DECISION ADDRESSING WRAM BALANCES, RATE DESIGN, CONSERVATION AND
RATIONING RULES, AND OTHER ISSUES FOR THE MONTEREY DISTRICT
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 2013 and 2014 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 3060 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.
Public Utilities Commission of the State of California
Results of Public Agenda 3389ThursdayDecember 1, 2016 9:30 a.m.
San Francisco, California
(Item #7)
