The WMP evaluates the long-term demand, water supplies, and conservation programs to meet that demand. The Program began as a result of the Commission requiring each Class A water company to prepare a WMP as a result of the drought proceeding, I.89-03-055. Pursuant to D.92-09-084, as confirmed by D.94-02-043 in that proceeding, each Class A company is required to update its WMP as part of every general rate case. Valencia filed a WMP with the Commission in January 1994 as part of its last general rate case. Thereafter, Valencia did not file an updated WMP because it had not filed a general rate case since 1994.
In Resolution W-4154, dated August 5, 1999, the Commission noted that it had been over five years since the filing of Valencia's last WMP and concluded that "a new analysis was warranted to ensure timely analysis of future filings." Therefore, Valencia was ordered to file an application for approval of an updated WMP as required by D.94-02-043. This process - essentially requiring Valencia to have an updated WMP prior to gaining approval of Advice Letters to expand its service territory - is unusual, but was adopted to provide a forum to review the issues raised earlier by Sierra Club.