Proceeding Number A.12-04-019 MARINA COAST WATER DISTRICT’S APPLICATION FOR REHEARING OF 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 MARINA COAST WATER DISTRICT’S APPLICATION FOR REHEARING OF DECISION document copy is embedded.  SUMMARY OF MCWD’S RECOMMENDATIONS Due to the many serious legal errors presented by D.18-09-017, which granted the instant application of the California-American Water Company (“Cal-Am”) for a Certificate of Public Convenience and Necessity (“CPCN”) to construct and operate the desalination component of its Monterey Peninsula Water Supply Project (“MPWSP”), the Commission should set aside and/or vacate D.18-09-017, so that it may resolve the legal errors raised in this application. Among other things, such resolution requires revision and recirculation of the Commission’s Final Environmental Impact Report (“FEIR” or “final EIR”) and the conduct of evidentiary hearings on all potentially feasible project alternatives, including in particular the expansion of the existing Pure Water Monterey (“PWM”) project of Monterey One Water (“M1W”), in cooperation with the Monterey Peninsula Water Management District (“MPWMD”), and proposed long-term sales of water by MCWD.

CONCLUSION For all the reasons set forth herein, the Commission should promptly grant rehearing, so that it may cure each of the errors set forth above, including the Commission’s prejudicial procedural and due process errors. It should vacate or set aside D.18-09-017, rescind the CPCN, and conduct thorough evidentiary hearings on all potentially feasible project alternatives, including in particular the expansion of PWM as well as proposed long-term sales of water by MCWD. The Commission should also revise and recirculate for public comment a legally sufficient EIR prior to taking any further action on the MPWSP desalination project.
In the alternative, because the MPWSP is plainly not required for the current or future public convenience and necessity even if demand for 14,000 AFY of supply appears likely to materialize within the 30-year lifespan of the project as explained above, upon rehearing and correction of its prejudicial legal errors related to project feasibility, the Commission should deny the application and either open a Phase 3 of this proceeding to examine in thorough evidentiary hearings all potentially feasible project alternatives. Alternatively, the Commission should direct Cal-Am to negotiate new water purchase agreements with M1W and/or MCWD to augment supply for its Monterey District and return to the Commission with such agreements for Commission approval.

FILED 10/19/18
MARINA COAST WATER DISTRICT’S APPLICATION FOR REHEARING OF DECISION 18-09-017