Professional Documents
Culture Documents
Blue Ribbon Report Section 2
Blue Ribbon Report Section 2
WATER/FLC/JPT/EYC/AJT/jlj
PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
RESOLUTION
SUMMARY
By Advice Letter (AL) 140-W filed on February 5, 2007, Apple Valley requests to revise
Rule 15, to incorporate a Supplemental Water Acquisition Fee to be charged to
applicants for a main extension and to revise the sample forms for Main Extension
Contracts to simplify the forms and conform to the proposed revision to Rule 15. This
resolution grants that request.
BACKGROUND
Apple Valley provides domestic water from its wells within the Mojave River Ground
Water Basin. The Mojave River Ground Basin has been in overdraft since about 1950.
The down stream producers filed suit in 1990 to stop this overdraft and the Mojave
Basin Area Adjudication was adopted in 1996. The resulting judgment is an
administrative process intended to provide a long-term reliable supply for the Mojave
Basin. The judgment required a global look at production, return flow, natural inflow,
and outflow to determine if the Mojave River Ground Water Basin is in balance
ensuring that demand does not exceed supply.
Apple Valley is a stipulating party located in the Alto sub-area of the Basin, with
adjudicated rights under the judgment. Apple Valley has a Base Annual Production
Right (based upon Apple Valley's historic production in 1989) equal to 13,180 acre-feet.
This right is subject to reduction under the judgment, for the purpose of basin
management. Free Production Allowance (FPA) is the amount of water that a producer
can pump in a given water year without incurring an obligation to buy water form the
Mojave Water Agency (MWA), the Watermaster for the Mojave Basin.
292335
Resolution W-4655
Apple Valley/ AL 140-W/FLC/JPT/EYC/ AJT/jlj
FPA is subject to adjustment on an annual basis and is currently set at 60% (also known
as "rampdown"). Producers such as Apple Valley are limited to 60% of the Base
Annual Production in order to bring the Mojave Basin into hydraulic balance. Under
the terms of the judgment, Apple Valley is allowed to pump as much water as needed
to serve its customers, subject to replacement water assessments.
Replacement water assessments, water production in excess of the FPA in any year,
may be satisfied by transfers of pumping rights from another Producer (leased water
rights) or by purchasing imported replacement water from MWA on an annual basis.
The Mojave Water Agency is a state water contractor and has an allocation of 75,800
acre-feet per year from the State Water Project.
Due primarily to the rampdown from the Base Annual Production Right and the effects
of fill-in growth, Apple Valley has sufficient FPA for approximately 50% of the annual
water production required for existing ratepayers and satisfies the remainder by leasing
water rights. Although Apple Valley has acquired some additional water rights over
the last few years, water rights available for purchase have been limited to small
quantities and on an infrequent basis. Although water rights are not readily available
for purchase, MWA offers a program whereby replacement water may be prepurchased at a discount for future years, "banked" in the groundwater basin, and
pumped in future years.
In June 2006, Apple Valley filed an advice letter for a Service Area Extension, Advice
Letter 135-W. In connection with this AL, the Division of Ratepayer Advocates (DRA)
expressed concerns regarding the effect of customer growth on the long-term
availability and cost of water supplies for Apple Valley. Apple Valley's analysis
concluded that at current rates and costs, the average main extension generates
additional revenues from new customers that are more than sufficient to cover
incremental costs associated with the main extension, including the costs of the water
necessary to serve the territory. In addition, long-term forecasting of the cost of water
in the Mojave Basin is difficult to perform with accuracy.
Apple Valley met extensively with both DRA and the Water and Audits Division on
this matter and continued to meet with DRA regarding the service area extension. The
two parties developed an informal proposal to address the issues raised by DRA, a
proposal to which both Apple Valley and DRA have agreed upon. This resolution
implements the Supplemental Water Acquisition Fee.
Resolution W-4655
Apple Valley/ AL 140-W/FLC/JPT/EYC/ AJT/jlj
Resolution W-4655
Apple Valley/ AL 140-W/FLC/JPT/EYC/ AJT/jlj
This resolution approves changes to the main extension contract forms in Apple
Valley's tariffs to be consistent with Rule 15, and to incorporate language relating to the
proposed fees, as well as the Supply Facilities Fees adopted previously.
Apple Valley currently has six sample main extension contract forms in its tariffs for
main extensions to serve subdivisions, tracts, housing developments, industrial
developments, commercial buildings, or shopping centers.
Apple Valley proposes that all of these forms be replaced by a sample main extension
contract to serve subdivisions, tracts, housing developments, industrial developments,
commercial buildings, or shopping centers which have a number of sections that can be
marked as applicable or non-applicable to all the various combinations discussed
above. This sample form is intended to simplify Apple Valley's tariffs and contract
administration.
The new sample form tariff uses language of various scenarios in Apple Valley's
existing sample forms, with sections added to address the Supply Facilities Fees in
D.05-12-020 and the proposed Supplemental Water Acquisition Fee. There is an
additional sample form just for Supplemental Water Acquisition Fees necessary if the
applicant elects to pay the fees as the meters are set rather than paying the entire
amount of the fee at the time of the completion of the main extension.
The primary new language of the Supplemental Water Acquisition Fee in Rule 15 is as
follows:
"A Supplemental Water Acquisition Fee will be charged to all applicants
for a main extension to serve a new subdivision, tract, housing project,
industrial development, commercial building, or shopping center as a
refundable advance in order to address issues of long-term availability
and cost of water supply. The purpose of the Supplemental Water
Acquisition Fee will be to fund Apple Valley's pre-purchase of
Replacement Water from the Mojave Water Agency (MWA), or for Apple
Valley to acquire water rights should they become readily available. Prepurchased Replacement Water purchased from MWA will be capitalized
with the life of the advance contract. The Supplemental Water Acquisition
Fee will be calculated as follows:
Resolution W-4655
Apple Valley/ AL 140-W/FLC/JPT/EYC/ Aff/jlj
A complete set up tariff changes, as requested in Apple Valley's advice letter, are
attached as Appendix A.
NOTICE AND PROTESTS
A notice of the proposed tariff changes was mailed to the service list. The Division
received no comments or protests.
1. The Water and Audits Division hereby recommends that the tariff Supplemental
Acquisition Fee and tariff sheets set forth in Appendix A are reasonable and should
be adopted.
2. This is an uncontested matter subject to the public notice comment exclusion
provided in the Public Utilities Code Section 311 (g) (3).
Resolution W-4655
Apple Valley/ AL 140-W/FLC/JPT/EYC/ AJT/jlj
1. Advice Letter No. 140-W filed on February 5, 2007, Apple Valley Ranchos Water
Company (Apple Valley) to revise Rule 15, Main Extensions, to incorporate a
Supplemental Water Acquisition Fee to be charged to applicants for a main
extension and to revise the sample forms for Main Extension Contracts to simplify
the forms and conform to the proposed revision to Rule 15 is hereby adopted.
2. This resolution is effective today.
I certify that the foregoing resolution was duly introduced, passed, and adopted at a
conference of the Public Utilities Commission of the State of California held on August
23, 2007; the following Commissioners voting favorably thereon:
Resolution W-4655
Apple Valley/ AL 140-W/FLC/JPT/EYC/ AJT/jlj
APPENDIX A
Resolution W-4655
Apple Valley/ AL 140-W/FLC/JPT/EYC/ AJT/jlj
Resolution W-4655
Apple Valley/ AL 140-W/FLC/JPT/EYC/ AJT/jlj
AT.ell O)ldll'ANV
OBIGl:.
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P.0.BOX"lWj
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MAIN EX11'NSIONS
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Resolution W-4655
Apple Valley/ AL 140-W/FLC/JPT/EYC/ AJT /jlj
APPLBVAI..LEYRAN'CB(..~ ,~1'HR.CCMP.ANY
JtE . .JED
Ca!P.U.C.SIJ!*:No.
RE'J.ISlill
c:at.P.U.C.Sheec.No..
217J<HTAWAmAD
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AP?lB VALLlrr, CALifOIQtlIA mo?-1005
RUl.EN0.15
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Resolution W-4655
Apple Valley/ AL 140-W/FLC/JPT/EYC/ AJT /jlj
APPIBV.AUEf&hNCIDSW.tt.~8R.CO..
BBVJSED
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Cal.P".UC.Sheet:'No..
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i'.O.BOX700S
APPL6VAI.IEY,CA92307-1'00!j
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APPLICANT:
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PRELIMIN.l11VQilEi:MEN'f: Thl&.cootractiJmtrmd:iolu~tothe~IQflQdin
~whhltevario.a~proW;boosof!MUl:ility's;Main~RuJe(bereimfta:~
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Exhibit C .imtalled by Apptimmt md conWjed. to Ul.o- Ulility. SUd::L ~tiQi will be med :fur tbi: pmpme
"ffumisbin,gJlublic 1dilii)' 'Q.ta- scwioe ro that:nain~whoselo~:tiqn i1 ~ bdqw eui/m
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Resolution W-4655
Apple Valley/ AL 140-W/FLC/JPT/EYC/ AJT/jlj
APPLBVALIBYRANCHOSW,
'.R.CO.
.RPYJSED
Cti.1
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111600ITAWA ROAD
P,0.BOX7005
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Resolution W-4655
Apple Valley/ AL 140-W/FLC/JPT/EYC/ AJT/jlj
APPLBVAI.U3.YRANCHOSWA
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Resolution W-4655
Apple Valley/ AL 140-W/FLC/JPT/EYC/ AJT/jlj
rut CO.
(',,gncdi:ni:
REVISW
Cal. -
RF.VISBD
Ca1.P.U.C.SlidNI).
J!ORMN0,5tv44gf:f
MAINRXTfiNIONCONTRACT
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SIGNATURE PAGE:
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n...No.
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Resolution W-4655
Apple Valley/ AL 140-W/FLC/JPT/EYC/ AJT/jlj
W~
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P.0.BOxTI.ms
Cal P.U..C, Shed No.
JOB #o 4UiXJOO<X
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ApploVolky- W-Co.
P.O. Box ?OOS~ Apc Valicy, CA. 92.'.JD7
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PBELIMINAflYSTA.'IEMENT; This~ ii~inta-~to'IM~ofl!.Ddia
~ wilh. ~wdou:s appl1cable pw&imu af.tb:;. Vd):f:j"I; Main&.!tmW:itRulti (bci.'OiA&ih!di::nal
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(1111: the-~ Ut:mi llnl1. ccmditil:m.
PJJBP<lfiEOFCQNJJIACT: ~ba&~b'awaterlllllia~bl-~a
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miro..""""'" "'""'"""" pirfunnod by w;i, ...i """"""'""'.,,.,,,,..... ..o .....,,..i..,
ibeUtilil;y,mtb1b;~(lf'S~W~~F(IOf,:itICdcscribtdin&hlliitBJIJld.~
I!xhibit C 11.t!ildtcd to U.I ~ $ucll fiwililica will bi: u~ REr lhe-~ of :fiimiehiogpUblic
ati!ity'\Tata" Jcrvir:c to th:af: tflrlaitt ~ Ioc:ated IS Wien'bod. {dQw ~Oir delioeated cm. tflc IIl3JI
attached to that cimmct as IWnbit A and bow.a a!I:
Milli~ tn'
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imill>.
1'hic<1 cnrnract cma!i Sq.p!eineal l;;'ater A.oqcimcm. ~ 'l.itrit:h AJipliw.t has Cltmrl to pay
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Agrice:-fa.
140-W
-By
L'61GHX. J'ORnAN
Tide
Resolution W-4655
Apple Valley/ AL 140-W/FLC/JPT/EYC/ AJT/jlj
1~W-
Cal.P.U.C.~Ni:>.
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f!QJTIES.TOBEIN&Td,!IFD:
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dltt:'oowiJA~ nJCfa'8
in ral(=or ~
o.fthe- Ftwhidl may have been approved by~CPUC a the: S'tbai ~mfff:r 4 set.
SUCC:ESSORS A1i]) .A$1ijNH: Thb<ibli~ ctftl!B.Afi:p1icant: Bhal1 Njcinland~. This.
agTel!OJe\'l.i Wt1 bind aOO hmn: tc. ~benefit M ilie hcirt,. ~ta!:ives. executors, adminmratcm.
~ imd.'ar aWp oftho ~PartV.8 hm:lo.
IVRISDJCTlON Olf PIJBLK~ u1JYT.l&'I CUMM.lSION: This Commt shill al all tim:li lit:
Sulijecl: to mi::h chnga or tDOdifi~ by lll Public UUlilica Cornmisrim m-m. Sll'lte ofCalifumis ar
.u said CommilD:m.ItJAY. from time t(I DnP~ ~in t1ie ex:mcl~eomibjurisdktiott.
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{T..,bi;.Uiwrll!ll fl)'oUliJy)
Ad\.'\ci:No>.
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'""
Resolution W-4655
Apple Valley/ AL 140-W/FLC/JPT/EYC/ AJT/jlj
APPLF.V.lllT..F.V:RAllCKORW
.1RCO.
ORIGJNAL
511-W
117(1GO'JTAWAJIDAD
P.O. BOX1005
APPLE VAILEY. CA 92307-70Ct.5
Cal.P.U.C.~No..
EQIMJliiO. liP!Bc.3of3
SIGNAn'lltE PAGE:
(N)
n.im._----~ ""Title:,_ _ _ _ __
V.1"1:._ _ _ _ _~ ""-
TitJe:~-------~
A.:Mlt:No.
l4G-W
""""'""
~VICBPRESIDENI'
~NO-
(N)
Resolution W-4655
Apple Valley/ AL 140-W/FLC/JPT/EYC/ AJT/jlj
APPENDIXB
Resolution W-4655
Apple Valley/ AL 140-W/FLC/JPT/EYC/ AJT /jlj
MORMfPUM 9F rnmet<?ttJllQ
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AVB: ltnnot bi:im able'o m.d walll' rlghts. available to~ Albitiab WIW" .ri.s;bm
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llfi! not ~y 11.vNlabU: f ;,mrdautl. the MqjJ.ve. Watr:r A.pey (}A:.W A} hai a pi'(l:wn
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2.Asn:snmn aad~dinn
A.
AVP.. ~to file mt Zlli\ioei Jisftl::rto nctify m Miiin Hxfalsi<4 Rule (Rule lSJ
""'flotor>111lply. 11lcS"l'fl-IW_A<qil_P,.~b;AVR"111
Resolution W-4655
Apple Valley/ AL 140-W/FLC/JPT/EYC/ ATf/jlj
~ ttSi&:atfal
>ritb.lbofiloofliloah111C<...-"'fi>dhlnlheMalnllloooaionn.le./..VRJ'f'l!'O"'
10 file IM am;.,. -M!bin~ JO
B.
lnAVR''"''"Ol\C~w~~... l>o-J""""Yl,
2009 or W... l!ilhor Puty;, hew- my-poopoool -iOf.
C.
---.._AVl<will-"<Ollctttiom~lbrmolll
o_
-ricl>"..._ol
w...-.
Tllepmruo'WO"lhattbcllJIO'Olllof,._<i;Jrl>...Vor~
R.,,Ja""""1WpwobaoclllyAVR-"''"""'"oolleomdaodacribcillhovt
fl1:rou8h ~- 31, 2008 will be ccmddencl to be~ otemiCt SlOOUd: ttr M.w hem
Resolution W-4655
Apple Valley/ AL 140-W/FLC/JPT/EYC/ AJT/jlj
tfle amomit;: of
bBll for .JdtinJI; mtesito bOotlf&cti:w fimD Jaawy !~ 2009 oo.watd. 1111!1~.agreediat
1!I.
TJg:; Pid.ic:ii~ 1bat-1h.e p.mcedw: dca1:0.bcd~ with~kl
6.
tiw ti:mmmts
f""""l"odvanoed"'1the..-of"""""glu""'11m--od~
W"" pordl....i ~ AVR -1be""""Y' <O!IO<lod 1k""8h """"'"'"' 31, 200S will be
refi~ in AVR'.s ~tGTf:C ~oo,ewi!b.any~ and ~ti.miiac.tmmto
-
a.,d aptmes. The ran:iQ!l: q;n:c; not w Kt:k changw in AYR'ii nb iD tdloot diie
2009.
F.
The Parlie& agree cbU no~ to dio MOU 2$S1,lmlllS peoomtl Jid>i.liCy as .a
nmllt af JiW. ~ All rights aad ~ of' the pgfdes. ~ linrititD "' thme
available~~~.
DM"SlON OF RATEPAYER
AD\'OCA.TI!S
ALSVAU.EYR.OICHOO
WATER COMPANY
w~
Comp.my
Dcwoey,C\.90241-7W2
"'1ed:
"'"""tL'.
2006
'flSO'W~R.cad