DWA/RSK/SMW
Decision 08-06-037 June 26, 2008
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
In the Matter of the Application of Del Oro Water Company, Inc. [U-61-W] for a Certificate of Public Convenience and Necessity to Acquire Mount Lassen Woods Subdivision near Shingletown in Shasta County and to Establish Rates for Service. |
Application 08-01-019 (Filed January 23, 2008) |
OPINION ISSUING CERTIFICATE OF PUBLIC CONVENIENCE
AND NECESSITY AND AUTHORIZING INITIAL RATES
TABLE OF CONTENTS
Title Page
I. SUMMARY 1
II. BACKGROUND 2
III. SYSTEM DESCRIPTION 3
A. Wells 3
B. Storage Tank 4
C. Distribution System 5
D. Treatment 5
E. Service Life of System Components 6
IV. CPCN REQUIREMENTS 6
A. Statutory Requirements 6
B. Rules of Practice and Procedure 8
C. Resolution M-4708 9
V. CEQA 10
VI. RATESETTING 11
A. Developer Contributions 11
B. Results of Operations and Rate Design 11
C. Discussion 18
D. Metering 24
VII. GENERAL ORDER 103 REQUIREMENTS 24
A. Water Quality 24
VIII.COMMENTS ON PROPOSED DECISION 25
IX. ASSIGNMENT OF PROCEEDING 25
FINDINGS OF FACT 25
CONCLUSIONS OF LAW 28
TABLE OF CONTENTS
Title Page
APPENDIX A - SUMMARY OF EARNINGS I
APPENDIX B - ACRONYMS AND ABBREVIATIONS II
OPINION ISSUING CERTIFICATE OF PUBLIC CONVENIENCE
AND NECESSITY AND AUTHORIZING INITIAL RATES
I. Summary
In this decision, the Commission issues a Certificate of Public Convenience and Necessity (CPCN), to the Del Oro Water Company (Del Oro), to operate, as a public utility, a new water system serving a new development of currently undeveloped lots near Shingletown, Shasta County (Mt. Lassen Woods). When fully built out, the Mount Lassen Woods Community Water System (Mt. Lassen) will serve 132 customers. The Commission authorizes a flat stand-by rate of $35.34 per lot per month, monthly service rates consisting of an initial quantity rate of $0.96/100 cubic feet of use and a service fee of $32.88, and a meter hook-up fee of $235.
We require that Del Oro file for a general rate case in 2010 for a 2011 test year, in which Del Oro will request metered rates. We also require Del Oro to record the difference between the developers cost of building the system (estimated $2,537,500) and the total amount paid by Del Oro for the system ($165,000), be recorded in Account 271-Contributions in Aid of Construction.
This issuance of a CPCN and institution of rates is made conditional on Del Oro's compliance with several conditions, which include the following: 1) Issuance of a Final Permit for a Small Community Public Water System from the Shasta County Department of Resource Management-Environmental Health Division (SCDRM) to Del Oro, and provision of a copy of said Final Permit to the Director of the Commission's Division of Water and Audits (DWA); and 2) Compliance by developer and Del Oro with all California Environmental Quality Act (CEQA) conditions set out by the County of Shasta - Planning Division, and provision of proof of such compliance to the Director of the Commission's DWA.
