2. Background

Suburban Water Systems (Suburban) a California corporation, organized under the laws of the State of California, is a Class A regulated water utility subject to this Commission's jurisdiction. It is a subsidiary of SouthWest Water Company. Suburban provides water services in various areas of Los Angeles County and Orange County. This general rate case was filed in compliance with Decision (D.) 07-05-062 which is the currently applicable rate case plan for Class A water utilities. The application seeks rate increases based upon a forecast test year 2012 and post-test year rate adjustments in 2013 and 2014. Rates, if granted, would increase by $19,234,576 (35.85%) in 2012, $3,032,827 (4.18%) in 2013, and $1,973,200 (2.61%) in 2014. The adopted revenue requirement in 2012 is a 24.74% increase, which is less than requested by Suburban.