ALJ/CMW/jt2 Date of Issuance 10/19/2007
Decision 07-10-031 October 18, 2007
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
In the Matter of the Application of California American Water Company (U210W) for authorization to increase rates for water service in its Monterey District by $9,456,100 or 32.88% in the year 2006; by $1,894,100 or 4.95% in the year 2007; and by $1,574,600 or 3.92% in the year 2008; and for an order authorizing sixteen (16) Special Requests with revenue requirements in the sum of $3,815,900 in the year 2006; in the sum of $5,622,300 in the year 2007; and in the sum of $8,720,500 in the year 2008. The total increase in rates for water service combined with the sixteen Special Requests could increase revenues by $13,272,000 or 46.16% in the year 2006; $7,516,400 or 17.86% in the year 2007; and by $10,295,100 or 20.73% in the year 2008. |
Application 05-02-012 (Filed February 16, 2005) |
And Related Matter. |
Application 05-02-013 (Filed February 16, 2005) |
OPINION GRANTING INTERVENOR COMPENSATION TO FELTON FRIENDS
OF LOCALLY OWNED WATER (FELTON FLOW) FOR SUBSTANTIAL
CONTRIBUTIONS TO DECISION 06-11-050
This decision awards $67,396.75 in compensation to Felton Friends of Locally Owned Water (Felton FLOW) for its substantial contributions to Decision (D.) 06-11-050.1 Application (A.) 05-02-012 and A.05-02-013 are closed.
1. Background
In D.06-11-050, the Commission resolved the general rate case (GRC) applications of California-American Water Company (Cal-Am) for the Monterey and Felton districts and for Cal-Am's general office expenses. The decision sets rates for a three-year GRC period beginning January 1, 2006.
We adopted in D.06-11-050 a partial settlement between Cal-Am and the Division of Ratepayer Advocates (DRA) for the Monterey district and the General Office expenses, but rejected the two parties' proposed settlement for the Felton district. The Monterey Peninsula Water Management District opposed the Monterey district settlement and Felton FLOW opposed all three settlements.
For the Felton proposed settlement, we did not find reasonable the amount proposed for the Highway 9 project and the level of general and administrative expenses; we also adopted an adjustment for lobbying activities by employees.
For Felton district issues outside the proposed settlement, we retained the existing rate design, adopted DRA's proposal for a low-income program, and adopted a rate increase cap of 50% for the next 12 months. We recognized that a formal process for public acquisition of the district had started with the passage in July 2006 of Measure W. We committed to vigilantly overseeing future plant investment in the Felton district as the acquisition goes forward.
For the Monterey district for 2006, we adopted a rate increase of 10.29%, together with a three-year 3% surcharge for pension costs and a four-year surcharge for recovery of Carmel River Dam costs; the total 2006 increase was 17.03%. For the Felton District for 2006, we adopted a rate increase of 20.87%, which includes a pension cost surcharge.
Evidentiary hearings were held in July and August of 2005, the record submitted on October 21, 2005, and D.06-11-050, which closed the proceeding, was issued on November 30, 2006.
1 Due to computational errors, Felton FLOW's request for $68,894.95 is adjusted downward by $1,498.20.
