5. Protests

DRA, the City of Fontana (City), and Fontana Unified School District (FUSD) filed protests to the application.

On May 12, 2008, and prior to evidentiary hearings, DRA distributed prepared testimony summarizing its opposition to the application and recommendations. DRA recommended that a limited-term memorandum account (from the effective date of a decision in this proceeding through July 1, 2009, the projected effective date of new rates to be adopted in Fontana Water Company's general rate case) be established for Fontana Water Company. The memorandum account would provide for a conservation program capped at $167,360 for the fiscal year 2008/2009 and an additional $7,544 per month, capped at $90,522, for a customer serviceman/conservation specialist when hired. DRA opposed any funds for a new conservation coordinator position. Finally, DRA recommended deferral to Fontana Water Company's general rate case application (scheduled for July 2008) of the company's request for recovery of estimated lost revenues due to conservation measures and for a revenue decoupling mechanism.

The City also distributed prepared testimony summarizing its opposition to the application and recommendation. The City recommended that Fontana Water Company's proposed conservation measures be looked at carefully for effectiveness. It also recommended that any funding of approved conservation measures be deferred to Fontana Water Company's July 2008 general rate case, and that any monies allocated for conservation be used only for conservation or returned to those who gave the money. The FUSD joined the City in opposing the application.

ADR meetings held on May 21, 22, and 23, 2008, under the direction of Administrative Law Judges Dorothy Duda and Douglas Long resulted in Fontana Water Company and DRA entering into a settlement of the proceeding. Those meetings were attended by Fontana Water Company, DRA, the City, and the FUSD.