8. Assignment of Proceeding

Catherine J.K. Sandoval is the assigned Commissioner and Melissa K. Semcer is the assigned ALJ in this proceeding.

1. Bear Valley Electric Service, a division of Golden State Water Company, is a small electric utility providing service to approximately 21,500 full-time and part-time residents and approximately 1,400 commercial, industrial, or
public-authority customers in the Big Bear Lake resort area in the San Bernardino Mountains.

2. Bear Valley Electric, and its parent company, Golden State Water Company, have a very small number of professional, legal and technical staff and, as such, must rely upon outside attorneys and experts for, among other things, assisting with regulatory issues before the Commission and other regulatory agencies.

3. Bear Valley Electric incurred $1,249,330 of incremental RPS-related legal and outside service costs during the period September 1, 2007 through
March 31, 2011.

4. Bear Valley Electric incurred $6,536 of interest during the period September 1, 2007 through March 31, 2011.

5. Bear Valley Electric has accrued additional interest from March 31, 2011 through the effective date of this decision.

6. Bear Valley Electric's Advice Letter 218-E, effective September 7, 2007, adopted Bear Valley Electric's RPSMA and a methodology for calculating accrued interest.

7. The above costs, including interest accrued through March 31, 2011, amortized over one year represent a per kilowatt-hour surcharge of $0.00830.

8. The one-year effect on a typical residential customer bill with an average consumption of 450 kWh would be a monthly surcharge of $3.74 or an approximate 3.09% increase over current rates.

9. D.11-06-023 approved the RPS-eligible contract between Bear Valley Electric and BioEnergy Solutions and D.11-06-003 approved the RPS-eligible contract between Bear Valley Electric and LACSD.

10. If left in the RPSMA, any over- or under-collection of RPS-related costs approved in this application would stay unamortized and would collect interest for many years.

11. On August 31, 2011, Bear Valley Electric's original Exhibit 2 was identified and received into evidence. Bear Valley Electric's original Exhibit 2 contained an incorrect Appendix C-2.

1. The $1,249,330 in incremental RPS legal and outside service costs recorded in the RPSMA for the period September 1, 2007-March 31, 2011 are reasonable.

2. The $6,536 in interest costs recorded in the RPSMA for the period of September 1, 2007 through March 31, 2011 are reasonable.

3. It is reasonable for Bear Valley Electric to recover interest accrued in its RPSMA through the effective date of this decision.

4. As provided for under Public Utilities Code Section 399.13(g), costs associated with seeking approval of the BioEnergy Solutions contract
A.10-07-012 and the LACSD contract A.10-06-003 are deemed reasonable and shall be covered in rates. A.10-07-012 was approved by
D.11-06-023, and A.10-06-003 was approved by D.11-06-030.

5. The approved methodology for calculating accrued interest in Bear Valley Electric's RPSMA should be used to calculate interest accrued through the effective date of this decision.

6. It is reasonable for Bear Valley Electric to recover RPS-related costs for the period September 1, 2007-March 31, 2011, plus accrued interest through the effective date of this decision, via a per kWh surcharge amortized over one year.

7. Customers were properly noticed of the proposed rate increase pursuant to Rules 3.2(c) and 3.2(d).

8. The appropriate mechanism for implementing the per kWh surcharge associated with recovering RPS-related costs for the period
September 1, 2007-March 31, 2011, including interest accrued to the effective date of this decision is via a Tier 1 advice letter.

9. It is reasonable for Bear Valley Electric to book any over- or
under-collection or approved RPS-related costs into the Base Rate Revenue Adjustment Mechanism.

10. It is reasonable to grant Bear Valley Electric's motion to replace its original Exhibit 2 with the corrected Exhibit 2 containing an updated and corrected Appendix C-2.

11. There are no disputed issues of fact; therefore, no hearings are necessary in this proceeding.

12. Application 11-06-002 should be closed.

ORDER

IT IS ORDERED that:

1. Bear Valley Electric Service, a division of Golden State Water Company, is authorized to recover $1,249,330 in incremental Renewables Portfolio Standard legal and outside service costs recorded in the Renewables Portfolio Standard Memorandum Account for the period September 1, 2007-March 31, 2011.

2. Bear Valley Electric Service, a division of Golden State Water Company, is authorized to recover $6,536 in interest costs recorded in the Renewables Portfolio Standard Memorandum Account for the period September 1, 2007-March 31, 2011.

3. Bear Valley Electric Service, a division of Golden State Water Company, is authorized to recover interest accrued until the effective date of this decision using the interest calculation methodology approved in its Renewables Portfolio Standard Memorandum Account.

4. Bear Valley Electric Service, a division of Golden State Water Company is authorized to recover the $1,249,330 of incremental legal and outside costs and the $6,536 in interest costs (totaling $1,255,866) associated with performing tasks relating to meeting its Renewables Portfolio Standard goals plus accumulated interest to the effective date of this decision via a per kilowatt-hour surcharge, amortized over one year.

5. Bear Valley Electric Service, a division of Golden State Water, must file a Tier 1 advice letter to implement the per kilowatt-hour surcharge within thirty (30) days of the effective date of this decision.

6. Bear Valley Electric Service, a division of Golden State Water, must book any over- or under-collection of the cost recovery authorization pursuant to this decision into the Base Rate Revenue Adjustment Mechanism.

7. The corrected testimony of Bear Valley Electric Service Witness David Morse on Recovery of Renewables Portfolio Standard Memorandum Account: Interest Charges and Amortization Request is Identified as Exhibit 2 (replacing the original Exhibit 2) and received into evidence on January 18, 2012.

8. A hearing is not needed in this proceeding.

9. Application 11-06-002 is closed.

This order is effective today.

Dated March 22, 2012, at San Francisco, California.

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