II. Background
Since we adopted the RCP in D.04-08-016, all Class A water utilities have had the opportunity to file and process at least one GRC. As a result, Class A water utilities and our staff have gained valuable insights into ways to build upon the existing RCP. In addition, since we implemented the existing RCP, we adopted a Water Action Plan on December 15, 2005 (Water Action Plan 2005). The four key principles of the Water Action Plan 2005 are (1) safe, high quality water; (2) highly reliable water supplies; (3) efficient use of water; and (4) reasonable rates and viable utilities. The Water Action Plan 2005 also includes six objectives: (1) maintain the highest standards of water quality; (2) strengthen water conservation programs to a level comparable to those of energy utilities; (3) promote water infrastructure investment; (4) assist low income ratepayers; (5) streamline Commission regulatory decision-making; and (6) set rates that balance investment, conservation, and affordability.
In July 2006, the Water Division solicited input on how our existing RCP might be modified to support implementation of the Water Action Plan 2005. The Water Division also sought input on how to design the process permitted under Section 455.2 of the Public Utilities Code2 for granting waivers to the RCP, as anticipated by D.06-06-037. Lastly, the Water Division asked parties to comment on possibly refining the RCP to reflect lessons learned over the course of the past three years while we implemented the existing RCP.
On December 14, 2006, we issued this Order Instituting Rulemaking (OIR) to build upon the process started by the Water Division of incorporating the goals of the Water Action Plan 2005 into the RCP. In this OIR, we identified several areas where improvement in the RCP was a priority based on the Water Division's workshops held in September 2006. We outlined these issues in the OIR and attached, at Appendix A to the OIR, a draft proposed RCP. The draft proposal reflected certain improvements to the RCP based on the Commission's experience with the existing RCP, the comments of water utilities and other parties during workshops, and our desire to incorporate aspects of the Water Action Plan 2005 into the RCP.
After carefully reviewing all the comments and reply comments filed by parties3 on February 21 and 28, 2007 to the draft proposed RCP, we now adopt a new RCP. We discuss each of the modifications to the RCP below. In addition, Appendix A hereto, sets forth a complete copy of the new RCP and the MDRs.
This Rulemaking is closed.
2 Unless otherwise noted, all statutory references are to the Public Utilities Code.
3 The following parties filed comments, reply comments, or both: Division of Ratepayer Advocates (DRA), California Water Association, Park Water Company, San Gabriel Valley Water Company, Monterey Peninsula Water Management District, American Water Company, and the California Department of Health Services. The assigned ALJ accepted a letter sent to the assigned ALJ on March 9, 2007 and dated October 27, 2006 by the California Department of Health Services as comments.
