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Monterey County HeraldLetter to the EditorJune 12, 2012:
Agha opposes Narigi on panel
I am concerned that the Technical Advisory Committee of the mayors joint powers agency is too little
technical and too much political.
It is one thing to have George Riley on it, a student of water issues and stimulant for addressing
important policy questions. But it is quite another to have John Narigi on it, the political kingpin for the
hospitality industry. He is not a water expert. He has been making biased bureaucratic comments about
my Peoples desalination project and our list of questions that was answered with the help of the best
engineers and consultants.
The Peoples Project has received a great evaluation from the independent consultant with the ultimate
findings of no fatal flaws. Narigis history on water is essentially political and he has acknowledged his
preference for the Cal Am proposal in public. He is also known to be closely connected to the DeepWater Desal. How do you expect an objective evaluation of the desal proposals with his inexperience
and inability to make an educated independent evaluation? His project preferences are widely known.
I am concerned that the Peoples Project will not get a fair hearing. I believe he should recuse himse lf
because in our opinion he does not stand for the best interest of the ratepayers. This is clear due to his
bias toward Cal Am, which made a deal to reduce his groups water rate and push the burden towards
ratepayers.
Nader Agha
Pacific Grove
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City of Pacific Grove Prehearing Conference Statement
A.12-04-019
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 )____________________________________)
PREHEARING CONFERENCE STATEMENT
OF THE CITY OF PACIFIC GROVE
Thomas FrutcheyCity Manager
City of Pacific Grove
300 Forest AvenuePacific Grove, CA 93950
Telephone: (831) 648-3181
Facsimile: (831) 657-9361
Email: [email protected]
CITY OF PACIFIC GROVE
June 4, 2012
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City of Pacific Grove Prehearing Conference Statement
A.12-04-019
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 )____________________________________)
PREHEARING CONFERENCE STATEMENT
OF THE CITY OF PACIFIC GROVE
Introduction
The City of Pacific Grove (City) hereby submits its Prehearing Conference Statement for
the scheduled June 6, 2012 Prehearing Conference in accord with Administrative Law Judge
(ALJ) Weatherfords Ruling of May 11, 2012, and Rule 7.2 of the Rules of Practice and
Procedure (Rules) of the California Public Utilities Commission (Commission).
Issues to Define the Scope of the Hearing
The City believes there are a number of issues worthy of in-depth analysis. However,
rather than repeat issues already identified by other interveners, including the Monterey
Peninsula Regional Water Authority (MPRWA), of which the City is a member, the City
identifies here only the following additional issues it requests be addressed in the hearing:
Development of a desalination projectas one major component of the Projectappears
necessary. In order to best serve the ratepayers, and maximize the chances that the replacement
water is available on time, the City believes that the principal competitive project proposals must
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all be vetted using four main criteria: technical feasibility; on-time deliverability; cost to
ratepayers; and governance.
Given the likely costs of the water generated by one or more of the three major
components of the proposed project will represent a significant increase over current costs and
require a significant increase in rates, small projects that were previously rejected should be re-
examined, as they may now be cost-competitive. Examination of small projects should not
provide a basis to delay approval or delivery of the proposed project, but may offer opportunities
to reduce its scale or cost provided those alternates are achievable in a timely manner. The City
is prepared to discuss one or more small project opportunities that appear promising.
The lack of any role for representatives of local ratepayers in governance is still a matter
of concern. Such a role can be accomplished through either a public partner or through the
ongoing decision-making structure. A public partner may insulate the risk of operational
disruptions and public health impacts, may ensure the lowest cost financing and thereby
minimize rate impacts, and may best address concerns over growth inducement. Involving the
cities in ongoing Project decision-making ensures that the ratepayers interests are represented,
and such interests adequately balance the interests of investors. We believe that such public
involvement in governance must include binding applicationas to the projects design, financing,
construction, and operation.
The Project faces a number of actual and potential legal hurdles that create risk of
litigation and delay. The Commission is uniquely able to design a review and approval process
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that enables collaboration and compromise among the various parties to address outstanding
issues, develop mutually acceptable solutions, and minimize litigation risk.
Workshop
In view of the complexities of the issues and need for timely resolution, the City supports
holding a workshop, preferably in Monterey County, which will tend to increase participation of
local interested parties and their acceptance of developed solutions.
Settlement
The City is willing to participate in settlement discussions, with or without mediation,
and is committed to ensuring they are productive.
Schedule
The proposed schedule does not identify the timing of environmental review. A
completed environmental review, including public comments and responses, is critical to
formulation of mitigation and alternatives, which may constrain the selection and costs of the
options available for evaluation in the formal proceedings. In order to ensure that environmental
considerations are incorporated into the formal proceedings, a final environmental document
should be published before testimony and evidentiary hearings.
Conclusion
The City looks forward to working with all interested parties to achieve the best and most
timely solution for the Monterey Peninsula.
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Dated: June 4, 2012 Respectfully submitted,
/s/Thomas Frutchey
Thomas Frutchey
City ManagerCity of Pacific Grove
300 Forest Avenue
Pacific Grove, CA 93950
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