9. Assignment of Proceeding
Timothy Alan Simon is the assigned Commissioner and Michael J. Galvin is the assigned ALJ in this proceeding.
1. Fontana Water Company entered into a settlement agreement with DRA which resolves every issue in this proceeding.
2. The settlement agreement commands the sponsorship of the two active parties in this proceeding that took a position on the settlement. Other active parties do not oppose the settlement.
3. The active parties with respect to the settlement agreement are fairly reflective of the affected interests in this proceeding.
4. No term of the settlement agreement contravenes statutory provisions or prior Commission decisions.
5. The settlement agreement conveys sufficient information to permit the Commission to discharge its future regulatory obligations with respect to the parties and their interests.
6. There is no opposition to the proposed settlement agreement.
7. All parties stipulated to a 10-day review of the proposed decision and stipulated that the Commission may issue a decision on this matter less than 30 days following the service of the proposed decision.
1. The settlement agreement is an uncontested settlement.
2. The settlement agreement is reasonable in light of the whole record, consistent with law, and in the public interest.
3. The settlement agreement should be adopted.
4. Fontana Water Company should be authorized to establish a conservation surcharge to fund its conservation program and activities and establish a one-way balancing account to track its conservation revenues and expenditures.
5. Review of the proposed decision should be reduced to 10 days from 20 days and the Commission may issue a decision on this matter less than 30 days following the service of the proposed decision.
6. This decision should be made effective immediately to enable Fontana Water Company to implement approved water conservations measures without delay.
IT IS ORDERED that:
1. The settlement agreement set forth in Appendix A between San Gabriel Valley Water Company's Fontana Water Company Division (Fontana Water Company) and the Division of Ratepayer Advocates (DRA) is adopted.
2. Fontana Water Company is authorized a maximum $305,000 annual budget to fund conservation programs and activities from the effective date of this decision through June 30, 2009 as set forth in the attached settlement agreement. It is also authorized a maximum $90,522 annual budget for a customer serviceman/conservation specialist when hired and $43,000 for payroll expenses associated with conservation expense.
3. Fontana Water Company is authorized to file a Tier 1 Advice Letter to collect $305,000 of conservation program expenses in annualized revenues through a $0.015 per hundred cubic feet (Ccf) conservation surcharge component effective on or after the effective date of this decision, as set forth in the attached settlement agreement.
4. Fontana Water Company is also authorized to file a Tier 1 Advice Letter to recover $43,000 of additional conservation payroll-related expenses through a $0.0021 per Ccf conservation surcharge component effective on or after the effective date of this decision.
5. Fontana Water Company is authorized to file a Tier 1 Advice Letter to recover $90,522 in annualized revenues through a $0.0044 per Ccf surcharge component only after it has filled a new customer serviceman/conservation position.
6. All components of the conservation surcharge being authorized by this decision shall end by the effective date of new rates to be set under Fontana Water Company's 2008 general rate case.
7. Fontana Water Company is authorized to establish a one-way conservation balancing account to track amounts collected through the conservation expense surcharge component and conservation expenses incurred up to an annualized limit.
8. The one-way conservation balancing account being authorized by this decision shall end by the effective date of new rates to be set under Fontana Water Company's 2008 general rate case. Within 60 days after July 1, 2009, or the effective date of new rates authorized in Fontana Water Company's 2008 general rate case, Fontana Water Company shall file an advice letter closing the one-way conservation balancing account and refund any over-collection to the extent that revenues collected exceeded the lower of the annualized limit or actual expenses. Any under-collection to the extent that revenues collected fall short of the lower of the actual expense or the annualized limit may be collected by Fontana Water Company.
9. Fontana Water Company shall file a summary report of its conservation activities by October 30, 2009, with the Water Division and DRA covering the interim period between an effective date of this decision and July 1, 2009. This report shall be consistent with Commission reporting requirements applicable to Class A water utilities that are in effect in October 2009.
10. Application 07-08-017 is closed.
This order is effective today.
Dated August 21, 2008, at San Francisco, California.
MICHAEL R. PEEVEY
President
DIAN M. GRUENEICH
JOHN A. BOHN
RACHELLE B. CHONG
TIMOTHY ALAN SIMON
Commissioners
