission's Water Division (RRB), Monterey Peninsula Water Management District (MPWMD) and the US Department of Defense and Federal Executive Agencies (DOD/FEA). CalAm is authorized a general rate increase in its Monterey Division of $875,000 (3.9%) for test year 2000, $444,500 (2.0%) for test year 2001 and $508,300 (2.2%) for attrition year 2002. After considering the parties' positions and the Monterey Peninsula's critical water conservation needs, we order increased rates be patterned on the current rate design but with additional high-usage blocks to discourage waste. For use during future periods during which CalAm is at imminent risk of violating State Water Resources Control Board (SWRCB) water production limitations, we authorize a new, per capita rate structure intended to be implemented only after notice and an accelerated customer education campaign.