Comments on Proposed Decision
The principal hearing officer's proposed decision was filed with the Commission and served on all parties in accordance with Section 311(d) of the Public Utilities Code and Rule 77.2 of the Rules of Practice and Procedure. No comments were received.
1. The settlement resolves all issues among the settling parties related to Arrowhead's general rate increase application except the appropriate net revenue allowance. The settling parties agree that issue should be deferred to a later decision in the investigatory phase to follow in this proceeding.
2. No party filed comments in opposition to the proposed settlement.
3. Wanser's participation in the ratesetting phase of this proceeding was de minimis.
4. The summary of earnings presented in Appendix A to the settlement and the quantities included in Appendix D which support them are reasonable for ratemaking purposes.
1. The proposed settlement among Arrowhead, RRB, Peters and Pretzinger is an uncontested settlement as defined in Rule 51(f).
2. The settlement is reasonable in light of the whole record, consistent with law, and in the public interest.
3. The settlement should be adopted and its provisions should be implemented.
4. The revised rates and tariffs set forth in Appendix B to each settlement are justified.
5. The requirements of Ordering Paragraph #2 of Resolution W-4167 should be canceled.
6. This decision should be made effective immediately to enable the settlement's provisions to be implemented without delay.
IT IS ORDERED that:
1. The joint Motion for Adoption of Settlement among Arrowhead Manor Water Company, Inc. (Arrowhead), Ratepayer Representation Branch of the Commission's Water Division, William G. Peters, and Richard Thomas Pretzinger, Jr. is granted. The settlement included with this decision as Attachment A is adopted.
2. Arrowhead is authorized to file in accordance with General Order 96 Series and make effective on not less than five days' notice tariffs containing the test year 2000 increases and the tariff revisions shown in Appendix B to the settlement, Attachment A to this order. The revised rates shall apply to service rendered on and after the tariffs' effective date.
3. Arrowhead shall establish a purchased water memorandum account and a contract repair work memorandum account. Beginning with the effective date of the increased rates authorized in this decision, Arrowhead shall track in these accounts its purchased water and contract repair work expenditures. All entries in the memorandum accounts shall be supported by documentation made available to the Commission staff on request.
4. Amounts allowed in rates by this decision for purchased water expense and contract repair work expense shall be subject to refund to the extent they exceed Arrowhead's actual, reasonable expenses for those purposes. Arrowhead shall file advice letters by January 31 and July 31 each year seeking Commission approval for a customer billing surcharge or surcredit to collect or refund the accumulated amounts by which its actual, reasonable purchased water and
contract repair work expenses in the memorandum accounts as of the preceding December 31 or June 30 deviate from amounts the Commission has allowed in rates.
5. The requirements of Ordering Paragraph #2 of Resolution W-4167 are canceled as of the effective date of this decision.
6. The summary of earnings presented in Appendix A to the settlement, and the quantities included as Appendix D which support it, are adopted.
7. This proceeding is held open to allow the Commission to examine issues remaining in the ratesetting and investigatory phases.
This order is effective today.
Dated July 20, 2000, at San Francisco, California.
LORETTA M. LYNCH
President
HENRY M. DUQUE
JOSIAH L. NEEPER
RICHARD A. BILAS
CARL W. WOOD
Commissioners
Note: See CPUC Formal File for Attachment A.
