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CALIFORNIA AMERICAN WATER - COASTAL WATER PROJECT
NOTICE OF PUBLIC PARTICIPATION HEARING
CALIFORNIA AMERICAN WATER - COASTAL WATER PROJECT
INTERIM RATE RELIEF
APPLICATION NO. 04-09-019
The California Public Utilities Commission (CPUC) has scheduled a Public Participation Hearing (PPH) regarding California American Water’s proposal for interim rate relief for the proposed Coastal Water Project (CWP) which includes a desalination plant. The PPH will be held on July 18, 2006 at 7:00 p.m. at the Monterey Marriott Hotel - San Carlos 1 Ballroom, 350 Calle Principal in Monterey. This phase of the proceeding is limited to California American Water’s request for interim rate relief, in which it seeks two separate surcharges, applicable to all Monterey service area customers who would benefit from the Coastal Water Project, based on a percentage of the customer bill. If approved by the CPUC, both surcharges would take effect in January 2007.
Surcharge #1: The purpose of proposed Surcharge #1 is to allow recovery of approved preconstruction costs. California American Water has proposed a three-phase surcharge. The Phase 1 surcharge would be 4% of the customer’s water service bill and would be instituted on January 1, 2007. In Phase 2, beginning July 1, 2007 the surcharge would be increased to 7%. In Phase 3, starting January 1, 2008, the surcharge would be increased to 10%. The 10% surcharge would remain in place through 2014, when the full recovery of the allowed balance would be recovered, with accrued interest.
Surcharge #2: The purpose of proposed Surcharge #2 is to generate revenues to offset the costs of a long-term water supply solution for the Monterey District, whether it is the Coastal Water Project or an alternative project. California American Water recommended a surcharge of 15% of the customer’s water bill starting in January 2007, a surcharge of 30% starting in September 2007, and a surcharge of 45% of the customer’s water bill starting in April 2008. If the Coastal Water Project is not completed by January 2009, the surcharge would increase to 60% of the customer’s water bill at that time.
California American Water has proposed the CWP as a viable water supply alternative to the formerly proposed Carmel River Dam and Reservoir. The CWP will enable California American Water to provide Monterey District customers with a reliable and legal water supply and comply with State Water Resources Control Board (SWRCB) Order 95-10, which directs California American Water to find an alternative source for water historically taken from the Carmel River. The major new facilities proposed are (1) a desalination plant at Moss Landing and associated, desalinated water conveyance facilities, and (2) aquifer storage and recovery (ASR) facilities in Seaside. Total production will be 11,730 acre feet annually, which would allow California American Water to fulfill its obligations with regard to SWRCB Order 95-10, reduce the overdraft of the Seaside Basin, and address Endangered Species Act-related issues in the Carmel River Basin. The new supplies will be operated in conjunction with existing supplies, with the desalination plant and the Carmel River being used to meet winter demand and the desalination plant, Seaside wells and new ASR wells being used to meet peak summer demands.
The CPUC will conduct a separate phase of this proceeding to address the selection of a water supply solution, either the Coastal Water Project or another alternative. This will commence after the Environmental Impact Report on the proposed CWP is further underway.
The PPH has been scheduled as noted above and provides an opportunity for customers to present their views, comments and opinions regarding the application. The assigned Administrative Law Judge from the CPUC will preside over the PPH. A CPUC court reporter will be recording your comments for the record. There will be two representatives from the CPUC’s Public Advisors Office who will be assisting in the facilitation of this hearing. Representatives from California American Water will be available to explain their proposal. The CPUC’s independent Division of Ratepayer Advocates will also be in attendance to listen to your concerns about California American Water’s proposal. Your comments can help the CPUC reach an informed decision, and you are encouraged to attend this hearing.
July 18, 2006 at 7:00pm
Monterey Marriott Hotel - San Carlos 1 Ballroom
350 Calle Principal
Monterey, California 93940
These facilities are handicap accessible. If specialized accommodations are needed, such as language interpreters or assistance for the hard of hearing, please contact the CPUC’s Public Advisor’s Office at (415) 703-2074, toll-free at 1-866-849-8390, TTY toll-free at 1-866-836-7825, or regular TTY at (415) 703-5282 at least five working days prior to the hearing.
The CPUC welcomes your participation and comments. If you cannot attend the PPH, you may submit written comments to: CPUC, Public Advisor’s Office, 505 Van Ness Avenue, San Francisco, CA 94102, or e-mail to public.advisor@cpuc.ca.gov. Please reference Application 04-09-019 in your written comments. Your comments will be circulated to the Commissioners and the assigned Administrative Law Judge and will become part of the formal correspondence file as part of the record in this proceeding.
Additional information on this proceeding can be found at the following websites:
www.coastalwaterproject.com
www.cpuc.ca.gov
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