XII. PAR Customer Rate Relief

In its comments, DRA argues that the proposed decision violates Section 739.8(b) of the Public Utilities Code because it does not address the impacts of the proposed surcharges on PAR (Low-Income) customers in CalAm's Monterey District. This code section states:

739.8(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 lo-income ratepayers.

Currently, Monterey District PAR customers receive an exemption from the monthly service fee which varies from $6.91 to $10.36 for the smaller size meters. DRA recommends that, in addition, PAR customers receive a discount of one-half of the proposed surcharge percentage.

CalAm states that although PAR customers receive a significant discount in Monterey since they do not pay the monthly service fee, CalAm does not object to DRA's proposal. CalAm points out that the higher the subsidization for PAR customers, the more other customers have to pay to fund that subsidization.

We should observe that since PAR customers already receive the above discount which results in a lower bill compared to other customers, and the proposed new surcharges will be a percentage of the bill, PAR customers will actually pay a lower surcharge amount compared to other customers. Therefore, we conclude that the question of further relief for PAR customers should be deferred to the next general rate case proceeding. DRA's recommendation is not adopted.