Assignment of Proceeding
Rami Kahlon is the assigned Examiner in this proceeding.
1. Res. W-4736, dated January 29, 2009, authorized a general rate increase for LBWC.
2. On April 1, 2009, LBWC filed A.09-04-044, a Petition to Modify Res. W-4736.
3. Less than one year has elapsed since Res. W-4736 was adopted.
4. The Division of Water and Audits staff designed the rates in Res. W-4736 on the ¾-inch meter size reported by LBWC as representing 98 percent of its connections.
5. The actual size of 98 percent of the LBWC system is the 5/8 x ¾-inch meter.
6. Due to the meter size error, billing rates granted in Res. W-4736 do not produce the authorized revenue requirement and will cause LBWC an annual loss of over $73,600.
7. The rate design approved in this decision recognizes that the most efficacious modification is to reassign the ¾-inch sized cost of service rate granted in Res. W-4736 to the 5/8 x ¾-inch meter.
8. Applying the cost of service charge for the ¾-inch meter rates to the 5/8 x ¾-inch meter size requires only an adjustment to the 5/8 x ¾-inch sized meter while all other rates remain as published in Res. W-4736.
9. By adopting the same rate design analysis granted in Res. W-4736, the same authorized revenue requirement of $565,800 is produced.
10. By reassigning the currently authorized ¾-inch sized meter rates to the size actually in use (5/8 x ¾-inch), the rationale for the rates passed in Res. W-4736 remains, keeps the other active meter connections with the same rates as passed in Res. W-4736 and offers the least disruption in billing for both the company and the ratepayers.
11. There are no outstanding Commission orders requiring system improvements.
12. LBWC gave notice of the request by mail on June 8, 2009.
13. No protest letters were received.
The Commission should approve A.09-04-004 as modified in this decision.
ORDER
IT IS ORDERED that:
1. The Petition for Modification of Resolution W-4736, filed by Little Bear Water Company, Inc. on April 1, 2009 is approved to the extent that the rate design approved in Resolution W-4736 is modified to produce the annual revenues authorized in Resolution W-4736. The adopted rate design is contained in Appendix D attached to this Order, which replaces Appendix D attached to Resolution W-4736.
2. The revised rate schedules attached as Appendix B to this Order are adopted, and replace the Appendix B attached to Resolution W-4736.
3. The quantities (Appendix E attached to this Order) used to develop the rate design in Appendix D are adopted, and replace the Appendix E attached to Resolution W-4736.
4. Within 15 days from the effective date of this Order, Little Bear Water Company shall file a Tier 1 advice letter, in compliance with General Order 96-B, with the revised tariff sheets attached as Appendix B to this Order. The revised tariff sheets shall become effective on the effective date of this Order, subject to a finding of compliance by the Commission's Division of Water and Audits, and shall apply to service rendered on or after their effective date.
5. Application 09-04-004 is closed.
This order is effective today.
Dated September 10, 2009, at San Francisco, California.
MICHAEL R. PEEVEY
President
DIAN M. GRUENEICH
JOHN A. BOHN
RACHELLE B. CHONG
TIMOTHY ALAN SIMON
Commissioners
APPENDIX B, Page 1 of 2
Schedule No. 1-LC
METERED SERVICE
Little Bear Water Company
(Lower Canyon)
APPLICABILITY
Applicable to all metered water service furnished in Little Bear District (Lower Canyon)
TERRITORY
Portions of Pine Canyon and vicinity, located 3 miles southwest of King City, Monterey County.
RATES
Per Meter
Monthly Quantity Rate:
All water, per 100 cu. ft. $ 1.561 (I)
Service Charge:
For 5/8 x 3/4 - inch meter 26.09 (I)
For 3/4 - inch meter 26.09 (I)
For 1- inch meter 43.48 (I)
For 1-1/2- inch meter 86.97 (I)
For 2-inch meter 139.15 (I)
The Service Charge is a readiness-to-serve charge which is applicable to all metered service and to which is added the charge for water used computed at the Quantity Rate.
SPECIAL CONDITIONS
All bills are subject to the Reimbursement fee set forth in Schedule UF.
Appendix B, Page 2 of 2
Schedule No. 1-UC
METERED SERVICE
Little Bear Water Company
(Upper Canyon)
APPLICABILITY
Applicable to all metered water service furnished in Little Bear District (Upper Canyon).
TERRITORY
Portions of Pine Canyon and vicinity, located 3 miles southwest of King City, Monterey County.
RATES
Per Meter
Monthly Quantity Rate:
All water, per 100 cu. ft. $ 2.601 (I)
Service Charge:
For 5/8 x 3/4 - inch meter 28.64 (I)
For 3/4 - inch meter 28.64 (I)
For 1- inch meter 47.74 (I)
For 1 1/2 inch meter 95.48 (I)
For 2 inch meter 152.77 (I)
The Service Charge is a readiness-to-serve charge which is applicable to all metered service and to which is added the charge for water used computed at the Quantity Rate.
SPECIAL CONDITIONS
All bills are subject to the Reimbursement fee set forth in Schedule UF.
Appendix D Page 1 of 2
Little Bear Water Company
Comparison of Rates
For an average customer consumption of 19 Ccf
Lower Canyon
Per Service Connection Per Month | |||
Present Rates $ |
Recommended Rates $ |
Percent Change % | |
METERED |
|||
Service Charge: |
|||
5/8 x ¾-inch |
19.89 |
26.09 8.80 |
31 |
¾ - inch |
19.89 |
26.09 13.20 |
31 |
1-inch |
33.22 |
43.48 22.00 |
31 |
1 ½ - inch |
66.21 |
86.97 44.00 |
31 |
2-inch |
105.99 |
139.15 70.25 |
31 |
Quantity Charge |
|||
All water, per 100 cu.ft. |
1.144 |
1.561 |
36 |
Total Monthly Bill 19 Ccf |
Present Bill $ |
Adopted Bill $ |
Percent Change % |
5/8 x ¾-inch |
41.63 |
55.75 |
34 |
¾ - inch |
41.63 |
55.75 |
34 |
1-inch |
54.96 |
73.14 |
33 |
1 ½ - inch |
87.95 |
116.63 |
33 |
2-inch |
127.73 |
168.81 |
32 |
Appendix D Page 2 of 2
Little Bear Water Company
Comparison of Rates
For an average customer consumption of 19 Ccf
Upper Canyon
Per Service Connection Per Month | |||
Present Rates $ |
Recommended Rates $ |
Percent Change % | |
METERED |
|||
Service Charge: |
|||
5/8 x ¾-inch |
32.32 |
28.64 8.80 |
-11 |
¾ - inch |
32.32 |
28.64 13.20 |
-11 |
1-inch |
53.96 |
47.74 22.00 |
-12 |
1 ½ - inch |
107.60 |
95.48 44.00 |
-11 |
2-inch |
172.25 |
152.77 70.25 |
-11 |
QUANTITY |
|||
All water, per 100 cu.ft. |
1.595 |
2.601 |
63 |
Total Monthly Bill 44 Ccf |
Present Bill $ |
Adopted Bill $ |
Percent Change % |
5/8 x ¾-inch |
102.50 |
143.09 |
40 |
¾ - inch |
102.50 |
143.09 |
40 |
1-inch |
124.14 |
162.18 |
31 |
1 ½ - inch |
177.78 |
209.92 |
18 |
2-inch |
242.43 |
267.21 |
10 |
Appendix E
Little Bear Water Company
Adopted Quantities
Test Year 2007
Total water sold (Ccf)
Lower Canyon 123,542
Upper Canyon 54,912
Total 178,454
Total energy consumption (kWh)
Lower Canyon 261,972
Upper Canyon 185,061
Total 447,033
kWh/Ccf pumped
Lower Canyon 2.121
Upper Canyon 3.370
Composite power factor ($/kWh)
Lower Canyon $ 0.1588
Upper Canyon $ 0.1588
Active Connections Lower Canyon Upper Canyon
For 5/8 x 3/4 - inch meter 552 140
For 3/4 - inch meter 0 0
For 1- inch meter 5 5
For 1 1/2 inch meter 2 0
For 2 inch meter 1 0
Total...............................................................560..............................145
Income taxes
Income before Interest and Expense $ 173,803
Interest Expense 38,114
State Taxable Income 135,689
State Income Tax 11,995
Federal Taxable Income 123,964
Federal Income Tax....................................................................31,491
Total State and Federal Income Taxes 43,485
Appendix B, Page 1 of 2
Schedule No. 1-LC
METERED SERVICE
Little Bear Water Company
(Lower Canyon)
APPLICABILITY
Applicable to all metered water service furnished in Little Bear District (Lower Canyon)
TERRITORY
Portions of Pine Canyon and vicinity, located 3 miles southwest of King City, Monterey County.
RATES
Per Meter
Monthly Quantity Rate:
All water, per 100 cu. ft. $ 1.561 (I)
Service Charge:
For 5/8 x 3/4 - inch meter 26.09 (I)
For 3/4 - inch meter 26.09 (I)
For 1- inch meter 43.48 (I)
For 1-1/2- inch meter 86.97 (I)
For 2-inch meter 139.15 (I)
The Service Charge is a readiness-to-serve charge which is applicable to all metered service and to which is added the charge for water used computed at the Quantity Rate.
SPECIAL CONDITIONS
All bills are subject to the Reimbursement fee set forth in Schedule UF.
Appendix B, Page 2 of 2
Schedule No. 1-UC
METERED SERVICE
Little Bear Water Company
(Upper Canyon)
APPLICABILITY
Applicable to all metered water service furnished in Little Bear District (Upper Canyon).
TERRITORY
Portions of Pine Canyon and vicinity, located 3 miles southwest of King City, Monterey County.
RATES
Per Meter
Monthly Quantity Rate:
All water, per 100 cu. ft. $ 2.601 (I)
Service Charge:
For 5/8 x 3/4 - inch meter 28.64 (I)
For 3/4 - inch meter 28.64 (I)
For 1- inch meter 47.74 (I)
For 1 1/2 inch meter 95.48 (I)
For 2 inch meter 152.77 (I)
The Service Charge is a readiness-to-serve charge which is applicable to all metered service and to which is added the charge for water used computed at the Quantity Rate.
SPECIAL CONDITIONS
All bills are subject to the Reimbursement fee set forth in Schedule UF.
Appendix D Page 1 of 2
Little Bear Water Company
Comparison of Rates
For an average customer consumption of 19 Ccf
Lower Canyon
Per Service Connection Per Month | |||
Present Rates $ |
Recommended Rates $ |
Percent Change % | |
METERED |
|||
Service Charge: |
|||
5/8 x ¾-inch |
19.89 |
26.09 8.80 |
31 |
¾ - inch |
19.89 |
26.09 13.20 |
31 |
1-inch |
33.22 |
43.48 22.00 |
31 |
1 ½ - inch |
66.21 |
86.97 44.00 |
31 |
2-inch |
105.99 |
139.15 70.25 |
31 |
Quantity Charge |
|||
All water, per 100 cu.ft. |
1.144 |
1.561 |
36 |
Total Monthly Bill 19 Ccf |
Present Bill $ |
Adopted Bill $ |
Percent Change % |
5/8 x ¾-inch |
41.63 |
55.75 |
34 |
¾ - inch |
41.63 |
55.75 |
34 |
1-inch |
54.96 |
73.14 |
33 |
1 ½ - inch |
87.95 |
116.63 |
33 |
2-inch |
127.73 |
168.81 |
32 |
Appendix D Page 2 of 2
Little Bear Water Company
Comparison of Rates
For an average customer consumption of 19 Ccf
Upper Canyon
Per Service Connection Per Month | |||
Present Rates $ |
Recommended Rates $ |
Percent Change % | |
METERED |
|||
Service Charge: |
|||
5/8 x ¾-inch |
32.32 |
28.64 8.80 |
-11 |
¾ - inch |
32.32 |
28.64 13.20 |
-11 |
1-inch |
53.96 |
47.74 22.00 |
-12 |
1 ½ - inch |
107.60 |
95.48 44.00 |
-11 |
2-inch |
172.25 |
152.77 70.25 |
-11 |
QUANTITY |
|||
All water, per 100 cu.ft. |
1.595 |
2.601 |
63 |
Total Monthly Bill 44 Ccf |
Present Bill $ |
Adopted Bill $ |
Percent Change % |
5/8 x ¾-inch |
102.50 |
143.09 |
40 |
¾ - inch |
102.50 |
143.09 |
40 |
1-inch |
124.14 |
162.18 |
31 |
1 ½ - inch |
177.78 |
209.92 |
18 |
2-inch |
242.43 |
267.21 |
10 |
Appendix E
Little Bear Water Company
Adopted Quantities
Test Year 2007
Total water sold (Ccf)
Lower Canyon 123,542
Upper Canyon 54,912
Total 178,454
Total energy consumption (kWh)
Lower Canyon 261,972
Upper Canyon 185,061
Total 447,033
kWh/Ccf pumped
Lower Canyon 2.121
Upper Canyon 3.370
Composite power factor ($/kWh)
Lower Canyon $ 0.1588
Upper Canyon $ 0.1588
Active Connections Lower Canyon Upper Canyon
For 5/8 x 3/4 - inch meter 552 140
For 3/4 - inch meter 0 0
For 1- inch meter 5 5
For 1 1/2 inch meter 2 0
For 2 inch meter 1 0
Total...............................................................560..............................145
Income taxes
Income before Interest and Expense $ 173,803
Interest Expense 38,114
State Taxable Income 135,689
State Income Tax 11,995
Federal Taxable Income 123,964
Federal Income Tax....................................................................31,491
Total State and Federal Income Taxes 43,485
