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Decision 00-07-036 July 20, 2000

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Arrowhead Manor Water Company for a General Rate Increase.

Application 99-10-027

(Filed October 19, 1999)

Investigation on the Commission's Own Motion into the Operations, Practices, and Water Quality of the Arrowhead Manor Water Company and to Evaluate whether the Utility Properly Handled Its Safe Drinking Water Bond Act Surcharge Revenues

Investigation 00-03-016

(Filed March 16, 2000)

    Kathleen I. Johnson and Lance L. Johnson, for Arrowhead Manor Water Company, applicant.

    William G. Peters, for himself; Richard Thomas Pretzinger, Jr. for himself; and Kathy Wanser, for herself; interested parties.

    Daniel R. Paige, for Ratepayer Representation Branch of the Commission's Water Division.

INTERIM OPINION

Summary

By this interim decision the Commission approves an uncontested settlement agreement proffered by four of the five parties in the proceeding: Arrowhead Manor Water Company, Inc. (Arrowhead), Ratepayer Representation Branch of the Commission's Water Division (RRB), William G. Peters, and Richard Thomas Pretzinger, Jr. Arrowhead is authorized an interim 87.6% general rate increase, which includes a 57.5% interim increase authorized previously. Arrowhead will establish memorandum accounts for purchased

water and for contract repair work and will charge or credit customers at six month intervals for variations between actual expenditures and amounts allowed in rates. The Commission relaxes a previous notice requirement so that Arrowhead may now post in its office rather than mail to customers a quarterly report of system repairs. These outcomes resolve all issues related to Arrowhead's general rate increase Application (A.) 99-10-027 except the appropriate net revenue allowance, which the settling parties agree should be deferred to a later decision in the investigatory phase to follow in this proceeding.

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