Discontinuation of the TIRBA for Cal Water,
California-American Water, and Golden State
In D.09-05-019, the Commission adopted the TIRBA for Cal Water, California-American Water, and Golden State in order to "remove the uncertainty of debt financing costs during the current financial market and credit dislocation,"49 referencing "the highly unusual problems in the 2008 financial markets."50 The TIRBA therefore tracked the difference between actual debt interest costs, and the interest costs included in the cost of capital adopted in D.09-05-019.51 DRA, Cal Water, California-American Water, and Golden State agree that the extreme financial circumstances precipitating the Commission's adoption of the TIRBA are not anticipated for the period of January 1, 2012 through December 31, 2014, and that the TIRBA accounts should be discontinued after disposition of the current balances as described in the Agreement.
49 D.09-05-019, mimeo. at 47 (Finding of Fact 29). San Jose does not have a TIRBA and was not a party to A.0805-002 et al., the proceeding in which the Commission adopted the TIRBA for the other Applicants.
50 Id. at 41.
51 Id. at 41-42.
