2012 General Rate CaseRecycled Water Retail Rates

CPUC Workshop (R.10-11-014)January 19, 2012

Recycled Water Rates• Piped Supply - Potable customer of SJWC converting to recycled

water:– Quantity Rate: Currently effective quantity rate for general metered

potable service, less the treated water surcharge added to potable deliveries from the Santa Clara Valley Water District and less any applicable discount from the South Bay Water Recycling Program• SBWRP has different discounts for Irrigation, Industrial, and Agriculture

customers

– Service Charges: Same as potable water service– Rates were designed so that any current potable water customer

intending to partly substitute current potable service for a recycled water service will ultimately contribute the same margin to SJWC, thereby imposing no adverse economic effect on SJWC’s other customers

• Well Supply - A SJWC customer as of September 22, 1997 whose primary source of water was a well– Quantity Rate: Commodity charge passed through from

SBWRP– Service Charges: Originally established only to recover

the costs associated with service to these customers – Well Supply rates were developed at a level to provide

incentive for well customers, who otherwise had no obligation or incentive to purchase water from SJWC, to purchase recycled water

Discount from Potable Water Rate • 1997– Treatment Charge: $70/AF– SBWRP Irrigation Discount: $60/AF– SBWRP Industrial and Ag Discount: $220/AF

• 2012– Treatment Charge: $100/AF– SBWRP Irrigation Discount: $105/AF– SBWRP Industrial and Ag Discount: $325/AF

Grants, Loans, and Other Funding Sources– State Water Resources Control Board (SWRCB) Water Recycling Funding

Program (WRFP) - Funding for WRFP is not available at this time. However, SJWC’s application will be kept on file should funding become available.

– City of San Jose Green Vision Partnership Project Proposal - Funding for SJWC’s project proposal is not available at this time.

– California Pollution Control Financing Authority Revenue - SJWC received $50 million of low interest financing for recycled water and other types of water utility projects.

– United States Bureau of Reclamation (USBR) Title XVI - SJWC obtained a $250K grant through USBR Title XVI to complete a required feasibility study (update master plan)- up to 25% of project funding if funds available

– CPUC rates (capital investment and retrofit expenses)

Partnerships

• San Francisco Bay Area Recycled Water Coalition (BARWC) - To enhance SJWC’s ability to receive Title XVI funding, SJWC became a member of BARWC. BARWC is a group of 13 agencies committed to developing recycled water as a resource for the San Francisco Bay area

• City of San Jose – SJWC has entered into a Wholesaler - Retailer Agreement with the City to partner in the extension of recycled water mains to increase the use of recycled water within SJWC’s service area

• Santa Clara Valley Water District – SJWC is partnering with the District in recycled water outreach for Indirect Potable Reuse

• California Public Utilities Commission