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At present rates, Rural is operating at a loss. In order to lessen the impact on Rural's revenue, the Division recommends that Rural implement a surcredit, to be refunded over a 36-month period beginning on September 1, 2011. For the purpose of refunding the over-collected revenues totaling $350,613, the Division recommends that Rural prorate the surcredit by meter size per Appendix B for each of Rural's ratepayers and that Rural track the refund in a balancing account.

APPENDIX A

Rural Water Company

SUMMARY OF EARNINGS

Test Year 2010

 

Utility Estimated

Division Estimated

Division

 

Present

Requested

Present

Proposed

Recommended

Item

Rates

Rates

Rates

Rates

ROM Rates

           

Operating Revenue

         

Water Sales

$554,745

$826,245

$554,745

$826,245

$760,546

           

Operating Expenses

 

Purchased Power

$208,404

$208,404

$208,404

$208,404

$208,404

Other Volume Related Expenses

$39,249

$39,249

$9,004

$9,004

$9,004

Contract Work

$96,058

$96,058

$96,058

$96,058

$96,058

Transportation Expenses

$5,167

$5,167

$1,839

$1,839

$1,839

Other Plant Maintenance

$66,752

$66,752

$66,752

$66,752

$66,752

Office Salaries

$8,000

$8,000

$0

$0

$0

Management Salaries

$60,000

$60,000

$40,000

$40,000

$40,000

Employee Pension & Benefits

$27,901

$27,901

$0

$0

$0

Office Services & Rentals

$17,079

$17,079

$17,079

$17,079

$17,079

Office Supplies & Expenses

$10,686

$10,686

$10,686

$10,686

$10,686

Professional Services

$104,560

$104,560

$87,502

$87,502

$87,502

Insurance

$4,776

$4,776

$4,776

$4,776

$4,776

Regulatory Commission Expense

$6,893

$6,893

$6,893

$6,893

$6,893

General Expenses

$1,463

$1,463

$1,425

$1,425

$1,425

Total Operating expenses

$656,988

$656,988

$550,418

$550,418

$550,418

           

Depreciation Expense

$14,356

$14,356

$14,356

$14,356

$14,356

Taxes other than Income

$5,500

$5,500

$5,500

$5,500

$5,500

CA Franchise Tax

$800

$12,007

$800

$22,628

$16,820

Federal Income Taxes

$0

$31,539

$0

$74,254

$50,896

Interest Expense

         

Total Deductions

$677,644

$720,390

$571,074

$667,156

$637,990

           

Net Revenue

($122,899)

$105,855

($16,329)

$159,089

$122,556

           

Rate Base

         

Average Plant

$4,435,351

$4,505,351

$4,505,351

$4,505,351

$4,505,351

Ave. Accumulated Depreciation

($1,846,389)

($1,846,389)

($1,846,389)

($1,846,389)

($1,846,389)

Net Plant

$6,281,740

$6,351,740

$6,351,740

$6,351,740

$6,351,740

Less CIAC

($2,318,369)

($2,318,369)

($2,318,369)

($2,318,369)

($2,318,369)

Plus Materials & Supplies

$0

$0

$0

$0

$0

Working Cash

$59,781

$52,689

$52,689

$52,689

$52,689

Rate Base:

$8,659,890

$8,722,798

$8,722,798

$8,722,798

$8,722,798

Rate of Return

         

Rate of Margin

Negative

15.8%

Negative

28%

21.7%

           

(END OF APPENDIX A)

Rural Water Company

(END OF APPENDIX B)

Rural Water Company

Frank Brommenschenkel

Frank B & Associates
Water Management Consulting
134 Davis Street
Santa Paula, CA  93060

frank.brommen@verizon.net

Ann Watson

watconsult@sbcglobal.net

Charles Baker, President

Rural Water Company

P.O. Box 745

Grover Beach, CA 93483

ruralwater@earthlink.net

Sorrel Marks

Regional Water Quality Control Board

895 Aerovista Place, Suite 101

San Luis Obispo, CA 93401

Smarks@waterboards.ca.gov

Ronald and Nancy Galwey

2287 Dunlin Way

Arroyo Grande, CA 93420

brightdab@charter.net

Steve Martinez

2371 Willet Way

Arroyo Grande, CA  93420

steve@casademartinez.com

Joe and Sharyn Lombardi

2342 Brant St.

Arroyo Grande, CA 93420

joelombardi@att.net

Jay and Kathy Kukawsky

822 Cypress Ridge Parkway

Arroyo Grande, CA 93420

kdell@charter.net

Laura and Ken Turknette

865 Wigeon Way Apt # 6

Arroyo Grande, CA 93420

landkturknette@att.net

Robert and Melanie Smith

2358 Turnstone Street

Arroyo Grande, CA 93420

Smith0965@sbcglobal.bet

Richard White

2520 Appaloosa Way

Arroyo Grande, CA 93420

richardewhite@cardiopulmonary.com

Thomas Merrin

290 Arabian Way

Arroyo Grande, CA 93420

Hardwoodtoys@charter.net

Jay and Joy DeCarli

2385 Carlen Court

Winton, CA 95388

Jay-DE@msn.com

Patrick and Bonnie McKin

2307 Sanderling Court

Arroyo Grande, CA 93420

durian@charter.net

Jill and Paul Buckley

2480 Brant Street

Arroyo Grande, CA 93420

jillbuckley@charter.net

Bruce and Carol Palmer

2374 Turnstone Street

Arroyo Grande, CA 93420

carbru@sbcglobal.net

James L. Claypool

2765 Coast View Drive

Arroyo Grande, CA 93420

jclaypool@charter.net

Nyle Hooper

2335 Bittern St.

Arroyo Grande, CA 93420

nylehooper@charter.net

Gerry Germany

970 Wigeon Way

Arroyo Grande, CA  93420

52petey55@sbcglobal.net

Jerry Boyle

703 Avocet Way

Arroyo Grande, CA  93420

jerryboyle@charter.net

Tom Imming

819 Longspur Lane

Arroyo Grande, CA  93420

imming@charter.net

Ron Green

2275 Tattler Street

Arroyo Grande, CA 93420

rgreen2275@charter.net

James  Marshall

2695 Thoroughbred Pl

Arroyo Grande, CA

slomarsh@charter.net

Robert and Eloise Kusiak

748 Avocet Way

Arroyo Grande, CA 93420

BobsGX@sbcglobal.net

Cathy Springford

670 Camino Contento

Arroyo Grande, CA 93420

cspringford@sbcglobal.net

Dave Kenitz

2274 Dunlin Way

Arroyo Grande, CA 93420

Alohadave61@aol.com

Louisa Bosshardt

2640 Shetland Place

Arroyo Grande, CA 93420

Bosshardt5@charter.net

Wendy Hallin

990 Wigeon Way

Arroyo Grande, CA 93420

wendyhallin@hotmail.com

Jim Wolfe

929 Wigeon Way

Arroyo Grande, CA 93420

wolfejim@charter.net

David Ford

905 Wigeon Way

Arroyo Grande, CA 93420

D.ford@charter.net

Robert Zeilenga

829 Jacana Court

Arroyo Grande, CA 93420

rzeil@barnabasfoundation.com

Jan Martinez

2371 Willet Way

Arroyo Grande, CA 93420

Owens-martinez@att.net

Spence and Carol Thatcher

2888 Northview Avenue

Arroyo Grande, CA 93420

cpthatcher@sbcglobal.net

Larry Versaw

2391 Turnstone Street

Arroyo Grande, CA 93420

larryversaw@gmail.com

Jim Dutra

705 Ridgemont Way

Arroyo Grande, CA 93420

t.2utra@yahoo.com

Joanne Connolly

2735 Indian Hills Way

Arroyo Grande, CA 93420

Joanne_c@juno.com

Roland Tanner

Rtanner@gswater.com

Tim Demma

989 Wigeon Way

Arroyo Grande, CA 93420

sdemma@earthlink.net

Steve Sproger

9511 Wigeon Way

Arroyo Grande, CA 93420

stevenlesa@sbcglobal.net

Calvin Jones

2539 Brant Street

Arroyo Grande, CA 93420

jacqulyngory@charter.net

Dave Stevenson

607 Avocet Way

Arroyo Grande, CA 93420

asupamojo@yahoo.com

Sue Kalin

2290 Tattler Street

Arroyo Grande, CA 93420

suekalin@msn.com

Robert Williams

2790 Tattler Street

Arroyo Grande, CA 93420

Robertwilliams2536@yahoo.com

Liam Bennett

939 Wigeon Way

Arroyo Grande, CA 93420

liambennet@att.net

Betty LaPlante

2356 Turnstone Street

Arroyo Grande, CA 93420

b.laplante@att.net

Steve and Karla Cool

2855 Peaceful Point

Arroyo Grande, CA 93420

Coolaw2@aol.com

Jon Loescher

839 Chukar Street

Arroyo Grande, CA 93420

jonloesc@yahoo.com

John Dixon

860 Jacana Court

Arroyo Grande, CA 93420

Jack.dixon@charter.net

Renae Ringstmeyer

859 Wigeon Way

Arroyo Grande, CA 93420

dan@buena-res.com

Barry Brown

2261 Plover Court

Arroyo Grande, CA 93420

barry@barretbrown.com

Melissa Smallen

2233 Kittiwake Street

Arroyo Grande, CA 93420

Mels2233@charter.net

Brain Doherty

2342 Brant Street

Arroyo Grande, CA 93420

tldoherty@charter.net

James Wright

815 Noddy Court

Arroyo Grande, CA 93420

Jwright105@aol.com

Bill Dorland

868 Jacana Court

Arroyo Grande, CA 93420

wdorland@gmail.com

Gary and Susan Huggins

575 Redtail Meadow Lane

Arroyo Grande, CA 93420

gdhuggins@charter.net

Jon Nikols

866 Cypress Ridge

Arroyo Grande, CA 93420

JANickols@aol.com

Maria Dion

869 Wigeon Way

Arroyo Grande, CA 93420

singaan@sbcglobal.net

Rose Haupt

618 Avocet Way

Arroyo Grande, CA 93420

roseanddaveAG@juno.com

Tem and Carolyn Shitanishi

2285 Dunlin Way

Arroyo Grande, CA 93420

cshitanishi@yahoo.com

Steve and Barbara Whitfield

745 Avocet Way

Arroyo Grande, CA 93420

hipsnknees@sbcglobal.net

Rosemary and Tom Cleaves

2357 Turnstone Street

Arroyo Grande, CA 93420

rcleaves@sbcglobal.net

Nada Williston

2298 Tattler Street

Arroyo Grande, CA 93420

Nada_williston@yahoo.com

Jean Whipple

2391 Brant Street

Arroyo Grande, CA 93420

whipplej@sbcglobal.net

Paul W Sill

2645 Belgian Place

Arroyo Grande, CA 93420

pwsill@yahoo.com

Ed Zyrura

23667 Brant Street

Arroyo Grande, CA 93420

edzybum@charter.net

Pete Schipa

2385 Brant Street

Arroyo Grande, CA 93420

peterr@charter.net

Jeff Attebery

2385 Brant Street

Arroyo Grande, CA 93420

theatt@charter.net

Annette Crowder

2824 Northview Ave

Arroyo Grande, CA 93420

facrowder@aol.com

Mike and Judy Eisenhard

2275 Plover Court

Arroyo Grande, CA 93420

meisenhard@sbcglobal.net

Ron Heise

925 Wigeon Way

Arroyo Grande, CA 93420

Chumash12@yahoo.com

Maxine Fritz

988 Wigeon Way

Arroyo Grande, CA 93420

maxinefritz@charter.net

Sandra Loflin

2375 Turnstone Street

Arroyo Grande, CA 93420

sandylz@aol.com

Bonnie Kelley

2833 Northview Avenue

Arroyo Grande, CA 93420

blkelley@sbcglobal.net

Carole Sue Morton

2376 Willet Way

Arroyo Grande, CA 93420

Morton805@charter.net

Thomas Rinn

852 Jacana Court

Arroyo Grande, CA 93420

tom@trinnwwc.com

Christina Doherty

2342 Brant Street

Arroyo Grande, CA 93420

tldoherty@charter.net

Bryan and Lynn Heinrich

759 Avocet Way

Arroyo Grande, CA 93420

Bryan.heinrich@gmail.com

Lisa and George Nanful

2276 Plover Court

Arroyo Grande, CA 93420

lnanful@gmail.com

Lynda Beshwate

969 Wigeon Way

Arroyo Grande, CA 93420

lbeshwate@sbcglobal.net

Sally Deveraux

2374 Brant Street

Arroyo Grande, CA 93420

sbdeveraux@gmail.com

David Hausman

2808 Northview Avenue

Arroyo Grande, CA 93420

dhausman@smv.edu

Dennis Hoctz

590 Redtail Meadow Lane

Arroyo Grande, CA 93420

Socalhotrod1971@yahoo.com

Mike Cleary

2445 Mustang Drive

Arroyo Grande, CA 93420

Mcleary54@att.net

Bill Bettencourt

645 Avocet Way

Arroyo Grande, CA 93420

Betnqt61@charter.net

BC Shea

2675 Shetland Place

Arroyo Grande, CA 93420

wellnessleader@gmail.com

Bill and Pat Negrete

806 Cypress Ridge Parkway

Arroyo Grande, CA 93420

pnegreteshs@hotmail.com

Dale and Chris Beqwith

766 Avocet Way

Arroyo Grande, CA 93420

Dhb1120@charter.net

B. Lotfi

630 Avocet Way

Arroyo Grande, CA 93420

BZL15@yahoo.com

Don Utterback

949 Wigeon Way

Arroyo Grande, CA 93420

drumandheal@hotmail.com

John and Judy Schaefer

719 Avocet Way

Arroyo Grande, CA 93420

jschaeferco@charter.net

Alan and Rosalie Vernon

660 Avocet Way

Arroyo Grande, CA 93420

gypsyroz@hotmail.com

Elisabeth Sarrow

2776 Sevada Lane

Arroyo Grande, CA 93420

Goslo100@gmail.com

Joe Whitaker

2356 Willet Way

Arroyo Grande, CA 93420

joewhitaker@aol.com

Phil Santa Cruz

665 Avocet Way

Arroyo Grande, CA 93420

santacruz2665@yahoo.com

Jan Hutchinson

2308 Brant Street

Arroyo Grande, CA 93420

jandanhutch@yahoo.com

Bob Fisch

822 Noddy Court

Arroyo Grande, CA 93420

Rfisch2883@yahoo.com

Jerry and Barbara Crawford

615 Avocet Way

Arroyo Grande, CA 93420

Jbcrawford51@att.net

Abbey Silverstone

838 Jacana Court

Arroyo Grande, CA 93420

aasilver@charter.net

Denise Cowell

2364 Willet Way

Arroyo Grande, CA 93420

SLOgirl@charter.net

Robert Latta

2685 Belgian Place

Arroyo Grande, CA 93420

mochalatta@charter.net

Warren White

858 Wigeon Way

Arroyo Grande, CA 93420

Warren-AP@charter.net

Jerry Brandt

2268 Brant Street

Arroyo Grande, CA 93420

Jerry.brandt@cbs.com

Jose J Olvera

2816 Northview Avenue

Arroyo Grande, CA 93420

Condor4086@aol.com

1 On July 12, 2007, per Res. W-4654, the Commission granted an interim increase for Rural, which would be adjusted upward or downward back to July 12, 2007, consistent with the final rates the Commission adopted in the general rate case. On November 20, 2009, the Commission adopted Res. W-4794, which authorized the rate decrease and surcredit. Rural did not implement this surcredit due to revenue shortfalls.

2 On May 27, 2010, Rural filed Advice Letter 61-W to implement the rate decrease the Commission authorized in Res. W-4794. This advice letter became effective on of June 1, 2010.

3 Rural established the purchased water account on August 20, 2010. All NMMA costs Rural has incurred subsequent to the initial $49,260, which are being addressed in AL 68-W, were incurred after this account was created.

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