Industry Rule 7. Disposition of Advice Letters
7.1 Initial Review
If an advice letter (including its cover sheet) is incomplete (see General Rules 5.4, 5.5), Staff will so inform the Utility and may either delay filing until corrections are made or return the advice letter without filing.
7.2 Effective Date (see General Rules 7.3)
The following provisions vary the otherwise applicable General Rules.
(1) A Compliance Advice Letter will become effective as specified in the applicable resolution or decision, or if not specified, five days after the date of filing.
(2) Upon request and justification by the Utility, Staff may allow a Tier 2 advice letter to be made effective, subject to refund, in less than 30 days.
(3) An advice letter that is an Informal General Rate Case will become effective as provided in the Service Guarantee Plan (Standard Practice U-9-W).
7.3 Tier Classifications for Advice Letters
Water and sewer system advice letters are classified as Tier 1, 2, or 3 for purposes of review and disposition, as shown below.
The following advice letters are effective pending disposition, and are generally subject to approval or rejection by Staff (including deemed approval) pursuant to General Rule 7.6.1, except as indicated below:
(1) Balancing Account amortization (see Industry Rule 8.5);
(2) Change to sample forms (see General Rule 8.5.8);
(3) Compliance with mandatory statute, decision, or resolution;
(4) Consumer Price Index (CPI) offset;
(5) Decrease in rates;
(6) Escalation filing;
(7) Pass-through of additional taxes imposed on utility;
(8) Service to a government agency (see General Rule 8.2.3); but such advice letter shall be subject to disposition by Commission resolution as provided by General Rule 7.6.2; and
(9) Emergency voluntary conservation program.
The following advice letters are effective only upon approval, but may be deemed approved and are generally subject to approval or rejection by staff pursuant to General Rule 7.6.1:
(1) Approval of post-acquisition rates of mutual or municipal water company (see D.99-10-064);
(2) Contract or other deviation (or tariff sheets providing service to a single customer) (see Industry Rule 8.3);
(3) Department of Health Services (DHS) fee offset;
(4) Expense offset (see Industry Rule 8.4);
(5) New service offering;
(6) New Memorandum Account request;
(7) Recycled water service (as provided in Industry Rule 8.6);
(8) Request for similar treatment (as provided in Industry Rule 8.2);
(9) Service extension into contiguous area or within city in which the Utility already provides service (Water Supply and Certification Questionnaire required) (see Industry Rule 8.1);
(10) Transfer of ownership interest pursuant to Pub. Util. Code § 853(c);
(11) Withdrawal of tariff schedule that has no customers; and
(12) Provision of non-tariffed services (see D.00-07-018, D.03-04-028 & D.04-12-023).
The following advice letters may not be deemed approved and generally will be disposed of by Commission resolution pursuant to General Rule 7.6.2:
(1) Change in ownership or control due to court proceeding, other than transfer of ownership pursuant to Pub. Util. Code § 853(c) (see Industry Rule 7.3.2(12));
(2) Change to Commission resolution;
(3) Closing tariff schedule to new customers;
(4) Establish a new non-tariffed investment or recategorize an existing non-tariffed investment (see D.00-07-018);
(5) Informal General Rate Case;
(6) Loan approval or stock sale permission request by Class C or Class D Utility (see D.93-11-066);
(7) Memorandum Account offset (see Standard Practice U-27-W);
(8) Rate base offset;
(9) Revocation of certificate of public convenience and necessity due to abandonment or sale to municipality or special district;
(10) Transfer of ownership of inadequately operated and maintained Class C or Class D water Utility (see D.99-10-064);
(11) Withdrawal or withholding of service (see Industry Rule 8.7); and
(12) A matter appropriate to advice letter but not subject to approval or rejection under Industry Rules 7.3.1 or 7.3.2.
