Introduction

The utility provides water service to 705 water customers in the Royal Estates Subdivision and vicinity, located approximately three miles southwest of King City in Monterey County. The LBWC service territory consists of two distinct pressure zones: the Lower Canyon with 560 active water connections and the Upper Canyon with 145 active connections.

The billing schedules in Res. W-4736 reflect separate rates for the lower and upper canyon pressure zones. In its General Rate Case (GRC), LBWC reported 552 ¾-inch meter connections from the 560 active water connections in the lower canyon. However, this should have been 552 5/8 x ¾-inch meter connections instead of 552 ¾-inch connections. Likewise, LBWC documented 140 ¾-inch connections from the 145 water connections for the upper canyon. This also should have been 140 5/8 x ¾-inch connections instead of 140 ¾-inch connections.

The utility does not currently have nor is any future development based on ¾-inch meter connections. The current cost-of-service rate design will cause annual LBWC losses of more than $73,600 or 56% of annual net revenue. For this reason, LBWC filed the Application to modify.