In February 2007, California American Water Company (Cal Am) signed a 15-year lease to operate the Sand City Desalination Facility and repay Sand City for the cost of building the facility to support commercial growth in the new town. In June 2009, the CPUC rejected Cal Am's request to recover the cost of the lease and allowed Cal Am to amend the lease and file a new application. In April 2010, Cal Am filed a new application to recover costs from an amended lease to operate the Sand City Desalination Facility.
On August 4, 2011, the CPUC released a Proposed Decision (PD) that finds the amended lease unfair and unreasonable. The PD finds that Cal Am's amended lease is not cost-effective and the Sand City desalination plant is not a reasonable and prudent way to address the water supply needs of Monterey District.
DRA supports the Proposed Decision in its entirety:
See DRA's filings:
The CPUC is scheduled to vote on the Proposed Decision at its meeting on October 20, 2011.
See the proceeding docket.