IV. The Stipulation
The stipulation is included as Attachment A to this decision.
The stipulation includes a comparison of Applicant and ORA's initial and stipulated positions on revenue requirement increases for test years 2001 and 2002 and attrition years 2003 and 2004. The proposed revenue requirement increases, except for the Palos Verdes District, are as follows:
Bakersfield District Revenue Requirement Increases
Applicant |
ORA |
Stipulation | ||||
$ |
% |
$ |
% |
$ |
% | |
2001 |
2,523,900 |
9.8 |
1,070,800 |
4.1 |
2,153,500 |
8.3 |
2002 |
3,905,300 |
13.8 |
772,100 |
3.0 |
1,405,600 |
5.0 |
2003 |
3,566,000 |
11.0 |
912,000 |
2.8 |
1,408,500 |
4.8 |
2004 |
3,551,500 |
9.9 |
871,000 |
2.4 |
1,430,500 |
4.6 |
South San Francisco District Revenue Requirement Increases
Applicant |
ORA |
Stipulation | ||||
$ |
% |
$ |
% |
$ |
% | |
2001 |
938,200 |
11.3 |
523,900 |
6.2 |
740,600 |
8.7 |
2002 |
278,200 |
3.0 |
49,600 |
0.5 |
320,000 |
3.5 |
2003 |
196,200 |
2.1 |
83,000 |
0.9 |
287,500 |
3.0 |
2004 |
193,200 |
2.0 |
71,000 |
0.7 |
293,400 |
3.0 |
The stipulation also includes a comparison of Applicant and ORA's initial and stipulated positions on "Base Year 2000"revenue requirements. The proposed "Base Year 2000"revenue requirements are as follows:
"Base Year 2000" Revenue Requirements (At Present Rates)
Palo Verdes District
Applicant |
ORA |
Stipulation | |
Operating Revenues |
$22,002,300 |
$22,130,400 |
$22,067,000 |
Operating Expenses |
20,038,400 |
20,084,900 |
20,133,900 |
Net Revenues |
1,963,900 |
2,045,500 |
1,933,200 |
Rate Base |
24,142,200 |
24,072,800 |
24,130,000 |
Return on Rate Base |
8.13% |
8.50% |
8.01% |
Hermosa-Redondo District
Applicant |
ORA |
Stipulation | |
Operating Revenues |
$14,661,400 |
$14,661,400 |
$14,661,400 |
Operating Expenses |
13,100,700 |
12,985,100 |
13,027,000 |
Net Revenues |
1,560,700 |
1,676,300 |
1,634,400 |
Rate Base |
24,982,900 |
24,902,300 |
24,931,300 |
Return on Rate Base |
6.25% |
6.73% |
6.56% |
In addition, the stipulation includes a comparison of Applicant and ORA's initial and stipulated positions on General Office expenses and rate base. The proposed General Office expenses and rate base are as follows:
2000
Applicant |
ORA |
Stipulation | |
Expenses |
$26,675,300 |
$26,591,300 |
$26,657,600 |
Rate Base |
15,993,000 |
15,223,300 |
15,421,500 |
2001
Applicant |
ORA |
Stipulation | |
Expenses |
$27,992,400 |
$27,822,400 |
$27,885,100 |
Rate Base |
17,426,500 |
15,774,800 |
16,835,300 |
2002
Applicant |
ORA |
Stipulation | |
Expenses |
$29,237,700 |
$28,958,500 |
$29,185,700 |
Rate Base |
18,732,500 |
16,356,100 |
18,292,800 |
The stipulation indicates the major differences between Applicant and ORA's initial positions and summarizes how those differences were resolved. The stipulation yields costs of capital of 9.02% for 2001, 8.99% for 2002 and 8.97% for 2003 and 2004.
