Cal Am wants to move on projects
Favors action regardless of mediation outcome
Jim Johnson
The Herald
12/05/2011
California American Water is seeking to proceed with many of the Regional Water Project-related facilities it is solely responsible for no matter what happens with the rest of the mediation-stalled desal project.
That bid, along with a pair of formal responses from project partner Marina Coast Water District staunchly defending the current desal project, seems to raise questions about the eventual outcome of the mediation.
While Cal Am has acknowledged the $400 million regional desalination project is still subject to the mediation which started last summer and could be "delayed, modified or replaced with an alternative project," the firm insisted it is still committed to the original proposal.
At the same time, the private water purveyor argues that the Cal Am-only facilities would be necessary even if the current proposal is replaced by any of a number of possible alternative water supply projects already publicly introduced by the company.
That's because, said Cal Am, they're critical to the aquifer storage and recovery efforts that are a key part of the current project and the alternatives.
The proposals are all aimed at providing a replacement water source for Peninsula customers facing a state-ordered cutback in pumping from the Carmel River that takes full effect in 2016.
Cal Am has argued that allowing work on the facilities to proceed would help the company meet the deadline, pointing out the project has already been delayed.
Cal Am's Catherine Bowie said the company believes it already has the authority, as outlined in the desal project agreements, to go ahead with the facilities and is only seeking clarification from the state Public Utilities Commission.
Cal Am said the bid has earned backing of a wide range of Peninsula interests, including the Monterey Peninsula Water Management District, the Monterey Peninsula Chamber of Commerce, and a coalition of other Peninsula business interests. The Peninsula mayors group also sent a letter to the CPUC in support.
However, Marina Coast has vigorously opposed the Cal Am bid, arguing in filings with the CPUC that the current proposal is still valid and there's no reason to proceed with any element of the project without the rest of it.
In filings submitted last week, Marina Coast took the unusual step of attempting to file a response to the CPUC's Division of Ratepayer Advocates, which also argued against Cal Am's bid — albeit for a different reason — and reiterated its long-held position that the project agreements are legally binding and can't be challenged or subject to further review.
The DRA opposed Cal Am's bid by arguing the facilities were intended to be part of the entire project, and going ahead without the remainder of the proposal should trigger a new review of the size and price of the facilities.
Coming as it does after months of mediation between the desal project partners, Marina Coast's unflinching stance raises questions about whether the project agreements can absorb any appreciable changes in an attempt to answer concerns about its viability without drawing a legal challenge from the smallest partner.
Marina Coast general manager Jim Heitzman said district officials "still believe in the regional project" and the project agreements. Heitzman said any project changes other than its previously proposed operations and maintenance committee "would have to fit into the contract we signed."
