2. Background

Public Utilities Code Section 739.8¹ states that:

(a) Access to an adequate supply of healthful water is a basic necessity of human life, and shall be made available to all residents of California at an affordable cost.

(b) The commission shall consider and may implement programs to provide rate relief for low-income ratepayers.

(c) The commission shall consider and may implement programs to assist low-income ratepayers in order to provide appropriate incentives and capabilities to achieve water conservation goals.

(d) In establishing the feasibility of rate relief and conservation incentives for low-income ratepayers, the commission may take into account variations in water needs caused by geography, climate and the ability of communities to support these programs.

We have authorized other water utilities to develop low-income ratepayer assistance programs. (See, e.g., D.05-05-015, authorizing a low-income assistance program for San Gabriel Valley Water Company (San Gabriel), and D.06-10-034, adopting a California Alternative Rates for Water program for Park Water Company (Park)). The issues raised in those proceedings will serve as guidelines for discussion in this proceeding.

Here, CWS initially requested authority to implement a LIRA program in Application 01-09-062. In Decision (D.) 03-09-021, as modified by D.04-02-052, we denied that request and instead directed CWS to file a new application for LIRA authorization, in consultation with the Commission's Water Division staff, by March 4, 2004. The new application was to include information on costs, conservation effects and ratemaking impacts. CWS was granted several filing extensions by the Commission's Executive Director and ultimately CWS filed the subject application.

¹ All statutory references to the Public Utilities Code unless otherwise stated.