Wednesday, April 11, 2018

Proceeding Number A.15-07-019 PRESIDING OFFICER’S DECISION ADOPTING PHASE 3B SETTLEMENT AGREEMENT

ABSTRACT: RE: Application of California-American Water Company (U210W) for Authorization to Modify Conservation and Rationing Rules, Rate Design, and Other Related Issues for the Monterey District, the PRESIDING OFFICER’S DECISION ADOPTING PHASE 3B SETTLEMENT AGREEMENT document copy is embedded. Summary This decision grants the February 24, 2017 motion for adoption of a Settlement Agreement with respect to the Phase 3B Settlement Agreement filed on March 8, 2017.  This resolves all Phase 3B issues. Phase 3B is an adjudication of whether a penalty should be imposed upon California-American Water Company in connection with management of its Monterey District tariffs and, if so, how much. The Phase 3B Settlement Agreement includes a return of $500,000 to ratepayers, thereby resolving  disputed issues and recognizing that some customers may have been affected by inaccurate allotments as part of California-American Water Company’s tariff management. It also provides that California-American Water Company will take several actions to improve tariffs, enhance information regarding its tariffs, and expand upon its shared responsibilities with the Monterey Peninsula Water Management District. The proceeding remains open for resolution of Phase 3A. IT IS ORDERED that:
1. The February 24, 2017 motion for adoption of the Settlement Agreement is granted with respect to the Phase 3B Settlement Agreement filed on March 8, 2017.
2. The $500,000 cost waiver in § 4.2.1 shall be applied to the current Water Revenue Adjustment Mechanism/Modified Cost Balancing Account balance.
3. The provisions in § 4.3.2 shall include, but not be limited to: (a) a new website with a new URL, (b) information on the Modified Cost Balancing Account as well as the Water Revenue Adjustment Mechanism, (c) a “one-stop shop” experience for customers, (d) an explanation of the principles that guided the rate design changes, and (e) the website shall remain active beyond 2017. The information on the website shall communicate, educate and inform Monterey District customers regarding rates and rate design changes including, to the extent adopted by the Commission in Phase 3A, appropriate information on the annual consumption true-up pilot program. California American Water Company may seek authority in a future general rate case to deactivate this webpage but absent the grant of such request the webpage shall remain active. While active, California American Water Company shall review the content no less often than annually with the Commission’s Office of Ratepayer Advocates and the Monterey Peninsula Water Management District, and shall make changes when necessary at any time to keep the webpage accurate and current.

FILED 04-09-18
PRESIDING OFFICER’S DECISION ADOPTING PHASE 3B SETTLEMENT AGREEMENT


ATTACHMENT 1
SETTLEMENT AGREEMENT ON PHASE 3B ISSUES
Filed on March 8, 2017

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