10. Rate Design for Recovering Increased Costs

SJWC seeks to recover 50% of the revenue requirement through the service charge component and the remaining 50% through the quantity rate component of its tariffed rates. DRA concurs with the rate design, stating that the proposed rate design is consistent with the Commission policy adopted in D.86-05-064.¹¹²

Discussion

We approve SJWC's proposal to recover 50% of the revenue requirement through the service charge component and the remaining 50% through the

quantity rate component of its tariffed rates because it is reasonable and consistent with Commission policy.

¹¹² Exh. DRA-1, pp. 8-9.