5. Burden of Proof and Rate Case Plan
Showing Requirements

The applicant, SCWC, bears the burden of proving that its proposed rate increases are "justified." Pursuant to § 454(a), before implementing a rate increase, SCWC must make a "showing before the Commission," and the Commission must find that the proposed increase is "justified."

In adopting the revised Rate Case Plan, the Commission further articulated the required showing for a water utility's GRC: "The utility's application for a rate increase must identify, explain, and justify the proposed increase." Specifically, the application must include testimony, with supporting analysis and documentation, describing the components of the utility's proposed increase, e.g., results of operations, plant in service. All significant changes from the last adopted and record amounts must be explained, and all forecasted amounts must include an explanation of the forecasting method.

To the extent SCWC fails to adhere to these requirements, the Commission would be unable to make a finding that SCWC's proposed increase is justified.