Friday, September 23, 2016

Mission Trail Nature Preserve Mountain View Avenue Entrance Project: (Photographic) PROGRESS REPORT WEEK SEVEN

View to the West, Toward Mountain View Avenue Entrance, Mission Trail Nature Preserve

Proceeding Number A.12-04-019 DECISION ON CALIFORNIA-AMERICAN WATER COMPANY’S APPLICATION FOR APPROVAL OF THE MONTEREY PENINSULA SUPPLY PROJECT SPECIFICALLY IN REGARDS TO PHASE 2

ABSTRACT: Re: Application of California-American Water Company (U210W) for Approval of the Monterey Peninsula Water Supply Project and Authorization to Recover All Present and Future Costs in Rates, the DECISION ON CALIFORNIA-AMERICAN WATER COMPANY’S APPLICATION FOR APPROVAL OF THE MONTEREY PENINSULA SUPPLY PROJECT SPECIFICALLY IN REGARDS TO PHASE 2 document copy is embedded. Summary Against the backdrop of a 2012 Application and the 2016 Amended Application, this decision addresses Phase 2 issues. In particular, we authorize California-American Water Company (Cal-Am) to enter into a revised Water Purchase Agreement (WPA). The revised WPA provides that the Monterey Regional Water Pollution Control Agency sells purified water from its advanced treated Pure Water Monterey Ground Water Replenishment Project to the Monterey Peninsula Water Management District, which will in turn sell it to Cal-Am for distribution to ratepayers in the Monterey District service area.
This decision also authorizes Cal-Am to build the Monterey pipeline and Monterey pump station, subject to compliance with a Mitigation Monitoring and Reporting Program to address environmental issues. These facilities are necessary for the efficient and optimal use of the Aquifer Storage and Recovery system as well as the Groundwater Replenishment Project, including conveyance of water over a hydraulic gradient. The decision adopts a cost cap of $50.3 million for the combined pipeline and pump station project. Furthermore, the decision authorizes limited financing and ratemaking features, including cost-recovery of used and useful facilities via two advice letters.
This proceeding remains open to resolve Phase 1 issues relative to a certificate of public convenience and necessity for a proposed desalination plant and related facilities.  
IT IS ORDERED that:
1. California-American Water Company is authorized to enter into the Revised Water Purchase Agreement contained in Appendix C.
2. California-American Water Company (Cal-Am) shall participate in each Monterey Regional Water Pollution Control Agency (Agency) and Monterey Peninsula Water Management District (District) rate proceeding involving the Revised Water Purchase Agreement (WPA). Cal-Am shall serve written comments to the Agency and District in that rate proceeding. The written comments shall state any and all concerns of Cal-Am with Agency and District proposals, and provide alternative recommendations. If Cal-Am has no concerns, the written comments shall state it has no concerns. At the time Cal-Am serves its comments on the Agency and District, it shall simultaneously serve a copy of the comments on the Commission’s Director of the Division of Water and Audits.
3. California-American Water Company is authorized to upgrade the existing Hilby Avenue Pump Station and construct and operate the Monterey pipeline that was evaluated in the Environmental Impact Report prepared for the Pure Water Monterey Groundwater Replenishment Project as the “Alternative Monterey Pipeline.”
4. Construction of the pipeline and pump station is conditioned on compliance by California-American Water Company with the Mitigation Monitoring and Reporting Program contained in Appendix E.
5. Within 30 days after completion of the pipeline, and the pump station, California-American Water Company shall notify the Division of Water by letter that those facilities are completed.
6. The authorization to build the pipeline and pump station is subject to a cost cap of $50.3 million for the combined pipeline and pump station project. If actual costs exceed the cap, California-American Water Company is authorized to file a Tier 3 advice letter to seek additional recovery.
7. California-American Water Company (Cal-Am) is authorized to make two separate Tier 2 advice letter filings to place the costs of the pipeline and pump station into rates. Cal-Am shall file the first Tier 2 advice letter by April 30, 2017 to cover costs for the pipeline and pump station through March 30, 2017, reflecting the recovery of actual costs for the used and useful portions of the facilities to date. Cal-Am shall include a showing with its advice letter that the expended costs are reasonable, and a showing that the pipeline and pump station are sized appropriately for purposes of maximizing reasonable use of the Pure Water Monterey Groundwater Replenishment Project and the Aquifer Storage and Recovery Project pursuant to terms of the Water Purchase Agreement, including optimizing transfers within applicant’s system. Cal-Am shall file the second Tier 2 advice letter within 90 days after the pipeline and pump station are completed and fully in service, and shall include a showing with its advice letter that the expended costs are reasonable, and a showing that the pipeline and pump station are sized appropriately for purposes of maximizing reasonable use of the Pure Water Monterey Groundwater Replenishment Project and the Aquifer Storage and Recovery Project pursuant to terms of the Water Purchase Agreement, including optimizing transfers within applicant’s system. Commission staff shall follow the guidance stated in the body of this decision in its processing of each Tier 2 advice letter.
8. California-American Water Company (Cal-Am) shall track in a separate section of the its facilities memorandum account: (a) the costs of the pipeline and pump station (including allowance for funds used during construction); (b) a pro-rated portion of the engineering and environmental costs of the entire Cal-Am facilities; and (c) and any portion of the pipeline or pump station placed in service prior to the Commission approving the costs to be included in plant in service and recovered in base rates.
9. The Rulings of the Administrative Law Judge(s), and the Joint Rulings of the assigned Commissioner and the Administrative Law Judge(s), are affirmed.
10. The Commission hereby adopts this Statement of Overriding Considerations, which is attached to Monterey Peninsula Water Management District Resolution No. 2016-12 and incorporated herein by this reference.
11. Application 12-04-019 remains open to address Phase 1 issues.
This order is effective today.
Dated September 15, 2016, at San Francisco, California.
MICHAEL PICKER
President
MICHEL PETER FLORIO
CATHERINE J.K. SANDOVAL
LIANE M. RANDOLPH
Commissioners
Date of Issuance 9/22/2016
DECISION ON CALIFORNIA-AMERICAN WATER COMPANY’S APPLICATION FOR APPROVAL OF THE MONTEREY PENINSULA SUPPLY PROJECT SPECIFICALLY IN REGARDS TO PHASE 2

Wednesday, September 21, 2016

Public Utilities Commission of the State of California Internal Results of Commission Meeting September 15, 2016 – Agenda 3384: Proceeding # A12-04-019 Decision # D.16-09-021 Outcome Signed

ABSTRACT:  On Thursday, September 15, 2016, the California Public Utilities Commission on “unanimously approved a critical water purchase agreement for the $85 million proposal, along with a $50 million California American Water-owned delivery pipeline and pump station,” according to reporting in The Monterey County Herald.

REFERENCES:

PUC backs Pure Water Monterey recycled water project, Cal Am pipeline
By Jim Johnson, Monterey Herald

Posted:

Proceeding # A12-04-019
Decision # D.16-09-021
Outcome Signed
Comments Signed 4-0. Commissioner Catherine J.K. Sandoval reserves the right to file a Concurrence. Commissioner Carla J. Peterman being necessarily absent, did not participate.

SOURCE: Public Utilities Commission of the State of California
Internal Results of Commission Meeting
September 15, 2016 – Agenda 3384
Commissioners: Michael Picker, President, Michel Peter Florio, Carla J. Peterman, Liane M. Randolph, Catherine J.K. Sandoval

Proceeding Number A.12-04-019 PUBLIC TRUST ALLIANCE COMMENT ON PROPOSED DECISION

ABSTRACT: Re: Application of California-American Water Company (U210W) for Approval of the Monterey Peninsula Water Supply Project and Authorization to Recover All Present and Future Costs in Rates, the PUBLIC TRUST ALLIANCE COMMENT ON PROPOSED DECISION document copy is embedded. CONCLUSION PTA provides this information in support of the Proposed Decision approving the GWR project and requests that the Commission incorporate information that it deems helpful in promoting and protecting the environment and the interests of the public.
FILED 9-01-16
PUBLIC TRUST ALLIANCE COMMENT ON PROPOSED DECISION

Proceeding Number A.12-04-019 JOINT COMMENTS ON THE PHASE 2 PROPOSED DECISION

ABSTRACT: Re: Application of California-American Water Company (U210W) for Approval of the Monterey Peninsula Water Supply Project and Authorization to Recover All Present and Future Costs in Rates, the JOINT COMMENTS ON THE PHASE 2 PROPOSED DECISION document copy is embedded. CONCLUSION For the foregoing reasons, the Joint Parties respectfully request that the PD be revised to include the requested modifications set forth in Attachment B to these Comments.
FILED 9-01-16
JOINT COMMENTS ON THE PHASE 2 PROPOSED DECISION
ATTACHMENT A
ATTACHMENT B