10. Plans for Developing Recycled Water Service

In its application, SGV proposed tariffs for recycled water service and the use of facilities fees for recycled water projects. The settlement provides that such matters will be addressed by a separate application or advice letter.

10.1. Positions of Parties

COF states that it is in negotiations with SGV for a joint venture to provide recycled water. No agreement has been reached. COF states that it will provide the water to be recycled as well as project planning, funding and environmental processing. COF recommends that the project be addressed only through a joint application after agreement has been reached.

FUSD objects to the use of an advice letter because it may not be able to participate in a meaningful manner.

SGV states that Public Utilities Code Section 455.1(d) provides for an advice letter filing for proposing recycled water service.⁶

10.2. Discussion

Section 455.1 provides a process to be followed if an advice letter is filed regarding recycled water service. However, nothing in § 455.1 prohibits the Commission from requiring that SGV file an application rather than an advice letter to initiate recycled water service.

Any recycled water project will involve the setting of rates and development of tariffs where none currently exist. As such, the issues involved may be detailed and complex. An application is superior to an advice letter for addressing the project when it comes to fruition because it will allow parties other than SGV to more fully participate in the resolution of the relevant issues. The recycled water project shall be addressed through an application after agreement has been reached. The settlement, without this alternative term, is not in the public interest.

⁶ All section references are to the Public Utilities Code.