110 W. Taylor Street
San Jose, CA 95110-2131
June 18, 2021
California Public Utilities Commission
505 Van Ness Avenue
San Francisco, CA 94102
Advice Letter No. 564
San Jose Water Company (U-168-W) (SJWC) hereby transmits for filing the following changes
in tariff schedules applicable to its service area and which are attached hereto:
Cal. P.U.C
Sheet No.
Title of Sheet
Cancelling Cal. P.U.C.
Sheet No.
2125-W
Preliminary Statement (Continued)
2126-W
Preliminary Statement (Continued)
2127-W
Table of Content
2123-W
With this advice letter, SJWC requests authorization to establish a Water Conservation
Memorandum Account (WCMA) and a Water Conservation Expense Mermorandum Account
(WCEMA) pursuant to the California Public Utilities Commission (Commission) Resolution W-
4976 and Standard Practice U-40-W (as revised).
These tariffs are submitted pursuant to General Orders (GO) No. 96-B Water Industry Rules
7.3.2(5). This advice letter is designated as a Tier II Advice Letter.
The present rates for SJWC became effective January 1, 2021, by Advice Letter No. (AL) 556.
Background
California is once again experiencing extremely dry conditions. On June 8, 2021, the State Water
Resources Control Board (Water Board) issued a Notice to Public Drinking Water Systems
regarding ongoing dry conditions in California and drought preparation. On the same day,
Commission President Marybel Batjer issued a letter to all investor-owned water utilities calling
upon the utilities to remind their customers of the ongoing dry conditions and to encourage
actions to reduce water usage. The letter referenced Standard Practice U-40-W, which was
adopted pursuant to Resolution W-4976, issued February 28, 2014.
On June 9, 2021, Valley Water adopted a resolution declaring a Water Shortage Emergency
Condition in Santa Clara County and called for water service providers (referenced as “retailers”
in the Valley Water resolution) to “achieve a water use reduction target equal to 15 percent of
2019 water use (33 percent of 2013 water use).” A copy of Valley Water’s resolution is attached
as Attachment A.
CALIFORNIA PUBLIC UTILITIES COMMISSION
ADVICE LETTER NO. 564
Page 2
Commission Resolution W-4976 ordered all water utilities to comply with directives under
emergency declarations calling for mandatory water use reductions or rationing. The resolution
adopted by Valley Water on June 9, 2021 calls for such mandatory water use reductions due to
its declared Water Shortage Emergency.
Commission Resolution W-5000, issued August 14, 2014, found that water utilities regulated by
the Commission are required to assist in assuring compliance with restricted water uses adopted
by local public agencies. SJWC is taking action to comply and assist with Valley Water’s June
9, 2021, declaration of a Water Shortage Emergency and its call for 15% water use reductions as
compared to water usage in 2019.
SJWC filed Advice Letter 563 to update and activate its Rule 14.1: Water Shortage Contingency
Plan to align with its recently updated 2020 Urban Water Management Plan and the target water
usage reduction per Valley Water’s resolution. This filing is also consistent with that mandate
and Commission requirements.
Pursuant to Division of Water and Audits Drought Procedures Standard Practice U-40 as
authorized by Resolution W-4976, utilities can establish memorandum accounts to track lost
revenues and expenses from conservation efforts:
35.Memorandum accounts to track expenses and monies collected by the utility through
water use violation fines must be requested through an advice letter, either in
conjunction with an advice letter requesting adding Rule 14.1 or Schedule 14.1, or in
astand-alone advice letter. Lost revenues associated with reduced sales as a result of
activation of either Tariff Rule 14.1 or Schedule14.1 for a utility without a full revenue
decoupling Water Revenue Adjustment Mechanism (WRAM) should be tracked in a
separate memorandum account for disposition as directed or authorized from time to
time by the Commission.
1
Upon the effective date of Advice Letter 563 to activate Rule 14.1, SJWC requests a Water
Conservation Expense Memorandum Account (WCEMA) to track all operational and
administrative costs associated with the implementation of Rule 14.1 including monies collected
through the imposition of drought surcharges through Schedule 14.1. At this time, SJWC is not
proposing to activate Schedule 14.1. However, should Schedule 14.1 be proposed and approved
by the Commission in the future, any drought surcharges collected will be tracked in this
memorandum account.
In addition and in accordance with Resolution W-4976, SJWC requests a Water Conservation
Memorandum Account (WCMA) to track lost revenues associated with reduced sales as a result
1
Standard Practice U-40, at pp. 12 - 13. See also Resolution W-4976 Finding and Conclusion Nos. 22 and 23, at
pp. 15 – 16.
CALIFORNIA PUBLIC UTILITIES COMMISSION
ADVICE LETTER NO. 564
Page 3
of activating Rule 14.1. SJWC was authorized to establish similar memorandum accounts during
the historic drought period from 2014 through 2017 in accordance with Resolution W-4976.
Consistent with Resolution W-4976, SJWC now requests Commission authority to establish the
WCMA and WCEMA. The tariff sheets with the proposed terms and conditions of the requested
WCMA and WCEMA for SJWC’s Preliminary Statement are included with this advice letter
filing.
Effective Date
SJWC requests that the updated tariff sheets become effective June 9, 2021.
Protests and Responses
Anyone may respond to or protest this advice letter. A response does not oppose the filing but
presents information that may prove useful to the Commission in evaluating the advice letter. A
protest objects to the advice letter in whole or in part and must set forth the specific grounds on
which it is based. These grounds may include the following:
1) The utility did not properly serve or give notice of the advice
letter;
2) The relief requested in the advice letter would violate statute or
Commission order, or is not authorized by statute or Commission
order on which the utility relies;
3) The analysis, calculations, or data in the advice letter contain
material error or omissions;
4) The relief requested in the advice letter is pending before the
Commission in a formal proceeding;
5) The relief requested in the advice letter requires consideration in a
formal hearing, or is otherwise inappropriate for the advice letter
process; or
6) The relief requested in the advice letter is unjust, unreasonable, or
discriminatory (provided that such a protest may not be made
where it would require relitigating a prior order of the
Commission).
A response or protest must be made in writing or by electronic mail and must be received by the
Water Division within 20 days of the date this advice letter is filed. The address for mailing or
delivering a protest is:
Tariff Unit, Water Division, 3
rd
floor
California Public Utilities Commission
505 Van Ness Avenue
San Francisco, CA 94102
CALIFORNIA PUBLIC UTILITIES COMMISSION
ADVICE LETTER NO. 564
Page 4
On the same date the response or protest is submitted to the Water Division, the respondent or
protestant shall send a copy of the protest by mail to us, addressed to:
Regulatory Affairs
San Jose Water Company
110 West Taylor Street
San Jose, CA 95110
Fax 408.279.7934
regulatoryaffairs@sjwater.com.
This filing will have no impact on current rates. The advice letter process does not provide for
any responses, protests or comments, except for the utility’s reply, after the 20-day comment
period. Public notice is not required.
In compliance with Paragraph 4.3 of General Order 96-B, a copy of this advice letter has been
emailed to all interested and affected parties as detailed in Attachment B. Due to the pandemic,
no hardcopies of this filing is being mailed.
SJWC has Advice Letters 557, 561, and 562 pending before the Commission.
This filing will not cause the withdrawal of service, nor conflict with other schedules or rules.
Very truly yours,
JOHN TANG
Vice President of Regulatory Affairs
Enclosures
SAN JOSE WATER COMPANY
ADVICE LETTER NO. 564
ATTACHMENT A
SAN JOSE WATER COMPANY
ADVICE LETTER NO. 564
ATTACHMENT B
SAN JOSE WATER COMPANY (U-168-W)
ADVICE LETTER 564 SERVICE LIST
Big Redwood Park Water
Brush & Old Well Mutual Water Company
Cal Water
City of Campbell
City of Cupertino City Attorney
City of Cupertino Director of Public Works
City of Milpitas
City of Milpitas
City of Monte Sereno
City of Monte Sereno
City of Santa Clara
City of San Jose
City of Saratoga
County of Santa Clara
DB Davis
Dept. of Water Resources, Safe Drinking Water Office
Valley Water
Gillette Mutual Water Company
Gillette Mutual Water Company
Gillette Mutual Water Company
Great Oaks Water
Great Oaks Water
Cal Water
James Hunter
City of Cupertino
Public Advocates Office
Public Advocates Office
Mountain Springs Mutual Water Co.
Mt. Summit Mutual Water Company
Oakmount Mutual Water Company
Patrick Kearns MD
Raineri Mutual Water Company
Ridge Mutual Water Company
Rishi Kumar
San Jose Mercury News
Valley Water
Valley Water
Saratoga Heights Mutual Water Company
SouthWest Water Company
Stagecoach Mutual Water Company
Summit West
Summit West
Town of Los Gatos Dir. of Public Works
WRATES
Villa Del Monte
waldoburford@gmail.com
BOWMWC@brushroad.com
cwsrates@calwater.com
publicworks@cityofcampbell.com
cityattorney@cupertino.org
rogerl@cupertino.org
[email protected]pitas.ca.gov
[email protected]itas.ca.gov
bmekechuk@cityofmontesereno.org
water@santaclaraca.gov
jeffrey.provenzano@sanjoseca.gov
jcherbone@saratoga.ca.us
county.couns[email protected].org
gapowerz@gmail.com
goldiey@pacbell.net
keyoung@pacbell.net
tguster@greatoakswater.com
jpolanco@calwater.com
j88hunter882@gmail.com
mukunda.dawa[email protected]v
PublicAdvocates[email protected]v
Lorenroy@icloud.com
wshoefl[email protected]t
gortiz12@comcast.net
info@rainerimutual.org
pmantey@yahoo.com
rkumar@saratoga.ca.us
progers@bayareanewsgroup.com
abaker@valleywater.org
kcarl[email protected]
stagecoachroadMWC@gmail.com
RJonesPE@aol.com
board@summitwest.org
ppw@losgatosca.gov
rita_benton@ymail.com
mntmom33@comcast.net
(To be inserted by utility)
Issued by (To be inserted by Cal. P.U.C.)
Advice No. 564
Dec. No.
JOHN TANG
Vice President,
Regulatory Affairs
TITLE
Date Filed
Effective
Resolution No.
SAN JOSE WATER COMPANY (U168W) Revised Cal. P.U.C. Sheet No. 2125–W
San Jose, California Canceling Revised Cal. P.U.C. Sheet No.
PRELIMINARY STATEMENT
(Continued)
H. Water Conservation Expense Memorandum Account (N)
1. Purpose
The purpose of the Water Conservation Expense Memorandum Account (WCEMA) is to track all operational
and administrative costs associated with the implementation of Rule 14.1, Section A, as requested
in AL 564.
2. Applicability
The WCEMA will track the operating and administrative costs incurred in developing and implementing
expanded and/or new conservation programs under Rule 14.1, Section A, including:
a. Customer education and outreach activities.
b. Program monitoring, data recording and reporting expense.
c. Operational costs, such as water supply cost changes, associated with mandatory
conservation compliance.
e. Interest shall accrue on a monthly basis by applying a rate equal to one-twelfth of the 3-month
non-financial Commercial Paper, as reported in the Federal Reserve Statistical Release, to the average
of the beginning-of-month and the end-of-month balances.
3. Disposition
If the accumulated balance for the WCEMA exceeds 2% of the total authorized revenue requirement
for the prior calendar year, the Company will file an advice letter to amortize the balance
Prior to recovery, charges made to the Mandatory Conservation Memorandum Account are subject
to a reasonableness review in the Company's next General Rate Case or in an appropriate advice
letter filing. The recovery of under-collections or refunds of over-collections will be passed on to the
customers through volumetric surcharges or surcredits.
4. Effective Date
The WCMA shall go into effect on the effective date of Advice Letter No. 564.
I. Water Conservation Memorandum Account
1. Purpose
The purpose of this Water Conservation Memorandum Account (WCMA) is to
track impacts of mandatory conservation on quantity revenues for future disposition. The Commission has
determined that this mechanism is appropriate in coordination with increasing water conservation activities
or mandatory conservation required by outside governmental agencies or entities. The water revenues
subject to this account include but are not limited to those which may be affected by Rule 14.1.
2. Applicability
The WCMA is applicable to all quantity related rate revenue.
3. Definitions
a. Non- WCMA revenue is all revenue excluded from the WCMA account, such as metered service
charges and public and private fire protection service. In addition, surcharges and surcredits, unless
specifically included in adopted revenue requirement, will be excluded from WCMA tracking.
b. WCMA -eligible revenue is all revenue not excluded in 3.a, above.
c. Recorded WCMA -eligible revenue is the amount of quantity rate revenue collected from
customers in any particular period.
d. Adopted WCMA eligible revenue is the amount of quantity related revenue necessary in
conjunction with adopted non- WCMA revenue to generate the adopted revenue requirement. (N)
(Continued)
(To be inserted by utility)
Issued by (To be inserted by Cal. P.U.C.)
Advice No. 564
Dec. No.
JOHN TANG
Vice President,
Regulatory Affairs
TITLE
Date Filed
Effective
Resolution No.
SAN JOSE WATER COMPANY (U168W) Revised Cal. P.U.C. Sheet No. 2126–W
San Jose, California Canceling Original Cal. P.U.C. Sheet No.
PRELIMINARY STATEMENT
(Continued)
I. Water Conservation Memorandum Account (Continued)
4. Accounting Procedure (N)
a. The following entries will be recorded monthly in the WCMA:
1. Most recently adopted water sales revenue on the effective date of Advice Letter 564 adjusted
for all subsequent rate increases.
2. Actual water sale revenue collected adjusted for existing Revenue Adjustment Mechanism.
The actual water sales revenue collected in the WCMA will be kept distinct from revenue
Tracked by SJWC’s existing Monterey-style WRAM.
3. Most recently adopted variable expenses for purchased water, pump tax and power
4. Actual recorded variable expenses
5. Total net WCMA balance = (1 minus 2) minus (3 minus 4)
6. A negative (-) balance in the memorandum account reflects a utility over collection to be
refunded, while a positive balance reflects a utility under collection to be recovered in rates.
b. The Company will record the accumulated WCMA balance monthly, by adding its entry in
Section a.5. above to the prior accumulated monthly balance.
c. Interest shall accrue on a monthly basis by applying a rate equal to one-twelfth of the 3-month
non-financial Commercial Paper, as reported in the Federal Reserve Statistical Release, to the average
of the beginning-of-month and the end-of-month balances.
d. Before seeking recovery of the WCMA balance, the balance shall be reduced by an
amount equal to a 20-basis point reduction in the most recently adopted return on equity.
5. Disposition
If the accumulated balance for the WCMA exceeds 2% of the total authorized revenue requirement for
the prior calendar year, the Company will file an advice letter to amortize the balance. Prior to recovery,
charges made to the WCMA are subject to a reasonableness review. The recovery of under-collections
or refunds of over-collections will be passed on to the customers through volumetric surcharges or
surcredits.
6. Effective Date
The WCAMA shall go into effect on the effective date of Advice Letter No. 564
7. Sunset Date
The WCMA will remain in effect until the Wholesaler declares the water shortage is over
and the mandatory conservation mandates are ceased. (N)
Issued by
(To be inserted by
utility) Advice No.
564 Dec. No.
JOHN TANG
Vice President,
Regulatory Affairs
TITLE
(To be inserted by Cal. P.U.C.)
Date Filed
Effective
Resolution No.
SAN JOSE WATER COMPANY (U168W)
Revised
San Jose, California
Canceling Revised
Cal. P.U.C. Sheet No. 2127-W
Cal. P.U.C. Sheet No. 2123-W
TABLE OF CONTENTS
The following listed tariff sheets contain all effective rates, rules
and regulations affecting the rates and service of the Utility, together
with information relating thereto:
C.P.U.C.
Subject Matter of Sheet Sheet No.
(T)
Title
Table of Contents
1495-W
2127-W, 2024-W, 848-W and 2114-W
Preliminary Statement 919-W, 1303-W, 2032-W, 2033-W, 2034-W, 2035-W, 2058-W, 2037-W
2038-W, 2039-W, 2040-W, 2041-W and 2042-W, 2087-W, 2125-W, 2126-W
Service Area Map Locator 1266-W
Service Area Map Locator, Index 1589-W
Map of Areas With Special Pressure and Fire Flow Conditions 2116-W
Index to Map of Areas With
Special Pressure and Fire Flow Conditions 1079-W, 2117-W
1082-W, 1087-W and 1404-W
Rate Schedules:
Schedule No. 1, General Metered Service
Schedule No. 1B, General Metered Service
With Automatic Fire Sprinkler System
2104-W, 2105-W and 2059-W
2106-W, 1741-W, 1882-W and 2060-W
Schedule No. 1C, General Metered Service
Mountain District
Schedule No. 4, Private Fire Service
2107-W, 1952-W, 1884-W and 2052-W
2097-W and 2053-W
Schedule No. 9C, Construction and Other
Temporary Metered Service 1118-W and 1094-W
Schedule No. 10R, Service to Employees 152-W
Schedule No. 14.1 Water Shortage Contingency Plan With 1668-W,1669-W,1780-W,1671-W,
1672-W,1673-W,1766-W, and 1820-W
Staged Mandatory Reductions And Drought Surcharges
Schedule No. RW, Raw Water Metered Service
Schedule No. RCW, Recycled Water Metered Service
2108-W and 2109-W
2099-W and 2109-W
Schedule No. UF, Surcharge to Fund Public
Utilities Commission, Reimbursement Fee
Schedule No. WRAP, Water Rate Assistance Program
List of Contracts and Deviations
Rules:
No. 1 - Definitions
2090-W
2111-W and 2056-W
2092-W and 2103-W
2064-W and 2065-W
No. 2 - Description of Service 525-W
No. 3 - Application for Service 351-W and 903-W
No. 4 - Contracts 352-W
No. 5 - Special Information Required on Forms 2066-W, 2067-W and 2068-W-W
No. 6 - Establishment and Re-establishment of Credit 354-W
No. 7 - Deposits 355-W and 356-W
No. 8 - Notices 2069-W, 2070-W and 2017-W
No. 9 - Rendering and Payment of Bills 996-W, 997-W and 1146-W
(Continued)
(C)
(C)
