2. Background
Pub. Util. Code § 739.82 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., Decision (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.
Cal-Am initially requested authority to implement a low-income program for Sacramento and Larkfield (Sonoma County) in Application (A.) 04-04-040 and A.04-04-041, both general rate increase proceedings for those districts. D.05-09-020 adopted the general rate increases, but denied the low-income program and instead directed Cal-Am to propose a revised low-income program in a new application. The new program was to be similar to that adopted for San Gabriel in D.05-05-01, noted above, and was to include information on the number of low-income indirect customers in each district, and an analysis of any subsidy these customers would provide. Cal-Am filed the subject application in response.
2 All statutory references to the Public Utilities Code unless otherwise stated.
