We have reviewed the conservation rate design and WRAM settlements before us and CFC's objections to the specific rate designs and the full decoupling WRAMs. We find CalWater's, Surburban's and Park's trial conservation rate designs will advance our conservation objectives; they incorporate increasing block rates for residential customers and CalWater and Park move their non-residential customer classes to CUWCC's requirement that over 70% of revenues are recovered through quantity charges. We will review these rate designs to determine whether they meet targeted reductions in consumption. If they do not meet those goals or are unlikely to meet future goals, Suburban and Park will propose rate designs that will accomplish those goals.29
Suburban and DRA's WRAM proposal is consistent with the CalAm WRAM that has been in effect since 1996 and will address any changes in revenue resulting from the adoption of conservation rates, assuming the same level of sales. CalWater and Park's WRAMs and MCBAs will balance utility and ratepayer interests and will ensure that neither is harmed nor benefits from the adoption of conservation rates. These WRAMs and MCBAs implement our objective of decoupling sales and revenues to encourage successful conservation programs. The CalWater, Suburban and Park settlements are reasonable in light of the record, consistent with the law, and in the public interest and will be adopted.
Amortization of CalWater's and Park's WRAMs and MCBAs shall be subject to any return on equity (ROE) adjustment adopted in Phase 1B of this proceeding. If an ROE adjustment is adopted in Phase 1B prior to the annual report to the Water Division and the trigger for over- or under-collection of revenues, the ROE adjustment will be calculated in determining the resulting surcharge or surcredit. If no ROE adjustment is adopted or the implementation of any ROE adjustment is deferred, amortization will proceed according to the settlement agreements.
29 We shall require Suburban, Park and CalWater to provide specific data in their next GRCs, as set forth in Ordering Paragaph 7, to assist in evaluating these trial programs.