2. Background

This proceeding addresses SCWC's GRC request for test years 2004 and 2005 and for attrition year 2006 in its Region II service territory, also known as the Metropolitan District. We use these terms interchangeably in today's decision. SCWC is a Class A water utility and serves customers not only in this region, but also in other regions not at issue in this proceeding.¹

Region II comprises four customer service areas within the Los Angeles metropolitan area. These four customer service areas are known as Central Basin East, Central Basin West, Culver City, and Southwest, and serve approximately 100,000 customers. Each customer service area is primarily residential but also has some commercial and industrial sections.

The water supply for the region comes from a number of sources, including 43 utility-owned wells, eight connections to Central Basin Municipal Water District facilities, 13 connections to West Basin Municipal Water District facilities, connections to facilities for the cities of Cerritos, Downey, Huntington Park and Inglewood, and one connection with Suburban Water Company.

The Commission established the current, base rates for Metropolitan District in Decision (D.) 98-12-070 in 1998.