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CPUC Proposal Would Allow Cal-Am to Proceed With Monterey Peninsula Water Supply Project

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Today we issued a proposal that, if approved by our Commissioners, would allow California American Water Company (Cal-Am) to proceed with its Monterey Peninsula Water Supply Project in order for the utility to provide safe and reliable water service to its customers and meet all regulations for the safe operation of its facilities.

The Project will replace and augment existing water supplies in Cal-Am's Monterey District service area constrained by legal decisions affecting the Carmel River and Seaside Groundwater Basin, areas where Cal-Am currently sources its water.

The proposal issued today (known as a Proposed Decision in proceeding number A.12-04-019) authorizes Cal-Am to proceed with its modified Monterey Peninsula Water Supply Project at a size of 6.4 million gallons per day. The project would be capped at $279.1 million.

The Project includes a source water intake system consisting of subsurface wells on a 376-acre coastal property located north of the city of Marina extending offshore into the Monterey Bay. New pipelines would convey the source water from the wells to a 6.4 million gallon per day desalination plant on a 46-acre vacant parcel near Charles Benson Road. Brine produced during the desalination process would be conveyed to the existing Monterey Regional Water Pollution Control Agency's ocean outfall and discharged to the Monterey Bay.

The proposal finds that water rate relief bonds issued by the Monterey Peninsula will provide savings to customers on the Monterey Peninsula. The proposal directs Cal-Am to prepare progress reports during construction of the Project, and publish them on its website.

The first opportunity for the proposal to appear on a CPUC Voting Meeting agenda is Sept. 13, 2018.

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