BEFORE THE PUBLIC UTILITIES COMMISSION

OF THE STATE OF CALIFORNIA FILED

04/19/18
04:59 PM

Application of California-American ) Application 12-04-019

Water Company (U210W) for Approval ) (Filed April 23, 2012)
of the Monterey Peninsula Water Supply )
Project and Authorization to Recover )
All Present and Future Costs in Rates )
____________________________________)

OPENING BRIEF OF
MONTEREY PENINSULA WATER MANAGEMENT DISTRICT

David C. Laredo, CSBN 66532

Heidi A. Quinn, CSBN 180880
Frances M. Farina, CSBN 185035
De LAY & LAREDO
606 Forest Avenue
Pacific Grove, CA 93950-4221
Telephone: (831) 646-1502
Facsimile: (831) 646-0377
Email: dave@laredolaw.net
heidi@laredolaw.net
fran@laredolaw.net

Attorneys for MONTEREY PENINSULA

WATER MANAGEMENT DISTRICT

April 19, 2018

 TABLE OF CONTENTS

Page

I. INTRODUCTION .............................................................................................1

II. FEIR/FEIS Issues ...............................................................................................1

A. Water Demand, Supply and Water Rights ...................................................2

B. Project Description.......................................................................................2
C. Environmental, Settling, Impacts and Mitigation Measures ........................2
D. Alternatives ..................................................................................................3
E. Other ............................................................................................................3

III. Present and Future Public Convenience and Necessity of Project –

Environmental factors .............................................................................. 3

A. Public Utilities Code Section 1002(a)(4) and Other Law ......................... 3

B. Other ................................................................................................. 3

III. CONCLUSION ..................................................................................................3

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Opening Brief of Monterey Peninsula Water Management District
 BEFORE THE PUBLIC UTILITIES COMMISSION
OF THE STATE OF CALIFORNIA

Application of California-American ) Application 12-04-019

Water Company (U210W) for Approval ) (Filed April 23, 2012)
of the Monterey Peninsula Water Supply )
Project and Authorization to Recover )
All Present and Future Costs in Rates )
____________________________________)

OPENING BRIEF OF
MONTEREY PENINSULA WATER MANAGEMENT DISTRICT

I. INTRODUCTION

Pursuant to the Administrative Law Judge’s Ruling of April 4, 2018 (Ruling), the
Monterey Peninsula Water Management District (MPWMD) submits this Opening Brief
regarding the Final Impact Report/Environmental Impact Statement (FEIR) on California-
American Water Company’s (Cal-Am) Monterey Peninsula Water Supply Project
(MPWSP).1 MPWMD follows the outline adopted in the Ruling, but refrains from
commenting on all sections while reserving the right to comment in any reply brief it may
file on or before May 3, 2018.

II. FEIR/FEIS Issues

While MPWMD remains concerned with several issues and descriptions related to
the FEIR2, we focus here on only a single issue: Cal-Am’s mitigation measure that has

1 CALAM Monterey Peninsula Water Supply Project Final Environmental Impact Report/Environmental
Impact Statement, SCH# 2006101004, Prepared for the California Public Utilities Commission and
Monterey Bay National Marine Sanctuary (March 2018), hereafter referred to as “FEIR.”
2 MPWMD has contacted the FEIR preparer directly with additional factual and/or typographical

comments we felt were missed from our earlier comment letter.

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Opening Brief of Monterey Peninsula Water Management District
potential significant economic impacts on ratepayers that should be analyzed elsewhere in
the proceeding.

A. Water Demand, Supply and Water Rights

MPWMD currently has no argument regarding this issue, but reserves the right to
address this in reply briefing.

B. Project Description
MPWMD currently has no argument regarding this issue, but reserves the right to
address this in reply briefing.

C. Environmental, Settling, Impacts and Mitigation Measures

Beginning on page 4.4-87 of the FEIR, “Applicant Proposed Measure 4.4-3:
Groundwater Monitoring and Avoidance of Wells Damage” essentially states that Cal-Am
will cover any costs associated with damages to local wells from slant well operation. If it
is determined that an active supply well has been damaged or otherwise negatively affected
by the MPWSP slant well pumping, Cal-Am shall coordinate with the well owner to
develop and implement a mutually agreed upon course of action.
FEIR page 4.4-89, paragraph 5, states, “Such course of action may include but not
be limited to repairing or deepening the existing well, restoring groundwater yield by
improving well efficiency, facilitating an interim or long-term replacement of water
supply, constructing a new well, or compensating the owner for increased pumping costs.”
[Emphasis added.]
Only the two italicized measures can really be said to be feasible and might also
include paying for any damages associated with how the property owner used the water
(e.g., growing crops). Deepening a well may not be feasible because it may simply transfer
the impact of water extraction from one aquifer to another or could be prohibited in the
future. Improving well efficiency to compensate for lost production is also questionable
given the over-drafted nature of the groundwater basin and presumes that the property
owner either has not maintained a well or the well was not developed properly. Finally,
constructing a new well in the same proximity may not be feasible because the same harm

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Opening Brief of Monterey Peninsula Water Management District
might occur. Thus, one must conclude that Cal-Am is offering an interim or long-term
replacement of water supply or compensation.
As we have already seen with the issue of compliance with the Agency Act and the
uncertainty of the cost to replace groundwater3, the offer of a replacement supply or
compensation is a contingent liability of the MPWSP that could have potentially significant
economic impacts. MPWMD urges the Commission to address those impacts in this
proceeding. MPWMD posits that Monterey Peninsula ratepayers should not be burdened
with this undefined and potentially extraordinary risk.

D. Alternatives

MPWMD currently has no argument regarding this issue, but reserves the right to
address this in reply briefing.

E. Other

MPWMD currently has no argument regarding this issue, but reserves the right to
address this in reply briefing.

III. Present and Future Public Convenience and Necessity of Project –

Environmental Factors

MPWMD currently has no argument regarding this issue or its subsections, but
reserves the right to address this in reply briefing.

A. Public Utilities Code Section 1002(a)(4) and Other Law

B. Other

IV. CONCLUSION

3 See Opening Brief of the Office of Ratepayer Advocates (ORA), page 20 (December 15, 2017). ORA
argues that the cost of compliance with the Monterey County Agency Act is “currently uncertain, due to the
uncertain amount of return water required for the desalination plant.” ORA concludes that Cal-Am
shareholders, not ratepayers, should bear the risks if return water percentages are higher than anticipated.
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Opening Brief of Monterey Peninsula Water Management District
 MPWMD has actively participated in this proceeding since its inception. We
believe it is likely that Opening Briefs on the FEIR will reveal controversies and
disagreements that will linger after the issuance of a Certificate of Public Convenience and
Necessity (CPCN), assuming that is the Commission’s decision. With such a high prospect
of potential litigation resulting from the issuance of a CPCN for the MPWSP, MPWMD
encourages the Commission to expeditiously open a Phase 3 in this proceeding to examine
expansion of Pure Water Monterey as a potential interim solution in the event of a
significantly delayed desalination facility.

Dated: April 19, 2018 Respectfully submitted,

/s/ David C. Laredo

________________________
David C. Laredo
De LAY & LAREDO
Attorneys for Monterey Peninsula
Water Management District

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Opening Brief of Monterey Peninsula Water Management District

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