ALJ/GEW/sid Mailed 12/19/2003
Decision 03-12-040 December 18, 2003
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
In the Matter of the Application of Park Water Company (U 314 W) for Authority to Increase Rates in its Central Basin Division as authorized by NOI 03-04-004: In 2004 of $1,775,880 or 9.83% above revenues generated by present rates, in 2005 of $671,705 or 3.39% above the revenues generated by the rates proposed for 2004, in 2006 of $674,319 or 3.29% above the 2005 requirements. |
Application 03-04-015 (Filed April 11, 2003) |
David A. Ebershoff, Attorney at Law, and
Edward N. Jackson, for Park Water Company,
applicant.
Natalie D. Wales, Attorney at Law, and Ishwar C.
Garg, for the Commission's Office of Ratepayer
Advocates, protestant.
OPINION RESOLVING GENERAL RATE CASE
TABLE OF CONTENTS
Title Page
OPINION RESOLVING GENERAL RATE CASE 2
1. Summary 2
2. Background and Procedural History 2
3. Park's Application 4
4. Uncontested Issues 5
4.1. General Rates in 2004, 2005 and 2006 5
4.2. Consumption 5
4.3. Number of Customers 6
4.4. Unaccounted-For Water 6
4.5. Purchased Power (Unit Costs) 6
4.6. Leased Water Rights (Unit Costs) 6
4.7. Replenishment Charges (Unit Costs) 7
4.8. Utility Plant in Service - 2003 Capital Projects 7
4.9. Utility Plant in Service - Advances and Contributions 7
4.10. Rate Base - Deferred Investment Tax Credit 8
5. Operating Revenues 8
5.1. Investment Income 8
6. Operating Expenses 9
6.1. Escalation Factors 9
6.2. Payroll 10
6.3. Operations Other Expenses - Laboratory Fees 11
6.4. Production Expenses - Supply Mix 12
6.5. Purchased Water Expense 14
6.6. Customers - Other Expense 16
6.7. Maintenance - Other Expense 16
6.8. Clearing - Other Expense 17
6.9. Insurance Expense 17
6.10. Regulatory Commission Expense 18
6.11. Outside Services 19
6.12. Office Supplies 19
6.13. Miscellaneous Expense 19
7. Main Office 20
7.1. Payroll 20
7.2. Maintenance - Other Expense 20
7.3. Clearing - Other Expense 20
7.4. Outside Services Expense 21
7.5. Insurance Expense 21
7.6. Office Supplies 21
7.7. Miscellaneous Expense 21
8. Taxes Other Than Income 22
9. Depreciation Expense 22
10. Income Taxes 22
11. Rate Base 23
11.1. Utility Plant in Service 23
11.2. Proposed New Well 24
11.3. Construction Work in Progress 25
11.4. Working Cash Allowance 25
11.5. Depreciation Reserve 27
11.6. Deferred Tax Reserve 27
12. Miscellaneous 28
12.1. Dioxane Contamination 28
13. Settlement on Rate of Return 29
14. Comments on Proposed Decision 35
15. Assignment of Proceeding 36
Findings of Fact 37
Conclusions of Law 38
ORDER... 40
APPENDIX A - Test Year 2004, Summary of Earnings
APPENDIX B - Schedule No. PR-1
APPENDIX C - Comparison of Rates
APPENDIX D - Adopted Quantities
APPENDIX E - Attrition Calculation for 2006
OPINION RESOLVING GENERAL RATE CASE
1. Summary
Park Water Company (Park) is authorized an $803,100 (4.4%) general rate increase for Test Year 2004, $513,000 (2.7%) for Test Year 2005, and $487,500 (2.5%) for Attrition Year 2006. We authorize rates of return on rate base of 9.51% in 2004, 9.50% in 2005, and 9.49% in 2006.
Park bills its customers every two months. As a result of the revenue increase granted by this decision, the bimonthly bill for the average residential customer (27 hundred cubic feet (Ccf) of water with a 5/8 x 3/4-inch meter) would increase by $3.80 or 4.68% from $81.00 to $84.78 in the year 2004.
