Findings of Fact

1. The 2005 Water Action Plan was adopted by the Commission to be used as a roadmap for water policies and priorities in response to increasing statewide concerns about water quality and supply and its desire to implement innovative solutions to water problems.

2. An objective identified in the 2005 Water Action Plan was the setting of rates that balance investment, conservation, and affordability. An identified action to advance this objective was to consider developing policies to subsidize high cost areas, either through some variation of a "High-Cost" fund or through consolidation of districts or rates.

3. The 2010 Water Action Plan did not change the principle and objective of the 2005 Water Action Plan.

4. Water utilities' authorized revenue requirements and rates have traditionally been set and approved on a district-by-district basis.

5. Although the district-by-district rate setting process continues to exist, exceptions to the process were granted in limited circumstances to California Water Service Company and Golden State Water Company.

6. It is reasonable to consider whether guidelines for water district consolidation that the Commission has applied in the past should be modified.