IV. Detailed Processing Schedule
A. Proposed Application
Day -60 (All Applications)
No later than November 1 for water utilities scheduled to file the final application in January. No later than May 1 for water utilities scheduled to file in July.
The original signed copy of the proposed application shall be served on DRA. The proposed application shall not be tendered to the Docket Office. Four copies of the proposed application and supporting testimony shall be provided to DRA for single district filings, five copies for multi-district filings, and one copy to the Commission's Legal Division and Water Division. DRA shall be provided with one full paper copy set of workpapers. A searchable electronic copy (via email or CD) of the proposed application, supporting testimony, and workpapers shall be provided to DRA on the filing date. Applicant shall furnish copies of the proposed application, supporting testimony, and workpapers to interested parties upon written request.
3. Content of Proposed Application and Supporting Prepared Testimony
A utility's proposed application for a rate increase must identify, explain, and justify the proposed increase. The proposed application shall include a proposed schedule consistent with the RCP with a test period consistent with the RCP. The proposed application shall include, but not be limited to, the information set forth in Attachment 1, Minimum Data Requirements. The utility is not required to follow the order of information in Attachment 1, but must include a cross-reference to where each of the Minimum Data Requirements is set forth in its testimony. The Presiding Officer may ask for summary sheets of each district in a consolidated case or request that the application be filed in a particular format that facilitates review. The utility bears the burden of proving that its proposed rate increase is justified and must include in the proposed application and supporting testimony, all information and analysis necessary to meet this burden.
Within -30 days (All Applications)
DRA will review and evaluate the proposed application to determine whether the proposed application complies with the Minimum Data Requirements. No later than 30 days after the proposed application is tendered, DRA will inform the utility in writing whether the proposed application complies. If DRA determines that the proposed application complies with these Minimum Data Requirements, then DRA will notify the Commission's docket office to accept for filing a GRC application from that utility at any time within the following 30 days. If DRA determines that the proposed application does not comply with the MDR, then DRA will issue a deficiency letter.
B. Deficiency Letter Issued
Day -30 (All Applications)
No later than 30 days after the proposed application is tendered, DRA shall issue any deficiency letter. DRA shall also transmit a courtesy electronic copy of the letter to the utility's representative on the day of issuance. The deficiency letter shall include a list of the topics on which the proposed application is deficient. To the extent known, DRA shall describe the information and analysis needed to cure the deficiencies. Upon request, DRA shall promptly meet and confer with the utility. Unless and until the defects listed in the deficiency letter are resolved pursuant to the appeals process or cured, the Commission will not accept the GRC application for filing.
For purposes of the RCP, a deficiency is a material omission of any Minimum Data Requirement from the proposed application, supporting testimony, or workpapers. A deficiency is not a subjective determination that the proposed application or submitted documents, including workpapers, do not adequately support the utility's request or are non-responsive to the RCP filing requirements. Failure to respond to a data request for information beyond the Minimum Data Requirements is not a requirement of the RCP and failure to respond to a data request is not a deficiency.
The following examples are not deficiencies: 1) a request by DRA for clarification of the utility's submitted prepared testimony or supporting calculations, unless the submitted materials overall were disorganized or unclear; 2) use of recorded or estimated data for subjects that are not required under the RCP; and 3) a determination by DRA that a proposed position is incorrect or inadequately supported by the testimony and/or workpapers and therefore requires additional information to evaluate. These are not deficiencies for the purpose of accepting the proposed application.
C. Appeal to Executive Director
Day -25 (All Applications)
If the utility disagrees with any or all defects listed in the deficiency letter, the utility may file and serve an appeal to the Executive Director. Service shall include copies to the Executive Director, the Director of the Water Division, the Assistant Chief ALJ (Water), and DRA. The utility shall concisely identify the points in the deficiency letter with which it disagrees and shall provide all necessary citations and references to the record to support its claim.
D. Executive Director Acts
Day -20 (All Applications)
No later than five days after the appeal is filed, the Executive Director shall act on the appeal by a letter ruling served on all parties. Electronic courtesy copies shall also be provided on the day of issuance.
E. Application Filed
Day 0 (All Applications)
No later than 60 days after the proposed application is tendered and DRA has notified the Docket Office that the proposed application is not deficient, the utility may file its GRC application consistent with Rule 1.13 of the Rules of Practice and Procedure12 or electronically consistent with the requirements of Resolution ALJ-188.
Supporting testimony shall not be filed with the Docket Office but shall be served on all parties including the Presiding Officer or, if one is not yet assigned, the Chief ALJ. Applications must conform with all applicable Rules, including Rule 1.5, which indicates that font type must be no smaller than 10 points. All data included in the application and testimony shall be updated to include information that was not available when the proposed application was tendered, and all such changes shall be quantified and explained in a comparison exhibit. The application shall conform to the content of the proposed application and supporting testimony, and shall include final versions of the exhibits provided in the proposed application. The utility shall serve copies of its application in accordance with the same directives, set forth above, applicable to the proposed application.
F. Updates
Day 45 (14-month schedule)
Day 100 (20-month schedule)
Up to 45 days or 100 days after filing, as applicable, more recent recorded data used in the application/testimony may be provided by the utility. More recent recorded data are utility plant or expense account balances showing actual historical amounts. The more recent recorded data must be used in the same manner and for the same purpose as the data included in the original application/testimony. New or additional items or forecasted costs are not updates to recorded data and will not be accepted, except that the water utility is permitted to file a motion for permission to file updates of the following expenses: employee benefits (all medical, dental, pension, and other benefits), insurance, and Sarbanes-Oxley compliance costs.
Under extraordinary circumstances, a water utility may seek discretionary post-application modifications. Any such request must, at a minimum, show that the addition sought: (1) causes material changes in revenue requirement; (2) is the result of unforeseeable events; (3) is not off-set by other cost changes; and (4) can be fairly evaluated with proposed schedule changes that have been agreed to by all parties. Any such request shall be by made by written motion, with an opportunity for other parties to respond, as provided in the Rules. The Presiding Officer shall rule on the motion and, if the motion is granted, shall provide the other parties with a reasonable amount of time to respond to the updated information. The Presiding Officer shall set a revised schedule, if appropriate.
G. PHC Held
Day 10 - 75 (All Applications)
The assigned Commissioner and/or ALJ shall convene a PHC and set the procedural schedule for the proceeding. At the PHC, the Presiding Officer and the parties will discuss Alternative Dispute Resolution (see below) and the scope of the proceeding, the timing, process, and appointment of an independent water quality expert to provide testimony to assist the Commission with its assessment of water quality compliance. The PHC will most likely, but not necessarily, be scheduled after the expiration of the protest period.
H. Public Participation Hearings, if applicable
Day 10-90 (14-month schedule)
Day 10-190 (20-month schedule)
The schedule may include Public Participation Hearings if necessary due to public interest. The ALJ and/or Commissioner may also direct the applicant to make information about the rate case available to the public via other communication channels, including the Internet and other means of public outreach. The applicant shall provide notice of the hearings in accordance with Rule 3.2 and any supplemental procedures directed by the Presiding Officer pertaining to notice of hearings.
I. Distribution of DRA Testimony
Day 97 (14-month schedule)
Day 204 (20-month schedule)
DRA shall serve prepared testimony on the service list to the proceeding consistent with Rules 1.9 and 1.10. Two paper copies shall be served on the Presiding Officer. Workpapers shall be served on all service list appearances. DRA shall arrange its workpapers in an organized and logical fashion.
J. Distribution of Testimony by Other Parties
Day 97 (14-month schedule)
Day 218 (20-month schedule)
Any interested parties shall serve their prepared testimony on the service list to the proceeding consistent with Rules 1.9 and 1.10. Two paper copies shall be served on the Presiding Officer. Workpapers shall be served on all appearances. Parties shall arrange workpapers in an organized and logical fashion.
K. Distribution of Rebuttal Testimony
Day 112 (14-month schedule)
Day 264 (20-month schedule)
Rebuttal testimony may be prepared by any party and shall be served on the service list consistent with Rules 1.9 and 1.10. Two paper copies shall be served on the Presiding Officer. Workpapers shall be served on service list appearances.
L. Alternative Dispute Resolution (ADR)
Day 115-125 (14-month schedule)
Day 270-290 (20-month schedule)
ADR will be explained by the Presiding Officer at the initial PHC and addressed in the scoping memo. An ALJ neutral will be appointed to meet with the parties as needed throughout the proceeding. Specific ADR processes will be held during the period between rebuttal testimony and the evidentiary hearing. The ALJ neutral and the parties will plan and schedule the specific ADR processes that are appropriate for that proceeding. These methods may include facilitation, mediation, or early neutral evaluation conducted by an ALJ neutral not assigned to the proceeding. All active parties must participate in an initial session of ADR and each active party must have an official at such meeting with decision-making authority. Unless the parties agree otherwise, all ADR sessions will be confidential and the communications will not be used in the formal proceeding. For additional information on the Commission's ADR program, see Resolution ALJ-185.
M. Evidentiary Hearings
Day 126-130 (14-month schedule)
Day 290-310 (20-month schedule)
The Presiding Officer shall preside over evidentiary hearings and shall take evidence to prepare the formal record. At the conclusion of the hearings, the Presiding Officer shall set the briefing schedule and set the date for submission of the case for decision by the Commission, consistent with the RCP processing schedule herein.
N. Opening Briefs Filed and Served
Day 160 (14-month schedule)
Day 340 (20-month schedule)
The parties may file concurrent opening briefs setting out their recommendations on specific issues, with supporting references to the record. The applicant shall include a comprehensive discussion of the issues and shall address in detail each issue identified as "contentious" in the application. The Presiding Officer may adopt a uniform briefing outline for use by all parties.
O. Motion for Interim Rates and Status Conference
Day 160 and Day 161 (14-month schedule)
Day 340 and Day 341 (20-month schedule)
Unless otherwise designated by the Presiding Officer, parties must file a motion for interim rates pursuant to Section 455.2. Response to the motion will be accepted consistent with the Rules. Section V(D) herein sets forth this process in greater detail. This process must include a mandatory status conference the day after the date parties file opening briefs to evaluate the need for interim rates and the process for implementing such rates.
P. Reply Briefs Filed and Served
Day 175 (14-month schedule)
Day 350 (20-month schedule)
Each party may file a brief that responds to the issues raised by other parties in opening briefs. The applicant, DRA, and other active parties shall prepare and submit a Joint Comparison Exhibit showing complete comparison tables for the test and escalation years. The tables shall show each party's final position on each component of revenue requirement and shall identify all remaining major disputed issues, and the dollar amounts associated with each disputed issue. All major revisions to a party's position on an issue shall be explained. The tables shall consolidate the two test years and one attrition year methodology for capital additions with the one test year and two escalation years program for expenses to show a complete projected revenue requirement for each of the three years in the cycle. Final adjustments to balancing or memorandum accounts that have been approved by DRA may be incorporated in the Joint Comparison Exhibit.
Q. Water Division Technical Conference
Day 180 (14-month schedule)
Day 370 (20-month schedule)
Water Division shall host a Technical Conference following submission of the case to review the ratemaking models utilized by the parties in the case in order to assist the Presiding Officer in the preparation of tables for the proposed decision.
R. Presiding Officer's Proposed Decision Mailed
Day 240 (14-month schedule)
Day 460 (20-month schedule)
The Presiding Officer's proposed decision shall be filed and served consistent with applicable laws and regulations.
In addition to relevant issues raised in the proceeding, each decision: (1) shall discuss utility's district-by-district compliance with water quality standards as required by General Order 103; and (2) unless deviation is otherwise expressly justified in the decision, shall include standard ordering paragraphs providing for escalation year increases subject to an earnings test. A sample ordering paragraph is set out in the footnote.13
S. Comments on Proposed Decision
Day 260 (14-month schedule)
Day 480 (20-month schedule)
Comments on the proposed decision shall be filed and served on all parties consistent with Commission Rules.
T. Reply Comments
Day 265 (14-month schedule)
Day 485 (20-month schedule)
As provided in Commission Rules, the parties may file and serve replies to comments on the proposed decision.
U. Expected Commission Meeting
Day 280 (14-month schedule)
Day 500 (20-month schedule)
The proposed decision may be on the agenda for the first regularly scheduled meeting of the Commission occurring 30 or more days after the date the proposed decision is issued.
12 Unless otherwise noted, all subsequent references to "Rules" or "Rule" are to the Commission's Rules of Practice and Procedure.
13 Sample Ordering Paragraph: An escalation advice letter, including workpapers, may be filed in accordance with General Order (GO) 96-B no later than 45 days prior to the first day of the escalation year. To the extent that the pro forma earnings test for the 12 months ending September 30, as adopted in D.04-06-018, exceeds the amount authorized in this decision, the requested increase shall be reduced by the utility from the level authorized in this decision to conform to the pro forma earnings test. Advice letters filed in compliance with this decision shall be handled as Tier 1 filings, effective on the first day of the test year. Advice letters not in compliance with this decision will be rejected consistent with GO 96-B.
