4. Issues to Be Addressed

The issues to be addressed are described below. In this application, West Coast Gas Company (WCG) is requesting an 8.5% increase in its gas base rates for approximately 1500 residential and commercial customers in the WCG Mather and Castle service territories. The prepared direct testimony of Raymond J. Czahar, WCG Chief Financial Officer, and the workpapers supporting his direct testimony were filed along with the application. The application additionally states that WCG plans to request another rate increase in April 2006. At the PHC, Czahar advised that WCG does not intend to make any additional filings in support of the subject application (except possible written rebuttal testimony).

The Commission's Office of Ratepayer Advocates (ORA) timely protested the application based on questions regarding revenue requirements, methodology used to determine test year revenues, gas sales, depreciation and other related expenses. ORA also protested the proposal that a subsequent application would be filed next year and requested a ruling from the Assigned Commissioner or ALJ directing WCG to either withdraw the current application, or not file next year. ORA will further address these issues in its written testimony (schedule discussed below).

At the PHC, the parties advised they may attempt to discuss a possible settlement or stipulation to these issues and agreed WCG would not amend the application until these discussions occur. Should a settlement or stipulation be reached before the hearing, the parties must telephone the Assigned ALJ, and notice the service list no later than September 13, 2005, the day before the scheduled hearing.