1. California-American Water Company shall, within 30 days of the date of this decision, file a Tier 2 advice letter in conformance with General Order 96-B. The advice letter shall request recovery of the 2013 and 2014 Water Revenue Adjustment Mechanism/Modified Cost Balancing Account balance for the Monterey District of $39.8 million authorized in this decision, to be recovered over five years with interest at the 90-day commercial paper rate. The recovery shall be by a fixed monthly surcharge assessed on the basis of meter size using standard meter ratios. The multiple volumetric surcharges now in place for this recovery shall be terminated concurrent with the advice letter becoming effective.
2. Future Water Revenue Adjustment Mechanism/Modified Cost Balancing Account advice letters filed and served by California-American Water Company (Cal-Am) for the Monterey District shall request recovery of under-collections (or refunds of over-collections) by a uniform surcharge (or surcredit) on each unit of water sold (volumetric rate) including Tier 1. Cal-Am shall provide customer notice of each such advice letter consistent with General Order (GO) 96-B. In addition, for each of the next three advice letter requests, Cal-Am shall notify all customers in the Monterey District by bill insert or direct mail of the request even if that notice is not otherwise required by GO 96-B. The Notice shall be approved by the Commission’s Public Advisor before it is issued by Cal-Am.
3. California-American Water Company (Cal-Am) shall, within 30 days of the date of this decision, file a Tier 2 advice letter in conformance with General Order 96-B. The advice letter shall include tariffs for the Monterey District that: (a) eliminate the residential allotment system, (b) recover 30 percent of residential customer fixed costs in the residential monthly service charge, (c) use the temporary modification to standard residential meter ratios recommended by Cal-Am for recovery of the increased percentage of fixed costs in the residential monthly service charge, (d) use the standardized residential rate design recommended by Cal-Am in which each customer gets the same amount of water in each tier at the tier break points and modified block widths, (e) reduce the multiple of Tier 5 to Tier 1 residential rates to 8 as proposed by Cal-Am, (f) use 2015 residential consumption data for rate development, (g) apply a 30 percent discount from the monthly service charge and the rates in Tier 1 through 4 for customers in the low income ratepayer assistance program, and (h) move 8.4 percent of forecast revenue collection from residential to non-residential customers. Cal-Am shall, and parties may, as soon as feasible, recommend elimination of the temporary modification to the standard residential meter ratios for recovery of the increased percentage of fixed costs in the residential monthly service charge.
4. California-American Water Company shall study the following issue and report its findings along with its recommendations in Application 16-07-002. The issue is the potential for automatic enrollment in the low income ratepayer assistance program, along with coordination with energy utilities, municipalities, and community based organizations to provide conservation information and tools to its customers.
5. The June 17, 2016 Motion for Adoption of Settlement Agreement Between California-American Water Company and Monterey Peninsula Water Management District on the Annual Consumption True-Up Pilot Program and on the Modifications to Monterey District Rule 14.1.1 and Tariff Schedule MO-14.1.1 is denied. California-American Water Company and parties are encouraged to file and serve a motion for Commission adoption of an improved annual consumption true-up pilot program, with the improvements incorporating those stated in the body of this decision as well as addressing the issues also stated in the body of the decision. That motion, if any, shall be filed and served within 60 days of the date of this decision. The Administrative Law Judge may extend the 60 day deadline for good cause.
6. California-American Water Company (Cal-Am) shall, within 30 days of the date of this decision, file a Tier 2 advice letter in conformance with General Order 96-B. The advice letter shall include a modified Monterey District Rule 14.1.1 and Tariff Schedule MO-14.1.1 that is consistent with the proposal attached to July 13, 2016 Reply Comments filed by Cal-Am and Monterey Peninsula Water Management District with one modification: Schedule 14.1.1 part B.4 (and related part(s) in Rule 14.1.1 if any) shall be modified to read: “Once the Schedule is activated, utility can implement Stages 2, 3, and 4 or change levels of the Emergency Conservation Rates, of the Schedule by filing a Tier 2 advice letter.”
7. Application 15-07-019 remains open to address (a) a motion, if filed, for Commission adoption of an improved annual consumption true-up pilot program, and (b) a penalty phase.
DECISION ADDRESSING WRAM BALANCES, RATE DESIGN, CONSERVATION AND RATIONING RULES, AND OTHER ISSUES FOR THE MONTEREY DISTRICT
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