ALJ/CMW/jt2 Date of Issuance 5/26/2009
Decision 09-05-029 May 21, 2009
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Application of California-American Water Company (U210W) for an Order Authorizing a Special Conservation Program and Modifications to its Rate Design in its Monterey District, and Authorization to Increase its Rates for Water Service in its Monterey District. |
Application 07-12-010 (Filed December 14, 2007) |
DECISION ADOPTING SETTLEMENT AGREEMENT ON THE CONSERVATION BUDGET FOR THE MONTEREY DISTRICT
1. Summary
This decision adopts a Settlement Agreement (Settlement) among California-American Water Company (Cal-Am), the Division of Ratepayer Advocates (DRA) and the Monterey Peninsula Water Management District (MPWMD). The Settlement, which is attached as Appendices A and B to this decision, includes (1) a three-year conservation budget of $2,424,678 for Cal-Am and $1,156,000 for MPWMD for the Monterey District, (2) spending caps for specific conservation program categories as well as the overall budget, (3) a volumetric surcharge to fund the conservation budget, with separate one-way balancing accounts for Cal-Am's and MPWMD's budgets, (4) a memorandum account for Cal-Am's rationing-related expenditures, and (5) specific monitoring and reporting requirements for each conservation program.1
In comments on the Settlement, the Independent Reclaimed Water Users Group, a group representing the Monterey Peninsula Country Club, the Cypress Point Club and the Poppy Hills Golf Course, recommends two modifications to the Settlement. We find the requested modifications are outside the scope of this proceeding; these issues are under consideration in the Monterey District general rate case, Application (A.) 08-01-027, and the Coastal Water Project proceeding, A. 04-09-019.
The Settlement before us today is the third settlement between Cal-Am, DRA, and MPWMD. On February 25, 2009, in D.09-02-006, the Commission adopted a settlement that revised the conservation requirements of Cal-Am's Rule 14.1 Water Conservation Plan, and a second settlement that adopted interim emergency rates for the Bishop, Hidden Hills, and Ryan Ranch sub-systems.2
1 Conservation funding for MPWMD programs serving Cal-Am customers was first adopted in Decision (D.) 06-11-050 and has proven to be effective. A formal agreement exists with Cal-Am and the Commission maintains regulatory oversight through reporting requirements.
2 In D.09-02-006, we also resolved all issues regarding Cal-Am's sharing of customer-specific data with MPWMD.
