Findings of Fact

1. SWRCB Order WR 95-10 limits the amount of water CalAm may produce from the Carmel River system. Violation of SWRCB Order WR 95-10 could expose CalAm to significant fines that CalAm would likely seek to pass through to its Monterey District water customers.

2. CalAm's continued compliance with SWRCB-imposed water production limits established in Order WR 95-10 is in the public interest.

3. There is strong local government and community opposition to ordering a moratorium in Monterey District, and no formal support for it in this proceeding.

4. A moratorium is likely to be disruptive and potentially damaging to the local economy.

5. MPWMD has taken steps to limit new and expanded water uses, and our imposing a moratorium at this time would add little value but considerable complexity.

6. Overconsumption leading to violation of SWRCB-mandated production limits, the problem a moratorium was intended to address, has not recurred in Monterey District after 1997.

7. The conservation rate design we imposed in July 2004, combined with other conservation incentives and an intensive community outreach campaign, was shown to be effective in reducing consumption and keeping water production within the limits mandated by SWRCB Order WR 95-10 for the 2004 water year.

8. Two protests to CalAm's application were received. Neither protest requested an evidentiary hearing or demonstrated that an evidentiary hearing is needed.

9. No hearing is required.