04/13/17 9:30
a.m. ALJ Weatherford Comr Randolph
A.15-07-019 (EH) - 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. Commission Courtroom, San Francisco (Also April 14.) (EH) = Evidentiary Hearing
A.15-07-019 (EH) - 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. Commission Courtroom, San Francisco (Also April 14.) (EH) = Evidentiary Hearing
Joint Parties shall appear at an evidentiary hearing to be held at 9:30 a.m. on April 13, 2017, in the Commission Courtroom, 505 Van Ness Avenue, San Francisco, California. The hearing shall be held for Joint Parties to explain how the Phase 3A true-up mechanism works. California American Water Company shall appear and show cause why it should not be penalized for violations of the Public Utilities Code and Commission decisions. California American Water Company and the Office of Ratepayer Advocates shall, and other parties may, appear and address specific items addressed in this Ruling. By April 11, 2017, parties who intend to actively participate in the April 13 hearing shall each file and serve a prehearing statement that provides information specified herein to help organize the hearing. Parties shall be prepared to address other scheduling matters to conclude Phases 3A and 3B. The hearing may continue, if necessary, to April 14, 2017.
IT IS RULED that:
1. An evidentiary hearing will be held at 9:30 a.m. on April 13, 2017,in the Commission Courtroom, 505 Van Ness Avenue, San Francisco, California. The hearing may continue on April 14, 2017, if needed.
2. California American Water Company, Office of Ratepayer Advocates, Monterey Peninsula Water Management District, and Coalition of Peninsula Businesses (Joint Parties) shall appear at the evidentiary hearing. Joint Parties shall have one or more witnesses available to explain the operation and implementation of the Phase 3A pilot program, with copies of the material in sufficiently large type so as to be readable. Joint Parties shall have one or more witnesses available to address the reasonableness and feasibility of returning a Phase 3B cost recovery waiver to each customer as a bill credit.
3. California American Water Company is ordered to appear and show cause why it should not be penalized for violations of the Public Utilities Code and Commission decisions identified in Decision 16-12-003 and stated in this Ruling. Based on the assumption the Commission may determine a penalty is warranted, California American Water Company shall also address each of the following nine penalty considerations: the severity of the offense; the conduct of the utility; the financial resources of the utility; the totality of the circumstances; the role of precedent; the sophistication, experience and size of the utility; the number of victims; the economic benefit received from the unlawful acts; and the continuing nature of the offense. In particular, California American Water Company shall specifically provide (1) data on the financial resources of American Water Company, and (2) citations to relevant Commission decisions involving reasonably comparable factual circumstances with an explanation of any substantial differences in outcome. On the assumption that one or both Settlement Agreements will not be adopted by the Commission and a penalty is appropriate, the Office of Ratepayer Advocates, and other parties may, also appear at the hearing and be prepared to address the nine penalty considerations stated above.
4. The revised schedule for Phases 3A and 3B as set forth in the body of this Ruling is adopted. 5. Each party shall file and serve a prehearing statement with the following information no later than April 11, 2017: (a) a brief description of what the party expects to show at the hearing, (b) the name of each witness the party will sponsor, the subject of the testimony, and the proposed order, (c) a list of exhibits the party may seek to have identified, (d) an estimate of the amount of time necessary for direct, (e) an estimate of the amount of time necessary for cross-examination, and (f) anything else the Commission should reasonably consider in order to make the hearing efficient. To the best of their ability, California American Water Company and all other parties shall identify their witnesses and provide their exhibit list and all other relevant information to other parties in advance of April 11, 2017. All parties shall use all reasonable efforts to file and serve a joint prehearing statement.
6. All parties shall be prepared at the hearing on April 13, 2017 to address other scheduling matters to conclude Phases 3A and 3B as efficiently, equitably, and soon as reasonably possible.
Decision Addressing Wram Balances, Rate Design, Conservation and Rationing Rules, And Other Issues for the... by L. A. Paterson on Scribd
DECISION ADDRESSING WRAM BALANCES, RATE DESIGN, CONSERVATION AND RATIONING RULES, AND OTHER ISSUES FOR THE MONTEREY DISTRICT
O R
D E R
IT IS ORDERED that:
1. 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 request recovery of the Water Revenue Adjustment Mechanism/Modified Cost Balancing Account (WRAM/MCBA) balance through 2014 for the Monterey District of $39.8 million authorized in this decision, reduced by collections from existing WRAM/MCBA surcharges, to be recovered over five years with interest at the 90-day commercial paper rate. The advice letter shall clearly and fully itemize the WRAM/MCBA balance through 2014, including adjustments for collections from existing surcharges. 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. When the rates are to become effective, Cal-Am shall provide customer notice and explanation of the rate changes, with the notice first reviewed by the Commission‘s Public Advisor.
2. Future Water Revenue Adjustment Mechanism/Modified Cost Balancing Account (WRAM/MCBA) 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. This applies to all WRAM/MCBA balances recovered once the new rate design is implemented. 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 60 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, and shall do so by the time of Cal-Am‘s next general rate case (after Application 16-07-002) or explain in that general rate case why not. When the rates are to become effective, Cal-Am shall provide customer notice and explanation of the rate changes, with the notice first reviewed by the Commission‘s Public Advisor.
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 in Phase 3 to address (a) a motion, if filed, for Commission adoption of an improved annual consumption true-up pilot program, and (b) a penalty phase. Parties in Phase 3 shall address by evidence and briefs, as appropriate, whether or not a penalty (if any is ultimately assessed) can be returned directly to ratepayers, including the desirability, feasibility, legality, and any other relevant factors that must be considered in doing so.
DECISION ADOPTING SETTLEMENT AGREEMENT TO ELIMINATE SUMMER OUTDOOR WATERING ALLOTMENTS IN THE MONTEREY DISTRICT
This Phase 1 decision adopts a Settlement Agreement to eliminate the summer outdoor watering allotment for Tiers 3 and 4 in the Monterey District of the California-American Water Company, effective May 1, 2016. It also provides for direct notification to customers of such elimination. The decision takes effect immediately.
O R D E R
1. The December 16, 2015 motion to adopt the Phase 1 Settlement Agreement to eliminate summer outdoor watering allotments is granted.
2. The Settlement Agreement attached to this decision as Attachment A is approved.
3. Application 15-07-019 remains open to address the issues in Phase 2.
Timothy J. Sullivan,
Executive Director
Daily Calendar Friday, April 7, 2017
A1507019 – Proceeding
COMMISSIONER: Liane Randolph (Assigned Feb 10, 2017)
Cal Am facing potential multimillion-dollar fine over residential water allocation system
By
Jim
Johnson, Monterey Herald
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.
ALJ: Gary Weatherford (Assigned Jul 24, 2015)COMMISSIONER: Liane Randolph (Assigned Feb 10, 2017)
Posted:
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