Alternate Decision on CPA Implementation

On Friday (February 23rd), Commissioner Bilas issued an alternate decision
to the February 20th draft ALJ decision on interim implementation of the
California Procurement Adjustment. Basically what the Bilas alternate
does is give DWR certain assurances, without any money right now. It
provides Commission recognition that the purchases made by DWR are not
subject to Commission reasonableness review and that once DWR has provided
the Commission with its needed revenue requirement that the Commission must
pass it through to ratepayers. What it does not do is implement a CPA
mechanism. The Bilas draft recognizes that the matter is being dressed
through the process established by ALJ Deulloa and a decision on it should
be rendered by the end of March. The Bilas draft also states that the
Commission "shall stay action on implementation of suspension of direct
access under water code section 80110 until further order."

If we want to comment on the Bilas draft, they are due on Friday the 2nd. I
think Bilas' approach makes sense. Adoption of the ALJ draft decision would
mean the implementation of an interim CPA mechanism for a few weeks, to
potentially be replaced by another interim mechanism at the end of March, to
ultimately be replaced by a final CPA mechanism.

As for the Bilas language on direct access -- while it is good, I think we
were successful in removing the direct access suspension language from the
ALJ's Draft Decision (it was removed in the version released on the morning
of the last commission meeting), so I think we have that point covered
regardless of which order gets voted out.

I will fax a copy of the draft to Harry and Sue (I don't have an e-mail
version). Let me know if you feel we should comment.

Jeanne Bennett