ADMINISTRATIVE COMMITTEE

 

7.

CONSIDER FUNDING REBATES IN THE CALIFORNIA AMERICAN WATER SYSTEM BETWEEN JANUARY 1, 2018 AND THE AVAILABILITY OF FUNDING FROM THE GENERAL RATE CASE

 

Meeting Date:

January 17, 2018

Budgeted:

No

 

From:

David J. Stoldt,

Program/

N/A

 

General Manager

Line Item No.:

 

 

Prepared By:

Stephanie Locke

Cost Estimate:

$270,000

 

General Counsel Review:N/A

Committee Recommendation: The Administrative Committee reviewed this item on January 17, 2018 and recommended ________.

CEQA Compliance:This action does not constitute a project as defined by the California Environmental Quality Act Guidelines section 15378.

 

SUMMARY:The District and California American Waterís (Cal-Am) Rebate Program is funded through a customer surcharge that is renewed as part of Cal-Amís General Rate Cases (GRC) every three years.The 2015-2017 GRC ended December 31, 2017, and all Rebate funding in that GRC had been expended.The decision on the 2018-2020 GRC that was filed in July 2016 is anticipated between now and June 2018.

 

The pending GRC includes $1.6 million in Rebate funding for the three-year period.From January 1, 2018 until the GRC is approved with funding for the Rebate Program, Cal-Am is unable to pay out for Rebates and will not be collecting the conservation surcharge for the next cycle.Rather than shutting the Rebate Program down, staff is requesting the Board authorize advance funding for the program until Cal-Amís GRC is approved and funds are available.When the GRC is approved with funding for the Rebate Program, Cal-Am will agree to approve reimbursement for MPWMDís expenditures.There is minimal risk that the CPUC will approve a conservation budget that does not include Rebate Program funding, although all requests for funding for the rebates since 2007 have been approved.

 

District will be funding these rebate advances from its general reserve fund until Cal-Am reimburses the District.The District is in the process of securing a letter of agreement to these terms from Cal-Am.During the interim, the District will process and pay rebates up to a maximum of $270,000 and invoice Cal-Am for the expenditures.

 

The District/Cal-Am Rebate Program is credited with a significant portion of the water savings since the Cease and Desist Order in 2009.The program offers extensive and generous Rebates that motivate customers to purchase and install water efficient appliances.Shutting the program down until funding is available would negatively impact the community and the vendors.In 2011, the program was suspended awaiting the 2012 GRC approval.Once funding became available, it took approximately 18 months to achieve current participation levels.Given the urgency of conservation and the Cease and Desist Order (CDO) milestones, staff recommends the Board authorize interim funding.

 

RECOMMENDATION:The Administrative Committee should support interim funding up to $270,000 for the Rebate Program from the Districtís general reserve fund until Cal-Amís GRC is approved and Cal-Am is directly funding the program.All District expenditures will be reimbursable by Cal-Am when a rebate fund is approved in the GRC.

 

EXHIBIT

None

 

 

U:\staff\Board_Committees\Admin\2018\20180117\07\Item-7.docx