Jurisdiction

The two state agencies primarily responsible for overseeing water planning are the California Department of Water Resources, which manages the State Water Project and produces the California Water Plan, and the State Water Resources Control Board (State Board) and Regional Water Quality Control Boards which have authority over water allocation and water quality protection.

In addition to the state agencies which have broad planning and management powers, local government also has a part in water use decisions. For example, county boards of supervisors, county water agencies, land use planning agencies, city governments, municipal water districts and many special districts all have a role in the use of water in California.

By comparison, the Commission's role is significantly more limited, with a focus upon ensuring that each jurisdictional water utility provides its customers with "just and reasonable service, . . . and facilities as are necessary to promote the safety, health, comfort and convenience of its patrons, employees, and the public." (Pub. Util. Code § 451. 2) The Commission has further delineated the service standard in its General Order (GO) 103 where it proscribes Standards of Service including water quality, water supply, and water pressure, as well as many other details of service. Also, the Commission may limit the addition of new customers by a water utility if the Commission finds that such addition would impair supply to existing customers (see Pub. Util. Code § 2708).

The Commission has, in general, not dictated to investor-owned utilities what method of obtaining water must be used to meet its present and future responsibility of providing safe and adequate supply of water at reasonable rates.3

The Commission monitors water supply issues through each utility's general rate case. Through the WMP included as part of the general rate case, the Commission may take up supply issues where significant unanticipated events affect water supply, such as service outages or a prolonged drought. 4

The Commission does not "adjudicate" the water supply in a basin. Where that has occurred in California, it has been done in a court proceeding or by an act of the Legislature creating a water management district. The Commission only adjudicates the extension of a utility's service territory and assures itself (and the Department of Real Estate through the Water Supply Questionnaire process) that adequate water is available to meet demand.

Where the water utility is proposing to expand into a contiguous area, the water utility must amend its service territory map on file with the Commission. This is accomplished through filing an advice letter. If not protested, an advice letter goes into effect but if it is protested, the advice letter can be assigned for hearing and decision much like an application. When an applicant, such as Valencia, proposes to expand its service territory to include new developments, that applicant bears the burden of proving in the application and advice letter process that it has adequate supplies for the proposed new customers.5

2 The Commission's limited role in water planning is set forth in Sierra Club, Angeles Chapter v. Valencia Water Company, D.99-04-061 dated April 22, 1999. 3 See Southern California Water, 48 CPUC2d at 517. 4 See Measures to Mitigate the Effects of Drought on Regulated Water Utilities, 53 CPUC2d 270. 5 See, Ambler Park Water Utility and California American Water Company, D.98-09-038, where the Commission found that the issue of adequacy of supply for a potential development would be addressed in the advice letter process.

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