CJS/sf3 11/21/2016

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

FILED

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.

11-21-16
10:54 AM

Application 12-04-019
(Filed April 23, 2012)

THIRD AMENDED SCOPING MEMO AND RULING

OF THE ASSIGNED COMMISSIONER EXTENDING DEADLINE
TO JUNE 30, 2018
SUMMARY
The statutory deadline to complete this proceeding is extended to
June 30, 2018.
1.

BACKGROUND
This proceeding involves a proposal by California-American Water

Company (Cal-Am or applicant), in response to a State Water Resources Control

Board Cease and Decease Order, to construct and operate water production and
storage facilities in lieu of pumping Carmel River water unlawfully. The
proposal is called the Monterey Peninsula Water Supply Project (MPWSP). The
MPWSP consists of three components: aquifer storage and recovery project,
groundwater replenishment project (GWR), and a desalination plant.
The proceeding is bifurcated into two phases. Phase 1 addresses whether
or not the Commission should grant applicant a Certificate of Public
Convenience and Necessity (CPCN) for a desalination plant and related facilities.
Phase 2 deals with the GWR and, in particular, whether applicant should be
authorized by the Commission to enter into a water purchase agreement for

169870506

-1-

A.12-04-019 CJS/sf3
GWR water. Phase 2 was resolved by Decision 16-09-021 in September 2016.
Phase 1 issues remain.
The statutorily required completion date for this proceeding initially was
December 28, 2013.1 For reasons stated in the Amended Scoping Memo and
Assigned Commissioner Ruling filed on September 25, 2013, the proceeding
deadline was extended to September 28, 2015. 2 For reasons stated in the Second
Amended Scoping Memo and Ruling of the Assigned Commissioner filed on
August 19, 2015, the proceeding deadline was further extended to December 31,
2016.
The two deadline extensions were required for several reasons including
necessary delays in preparation of the draft Environmental Impact Report (EIR)
required under the California Environmental Quality Act. The draft EIR was
circulated for comment on April 30, 2015.
The Monterey Bay National Marine Sanctuary (Sanctuary) must also
complete an Environmental Impact Statement (EIS) on the MPWSP, as required
under the National Environmental Policy Act. In September 2015, the
Commission decided to revise and recirculate the draft EIR as a joint draft
EIR/EIS in collaboration with the Sanctuary. On March 14, 2016, Cal-Am filed
an amended application with a revised project description. The joint draft
EIR/EIS will be based on the project as revised in March 2016.

This proceeding is categorized as ratesetting. Public Utilities Code Section 1701.5(a) requires
ratesetting proceedings to be completed within 18 months of the date of the Scoping Memo. The date of
the Scoping Memo was June 28, 2012.
2

Public Utilities Code 1701.5.

-2-

A.12-04-019 CJS/sf3
2.

EXTENSION OF STATUTORY DEADLINE

On March 17, 2016 (three days after applicant filed its amended

application), the Commissions Energy Division served notice on all parties in

this proceeding of the following revised schedule for the environmental work:
TASK
Draft EIR/EIS issued for public comment
End of 45 day public review/comment period
Final EIR/EIS published
30 day federal review period
EIR/EIS certification plus Notice of
Determination and Record of Decision

DATE
December 21, 2016
February 4, 2017
September 25, 2017
October 25, 2017
November 8, 2017

It is clear that this work will not be completed by the current proceeding
deadline of December 31, 2016. A further extension in the statutory deadline is
necessary.
Moreover, additional work remains in other parts of Phase 1. Phase 1 of
this proceeding addresses all issues necessary for Commission consideration of
whether or not to issue applicant a CPCN for construction and operation of a
desalination plant and related facilities. These issues include whether the
proposed MPWSP is a reasonable and prudent means of securing an adequate,
reliable, safe, and cost-effective water supply that meets Cal-Ams legal
requirements for the Monterey District; required for the public convenience and
necessity; and in the public interest (including consideration of community
values, recreational and park areas, historical and aesthetic values, and
environmental influences).3
See September 25, 2013 Amended Scoping Memo and Assigned Commissioner Ruling at page 3, and
Pub. Util. Code 1002(a).
3

-3-

A.12-04-019 CJS/sf3
Evidentiary hearings were completed on Phase 1 issues in May 2016.
Further process necessary to complete the CPCN portion of this proceeding will
be considered when the final EIR/EIS is published, including setting a schedule
for parties to file opening and reply legal briefs. A proposed decision must then
be prepared and filed on all Phase 1 issues, including consideration of
environmental impacts, followed by a period for parties comments. The matter,
along with alternate decisions if any, will then be considered by the full
Commission.
While every reasonable effort is being made to meet the environmental
review schedule, the final EIR/EIS may or may not be published as planned by
September 25, 2017. Nonetheless, if published by September 25, 2017, a briefing
schedule will be set with briefing perhaps completed and the matter submitted
for Commission decision by early November 2017. The proposed decision must
be filed within 90 days, or by early February 2018. The Commission may or may
not adopt the proposed decision, or an alternate decision, at its first opportunity
to consider the matter in early March 2018 (i.e., no sooner than 30 days after the
filing of the proposed decision). It is possible that the proposed decision will be
held and additional time will be required before the Commission reaches its final
decision.
Therefore, an extension to June 30, 2018 will allow time for the currently
planned completion of the environmental work, briefing, preparation of a
proposed decision, and consideration of the matter by the Commission as early
as March 2018. It also provides three months as a reasonable amount of

-4-

A.12-04-019 CJS/sf3
additional time for other possible limited contingencies.
IT IS RULED that the statutory deadline for this proceeding is June 30,
2018.
Dated November 21, 2016, at San Francisco, California.

/s/ CATHERINE J. K. SANDOVAL

Catherine J. K. Sandoval
Assigned Commissioner

-5-