5. Assignment of Proceeding

Timothy Alan Simon is the assigned Commissioner and Darwin E. Farrar is the assigned Administrative Law Judge in this proceeding.

Findings of Fact

1. In D.09-10-028, we adopted the Settlement Agreement entered into by DRA and GSWC.

2. In D.09-06-010, GSWC was granted authority to track the difference between the GSWC GO costs then being collected by BVES and the GO expenses allocated to BVES in D.07-11-037.

3. In D.09-10-028, we intended that the process used to implement tariffs in BVES's Test Year 2009 be used to revise and implement tariffs in BVES's Test Years 2010, 2011, and 2012.

4. With the phase-in, the agreed-upon and approved incremental base rate increases, set forth in the Settlement Agreement, are $4,810,500 (15.86%) for 2009, $515,000 (2.94%) for 2010, $209,000 (0.83%) for 2011, and $168,000 (0.35%) for 2012.

5. The total revenue requirements, with the phase-in, for each of Test Years 2009-2012 are $17,023,300, $18,292,400, $18,841,200, and $19,449,600, respectively.

6. In the Settlement Agreement approved in D.09-10-028, the Parties agreed to four test years and thus, a four-year rate case cycle for BVES.

Conclusions of Law

1. Decision 09-10-028 approved a settlement agreement in the application of the GSWC for a general rate increase in its BVES division.

2. GSWC's November 19, 2009, Petition for Modification of D.09-10-028 was timely filed.

3. The modifications GSWC requests should be granted.

ORDER

IT IS ORDERED that:

4. The petition to modify Decision (D.) 09-10-028 filed by the Golden State Water Company is granted. The original decision shall be cited as D.09-10-028, as modified by D.10-03-016.

5. The Findings of Fact, Conclusions of Law, and Orders reached in Decision 09-10-028 are modified as set forth in Attachment A.

6. Application 08-06-034 is closed.

This order is effective today.

Dated March 11, 2010, at San Francisco, California.

ATTACHMENT A6

1. Finding of Fact #4 in D.09-10-028 will be modified to read: The settlement sets forth reasonable estimates of the levels of revenues and expenses likely to occur in Test Years 2009, 2010, 2011, and 2012. Furthermore, the settlement provides revenues and rates for each of the four test years: 2009, 2010, 2011, and 2012. The rates for each such test year are included in Attachment C of the Settlement Agreement.

2. The following will be added to D.09-10-028 as Finding of Fact #7: Pursuant to D.09-06-010, Golden State Water Company was authorized to establish a memorandum account to track the difference between General Office costs currently being collected and the General Office costs allocated to Bear Valley Electric Service division in D.07-11-037.

3. The following will be added to D.09-10-028 as Finding of Fact #8: Amortization of the General Office Allocation Memorandum Account over 24 months beginning upon the effective date of a Tier 2 advice letter filing is consistent with D.09-06-010.

4. The following will be added to D.09-10-028 as Finding of Fact #9: The settlement proposes revenue requirements including the phase-in of $17,023,300, for 2009, $18,292,400 for 2010, $18,841,200 for 2011, and $19,449,600 for 2012.

5. The following will be added to D.09-10-028 as Finding of Fact #10: A four-year rate cycle for Golden State Water Company's BVES division as requested in its application and included in its motion for approval of the settlement was unopposed.

6. The following will be added to D.09-10-028 as Conclusion of Law #7: Golden State Water Company should be authorized to file a Tier 2 advice letter to amortize the General Office Allocation Memorandum Account (GOAMA) over 24 months and begin recovery of the GOAMA balance on the effective date of the advice letter.

7. The following will be added to D.09-10-028 as Conclusion of Law #8: Golden State Water Company should be authorized to file a Tier 2 advice letter with rate schedules for Test Years 2010, 2011, and 2012, as directed in the Order below.

8. The following will be added to D.09-10-028 as Conclusion of Law #9: It is reasonable to approve the revenue adjustment and corresponding revenue requirements for Test Years 2009, 2010, 2011, and 2012 as proposed in the settlement.

9. The following will be added to D.09-10-028 as Conclusion of Law #10: It is reasonable that the next general rate case application for BVES for Test Year 2013 be filed by January 31, 2012 and thereafter BVES shall have a four-year rate case cycle.

10. The following will be added to D.09-10-028 as Ordering Paragraph #4: Golden State Water Company shall file a Tier 2 advice letter with revised tariff schedules for its Bear Valley Electric Service division that reflect the amortization and recovery of the General Office Allocation Memorandum Account (GOAMA) balance over a 24-month period. This filing shall comply with General Order 96-B. The revised tariff schedules shall be effective upon the effective date of the advice letter and will apply to services rendered on or after such effective date.

11. The following will be added to D.09-10-028 as Ordering Paragraph #5: On or before December 1 of each year preceding 2010, 2011, and 2012, Golden State Water Company shall file a Tier 2 advice letter to implement the base rates adopted for years 2010, 2011, and 2012, as shown in Attachment C of the Settlement Agreement. These filings shall comply with General Order 96-B. To the extent that any base rate filed in these advice letters differs from that shown in Attachment C of the Settlement Agreement as a result of any changes approved by future Commission orders or decision, Golden State Water Company will include workpapers with the advice letters that show how the rate was adjusted based on future changes adopted by the Commission. These revised tariff schedules shall be effective January 1 of each year in 2010, 2011, and 2012, and will apply to services rendered on or after the effective date.

12. Ordering Paragraph #1 in D.09-10-028 will be modified to read: 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 $4,810,500 for 2009, $515,000 for 2010, $209,000 for 2011, and $168,000 for 2012, is approved. The settlement revenue requirement of $17,023,300 for 2009, $18,292,400 for 2010, $18,841,200 for 2011, and $19,449,600 for 2012 is approved.

13. The following will be added to D.09-10-028 as Ordering Paragraph #6: Golden State Water Company shall file its next general rate case application for its Bear Valley Electric Service division by January 31, 2012, for its next four-year rate cycle beginning with Test Year 2013 and thereafter have a rate case plan of filing for a general rate case every four years.

14. The following will be added to the last sentence at the end of the first paragraph on page 4 of D.09-10-028: After taking into account the phase-in plan, the Settling Parties agreed to revenue requirements for 2009-2012 for BVES of: $17,023,300, $18,292,400, $18,841,200, and $19,449,600, respectively.

(END OF ATTACHMENT A)

6 Underlining denotes preexisting text.

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