VII. Assignment of Proceeding
John A. Bohn is the assigned Commissioner and Regina M. DeAngelis is the assigned ALJ in this proceeding.
1. In D.04-06-018, we adopted a RCP for Class A water utilities.
2. Since D.04-08-016, all Class A water utilities have had the opportunity to file and process at least one GRC.
3. On December 15, 2005, we adopted the Water Action Plan 2005.
4. The four key principles of this Plan are (1) safe, high quality water; (2) highly reliable water supplies; (3) efficient use of water; and (4) reasonable rates and viable utilities.
5. The Plan 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.
6. On December 14, 2007, we issued this Order Instituting Rulemaking to build upon the process started by the Water Division to incorporate the goals of the Water Action Plan 2005 into the RCP.
7. After carefully reviewing all the comments and reply comments filed by parties on February 21 and 28, 2007, to the draft proposed RCP attached to the OIR, we adopt a new RCP.
1. The RCP is consistent with the Water Action Plan 2005.
2. The RCP is consistent with the requirements of Section 455.2.
3. The RCP procedures for addressing rate adjustments during the transition period are consistent with Section 455.2.
4. The RCP interim rate process under Section 455.2(a) and (b) only applies during a pending GRC when the applicant anticipates that the Commission's decision will not be effective on the first day of the first test year in a general rate increase application.
5. The process for obtaining interim rates while a GRC is pending upholds the statutory requirements set forth in Sections 455.2 and 454.
6. Consistent with Section 455.2, we adopt a procedure for waiver of certain RCP requirements.
7. The Minimum Data Requirements, attached hereto at Appendix A (RCP Attachment 1 and Attachment 2) will apply to GRC applications and cost of capital proceedings, respectively.
ORDER
IT IS SO ORDERED that:
1. The Rate Case Plan (RCP) for Class A Water Utilities, including the Minimum Data Requirements, attached hereto as Appendix A is adopted.
2. This RCP, attached hereto as Appendix A, supersedes the RCP attached to Decision 04-06-018.
3. The RCP furthers the policy objections set forth in the Water Action Plan 2005 as it promotes timely processing of cases seeks to balance the workload of the Commission and its staff over time, and enables comprehensive review by the Commission of rates and operations of all Class A Water Utilities.
4. All Class A Water Utilities shall comply with the filing schedule and all other general rate case (GRC) requirements as set forth in the RCP.
5. All Class A Water Utilities must submit a proposal to adjust cost of capital in their first cost of capital applications filed under this RCP, as described herein.
6. We delegate to the Executive Director, in consultation with the Water Division, the authority to enter into and grant requests for the waivers set forth in Section 455.2(c).
7. To facilitate our oversight of water quality during GRCs for Class A Water Utilities, we direct the Commission's Water Division to enter into any required contracts with qualified water quality experts. We direct the Water Division to oversee these contracts.
8. We further authorize the Presiding Officer in a GRC to rely on the testimony of a water quality expert consistent with Hartwell Corp. v. Superior Court, 27 Cal. 4th 256 (2002).
9. The Commission's Water Division shall convene workshops to develop a uniform method for reporting summary of earnings and other associated information in support of GRCs filed by Class A Water Utilities. The Water Division shall submit its recommendations to the Commission within 180 days of this decision.
10. Should the RCP schedule require modification due to a merger, a new entrant, or other significant change, we authorize the Water Division to prepare a Resolution for changing the schedule for our consideration.
11. Rulemaking 06-12-016 is closed.
12. This order is effective today.
Dated May 24, 2007, at San Francisco, California.
MICHAEL R. PEEVEY
President
DIAN M. GRUENEICH
JOHN A. BOHN
RACHELLE B. CHONG
TIMOTHY ALAN SIMON
Commissioners
APPENDIX A
Rate Case Plan and Minimum Data Requirements
for Class A Water Utilities
General Rate Applications
TABLE OF CONTENTS
Title Page
II. General Rate Case Structure and Process 22
B. Procedure to Address Delay Beyond the Three-Year GRC Cycle 22
C. Procedure to Forego a Scheduled GRC 33
D. Cost of Capital Applications 33
III. Schedule for Processing GRCs 44
IV. Detailed Processing Schedule 55
B. Deficiency Letter Issued 77
C. Appeal to Executive Director 88
H. Public Participation Hearings, if applicable 1010
I. Distribution of DRA Testimony 1010
J. Distribution of Testimony by Other Parties 1010
K. Distribution of Rebuttal Testimony 1010
L. Alternative Dispute Resolution (ADR) 1111
N. Opening Briefs Filed and Served 1111
O. Motion for Interim Rates and Status Conference 1212
P. Reply Briefs Filed and Served 1212
Q. Water Division Technical Conference 1212
R. Presiding Officer's Proposed Decision Mailed 1313
V. RCP Deviations and Waivers 1414
A. Waiver of Scheduled GRC Filing 1414
B. Authority to file GRC by advice letter in Lieu of Application 1414
C. Filing a GRC by advice letter in Lieu of Application with
Prior Approval 1515
VII. Escalation and Attrition Advice Letter Procedure 1818
TABLE OF CONTENTS
(continued)
Title Page
Attachment 1: Minimum Data Requirements for Utility General Rate Case
Application and Testimony 21
Attachment 2: Minimum Data Requirements for Utility Cost of Capital
Application and Testimony 32
