ALJ/JHE/avs Date of Issuance 11/17/2011
Decision 11-11-018 November 10, 2011
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
In the Matter of the Application of San Gabriel Valley Water Company (U337W) for Authority to Increase Rates Charged for Water Service in its Los Angeles County Division by $10,232,700 or 17.8% in July 2011, $1,767,700 or 2.6% in July 2012, and $2,245,800 or 3.2% in July 2013 and in its Fontana Water Company division by $1,252,200 or 2.1% in July 2011. |
Application 10-07-019 (Filed July 16, 2010) |
(See Appendix F for List of Appearances)
DECISION APPROVING SETTLEMENT AND
AUTHORIZING REVENUE REQUIREMENTS FOR THE
SAN GABRIEL VALLEY WATER LOS ANGELES DIVISION
TABLE OF CONTENTS
Title Page
DECISION APPROVING SETTLEMENT AND AUTHORIZING REVENUE REQUIREMENTS FOR THE SAN GABRIEL VALLEY WATER LOS ANGELES DIVISION 22
4.1. Los Angeles District: Settlement of Issues Affecting Revenues 66
4.2. Los Angeles District: Settlement of Issues Affecting Expenses 99
4.2.1. Forecasting Methodology and Escalation Factors 99
4.2.2. Operations and Maintenance Expenses 99
4.2.3. Administrative and General Expenses 1010
4.2.4. Pensions and Benefits 1111
4.3. Los Angeles District: Capital Projects 1313
4.3.1. Projects in Ratebase on a Forecasted Basis 1313
4.3.2. Projects Requiring Future Advice Letter for Inclusion in Ratebase 1515
4.5. Uncontested Issues and Other 1919
5. Standard of Review for Settlements 2020
6. Advice Letter Process for Certain Capital Projects 2222
7. Burden of Proof Under Statute and Rate Case Plan 2323
8. Remaining Disputed Issues 2424
8.1. Balancing Account Treatment for Employees Health
and Dental Expenses 2424
8.2. Request to Amortize Cost Balance from the WQLMA 2727
8.3. Outside Legal Costs Related to Baldwin Park Operables Unit Settlement Agreement 3333
Title Page
Appendix A - San Gabriel Valley Water Company, Los Angeles County Division - Summary of Earnings
Appendix B - San Gabriel Valley Water Company, Los Angeles County Division - Quantities
Appendix C - San Gabriel Valley Water Company, Los Angeles County Division - Comparison of Bills
Appendix D - San Gabriel Valley Water Company, Los Angeles County Division - Adopted Rates
Appendix E - Settlement Agreement Between the Division of Ratepayer Advocates and San Gabriel Valley Water Company
Appendix F - List of Appearances
DECISION APPROVING SETTLEMENT AND
AUTHORIZING REVENUE REQUIREMENTS FOR THE
SAN GABRIEL VALLEY WATER LOS ANGELES DIVISION
1. Summary
This decision approves a settlement between San Gabriel Valley Water Company and the Division of Ratepayer Advocates, resolves other issues related to San Gabriel's Los Angeles District, and authorizes a revenue requirement for this district. The revenue requirement for the Los Angeles District is $63,973,500, an 11.71% increase for the 12 months beginning July 1, 2011. The rates will be adjusted for 2012 and 2013 consistent with the existing water company rate case plan (Decision 07-05-062). Most issues related to the San Gabriel Water General Office Division are deferred to the next San Gabriel Water Company Fontana District General Rate Case.
In addition to adopting the partial settlement between San Gabriel Valley Water Company and the Division of Ratepayer Advocates, this decision declines to adopt a balancing account requested by San Gabriel Valley Water Company for its employee health and dental expenses, and finds that, consistent with Commission Decision 10-10-018, expenses related to San Gabriel Valley Water Company's Water Quality Litigation Memorandum Account must be subtracted from the credit balance in that account before being collected from ratepayers. This decision also finds that outside legal costs incurred to enforce a contract stemming from a settlement agreement related to water contamination will be included in San Gabriel's Water Quality Litigation Memorandum Account, rather than test year expenses.
This proceeding is closed.
