2. Background

Bear Valley Electric Service (BVES) provides retail electric service to the Big Bear Lake resort area in the San Bernardino Mountains. The BVES service territory is comprised primarily of residential customers. BVES provides service to approximately 21,500 full-time and part-time residents, and approximately 1,400 commercial, industrial, or public-authority customers, including two ski resorts in the San Bernardino Mountains.¹ The Golden State Water Company (GSWC) filed Application 08-06-034 in June 2008 for a proposed $6.8 million increase in BVES's base rates in 2009, and increases of $878,000, $391,000, and $315,000 in 2010, 2011, and 2012, respectively. After hearings, GSWC and Division of Ratepayer Advocates (DRA) reached a comprehensive settlement agreement (Settlement Agreement). Decision (D.) 09-10-028, dated October 15, 2009, adopted the Settlement Agreement.

On November 19, 2009, GSWC filed a petition for modification of D.09-10-028. GSWC's petition requests modification to four aspects of D.09-10-028. First, GSWC requests that D.09-10-028 be modified to clearly and specifically address the Commission-approved allocation of GSWC's General Office (GO) expenses to BVES. Second, GSWC's petition requests that we clearly set forth implementation procedures for rates in each of the four Test Years 2009-2012. Third, GSWC's petition requests that we set forth the BVES revenue requirements that were agreed to in the Settlement Agreement. Finally, GSWC's petition requests that we confirm that BVES has a four-year rate case plan and address the timing for the filing of its next general rate case. No party to the proceeding filed a response opposing GSWC's petition for modification.

¹ The BVES system consists of an 8.4 megawatt (MW) generation plant, 205 miles of overhead and 54 miles of underground conductors, and 13 substations.