Findings of Fact
1. SWRCB Order WR 95-10 limits the amount of water CalAm may produce from the Carmel River system. Violation of SWRCB Order WR 95-10 could expose CalAm to significant fines that CalAm would likely seek to pass through to its Monterey District water customers.
2. CalAm's compliance with SWRCB-imposed water production limits established in SWRCB's Order WR 95-10 is in the public interest.
3. CalAm has in the past had difficulty staying within the SWRCB-imposed water production limits. Had the Commission not responded quickly in approving CalAm's water conservation rate design request in mid-2004, it is likely CalAm would have exceeded its SWRCB-imposed water production limits and been in violation of SWRCB's Order WR 95-10 for the water year ending September 30, 2004.
4. An overproduction situation similar to that in 2004 could occur again at any time.
5. It is prudent and reasonable to devise effective conservation measures and implementation criteria for them in advance, rather than waiting until an overproduction situation has grown critical and time to act is short.
6. Increasing upper block quantity rates is an effective method for promoting water conservation.
7. The modified rate structures and increases CalAm proposes are aimed primarily at decreasing excessive outdoor water usage and water waste. Users of normal amounts of water indoors and those who use water prudently would be largely unaffected.
8. The criteria CalAm proposes are appropriate for determining if and when a modified rate structure should be implemented.
9. The modified rates we authorize today are extraordinary, temporary, and intended only for promoting conservation. Any increased revenues CalAm receives as a result of the rate increases authorized in this order will automatically accrue to CalAm's previously-authorized WRAM account and eventually be applied to customers' benefit.
10. Objective criteria are needed for triggering the modified rate structure, and those criteria should become progressively tighter during the water year to reflect the time remaining to recover from overproduction at each stage. The criteria CalAm proposes meet those tests and would be effective.
11. It is reasonable to refund to all customers on CalAm's Tariff Schedule MO-1 one-half of CalAm's WRAM balance related directly to the conservation rate increases we ordered in D.04-07-035, and one-half to those customers on Tariff Schedule MO-1 who paid higher rates due to consuming water in the blocks affected by the 2004 conservation rate structure.
12. CalAm provided notice of the application to all of its Monterey District customers, and provided copies of the application to potentially interested local, state, and federal government entities and others. No protests or responses were received.
13. There is no known opposition to granting the relief requested.
14. No hearing is required.
