Timothy Alan Simon is the assigned Commissioner and Darwin E. Farrar is the assigned ALJ in this proceeding.
1. As set forth in the motion for adoption of settlement, BVES and DRA have reached settlement on all contested issues.
2. The settlement meets the requirement of Article 12 (Settlements) of the Commission's Rules of Practice and Procedure.
3. The terms of the settlement do not contravene any statutes or Commission decisions and convey sufficient information to enable the Commission to discharge its regulatory obligations.
4. The settlement sets forth reasonable estimates of the levels of revenues and expenses likely to occur in test years 2009, 2010, 2011, and 2012.
5. In D.07-11-037 this Commission adopted a BVES allocation for GSWC's general office operations costs of $3,609,170.
6. The settlement reflects the BVES allocation of GSWC's general office operations costs consistent with D.07-11-037.
1. The settlement should be adopted.
2. GSWC should be authorized to file the revised rate schedules for BVES included in Attachment C to Appendix A.
3. The settlement is reasonable in light of the whole record, consistent with the law, and in the public interest.
4. It is important to consider rate impacts when contemplating use of the Equal Percentage Marginal Cost approach.
5. The Commission may determine that circumstances render it impractical or against the public interest to immediately transition to Equal Percentage Marginal Cost approach.
6. The Equal Percentage Marginal Cost method should be implemented only as early as the circumstances permit.
IT IS ORDERED that:
1. The settlement between the Golden State Water Company and the Division of Ratepayer Advocates contained in Appendix A of this decision, which includes a revenue adjustment of $5,500,000 for 2009, $515,000 for 2010, $209,000 for 2011, and $168,000 for 2012, is approved.
2. The motion for approval of the settlement is granted.
3. The Golden State Water Company shall file a Tier 1 advice letter within 20 days of today's date with revised tariff schedules for its Bear Valley Electric Services Division. This filing shall comply with General Order 96-B. The revised tariff schedules shall be effective within five days of filing and will apply to services rendered on or after the effective date.
4. Application 08-06-034 is closed.
This order is effective today.
Dated October 15, 2009, at San Francisco, California.
MICHAEL R. PEEVEY
President
DIAN M. GRUENEICH
JOHN A. BOHN
RACHELLE B. CHONG
TIMOTHY ALAN SIMON
Commissioners