Report 2018-118 Recommendation 5 Responses

Report 2018-118: California Public Utilities Commission: It Could Improve the Transparency of Water Rate Increases by Disclosing Its Review Process and Ensuring That Utilities Notify Customers as Required (Release Date: December 2018)

Recommendation #5 To: Public Utilities Commission

To ensure that all customers receive timely notification from water utilities of potential and actual rate increases, the CPUC should implement a process by May 2019 that requires water utilities to submit proof of customer notification to its Water Division, which should then review these notifications to ensure that the utilities are meeting the requirements. If the water utilities do not comply with the requirements, the CPUC should consider whether to impose a fine on the water utility.

6-Month Agency Response

The Water Division issued a letter, dated May 15, 2019, to all water utilities 1) reminding utilities of the notice requirements associated with advice letter submissions as indicated in the CPUC's General Order 96-B; 2) indicating to the utilities that all advice letter filings requiring customer notice shall include documentation and/or verification from an officer of the utility that the advice letter has been properly and timely noticed; and 3) noticing the utilities that an improper or untimely customer notice may result in a fine.

Secondly, the Water Division issued its staff a memorandum, dated May 15, 2019, reminding them that as part of the review of an advice letter, staff should verify that proper and timely notice was provided to customers by the utility as indicated above. Staff is provided a link to an electronic template letter to be used for assessing a fine for non-compliance with the noticing requirements. The letter is posted here; https://www.cpuc.ca.gov/General.aspx?id=1404

California State Auditor's Assessment of 6-Month Status: Fully Implemented

60-Day Agency Response

To implement this recommendation, by May 2019 the Water Division will issue a letter to all water utilities ;

1) reminding utilities of the notice requirements associated with advice letter submissions as indicated in the CPUC's General Order 96-B;

2) indicating to the utilities that all advice letter filings requiring customer notice shall include documentation and/or verification from an officer of the utility that the advice letter has been properly and timely noticed; and

3) noticing the utilities that an improper or untimely customer notice may result in a fine. Secondly, the Water Division will issue its staff a memorandum reminding them that as part of the review of an advice letter, staff should verify that proper and timely notice was provided to customers by the utility as indicated above. Staff will be provided a link to an electronic template letter to be used for assessing a fine for non-compliance with the noticing requirements.

California State Auditor's Assessment of 60-Day Status: Pending

All Recommendations in 2018-118

Agency responses received are posted verbatim.