3. SJWC's Request

In its application, SJWC requested that its authorized revenues for water service be increased by $25,793,000, or 18.20%, for 2004; $5,434,000, or 3.24%, for 2005 and $5,210,000, or 3.01%, for 2006. SJWC also requested authority to (a) recover $70,606 in its water contamination litigation memorandum account, (b) recover a $382,068 under-collection in its balancing account, (c) establish a lifeline rate, (d) record certain costs in a water quality memorandum account, (e) eliminate the fire hydrant maintenance balancing account, (f) convert to straight line depreciation, and (g) convert to a full cost supply balancing account. SJWC also requested a finding that it is in compliance with all pertinent state and federal water quality standards.

On June 20, 2003, SJWC submitted an update of its application, as permitted by the Rate Case Plan, to reflect an offset rate increase effective July 1, 2003, the Santa Clara Valley Water District proposed water and pump tax rates for 2004, 2005 and 2006, and the current accrual for unfunded pensions. Based on the update, SJWC's requested increases amounted to $23,042,000,or 15.65%, in 2004; $10,039,000, or 5.88% in 2005; and $9,790,000, or 5.42% in 2006.