ITEM:		GENERAL MANAGER’S REPORT
5.	UPDATE ON DEVELOPMENT OF WATER SUPPLY PROJECTS
Meeting Date:			December 10, 2012	Budgeted:	N/A
From:			David J. Stoldt	Program/	N/A
			General Manager	Line Item No.: N/A
Prepared By:			David J. Stoldt	Cost Estimate:	N/A
General Counsel Approval: N/A
Committee Recommendation: N/A
CEQA Compliance: N/A

CPUC Proceeding A.12-04-019

Judge Weatherford issued a ruling that covered three areas:

A) Provides notice of the resetting of the Public Participation Hearings from January 16 to January 9, 2013 (2 p.m. and 7 p.m., Monterey City Council Chambers, 580 Pacific Street, Monterey;

B) Provides guidance concerning the upcoming Cost and Financial Modeling Workshop (December 11, 12 & 13, CPUC Auditorium); and

C) Identifies the main topics to be considered at the second Prehearing Conference (PHC; December 13, 1:30-4:30, CPUC Hearing Room A).

The proposed topics and schedule for the Workshop are:

1)     Project Costs [Tuesday, Dec. 11 (Day 1): 11 am– 2 pm]

a.      Desalination Project Costs

b.     Aquifer Storage and Recovery (ASR) Costs

c.      Groundwater Replenishment (GWR) Costs

d.     Storage and Distribution Facilities Costs

e.      Preconstruction Project Costs

i.      Test Well(s)

                     ii.      Other (Land Acquisition, Permitting, etc.)

2)     Cost Impacts of Contingencies [Day 1: 2pm to5pm; Dec. 12 (Day 2): 9:30am to 12pm]

a.      Source Water

b.     Facility Siting

c.      Plant Failure or Periodic Interruption

i.      Providing Potable Water from Alternative Sources

                      ii.      Reducing Deliveries to Customers

d.     Outfall Use for Brine Disposal

e.      Change in Demand Forecasts

i.      Excess Desalination Plant Capacity

f.       Project Delay

3)     Financial Modeling [Day 2: 1pm to 5pm; Thursday Dec. 13 (Day 3): 9:30am to 12:30pm]

a.      Project Financing

b.     Discuss Compliance Filing and Present Financial Model

c.      Run Financial Model for Possible Project Scenarios

The main topics for discussion at the Prehearing Conference are:

· current position of Applicant concerning the project description and any planned changes in that description;

· advisability of shifting cost recovery issues to a separate phase or application;

· status of public agency participation proposals and discussions;

· CEQA track status and developments; and

· preliminary planning for the Evidentiary Hearings.

Topics concerning management of the proceeding will also be discussed.

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