15. Infrastructure Improvement Act
Apple Valley was required by D.04-06-018 to demonstrate that it was in compliance with the Infrastructure Improvement Act (Infrastructure Act).69 In its application, Apple Valley indicates it determined in September 2004, that three pump lots with a total original cost of $7,188.06 were no longer used and useful, and they were removed from plant in service. Although ORA made no specific comment on the matter in testimony or briefs, the Test Year 2006 rate base reflects this adjustment.
Apple Valley is expected continue to account for the accrual of interest as prescribed in § 790(a) and hold the proceeds available for future investment whenever it sells or transfers the three parcels. No further action is required for this proceeding. Apple Valley must also include in subsequent rate cases a report on the specific disposition of any assets in the 2006 rate base that are deemed to be no longer used and useful for the next test year.
69 "To the extent not included in a previous GRC application, include a detailed, complete description accounting for all real property that, since January 1, 1996, was at any time, but is no longer, necessary or useful in the performance of the water corporation's duties to the public and explain what, if any, disposition or use has been made of said property since it was determined to no longer by used or useful in the performance of utility duties. The disposition of any proceeds shall also be explained." (D.04-06-018, Attachment A, p. 10.) See also § § 789 - 790.1, especially § 790.(a): "Whenever a water corporation sells any real property that was at any time, but is no longer, necessary or useful in the performance of the water corporation's duties to the public, the water corporation shall invest the net proceeds, if any, including interest at the rate that the commission prescribes for memorandum accounts, from the sale in water system infrastructure, plant, facilities, and properties that are necessary or useful in the performance of its duties to the public. For purposes of tracking the net proceeds and their investment, the water corporation shall maintain records necessary to document the investment of the net proceeds pursuant to this article. The amount of the net proceeds shall be a water corporation's primary source of capital for investment in utility infrastructure, plant, facilities, and properties that are necessary or useful in the performance of the water corporation's duties in providing water utility service to the public."
