A. 00-03-069 Ojai
A. 00-03-070 Clearlake
1.02 The parties to this Settlement are SCWC and the Ratepayer Representation Branch (RRB) of the Water Division, collectively referred to as the "Parties."
1.03 RRB conducted an independent review of SCWC's applications. As part of this review, a tour and a Public Participation Hearing was held in the Arden-Cordova, Bay Point, Clearlake, Los Osos, Ojai, Santa Maria, and Simi Valley CSAs. On conclusion of that review, RRB submitted reports, dated July, 2000, indicating areas of disagreement with SCWC's applications. Subsequently, the Parties met to discuss the differences between SCWC's applications and RRB's reports. Those negotiations resulted in the resolution of all issues except Regionalization of Rates and water rights in the Arden-Cordova CSA.
1.04 The total revenue requirement for Region I, agreed to by the Parties, is a function of items not disputed in the RRB's Reports and the stipulated items contained herein. The allocation of the Region's revenue requirement is subject to the resolution of regionalized rates.
1.05 The mechanics of the calculation of the allowance to offset attrition are not disputed. The calculation for each CSA is attached. The stipulated financial attrition is zero.
1.06 Attached to this Settlement are the following appendices :
Appendix A -- Summary of Earnings
Appendix B - Supporting Calculations
1.07 Only areas of difference between the Parties that have been stipulated are specifically addressed in the Settlement. All items relating to cost of service, including those discussed, have been provided to RRB as workpapers.
1.08 The Parties agree that no signatory to this Settlement nor any member of RRB assumes any personal liability as a result of this Settlement. The Parties agree that no legal action may be brought in any state or federal court or in any other forum against any individual signatory representing the interests of RRB, attorneys representing RRB, or RRB itself involving any matter related to this Settlement. All rights and remedies of the Parties are limited to those available before the Commission.
2.00 Ratebase
Listed below are the items of plant that were discussed in RRB's report where the Parties differed in estimates of cost. Each item is listed by CSA for the years 2000, 2001, and 2002. The table includes SCWC's estimate, RRB's estimate, and the result of further discussions by the Parties. Also included are notes that detail how the final costs were stipulated.
Region I Headquarters |
||||
Adjustments for 2000 |
SCWC |
RRB |
Stipulated |
|
Hydraulic Modeling Software (Upgrades) |
$10,000 |
$0 |
$10,000 |
1/ |
Region Headquarters (Relocation) |
$115,000 |
$55,600 |
$55,600 |
2/ |
Region Admin Dept Vehicle |
$35,000 |
$0 |
$0 |
2/ |
Adjustments for 2001 |
||||
Regional SCADA (Upgrades) |
$10,000 |
$0 |
$10,000 |
1/ |
Regional SQuID (Upgrades) |
$5,000 |
$0 |
$5,000 |
1/ |
Regional Video Conferencing |
$25,000 |
$0 |
$10,000 |
3/ |
Adjustments for 2001 |
SCWC |
RRB |
Stipulation |
|
High Capacity Copier (Replacement) |
$25,000 |
$0 |
$20,000 |
3/ |
Regional Video Conferencing (Upgrades) |
$8,000 |
$0 |
$10,000 |
1/ |
Computers (Replacement) |
$10,000 |
$0 |
$10,000 |
1/ |
Total Region I Headquarters |
$243,000 |
$55,600 |
$130,600 |
|
Northern District Office |
||||
Adjustments for 2001 |
SCWC |
RRB |
Stipulated |
|
District Engineer's Vehicle |
$25,000 |
$20,000 |
$25,000 |
4/ |
Adjustments for 2001 |
||||
Electrician's Vehicle |
$35,000 |
$25,000 |
$30,000 |
4/ |
Adjustments for 2002 |
||||
Automatic Meter Reading |
$20,000 |
$0 |
$0 |
2/ |
District Manager's Vehicle |
$35,000 |
$0 |
$25,000 |
4/ |
Total Northern District Office |
$115,000 |
$45,000 |
$80,000 |
|
Coastal District Office |
||||
Adjustments for 2000 |
SCWC |
RRB |
Stipulated |
|
District Manager's Vehicle |
$28,000 |
$20,000 |
$25,000 |
4/ |
Adjustments for 2002 |
||||
Electrician's Vehicle |
$38,000 |
$25,000 |
$30,000 |
4/ |
Total Coastal District Office |
$66,000 |
$45,000 |
$55,000 |
Arden Cordova CSA |
||||
Adjustments for 2000 |
SCWC |
RRB |
Stipulated |
|
Coloma Access Paving |
$25,000 |
$0 |
$25,000 |
1/ |
Windsor Chlorine Building |
$55,000 |
$20,000 |
$40,000 |
3/ |
Services - Reactive |
$100,000 |
$50,000 |
$75,000 |
3/ |
Services - Detection of Leaks |
$100,000 |
$55,000 |
$77,500 |
3/ |
Miscellaneous Tools and Equipment |
$21,000 |
$5,000 |
$13,000 |
3/ |
Adjustments for 2001 |
||||
Coloma WTP - Filter Repack (N3) |
$55,000 |
$50,000 |
$52,500 |
3/ |
Coloma WTP - Filter Repack (N4) |
$55,000 |
$50,000 |
$52,500 |
3/ |
350' 8"DIP - Arden Way@Richmond |
$75,000 |
$40,000 |
$75,000 |
1/ |
(Adjustments for 2001 Cont.) |
SCWC |
RRB |
Stipulated |
|
Large Meter |
$50,000 |
$0 |
$0 |
2/ |
Leak Detection - Proactive |
$100,000 |
$55,000 |
$77,500 |
3/ |
Leak Detection - Reactive |
$100,000 |
$50,000 |
$75,000 |
3/ |
Truck |
$40,000 |
$25,000 |
$35,000 |
4/ |
Adjustments for 2002 |
||||
Coloma WTP - Filter Repack (S1) |
$75,000 |
$50,000 |
$62,500 |
3/ |
1,000' 8" DIP Relocate to Riesling |
$200,000 |
$140,000 |
$140,000 |
2/ |
1,000' 8" DIP Relocate to Cabernet |
$200,000 |
$140,000 |
$140,000 |
2/ |
1,000' 8" DIP in Arden Creek |
$100,000 |
$80,000 |
$90,000 |
8/ |
Small Meters - Auto. (AMR) |
$50,000 |
$0 |
$0 |
2/ |
Services (Detection of Leaks) - Proactive |
$100,000 |
$55,000 |
$77,500 |
3/ |
Services - Reactive |
$100,000 |
$50,000 |
$75,000 |
3/ |
Truck |
$35,000 |
$25,000 |
$30,000 |
4/ |
Total Arden Cordova CSA |
$1,636,000 |
$940,000 |
$1,213,000 |
|
Bay Point CSA |
||||
Adjustments for 2000 |
SCWC |
RRB |
Stipulated |
|
Pacifica Booster Station Phase 2 |
$125,000 |
$110,000 |
$117,500 |
1/ |
400 ft. of 8" DIP in Alberts Ave. |
$40,000 |
$32,000 |
$36,000 |
8/ |
Services |
$150,000 |
$70,000 |
$110,000 |
3/ |
Superintendent's Car |
$25,000 |
$20,000 |
$25,000 |
4/ |
Adjustments for 2001 |
||||
Hill Street WTP - Plant Grading, Erosion Control and Paving |
$150,000 |
$0 |
$80,000 |
3/ |
1,100 ft of 8" DIP in Water St. |
$110,000 |
$88,000 |
$99,000 |
8/ |
Meter Large - AMR |
$20,000 |
$0 |
$0 |
2/ |
Services |
$150,000 |
$70,000 |
$110,000 |
3/ |
3/4 Ton Utility Truck |
$35,000 |
$25,000 |
$30,000 |
4/ |
Adjustments for 2002 |
||||
Madison Reservoir - Grade and Pave |
$50,000 |
$0 |
$25,000 |
3/ |
800 ft of 8" DIP in Water St. |
$80,000 |
$64,000 |
$72,000 |
8/ |
400 ft of 8" DIP in Manor Dr. |
$40,000 |
$32,000 |
$36,000 |
8/ |
Meter Small - AMR Project |
$20,000 |
$0 |
$0 |
2/ |
Services |
$10,000 |
$70,000 |
$40,000 |
3/ |
3/4 Ton Utility Truck |
$35,000 |
$25,000 |
$30,000 |
4/ |
Total Bay Point CSA |
$1,040,000 |
$606,000 |
$810,500 |
|
Clearlake CSA |
||||
Adjustments for 2000 |
SCWC |
RRB |
Stipulated |
|
Sonoma Water Treatment Plant |
$1,600,000 |
$0 |
Deferred |
6/ |
Adjustments for 2001 |
||||
Minor Main (Replacement) |
$20,000 |
$5,000 |
$10,000 |
3/ |
Office Furniture and Equipment |
$2,500 |
$1,000 |
$1,000 |
2/ |
3/4 Ton Utility Truck (Replacement) |
$35,000 |
$25,000 |
$30,000 |
4/ |
Adjustments for 2002 |
||||
East High Plant - Replace Reservoirs with 1.0 MG Res. |
$1,000,000 |
$400,000 |
$600,000 |
7/ |
Minor Main (Replacement) |
$20,000 |
$5,000 |
$10,000 |
3/ |
Office Furniture and Equipment |
$2,500 |
$1,000 |
$1,000 |
2/ |
3/4 Ton Utility Truck (Replacement) |
$35,000 |
$25,000 |
$30,000 |
4/ |
Total Clearlake CSA |
$2,715,000 |
$462,000 |
$682,000 |
|
Los Osos CSA |
||||
Adjustments for 2000 |
SCWC |
RRB |
Stipulated |
|
Drill New Well - Edna Valley |
$275,000 |
$255,000 |
$255,000 |
2/ |
Main (Replacement) |
$160,000 |
$144,000 |
$152,000 |
3/ |
3/4 Ton Utility Truck (Replacement) |
$38,000 |
$25,000 |
$30,000 |
4/ |
Adjustments for 2001 |
||||
Rosina - Complete Electrical Upgrade |
$70,000 |
$50,000 |
$60,000 |
3/ |
South Bay Well |
$300,000 |
$130,000 |
$150,000 |
3/ |
Adjustments for 2002 |
||||
Pecho, Rosina, Skyline Wells - Nitrate Treatment |
$325,000 |
$150,000 |
$200,000 |
3/ |
1,000 ft of 12" DIP Los Osos Valley Road |
$100,000 |
$75,000 |
$87,500 |
3/ |
Total Los Osos CSA |
$1,268,000 |
$829,000 |
$934,500 |
|
Ojai CSA |
||||
Adjustments for 2001 |
SCWC |
RRB |
Stipulated |
|
1,000 ft of 8" DI in Palomar |
$100,000 |
$80,000 |
$90,000 |
8/ |
1,800 ft of 8" DI in Bald |
$180,000 |
$160,000 |
$162,000 |
8/ |
Services (Replacements) |
$50,000 |
$10,000 |
$30,000 |
3/ |
Adjustments for 2002 |
||||
Landscape Sites (5) |
$25,000 |
$0 |
$10,000 |
3/ |
450 ft of 8" DI in Emily |
$45,000 |
$36,000 |
$40,500 |
8/ |
(Adjustments for 2002 Cont.) |
SCWC |
RRB |
Stipulated |
|
350 ft of 8" DI on Verano |
$35,000 |
$28,000 |
$31,500 |
8/ |
Services (Replacements) |
$50,000 |
$10,000 |
$30,000 |
3/ |
Total Ojai CSA |
$485,000 |
$324,000 |
$394,000 |
|
Santa Maria CSA |
||||
Adjustments for 2000 |
SCWC |
RRB |
Stipulated |
|
Santa Maria Ops Building (Prelim. Engr.) |
$104,000 |
$30,000 |
$67,000 |
3/ |
Well in Orcutt |
$236,000 |
$210,000 |
$210,000 |
2/ |
Santa Maria Interconnection (Booster) |
$292,000 |
$0 |
$238,000 |
9/ |
Misc. Bowl (Replacements) |
$104,000 |
$50,000 |
$104,000 |
1/ |
Services (Replacements) |
$156,000 |
$50,000 |
$103,000 |
3/ |
3/4 Ton Truck (Replace #331) |
$37,000 |
$25,000 |
$30,000 |
4/ |
3/4 Ton Truck (Replace #262) |
$37,000 |
$25,000 |
$30,000 |
4/ |
3/4 Ton Truck (Replace #313) |
$37,000 |
$25,000 |
$30,000 |
4/ |
3/4 Ton Truck (Replace #600) |
$37,000 |
$0 |
$0 |
5/ |
Adjustments for 2001 |
||||
Equipping of Well in Orcutt |
$300,000 |
$270,000 |
$285,000 |
3/ |
Eucalyptus - Drill Well & Equip (Replacements) |
$375,000 |
$340,000 |
$357,500 |
3/ |
Misc. Bowl (Replacements) |
$100,000 |
$50,000 |
$100,000 |
1/ |
Services (Replacements) |
$150,000 |
$50,000 |
$100,000 |
3/ |
1/2 Ton Truck (Replace #363) |
$25,000 |
$20,000 |
$25,000 |
4/ |
3/4 Ton Truck w/Utility Bed (Rep. Unit #465) |
$37,000 |
$25,000 |
$30,000 |
4/ |
Adjustments for 2002 |
||||
New Operations Building |
$350,000 |
$335,000 |
$335,000 |
2/ |
Misc. Extensions and Assemblies |
$100,000 |
$50,000 |
$100,000 |
1/ |
Phase II 200' of 8" DIP in Twitchel |
$25,000 |
$16,000 |
$20,500 |
3/ |
Phase II 200' of 8" DIP in Pacific |
$20,000 |
$16,000 |
$18,000 |
8/ |
Phase II 200' of 8" DIP in Pacific |
$80,000 |
$64,000 |
$72,000 |
8/ |
New Business Funded by SCWC |
$50,000 |
$10,000 |
$10,000 |
2/ |
Services (Replacements) |
$150,000 |
$50,000 |
$100,000 |
3/ |
Superintendent's Car - Unit 600 |
$25,000 |
$20,000 |
$25,000 |
4/ |
Superintendent's Car - Unit 613 |
$25,000 |
$20,000 |
$25,000 |
4/ |
3/4 Ton Truck w/Utility Bed |
$38,000 |
$25,000 |
$30,000 |
4/ |
Total Santa Maria CSA |
$2,890,000 |
$1,776,000 |
$2,445,000 |
Simi Valley CSA |
||||
Adjustments for 2000 |
SCWC |
RRB |
Stipulated |
|
Rebecca Plant Landscaping |
$75,000 |
$0 |
$10,000 |
3/ |
Tapo Booster |
$150,000 |
$125,000 |
$125,000 |
2/ |
Conservation |
$83,000 |
$40,000 |
$83,000 |
10/ |
Contingency |
$150,000 |
$90,000 |
$90,000 |
2/ |
Adjustments for 2001 |
||||
Tapo Reservoir |
$200,000 |
$100,000 |
$110,000 |
3/ |
Pineview Reservoir - Generator |
$250,000 |
$200,000 |
$200,000 |
2/ |
Conservation |
$84,000 |
$40,000 |
$84,000 |
10/ |
Meters |
$50,000 |
$5,000 |
$30,000 |
3/ |
Vehicle (Replace #408) |
$38,000 |
$25,000 |
$30,000 |
4/ |
Miscellaneous Tools and Equipment |
$15,000 |
$5,000 |
$5,000 |
2/ |
Adjustments for 2002 |
||||
Leasehold Improvements for New Office |
$100,000 |
$0 |
$50,000 |
3/ |
Conservation |
$82,000 |
$40,000 |
$82,000 |
10/ |
Meter |
$200,000 |
$10,000 |
$30,000 |
3/ |
Furniture and Equipment - Office |
$15,000 |
$5,000 |
$10,000 |
3/ |
Miscellaneous Tools and Equipment |
$15,000 |
$5,000 |
$10,000 |
3/ |
Total Simi Valley CSA |
$1,507,000 |
$690,000 |
$949,000 |
Notes
1. |
The Parties reviewed the scope of work, including historical costs and contractors' estimates, and agreed to SCWC's estimate. |
2. |
The Parties reviewed the scope of work, including historical costs and contractors' estimates, and agreed to RRB's estimate. |
3. |
The Parties reviewed the scope of work, including historical costs and contractors' estimates, and agreed to an amount between the two estimates. |
4. |
The Parties reviewed the costs of new vehicles and agreed on the following schedule: (a) $25,000 for a superintendents' vehicle and a ½ ton truck, (b) $30,000 for a 3/4 ton truck, and (c) $35,000 for a 1 ton truck. |
5. |
Vehicle is moved to 2002 |
6. |
This matter is deferred to Application 99-03-064 |
7. |
The Parties agree that SCWC will demolish both tanks, grade the site for two tanks, and replace one tank at .5 MG. The second tank, if needed, would be requested in a future case. |
(Notes Continued) | |
8. |
The Parties agree that $90 per linear foot, including overhead, for purchase and installation of 8-inch, Ductile Iron Pipe is reasonable. |
9. |
This booster is required as a result of low pressure in the Evergreen Zone due to the loss of 3 wells from high levels of nitrate. |
10. |
The Parties agree that SCWC's expenditures for conservation are reasonable. |
3.00 Sales
3.01 Customers (Connections) -- SCWC and RRB used a variety of methodologies to estimate each class within each CSA. The Parties agree to use RRB's estimates in each area of disagreement.
1. Arden |
Bay | |||
Class |
2001 |
2002 |
2001 |
2002 |
Commercial |
2,219 |
2326 |
4916 |
4960 |
Industrial |
0 |
0 |
7 |
7 |
Public Auth. |
32 |
32 |
23 |
23 |
Irrigation |
95 |
99 |
4 |
4 |
Contract |
0 |
0 |
0 |
0 |
Other |
0 |
0 |
0 |
0 |
Private Fire |
491 |
516 |
16 |
16 |
Flat rate - Comm. |
11,279 |
11,279 |
0 |
0 |
Total |
14,116 |
14,252 |
4,966 |
5,010 |
2. Clearlake |
Los Osos | |||
Class |
2001 |
2002 |
2001 |
2002 |
Commercial |
2,121 |
2,147 |
3,144 |
3,168 |
Industrial |
0 |
0 |
0 |
0 |
Public Auth. |
3 |
3 |
9 |
9 |
Irrigation |
0 |
0 |
0 |
0 |
Contract |
0 |
0 |
0 |
0 |
Other |
0 |
0 |
4 |
4 |
Private Fire |
3 |
3 |
13 |
13 |
Total |
2,127 |
2,153 |
3,170 |
3,194 |
3. Ojai |
Santa Maria | |||
Class |
2001 |
2002 |
2001 |
2002 |
Commercial |
2715 |
2715 |
12,859 |
12,984 |
Industrial |
0 |
0 |
6 |
6 |
Public Auth. |
20 |
20 |
14 |
14 |
Irrigation |
4 |
4 |
10 |
10 |
Contract |
14 |
14 |
0 |
0 |
Other |
0 |
0 |
1 |
1 |
Private Fire |
25 |
25 |
29 |
30 |
Total |
2778 |
2778 |
12,919 |
13,045 |
4. Simi Valley |
||||
Class |
2001 |
2002 |
||
Commercial |
12,593 |
12,720 |
||
Industrial |
3 |
3 |
||
Public Auth. |
118 |
118 |
||
Irrigation |
0 |
0 |
||
Contract |
0 |
0 |
||
Other |
8 |
8 |
||
Private Fire |
105 |
105 |
||
Total |
12,827 |
12,954 |
||
D.
3.02 Sales per Customer -- SCWC and RRB used a variety of methodologies to estimate each class. The Parties agree to use RRB's estimates except for commercial customers in Arden-Cordova and Los Osos where sales per customer of 1,394.5 and 176, respectively, were used.
Class |
Arden |
Bay Point |
Clearlake |
Los Osos |
Commercial |
1,394.5 |
191.6 |
73.5 |
176 |
Industrial |
0 |
14,980.3 |
0 |
0 |
Public Auth. |
5,829.4 |
2,490.8 |
75.4 |
2,117 |
Irrigation |
1,181.4 |
2,596.2 |
128.2 |
0 |
Contract |
0 |
0 |
0 |
0 |
Other |
137 |
1,922.8 |
0 |
715 |
Flat Rate - Comm. |
331.4 |
0 |
0 |
0 |
Private Fire |
0 |
0 |
0 |
0 |
Class |
Ojai |
Santa Maria |
Simi Valley |
|
Commercial |
831.3 |
299 |
239.3 |
|
Industrial |
0 |
115 |
1,394 |
|
Public Auth. |
24.2 |
8,374 |
2,195.2 |
|
Irrigation |
43.5 |
908 |
0 |
|
Contract |
10.5 |
0 |
0 |
|
Other |
0 |
1,672.4 |
563.7 |
|
Private Fire |
0 |
0 |
0 |
4.00 Labor
4.01 Total Labor -- SCWC's forecast for total labor was based on its current organizational structure, actual payroll, using twelve months' recorded ratios of expense to capital. Added to this base was inflation, overtime, increases for merit, and overhead to account for the clearing of miscellaneous tools to derive the forecast for the Test Years. RRB began with the same base, reduced the Region's labor by 6 positions, applied an average of four year's ratio of expense to capital, reduced overtime, removed the increase for merit, and removed the clearing for tools.
To resolve the differences, the Parties agree on the following methodology: remove the salary of the Business Development Manager, remove half of the salary of the Special Project Coordinator, use the four year's average ratios of expense, use inflation as contained in this Settlement or the latest inflation as of October 1, 2000, provided by the Office of Ratepayer Advocates (ORA), use overtime of 2.96%, include 1.8% for clearing of tools, use a cumulative adjustment of 0.92% per year for equity, or equivalent.
In order to recover that portion of the expensed labor reduced by using the average ratios rather than the recorded ratios, the Parties agree that $288,479 for 2001 and $298,057 for 2002 should be recovered through capital:
(000s)
District |
2001 |
2002 |
Arden-Cordova |
46.5 |
1.5 |
Bay Point |
53.4 |
1.8 |
Clearlake |
19.5 |
0.6 |
Los Osos |
27.3 |
0.9 |
Ojai |
81.3 |
2.7 |
Santa Maria |
41.6 |
1.4 |
Simi Valley |
18.9 |
0.6 |
Total * |
288.5 |
9.6 |
* For 2002 only the incremental amount should be added to capital.
5.00 Administrative and General Expenses
5.01 Supplies -- To estimate expenditures for Office Supplies, SCWC used a zero-based budget, while RRB averaged five years of recorded expenses and applied non-labor inflation. In most cases, RRB's estimate was lower than 1999's recorded numbers, and in three CSAs RRB's estimate was lower than the prior two year's recorded number. Costs associated with new leased telephone lines and data lines were not included in the RRB's average. The Parties agree to the following estimates for 2001:
2001 ($000s)
CSA |
SCWC |
RRB |
Stipulated |
Arden-Cordova |
187.8 |
122.7 |
140 |
Bay Point |
98.1 |
65.6 |
82 |
Clearlake |
67.9 |
44.1 |
57 |
Los Osos |
52.3 |
41.4 |
47 |
Ojai |
44.7 |
26.5 |
36.5 |
Santa Maria |
158.5 |
107.7 |
112 |
Simi Valley |
150.2 |
86.3 |
105 |
5.02 Meals -- To estimate expenditures for Business Meals, SCWC used a zero-based budget, while RRB averaged five years of recorded expenses and applied non-labor inflation:
2001 ($000s)
CSA |
SCWC |
RRB |
Stipulated |
Arden-Cordova |
7.2 |
3.5 |
5.4 |
Bay Point |
2.6 |
1.9 |
2.3 |
Clearlake |
0.6 |
0.6 |
0.6 |
Los Osos |
1.0 |
0.7 |
0.9 |
Ojai |
0.8 |
0.8 |
0.8 |
Santa Maria |
4.7 |
3.0 |
3.9 |
Simi Valley |
5.7 |
2.8 |
4.3 |
5.03 Allocated Expense of General Office and Common Customer Accounts - SCWC allocated the General Office Expense and Common Customer Accounts to each CSA based on the latest authorized "Revised Four-Factor." RRB used a modified "Revised Four-Factor" which included additional customers from SCWC's anticipated acquisition of the Chaparral and Peerless Systems. The Parties agree to use the authorized "Revised Four-Factor" from D. 98-12-070, but SCWC will make an adjustment of $43,000 to Allocated General Office Expense to account for additional customers:
2001 ($000s)
Allocated General Office (Account 79910)
CSA |
SCWC |
RRB |
Stipulated |
Arden-Cordova |
986.6 |
885.2 |
972.19 |
Bay Point |
245.8 |
220.5 |
242.20 |
Clearlake |
80.8 |
72.5 |
79.60 |
Los Osos |
146.1 |
131.1 |
143.96 |
Ojai |
219.8 |
183.5 |
201.8 |
Santa Maria |
596.4 |
535.1 |
587.71 |
Simi Valley |
677.2 |
607.2 |
667.33 |
2001 ($000s)
Common Customer Account (Account 77300)
CSA |
SCWC |
RRB |
Stipulated |
Arden-Cordova |
171.3 |
154.2 |
171.4 |
Bay Point |
42.7 |
38.4 |
42.7 |
Clearlake |
14.0 |
12.6 |
14.0 |
Los Osos |
25.4 |
22.8 |
25.4 |
Ojai |
35.7 |
32.0 |
35.6 |
Santa Maria |
103.5 |
93.2 |
103.6 |
Simi Valley |
117.6 |
105.8 |
117.6 |
5.04 Other Maintenance of General Plant -- To estimate expenditures for Other Maintenance of General Plant, SCWC used a zero-based budget, while RRB averaged five years of recorded expenses and applied non-labor inflation. Where differences exist, the Parties agree to use RRB's estimate for all CSAs except for Bay Point, where an average of four years was used:
2001 ($000s)
CSA |
SCWC |
RRB |
Stipulated |
Arden-Cordova |
29.5 |
15.3 |
15.3 |
Bay Point |
17.8 |
19.8 |
23.6 |
Clearlake |
3.7 |
3.5 |
3.5 |
Los Osos |
8.4 |
3.6 |
3.6 |
Ojai |
5.7 |
5.7 |
5.7 |
Santa Maria |
16.5 |
6.6 |
6.6 |
Simi Valley |
18.7 |
6.4 |
6.4 |
5.05 Rent -- To estimate Rent, SCWC used a zero-based budget plus allocated expenses from Region and District. RRB also used a zero-based budget, but excluded 25 percent of Regional Rent. The Parties agree to the following estimates for 2001:
2001 ($000s)
CSA |
SCWC |
RRB |
Stipulated |
Arden-Cordova |
77.6 |
66.7 |
71.5 |
Bay Point |
33.0 |
30.0 |
31.6 |
Clearlake |
13.4 |
12.3 |
12.9 |
Los Osos |
5.9 |
4.4 |
4.9 |
Ojai |
30.2 |
24.4 |
30.2 |
Santa Maria |
50.4 |
43.7 |
46.0 |
Simi Valley |
44.5 |
37.3 |
39.9 |
Total |
255 |
218.8 |
237.0 |
5.06 Administrative and General Expenses Capitalized - SCWC erroneously included negative numbers for 1998 and 1999 rather than zeros. These numbers were included as a component of the allocation of the General Office but should not have been included at those levels. RRB used these numbers to make a negative forecast. RRB had an auditor on site who audited SCWC's relevant accounts and concluded that they should have been zero. The Parties agree to the following estimates for 2001:
2001 ($000s)
CSA |
SCWC |
RRB |
Stipulated |
Arden-Cordova |
0 |
-15.8 |
0 |
Bay Point |
0 |
-4.1 |
0 |
Clearlake |
0 |
-1.5 |
0 |
Los Osos |
0 |
-2.5 |
0 |
Ojai |
0 |
0 |
0 |
Santa Maria |
0 |
-10.1 |
0 |
Simi Valley |
0 |
-11.3 |
0 |
6.00 Operations and Maintenance
6.01 Leased Water Rights - In its Report on the Arden-Cordova CSA, RRB raised an issue with respect to SCWC's agreement with the City of Folsom in 1994 for the lease of water rights. Upon further exchange of information and discussion, the Parties agree to defer this issue to a proceeding to begin in early 2001.
6.02 All Other Maintenance - SCWC forecasted All Other Maintenance by first subtracting all Maintenance Work Orders (MWOs) from historical expenses, which were then converted to constant dollars for 1999. Next, four years of constant dollars were averaged and inflated to the Test Years using ORA's factors. Specifically identified MWOs planned for the Test Years were then added. RRB used a similar methodology using five years of historical data but without removing or adding MWOs. The Parties agree to use RRB's average for Bay Point, Clearlake, and Los Osos. The Parties also agree to use RRB's five year average as a base while adding specific MWOs for Arden-Cordova, Santa Maria, and Simi Valley. Ojai was not in dispute. The Parties agree to the following amounts:
2001 ($000s)
CSA |
SCWC |
RRB |
Stipulated |
Arden-Cordova |
195.2 |
73.1 |
113.0 |
Bay Point |
99.8 |
112.1 |
112.1 |
Clearlake |
30.0 |
41.9 |
42.0 |
Los Osos |
121.4 |
72.2 |
72.2 |
Ojai |
111.7 |
111.7 |
111.7 |
Santa Maria |
250.6 |
133.2 |
198.2 |
Simi Valley |
123.1 |
58.9 |
83.8 |
7.00 Supply
7.01 Sources -- A combination of historical usage, expected developments, and constraints on systems were analyzed to determine the level of production from wells and surface water. Any additional requirement will be calculated using the composite supply mix ratios adopted in this proceeding. On this basis, the Parties agree to the following volumes for 2001 and 2002:
2001 (Ccf)
District |
Well |
Surface |
Purchased |
Total |
Arden-Cordova |
6,461,400 |
899,300 |
7,360,600 | |
Bay Point |
77,200 |
1,138,600 |
1,215,800 | |
Clearlake |
58,300 |
135,400 |
193,800 | |
Los Osos |
640,700 |
640,700 | ||
Ojai |
989,700 | |||
Santa Maria |
4,419,400 |
4,419,400 | ||
Simi Valley |
297,100 |
3,046,800 |
3,343,900 |
2002 (Ccf)
District |
Well |
Surface |
Purchased |
Total |
Arden-Cordova |
6,620,300 |
899,300 |
7,519,500 | |
Bay Point |
77,800 |
1,147,200 |
1,225,000 | |
E. Clearlake |
58,300 |
137,800 |
196,100 | |
Los Osos |
645,400 |
645,400 | ||
Ojai |
989,700 | |||
Santa Maria |
4,461,000 |
4,461,000 | ||
Simi Valley |
297,100 |
3,077,800 |
3,374,900 |
7.02 Purchased Water - The differences between SCWC's forecast and RRB's forecast of expenses associated with purchased water are attributable to differences in the Parties' projection of sales and RRB's exclusion of service charges in Bay Point and Simi Valley. The Parties agree to the following expenses for purchased water:
2001 ($)
District |
SCWC |
RRB |
Stipulated |
Arden-Cordova |
0 |
0 |
0 |
Bay Point |
1,414,200 |
1,087,700 |
1,475,400 |
Clearlake |
11,100 |
11,300 |
11,300 |
Los Osos |
0 |
0 |
0 |
Ojai |
171,600 |
80,600 |
135,000 |
Santa Maria |
0 |
0 |
0 |
Simi Valley |
3,745,200 |
3,448,000 |
3,752,700 |
2002 ($)
District |
SCWC |
RRB |
Stipulated |
Arden-Cordova |
0 |
0 |
0 |
Bay Point |
1,413,800 |
1,096,000 |
1,484,600 |
Clearlake |
11,100 |
11,400 |
11,400 |
Los Osos |
0 |
0 |
0 |
Ojai |
171,600 |
80,600 |
135,000 |
Santa Maria |
0 |
0 |
0 |
Simi Valley |
3,736,200 |
3,479,900 |
3,787,900 |
7.03 Purchased Energy - The differences between SCWC's forecast and RRB's forecast of purchased energy are attributable to differences in the Parties' projection of sales. The Parties agree to the following expenses for purchased energy:
2001 ($)
District |
SCWC |
RRB |
Stipulated |
Arden-Cordova |
522,200 |
620,000 |
567,200 |
Bay Point |
110,000 |
107,800 |
107,800 |
Clearlake |
43,500 |
44,500 |
44,000 |
Los Osos |
105,800 |
116,800 |
115,100 |
Ojai |
172,200 |
112,600 |
146,000 |
Santa Maria |
917,200 |
992,400 |
943,300 |
Simi Valley |
190,700 |
168,200 |
166,900 |
2002 ($)
District |
SCWC |
RRB |
Stipulated |
Arden-Cordova |
520,500 |
637,700 |
577,900 |
Bay Point |
109,900 |
108,500 |
108,500 |
Clearlake |
43,500 |
44,900 |
44,400 |
Los Osos |
103,200 |
112,000 |
115,800 |
Ojai |
172,200 |
112,600 |
146,000 |
Santa Maria |
921,700 |
997,100 |
950,400 |
Simi Valley |
190,400 |
166,200 |
168,000 |
7.04 Chemicals -- The Parties agree to estimate chemical costs for the Test Years based on recorded numbers for 1999, inflated with the latest available weighted non-labor inflation, using the stipulated sales:
2001 ($)
District |
SCWC |
RRB |
Stipulated |
Arden-Cordova |
80,000 |
71,900 |
64,800 |
Bay Point |
95,000 |
83,900 |
86,400 |
Clearlake |
26,000 |
15,000 |
14,900 |
Los Osos |
19,400 |
16,300 |
16,500 |
Ojai |
7,600 |
7,600 |
7,600 |
Santa Maria |
34,300 |
23,200 |
23,900 |
Simi Valley |
6,000 |
4,100 |
4,000 |
2002 ($)
District |
SCWC |
RRB |
Stipulated |
Arden-Cordova |
85,000 |
74,600 |
68,000 |
Bay Point |
100,000 |
85,800 |
89,200 |
Clearlake |
27000 |
15,400 |
15,400 |
Los Osos |
20,000 |
16,600 |
17,000 |
Ojai |
7,800 |
7,800 |
7,800 |
Santa Maria |
35,300 |
23,700 |
24,700 |
Simi Valley |
6,200 |
4,200 |
4,100 |
7.05 Unaccounted Water and Water Used in Operation -- SCWC used the recorded percentage of unaccounted water for 12 months ending September, 1999. RRB used an average of recorded amounts for 1995 through 1999 to derive its estimate. The Parties agree to the following estimates for 2001 and 2002:
CSA |
SCWC |
RRB |
Stipulated |
Arden-Cordova |
4.93% |
3.22% |
3.22% |
Bay Point |
8.71% |
8.34% |
8.34% |
Clearlake |
19.43% |
19.43% |
19.43% |
Los Osos |
12.26% |
10.21% |
10.21% |
Ojai |
8.10% |
8.10% |
8.10% |
Santa Maria |
11.36% |
10.09% |
10.09% |
Simi Valley |
2.71% |
1.91% |
1.91% |
8.00 Common Issues
8.01 Rate of Return -- The Parties agree on a rate of return of 8.94% for 2001, 2002, and 2003. The table below shows the filed position of each Party and the stipulated rate of return:
SCWC RRB Stipulated
2000 9.83 8.27 8.94
2001 9.83 8.29 8.94
2002 9.83 8.32 8.94
8.02 Inflation -- The Parties agree that the adopted inflation contained in this Settlement should be used for the Commission's decision in these applications. The Parties agree that SCWC may update inflation to the latest available as of October 1, 2000.
8.03 Rates Charged for Purchased Water and Purchased Power -- The Parties agree that the rates shown in Appendix B should be used to calculate the expenses of supply in the final decision.
8.04 Balancing Accounts -- The Parties agree that the Supply Cost Balancing Accounts for the Arden-Cordova, Bay Point, Clearlake, Los Osos, Ojai, Santa Maria, and Simi Valley CSAs should be reviewed for amortization through September 30, 2000. The Parties also agree to the continuation of those accounts. SCWC shall file within 90 days an Advice Letter or Advice Letters, as necessary, to request amortization of the existing balances in the Legal Fees and Water Quality Memorandum Accounts authorized by Resolution Nos. W-4181 and W-4094.
8.05 Established Factors -- Established Factors should be split 60/40 between 1) the Non-Labor Index and 2) the Compensation Per Hour Index (both of which are published in a memo from ORA's Monopoly Regulation Branch to the Water Division on a monthly basis).
8.06 Audit - RRB and SCWC request that an auditor be used by RRB in its review of SCWC's next application for a general increase of rates involving any CSA in Region I.
8.07 Other Maintenance - SCWC is committed to performing all maintenance required in each CSA in Region I.
9.00 Summary of Results of Settlement (Without Regionalization)
9.01 Arden - Cordova - Pursuant to this Settlement, revenues will increase in the Arden - Cordova CSA by $893,200 (15.54%) in 2001, $20,600 (0.30%) in 2002, and $20,100 (0.30%) in 2003.
Metered Service - A typical metered customer with a 1" meter and using 29 Ccf of water per month will see an increase of $5.91 (25.71%) for a total bill of $28.87 per month in 2001, a further increase of $0.14 (0.49%) for a total bill of $29.02 per month in 2002, and a further increase of $0.10 (0.34%) for a total bill of $29.12 in 2003.
Flat Rate Customer - Each customer paying a flat rate will see an increase of $3.65 (15.27%) for a total bill of $27.55 per month in 2001, a further increase of $0.10 (0.36%) for a total bill of $27.65 per month in 2002, and a further increase of $0.10 (0.36%) for a total bill of $27.75 in 2003.
9.02 Bay Point - Pursuant to this Settlement, revenues will increase in the Bay Point CSA by $481,700 (11.40%) in 2001, $24,000 (0.51%) in 2002, and $23,800 (0.50%) in 2003. A typical customer with a 5/8" by ¾" meter and using 15 Ccf of water per month will see an increase of $6.07 (10.47%) for a total bill of $64.05 per month in 2001, a decrease of $0.32 (-0.53%) for a total bill of $63.71 per month in 2002, and an increase of $0.33 (0.52%) for a total bill of $64.04 in 2003.
9.03 Clearlake - Pursuant to this Settlement, revenues will increase in the Clearlake CSA by $130,900 (11.11%) in 2001, $33,500 (2.53%) in 2002, and $33,600 (2.47%) in 2003. A typical customer with a 5/8" by ¾" meter and using 6 Ccf of water per month will see an increase of $5.01 (10.95%) for a total bill of $50.75 per month in 2001, a further increase of $1.19 (2.34%) for a total bill of $51.93 per month in 2002, and a further increase of $1.19 (2.29%) for a total bill of $53.12 in 2003.
9.04 Los Osos - Pursuant to this Settlement, revenues will increase in the Los Osos CSA by $34,200 (1.87%) in 2001, $76,800 (4.10%) in 2002, and $76,700 (3.93%) in 2003. A typical customer with a 5/8" by ¾" meter and using 13 Ccf of water per month will see an increase of $0.11 (0.27%) for a total bill of $41.42 per month in 2001, a further increase of $0.91 (2.19%) for a total bill of $42.33 per month in 2002, and a further increase of $0.91 (2.15%) for a total bill of $43.24 in 2003.
9.05 Ojai - Pursuant to this Settlement, revenues will decrease in the Ojai CSA by $42,800 (-1.83%) in 2001, increase by $109,300 (4.66%) in 2002, and increase by $60,200 (2.45%) in 2003. A typical customer with a 5/8" by ¾" meter and using 26 Ccf of water per month will see a decrease of $-2.80 (-4.83%) for a total bill of $55.27 per month in 2001, an increase of $1.18 (1.18%) for a total bill of $56.45 per month in 2002, and a further increase of $1.24 (2.20%) for a total bill of $57.69 in 2003.
9.06 Santa Maria - Pursuant to this Settlement, revenues will increase in the Santa Maria CSA by $901,400 (18.23%) in 2001, $82,600 (1.40%) in 2002, and $82,500 (1.36%) in 2003. A typical customer with a 5/8" by ¾" meter and using 24 Ccf of water per month will see an increase of $5.52 (19.16%) for a total bill of $34.32 per month in 2001, a further increase of $0.03 (0.08%) for a total bill of $34.35 per month in 2002, and a further increase of $0.03 (0.08%) for a total bill of $34.37 in 2003.
9.07 Simi Valley - Pursuant to this Settlement, revenues will increase in the Simi Valley CSA by $82,900 (1.08%) in 2001, $109,100 (1.40%) in 2002, and $109,200 (1.39%) in 2003. A typical customer with a 5/8" by ¾" meter and using 20 Ccf of water per month will see an increase of $0.39 (0.88%) for a total bill of $44.85 per month in 2001, a further increase of $0.61 (1.36%) for a total bill of $45.46 per month in 2002, and a further increase of $0.64 (1.41%) for a total bill of $46.10 in 2003.
Dated: October __, 2000 Dated: October ___, 2000
__________________________ __________________________
SUNG B. HAN ROLAND S. TANNER
Ratepayer Representation Branch Manager of Regulatory Affairs
California Public Utilities Commission Southern California Water Company
505 Van Ness Avenue 630 East Foothill Boulevard
San Francisco, CA 94102 San Dimas, CA 91773
(415) 703-1578 (909) 394-3600
(END OF APPENDIX B)
