Waiver of Comment Period - California

?ALJ/CFG/mln/mph Date of Issuance 7/2/2020 Decision 20-06-057 June 25, 2020BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIAIn the Matter of the Application of CALIFORNIA WATER SERVICE COMPANY (U-60-W), a California corporation, for an order (1) authorizing it to increase rates for water service by $50,673,500 or 7.6% in test year 2020, (2) authorizing it to increase rates on January 1, 2021 by $31,461,900 or 4.4% and on January 1, 2022 $33,000,700 or 4.4% in accordance with the Rate Case Plan, and (3) adopting other related rulings and relief necessary to implement the Commission’s ratemaking policies.Application 18-07-001ORDER EXTENDING STATUTORY DEADLINESummaryThis decision extends the statutory deadline in this proceeding to September 30, 2020.BackgroundPublic Utilities Code (Pub. Util. Code) Section 1701.5(a) provides that the Commission shall resolve the issues raised in the scoping memo of a ratesetting proceeding within 18 months of the date the proceeding is initiated, unless the Commission makes a written determination that the deadline cannot be met, and issues an order extending that deadline. In this proceeding, the original 18-month statutory deadline for resolving this application was January 1, 2020. However, as indicated below, on December 24, 2019, that statutory deadline was extended to July 1, 2020, by Decision 19-12-059.On July 2, 2018, California Water Service (Cal Water) filed this application for an order authorizing it to increase its rates for water service. On July 16, 2018 Cal Water amended its application to seek a higher rate increase than the original request. On August 13, 2018, the City of Lancaster filed its response and then the Office of Ratepayers Advocates, now the Public Advocates Office, filed its protest.A prehearing conference (PHC) was held on October 12, 2018, to discuss the issues of law and fact and to determine the need for hearing and schedule for resolving the matter. The assigned Commissioner issued the Scoping Memo and Ruling on November 21, 2018.Several public participation hearings were held in Cal Water’s service territory in January, February, and March 2019. Evidentiary hearings were held on July 1-2, 2019 and August 6-7, 2019. Briefing was completed in September 2019, and on October 8, 2019, Cal Water and Public Advocates Office filed a Joint Motion for Adoption of Settlement Agreement. To allow time for review of the settlement agreement and consideration of the several disputed issues that remained in the proceeding, on December 24, 2019, the Commission issued a decision to extend the proceeding’s statutory deadline to July 1, 2020. On March 2, 2020, the proceeding was reassigned from Administrative Law Judges Eric Wildgrube and Charles Ferguson to Administrative Law Judge Charles Ferguson solely.During March, April, and May 2020 several motions, both substantive and procedural, were filed. Notably, a motion was filed on April 28, 2020 jointly by Cal Water and the Public Advocates Office to reopen the record and allow them to amend the settlement agreement they submitted in October 2019. The amendment seeks to forestall a potentially significant rate increase for Cal Water customers in Palos Verdes in light of the health and economic impacts of the Covid-19 pandemic. A similar motion was filed the same day by Cal Water alone, seeking a systemwide rate freeze on account of the impacts of Covid-19 on Californians generally.A proposed decision resolving this matter is expected to be published in the very near future. Therefore, an extension of the statutory deadline until September 30, 2020 is necessary to allow time for the Commission to deliberate, review public comments, if any, and to issue its final decision.Waiver of Comment PeriodUnder Rule 14.6(c)(4) of the Commission’s Rules of Practice and Procedure, the Commission may reduce or waive the period for public review and comment of the proposed decision extending the deadline for resolving ratesetting proceedings. Accordingly, the otherwise applicable period for public review and comment is being waived.Assignment of ProceedingLiane Randolph is the assigned Commissioner and Charles Ferguson is the assigned Administrative Law Judge in this proceeding.Findings of FactThis application was filed by California Water Service Company on July 2, 2018.A prehearing conference was held on October 12, 2018.A Scoping Memo and Ruling was issued on November 21, 2018.A series of public participation hearings were held in the service territory of California Water Service Company during January, February, and March 2019. Evidentiary hearings were held on July 1-2, 2019 and August 6-7, 2019. On October 8, 2019, California Water Service Company and the Public Advocates Office filed a Joint Motion to Adopt a [Partial] Settlement Agreement. Several significant issues in the proceeding were not settled. On December 24, 2019, an extension order was issued that extended the statutory deadline to July 1, 2020.On April 28, 2020, California Water Service Company and the Public Advocates Office jointly moved to reopen the record to allow them to amend their October 8, 2019 settlement agreement in a manner that would forestall the rate impact of a large pipeline replacement project on customers in Palos Verdes in order not to compound the effects of the Covid-19 pandemic on those customers.On April 28, 2020 California Water Service Company, individually, filed a motion to freeze all rates throughout its system until January 1, 2021.A proposed decision on this matter is expected to be published in the very near future.An extension of the statutory deadline to September 30, 2020, is necessary to allow sufficient time to publish the proposed decision, review comments received on the proposed decision and allow the Commission enough time to deliberate and to issue its final decision.Conclusion of LawPursuant to the authority granted to the Commission under Public Utility Code § 1701.5 (a), the statutory deadline in this proceeding should be extended 91-days to September 30, 2020.IT IS ORDERED that the statutory deadline in this proceeding is extended until September 30, 2020.This order is effective today.Dated June 25, 2020, at San Francisco, California.MARYBEL BATJER PresidentLIANE M. RANDOLPHMARTHA GUZMAN ACEVESCLIFFORD RECHTSCHAFFENGENEVIEVE SHIROMA Commissioners ................
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