Background
In Application (A.) 06-02-034, GSWC sought an order authorizing it to increase rates for water service in its Region II service area for years 2007-2009. As part of that proceeding, GSWC also sought a determination concerning its general office (GO) operations, including the percentage of GO costs that should be allocated to its BVES. Decision (D.) 07-11-037 adopted a BVES allocation for GSWC's GO costs of $3,609,170.1 More recently, on June 27, 2008, GSWC filed a general rate case (GRC) application seeking a test year 2009 revenue requirement and related rate increases for its BVES. GSWC is seeking an increase of approximately $7 million over the base revenues adopted in BVES' 1996 GRC. BVES' proposed rates are based on its various costs, including the GO allocation established in D.07-11-037.
The Assigned Commissioner's Ruling and Scoping Memo, dated
January 16, 2009, provided a schedule that anticipated a final decision on July 31, 2009. On claims that the increase in BVES' allocated GO costs to be incorporated into rates is over $2 million, and claims that unforeseen events might delay the procedural schedule and preclude the Commission from issuing a final decision before July 31, 2009, GSWC filed a motion on November 21, 2008, seeking interim rate relief or, in the alternative, authority to establish a memorandum account to track its unrecovered costs for the period of January 1, 2009, to the effective date of the final decision.
Comments were received in response to GSWC's motion for establishment of a memorandum account from the Division of Ratepayer Advocates (DRA) and the City of Big Bear Lake (the City). While DRA opposed both interim relief and establishment of the memorandum account, the City stated its opposition to interim relief but did not comment on the memorandum account proposal.
1 See D.07-11-037, at 42-43, FoF #23.
