APPENDIX C

APPENDIX C

WATER INDUSTRY RULES

TABLE OF CONTENTS

Title Page

Water Industry Rules 1

Industry Rule 1. Additional Definitions 1

1.1 Balancing Account (see Public Utilities (Pub. Util.) Code § 792.5) 1

1.2 Class A, Class B, Class C, Class D (see Decision (D.) 85-04-076) 1

1.3 Compliance Advice Letter 1

1.4 Contact Person 1

1.5 Contract 1

1.6 Industry Rule 2

1.7 Informal General Rate Case (see D.92-03-093) 2

1.8 Memorandum Account (see D.85-04-076) 2

1.9 Staff 2

1.10 Standard Practice 2

1.11 Utility 2

Industry Rule 2. Filing Advice Letters, Information-only Filings 3

Industry Rule 3. Methods of Customer Notice (see General Rule 4.2) 3

3.1 Method of Notice for Advice Letter Increasing Rates 3

3.2 Method of Notice for Compliance Advice Letter 3

3.3 Other Required Notice 4

Industry Rule 4. Serving Advice Letters (see General Rules 4.3 & 7.2.) 4

4.1 Advice Letters Generally 4

4.2 Service Area Extension or Transfer of Ownership (see Industry Rule 8.1) 4

4.3 Contract or Other Deviation (see Industry Rule 8.3.) 5

4.4 Withdrawal or Withholding of Service (see Industry Rule 8.7) 5

Industry Rule 5. Tariff Sheet Numbering (see General Rule 8.4.) 5

Industry Rule 6. Advice Letter Supplements (see General Rule 7.5.1) 5

Industry Rule 7. Disposition of Advice Letters 5

7.1 Initial Review 5

7.2 Effective Date (see General Rules 7.3) 5

7.3 Tier Classifications for Advice Letters 6

7.3.1 Tier 1 6

7.3.2 Tier 2 7

7.3.3 Tier 3 8

Industry Rule 8. Procedures for Specific Types of Advice Letters 8

8.1 Service Extension into Contiguous or Other Area (see Pub. Util. Code §§ 1001, 2709, 8202; Industry Rules 4.2, 7.3.2(10)) 8

8.2 Request for Similar Treatment (see Industry Rule 7.3.2(8)) 9

8.3 Contract or Other Deviation (see Pub. Util. Code §§ 532, 2712; General Rule 8.5.6; Industry Rules 4.3, 7.3.2(3)) 9

8.4 Expense Offset (see Industry Rule 7.3.2(5)) 10

8.5 Balancing Account Amortization (see Industry Rule 7.3.1(1)) 10

8.6 Recycled Water (see Pub. Util. Code § 455.1; Industry Rule 7.3.2(8)) 10

8.7 Withdrawal or Withholding of Service (see Pub. Util. Code §§ 2708, 2710, 2711; Industry Rule 7.3.3(11)) 11

8.8 Service to Government Agency (see General Rule 8.2.3; Industry Rule 7.3.1(7)) 11

Industry Rule 9. Tariff Publication, Format 11

9.1 Tariff Schedules 11

9.2 Tariff Rules (see General Rule 8.5.7) 13

Industry Rule 10. Service Area Maps (see General Rule 8.5.4) 13

Water Industry Rules

Industry Rule 1. Additional Definitions

In addition to the definitions in General Rules 3 to 3.16, the following definitions apply to the defined terms, which will appear with the initial letter capitalized when used in these Industry Rules.

1.1 Balancing Account (see Public Utilities (Pub. Util.) Code Section 792.5)

A deferred charge or credit account approved by the Commission for recovery or refund (see General Rule 8.5.3).

1.2 Class A, Class B, Class C, Class D (see Decision (D.) 85-04-076)

A Utility is designated Class A if it serves over 10,000 service connections, Class B if it serves 2,001 through 10,000 service connections, Class C if it serves 501 through 2,000 service connections, and Class D if it serves no more than 500 service connections.

1.3 Compliance Advice Letter

An advice letter requesting approval of the utility's proposed implementation of a specific mandate in a statute or Commission order. Typically, a Compliance Advice Letter requests that tariff changes attached to a decision or resolution be made effective.

1.4 Contact Person

A person identified on the title page of a Utility's tariffs as the Utility's authorized representative for all rate and service quality matters.

1.5 Contract

An agreement between a Utility and a developer or customer to provide service under rates or conditions not offered in the Utility's tariffs or standard form contracts.

1.6 Industry Rule

An Industry Rule contained in these Industry Rules, as set forth in General Order 96-B or its successor.

1.7 Informal General Rate Case (see D.92-03-093)

A general rate case for a Class B, Class C, or Class D Utility that is requested by advice letter rather than by formal application.

1.8 Memorandum Account (see D.85-04-076)

A deferred charge or credit account that, as described in the Utility's preliminary statement (see General Rule 8.5.3) has been authorized by the Commission; however, deferred charges or credits shown in the Memorandum Account may be recovered in rates only after a request by the Utility, a showing of their reasonableness, and approval by the Commission.

1.9 Staff

The Water Division (or its successor).

1.10 Standard Practice

A Water Division document that provides procedural guidelines (1) to the public and Utilities for preparing, and filing with the Water Division or the Commission, various documents, including formal applications and advice letters, and (2) to Staff for reviewing such documents and creating Water Division work products. Copies of Standard Practices are available on request from the Water Division and are published on the Commission's Internet site.

1.11 Utility

A public Utility that is a water corporation (see Pub. Util. Code § 241) or a sewer system corporation (see Pub. Util. Code § 230.6).