VII. Disposition of Application 97-03-052

This proceeding was opened in 1997. The nature of the project for which Cal-Am seeks authorization has changed significantly and the record developed with respect to the Carmel River Dam project is essentially moot for purposes of evaluating Cal-Am's new request for a CPCN for the Coastal Water Project. Because Cal-Am must prepare a thorough environmental review document in seeking authority to construct the Coastal Water Project, regardless of whether it is handled within the current application or a new application, we do not believe that a dismissal of the current application will delay Cal-Am's pursuit of a long-term water supply solution for its Monterey District.

For administrative efficiency, we will dismiss this proceeding without prejudice. At the same time, we expressly direct Cal-Am to file a new application to seek Commission authorization to pursue the Coastal Water Project. Development costs for the Coastal Water Project, including costs associated with any such new filing and new proceeding, should be booked as directed in this decision. This decision does not prejudge whether a CPCN should be granted for the Coastal Water Project or the reasonableness of future costs of any project ultimately approved.