ALJ/JCM/jgo Mailed 7/18/2002
Decision 02-07-009 July 17, 2002
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
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Application of Arrowhead Manor Water Company for a General Rate Increase. |
Application 99-10-027 (Filed October 19, 1999) |
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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/respondent.
William J. Peters, for himself; Richard Thomas Pretzinger, Jr. for himself; and Kathy Wanser, for herself; interested parties.
Susan Weber, Attorney at Law, and David B. Anderson, Attorney at Law, for California Department of Water Resources, interested party.
Cleveland Lee, Attorney at Law, for the Commission's Water Division.
OPINION ON GENERAL RATE CASE AND INVESTIGATION
TABLE OF CONTENTS
OPINION ON GENERAL RATE CASE AND INVESTIGATION 1
Summary 2
Background 2
Discussion - Investigatory Phase 6
Responsiveness to Customer Complaints and Inquiries 6
Compliance with Health Requirements 11
Compliance with SDWBA Loan Requirements 15
Purchased Water Balancing Account 27
Discussion - General Rate Case Phase 31
Discussion - Corrective Measures 33
Comments on Proposed Decision 41
Findings of Fact 43
Conclusions of Law 48
ORDER 50
Attachment A - Stipulation
Attachment B - Adopted Summary of Earnings, Test Year 2000
Attachment C - Tariffs
Attachment D - Rates Comparison
Attachment E - Adopted Quantities
Summary
The Commission finds that Arrowhead Manor Water Company, Inc., has been unable or unwilling to adequately serve its ratepayers, and has been unresponsive to the rules and orders of the Commission. The Commission's General Counsel is directed to petition the Superior Court of San Bernardino County to appoint a receiver for Arrowhead's water system in accordance with Public Utilities Code Section 855. The decision authorizes Arrowhead a general rate increase of $47,815 (16.8%), and reinstates a Safe Drinking Water Bond Act (SDWBA) loan surcharge to replace the surcharge previously discontinued. The general rate increase and SDWBA surcharge are subject to a continuing condition that may result in their cancellation if specified compliance requirements are not met. Arrowhead is found to have improperly diverted SDWBA surcharge funds, but also to have accumulated an approximately equal uncollected balance in its purchased water balancing account; the two amounts are applied to offset and discharge one another. The Commission concludes that all penalties imposed by the California Department of Water Resources (DWR) on Arrowhead for failure to make timely loan payments are Arrowhead's obligations under its DWR contract and are not recoverable from ratepayers.
