D0911032 Appendices A, B, & C
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ALJ/MFG/hkr Date of Issuance 11/23/2009

Decision 09-11-032 November 20, 2009

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In the Matter of the Application of San Jose Water Company (U168W) for an Order authorizing it to increase rates charged for water service by $36,207,000 or 18.44% in 2010, by $15,171,000 or 6.52% in 2011, and by $19,899,000 or 8.10% in 2012.

Application 09-01-009

(Filed January 21, 2009)

Nossaman, Guthner, Knox & Elliott, LLP, by Martin A. Mattes, Attorney at Law, for San Jose Water Company, applicant.

Jeffrey L. Bates, for Redwood Estates Services Association; Bob Burk and Robert Jones, for Big Redwood Park Mutual Water Co., Brush & Old Well Road Mutual Water Co., Mountain Summit Mutual Water Co., Oakmont Water Company, Ridge Mutual Water Company, Summit West Mutual Water Co., and Villa Del Monte Mutual Water Co.; and Maria L. Bondonno, Attorney at Law, for the Commission's Division of Ratepayer Advocates, interested parties.

DECISION RESOLVING GENERAL RATE CASE
OF SAN JOSE WATER COMPANY

TABLE OF CONTENTS

Title Page

DECISION RESOLVING GENERAL RATE CASE
OF SAN JOSE WATER COMPANY 22

Summary 22

Findings of Fact 4949

Conclusions of Law 5353

ORDER 5757

Appendix A: The Rate Tables and Tariff Sheets

Appendix B: The San Jose Water Company and
Division of Ratepayer Advocates' Partial Settlement Agreement

Appendix C: The San Jose Water Company, Division of Ratepayer Advocates,
Mutual Water Companies, and Redwood Estates Services
Association's All-Party Rate Design Settlement Agreement

DECISION RESOLVING GENERAL RATE CASE
OF SAN JOSE WATER COMPANY

Summary

San Jose Water Company (SJWC) is authorized to increase rates by amounts designed to increase revenue by $18,597,000 or 9.24% in its test year 2010, $7,558,000 or 3.43% in 2011, and $11,088,000 or 4.87% in 2012. As a result of the revenue increase granted by this decision, the monthly bill for the average SJWC residential customers using 15 Ccf of water with a 5/8" by 3/4" meter would increase by $4.01 or 8.19% to $52.99 from $48.98 for the test year 2010.

1. Background

San Jose Water Company (SJWC) provides public utility water service to approximately 223,000 residential and industrial customers within its 140 square-mile Santa Clara County service territory. Its service territory encompasses parts of Cupertino, San Jose, and Santa Clara, and in Campbell, Los Gatos, Monte Sereno, and Saratoga, as well as portions of unincorporated Santa Clara County.

SJWC is a wholly owned subsidiary of San Jose Water Corporation. San Jose Water Corporation also owns approximately 5 percent (5%) of California Water Service Group, formerly known as California Water Service Company. SJWC's last general rate case (GRC) was for a 2007 test year, which was resolved by a settlement agreement adopted by Decision (D.) 06-11-015 in 2006.

On January 21, 2009, SJWC filed the above-captioned application to increase rates charged for water service within its service territory by $36,207,000 or 18.44% in 2010, by $15,171,000 or 6.52% in 2011, and by $19,899,000 or 8.10% in 2012. SJWC also requested authority to create two new memorandum accounts to track costs for: (1) Fluoride Implementation, and (2) Pension Expenses. In addition, SJWC requested authority to eliminate the $500,000 ceiling limit in its existing Water Quality Memorandum Account (WQMA), zero out the amounts in its Water Quality Memorandum and Balancing Accounts, and continue its Water Rate Assistance Balancing Account.

Notices of the application were provided to the public through postings in offices, newspaper publications, and by mailings to each customer and to all cities and public agencies in the service territory.

A public participation hearing was held in San Jose on June 8, 2009. Approximately 30 of the 100 people who attended the meeting spoke against any rate increase. There were no complaints about the water service they receive from SJWC.

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