3. Discussion
Petitioners have provided substantial information regarding the current financial hardships faced by the City and its residents. The proposed phase-in responds reasonably to these hardships. At the same time, the phase-in imposes no burden on other Cal Water districts, does not result in a net change to Cal Water's revenue requirement, and does not adversely affect Cal Water's ability to recover its revenue requirement in rates.
In effect, the petition for modification is similar to an all-party settlement, in that (1) all affected interests (the City, the utility, and ratepayers in general as represented by the Division of Ratepayer Advocates,) support the petition, and (2) there is no known opposition to the requested relief. The facts of the matter, as set forth in the petition and supporting declaration, show that the relief is needed and appropriate. The petition also shows that the requested relief is consistent with the Commission's rules and policies for rate deferral. The petition documents the phase-in with sufficient detail that implementation of the modification to D.10-12-017 can occur readily and be monitored for compliance. The public interest is served by smoothing the previously authorized rate increase over a longer period of time in these circumstances.
To implement the phase-in, Cal Water must file new tariffs for its Selma district. Cal Water will file the appropriate tariffs by a Tier 1 advice letter, to be submitted within 10 days of the effective date of today's decision.
On July 27, 2011, Cal Water filed and served electronically a motion to supplement the petition.1 The supplement provides tariff schedules reflecting the rate reduction proposed for the Selma district in the petition. Cal Water included both the tariff schedules currently in effect in the Selma district and the proposed tariff schedules, which have been revised to reflect the reduced Selma district rates for the period from September 1, 2011, through June 30, 2012. By providing the proposed tariff schedules, Cal Water has ensured that implementation of the 10-month rate reduction can happen quickly and smoothly.2 We therefore grant Cal Water's motion to supplement the petition.
After the reduced rate period ends (June 30, 2012), the Selma district rates previously authorized in D.10-12-017 go back into effect, together with a flat monthly surcharge of $2.19 applied to all customer bills for a period of three years starting July 1, 2012. No later than May 30, 2012, Cal Water must file a Tier 2 advice letter with appropriate tariffs to reflect the new rates and surcharge.
The Commission waives the public comment period for this decision because it is an uncontested matter and this decision grants the relief requested by the Petitioners. All parties to this proceeding have been timely notified.3
1 The motion is unopposed.
2 The proposed tariff schedules are set forth in the Appendix to today's decision.
3 Cal Water has tried to contact all of the active parties in this proceeding to determine their willingness to waive the comment period for a proposed decision on the petition. Cal Water represents that the City of Visalia, Jeffrey Young, and the Leona Valley Town Council have agreed to waive the comment period. Two parties (Marcos Pareas and the Fremont Valley Property Owners) have not yet responded, but no party has objected. We note that these other parties were interested in this proceeding primarily as it affected rates in locations other than the City. Petitioners believe that this matter will be uncontested, and urge the Commission to issue a proposed decision granting the relief requested, and waiving the comment period pursuant to Rule 14.6(c)(2).
