ALJ/JLG/jt2 Mailed 1/16/2007
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Order Instituting Investigation to Consider Policies to Achieve the Commission's Conservation Objectives for Class A Water Utilities. |
FILED JANUARY 11, 2007 SAN FRANCISCO, CALIFORNIA INVESTIGATION 07-01-022 |
ORDER INSTITUTING INVESTIGATION TO CONSIDER POLICIES TO ACHIEVE THE COMMISSION'S CONSERVATION OBJECTIVES FOR CLASS A WATER UTILITIES
By this order, we initiate an investigation to address policies to achieve the Commission's conservation objectives for Class A water utilities by requesting comments on increasing block rates, water revenue adjustment mechanisms, rebates and customer education, conservation memorandum accounts, and rationing programs. We also consolidate pending conservation rate design applications to set rates and adopt mechanisms and programs in accordance with policies adopted in this proceeding. A prehearing conference is set for February 7, 2007 to address the tentative schedule for this proceeding.
1. Background
The Commission's December 15, 2005 Water Action Plan (WAP) adopted the principle of efficient use of water and the objective of strengthening water conservation programs to a level comparable to those of energy utilities. In addition, the California Department of Water Resources (DWR) has recommended that California invest in reliable, high quality, sustainable, and affordable water conservation, efficient water management, and development of water supplies to protect public health and improve California's economy, environment, and standard of living. (California Water Plan Update 255, Vol. 1, 2-4.)
Four applications to adopt conservation rate design programs for residential customers have been filed in response to Commission directives. Golden State Water Company (GSWC) filed Application (A.) 06-09-006 to adopt an increasing block rate design, a water revenue adjustment mechanism (WRAM), and a water shortage allocation policy to be established in advance of a drought situation. California Water Service Company (CalWater) filed A.06-10-026 to implement increasing block rates, a conservation memorandum account, and a WRAM for its 24 districts. Park Water Company (Park) filed A.06-11-009 to implement a WRAM, an increasing block rate design, and a conservation memorandum account. Suburban Water Systems (Suburban) filed A.06-11-010 to implement a low-income assistance program, an increasing block rate design that includes a price elasticity factor, and a WRAM.
